The United States removed Syria from its list of state sponsors of terrorism on Monday, lifting what Damascus describes as the last major impediment to investing in the country as Washington deepens ties to the new Syrian government, reports BritPanorama.
The removal, posted on the U.S. Treasury’s website, took effect after a 45-day congressional review period triggered when President Donald Trump formally notified Congress on July 8 of his intention to rescind the designation.
“These actions were all taken in recognition of the positive actions taken and further commitments by the Syrian government under President Ahmed al-Sharaa to fully distance Syria from acts of international terrorism,” U.S. Secretary of State Marco Rubio stated.
Syrian Foreign Minister Asaad al-Shibani expressed hope that removing what he referred to as the “last obstacle” would help reconnect Syria to the global financial and economic system and boost investment. “There is no longer any obstacle to investment, doing business and rebuilding economic life in Syria,” he said.
Syria had been on the list since 1979, when Washington accused the government of former President Hafez al-Assad of supporting militant groups. The designation remained throughout the rule of his son Bashar al-Assad, who was toppled by rebels led by current President Ahmed al-Sharaa in December 2024.
Cuba, Iran, North Korea remain
Monday’s announcement also removed the designation of the Nusrah Front as a Specially Designated Global Terrorist organization, leaving Cuba, Iran, and North Korea as the three countries still designated by Washington as state sponsors of terrorism.
The designation carried restrictions on U.S. foreign assistance, defense exports and sales, certain dual-use items, and financial transactions, remaining a major deterrent for banks and investors even after the broader sanctions program on Syria was dismantled by Washington.
Trump’s administration terminated comprehensive U.S. sanctions on Syria in July 2025, while maintaining targeted sanctions against Assad and his associates, rights abusers, drug traffickers, Islamic State affiliates, as well as al-Qaeda affiliates and Iranian proxies.
The U.S. Treasury has since indicated that American financial institutions can provide services to Syria, process payments involving Syrian banks, and establish correspondent banking relationships, provided sanctioned parties are not involved.
However, the terrorism designation remained a source of legal and compliance risk for firms considering entering Syria, whose government seeks billions of dollars in investment to rebuild after nearly 14 years of war.
Signs of interest had grown ahead of the removal. Syria’s finance ministry indicated that Finance Minister Mohammad Yisr Barnieh had discussions with Bank of America executives over potential cooperation and Syria’s reintegration into the international financial system. Bank officials expressed willingness to visit Syria to continue talks, according to the ministry.
Mastercard has gone further, announcing in May that it was collaborating with QNB Group and Syria’s central bank to prepare infrastructure for international card payments in the country. The company has portrayed itself as an early investor in Syria, seeking to connect Syrian consumers and businesses to global payment networks.
Continued cooperation
Trump notified Congress of his decision after meeting Sharaa in Ankara in July, telling the Syrian president in a letter seen by Reuters that he had promised to “remove all barriers” preventing Syria from rebuilding.
The delisting followed months of negotiations between Damascus and Washington over Syria’s economic and foreign policy.
Reuters reported that Damascus agreed to drastically reduce imports of Russian oil during discussions with Washington over lifting the terrorism designation, according to three sources familiar with the talks.
Trump has increasingly embraced Sharaa, the former commander of al-Qaeda’s Nusra Front who severed ties with the global jihadist network in 2016 and led the rebel coalition that overthrew Assad.
Washington has commended the cooperation demonstrated by Sharaa’s government against Islamic State and emphasized that easing restrictions is intended to provide Syria with an opportunity to stabilize, attract investment, and rebuild.
