Damascus, Syria – For many Syrians, the fall of Bashar al-Assad in December 2024 raised hopes of a new beginning. But one of the most enduring legacies of his family's rule has been economic isolation, driven by US-led sanctions that have frozen Syria out of the global financial system.
Despite the regime change, many sanctions remained — including the designation of Syria as a "state sponsor of terrorism." That label has impeded the country's reintegration into the international community, forcing Syrians abroad to route remittances through neighboring countries and requiring citizens to use VPNs to access basic online services.
Now, US President Donald Trump's announcement on Wednesday that his administration will remove Syria from the terror list has sparked cautious optimism.
"God willing, it will improve things," said Ihab, a pastry shop owner in central Damascus.
The Last Major Hurdle
US sanctions have been a huge barrier to foreign investors since the Assad era. The World Bank notes that since 2011, sanctions triggered a major collapse in exports and a widening trade deficit.
Interim President Ahmed al-Sharaa's administration has identified the removal of all international and US sanctions as the key to revitalizing the economy. Al-Sharaa, once sanctioned by the UN and wanted by the US for his past ties to al-Qaeda, has worked to shed those associations by pledging to fight ISIL (ISIS).
His efforts have largely succeeded: the EU and US have lifted many sanctions on Syria and on al-Sharaa himself. The state sponsor of terrorism designation was among the few remaining.
"This is extremely significant because it's the last major impediment to international economic and political engagement with Syria," said Rob Geist Pinfold, a lecturer on security studies at King's College London. He warned, however, that removal does not guarantee an immediate flood of investment.
"This is a big hurdle that's been overcome, but it doesn't mean there are no more hurdles," he added, citing concerns about government control, potential ISIL resurgence, bureaucratic red tape, and corruption.
A Long Breath
On the streets of Damascus, many are skeptical that change will come quickly.
"This needs a long breath," said a minimarket owner who declined to give his name. "You can't sleep and wake up and expect change." He pointed to ongoing economic problems, rising costs, and a recent fuel shortage. "There's no economy, and there's no investment."
Others are more hopeful but acknowledge patience is needed. At a juice stall, Zaher, 50, counted money from a customer. "I'm on the street with my cart and nobody is bothering me," he said. "Electricity is getting better, but nothing gets better after just one day. It took God Almighty six days to create Earth. These things take time."