Syrians optimistic yet cautious as US sanctions removal sparks economic hopes

Syrians are expressing cautious optimism following the announcement on July 11, 2026, by US President Donald Trump that Syria will be removed from the state sponsor of terrorism list. This decision is seen as a potential turning point for the country’s economy, which has suffered under decades of sanctions, particularly during the rule of the al-Assad family.

Impact of Sanctions on Syria's Economy

The al-Assad regime, which lasted from 1971 to 2024, left a deep economic scar on Syria. Sanctions imposed by the United States and other nations have severely limited Syria's access to international markets. According to the World Bank, these sanctions have led to a significant collapse in exports and a growing trade deficit since 2011.

Despite the fall of Bashar al-Assad in December 2024, the removal of sanctions linked to the “state sponsor of terrorism” designation is crucial. Ihab, a pastry shop owner in Damascus, stated, “God willing, it will improve things,” reflecting the hope among many Syrians for economic revival.

Reintegration Efforts Post-Assad

The new interim President, Ahmed al-Sharaa, has identified the lifting of international sanctions as essential for revitalizing the economy. Al-Sharaa, previously associated with the al-Qaeda-aligned Nusra Front, has undertaken efforts to distance himself from this past and has received support from international entities, including the European Union.

However, the US sanctions related to the state sponsor designation remain as the last major barrier to foreign investment. Rob Geist Pinfold from King’s College London noted, “This is extremely significant because it’s the last major impediment to international economic and political engagement with Syria.”

Challenges Ahead for Syria

While the removal of the designation is a positive step, experts caution that it does not guarantee an immediate influx of investment. Concerns about the government’s stability, bureaucratic hurdles, and corruption persist. A minimarket owner in Damascus remarked, “This needs a long breath. You can’t sleep and wake up and expect change.”

• Sanctions imposed since 2011 have collapsed exports.
• Trade deficit has significantly increased.
• Al-Sharaa is working to shed past associations with terrorism.

Despite skepticism, some Syrians remain hopeful. Zaher, a juice vendor in central Damascus, expressed optimism about gradual improvements, stating, “Electricity is getting better, but nothing gets better after just one day.”