Washington: The United States has formally removed Syria from its list of state sponsors of terrorism, ending a designation that had remained in place since 1979 and marking a major change in Washington's relationship with Damascus.
The decision, announced on August 24, comes after months of diplomatic efforts and a formal review by the US Congress. It represents another major step in the effort to bring Syria back into the international economic and financial system following the fall of Bashar al Assad's government in December 2024.
The change is expected to have important consequences for Syria, a country that has suffered years of war, economic collapse and widespread destruction. Syrian officials have welcomed the decision, saying it could help attract foreign investment and make it easier for the country to rebuild its damaged infrastructure.
The state sponsor designation had placed Syria under several restrictions involving US foreign assistance, defence exports and certain financial transactions. Removing the designation means those specific restrictions connected to the terrorism list will no longer apply.
For ordinary Syrians, however, the impact may not be immediate. The country still faces enormous economic and political challenges, and the removal of the designation does not mean that every US restriction or sanction connected to Syria has disappeared.
The decision is nevertheless being viewed as an important opening for international businesses and financial institutions. Syrian officials hope that banks, investors and companies will now find it easier to consider doing business with the country.
There are already signs of growing interest from international financial institutions. The possibility of greater access to international banking could be particularly important for Syria because years of conflict have severely damaged its economy and made international financial transactions difficult.
The US decision also includes another significant development. Washington has revoked the designation of Al Nusrah Front, also known as Hayat Tahrir al Sham, as a specially designated global terrorist organisation. The group was led by Ahmed al Sharaa, who is now Syria's president.
Al Sharaa and his government have been trying to establish relations with Western and regional powers since taking control after Assad's fall. His government's efforts to distance itself from international terrorism have been an important part of the changing US approach.
US Secretary of State Marco Rubio said the decision recognised efforts by the Syrian government to move away from terrorism and support a more stable future for the country.
The decision follows a major shift in American policy. In July, President Donald Trump informed al Sharaa that Washington intended to remove Syria from the terrorism sponsor list. That announcement came after the two leaders met during a NATO summit in Turkey.
The formal removal followed the required congressional review period.
The development also has wider regional implications. Turkey and several Arab countries have a strong interest in Syria's economic recovery. A more open Syrian economy could encourage trade, investment and reconstruction projects across the region.
Syria is also trying to balance relations with several major powers. The country has historically maintained close ties with Russia and Iran, while the new government is seeking stronger relations with the United States, Turkey and Arab states.
The US decision therefore has a significance that goes beyond economic sanctions. It signals that Washington is prepared to work with the new Syrian leadership rather than continue the isolation that characterised its relationship with the Assad government.
Still, major obstacles remain.
Syria needs huge amounts of investment to repair roads, electricity networks, hospitals, homes and other infrastructure damaged during the long conflict. Political instability, security concerns and uncertainty about the country's future institutions could continue to make foreign investors cautious.
Syria also faces tensions with Israel. Syrian and Israeli officials recently held US mediated talks in Jordan aimed at reducing tensions and discussing security arrangements in southern Syria. These talks underline the wider security challenges facing the new government.
For Syria, the removal from the US terrorism list is therefore best understood as a beginning rather than an immediate solution.
After decades of isolation, Damascus now has a greater opportunity to reconnect with the global economy. Whether that opportunity leads to sustained growth will depend on the Syrian government's ability to maintain security, build stable institutions and convince international investors that the country is ready for long term reconstruction.
The decision marks one of the clearest signs yet that Syria's position in the Middle East is changing. A country that spent decades under international pressure is now being given a path toward greater diplomatic and economic engagement.
For millions of Syrians, the hope is that this new relationship with Washington will eventually translate into jobs, investment, better public services and a more stable future.
The road ahead remains difficult, but the removal of the terrorism designation has opened a door that had been closed for nearly half a century.