Donald Trump has officially lifted US sanctions on Syria, a piece of news that will likely be hugely celebrated across the country.
But what does it mean for Syrian businesses trying to recover after years of war and global isolation? Let’s take a look.
A New US Policy
On the 13th May 2025, during an investment forum in Riyadh, Saudi Arabia, President Trump announced that he would lift many US sanctions against Syria.
The announcement came after months of lobbying from some of Syria’s allies, namely Saudi Arabia and Türkiye, and ahead of Trump’s meeting with Syria’s new President Ahmed al-Sharaa.
According to Reuters, speaking at the forum, Trump said: “I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness…It’s their time to shine…Good luck Syria, show us something very special.”
This marked the biggest change in US policy towards Syria in over a decade, with many encouraging the international community to rally around Syria’s reconstruction after the fall of President Bashar al-Assad’s regime in December 2024.
The lifting of sanctions will allow Syrian businesses to re-enter the global financial system, allowing them engage more in foreign trade and boosting the economy. But it also means powers like Iran and Russia have less of an influence on Syria, as the country can now work on standing on its own two feet.
This sentiment was echoed by U.S. Senator Jeanne Shaheen who told Reuters “It’s important for us to provide the opportunity to keep those countries moving in a way that continues to keep out Iran and Russia.”
Why Were Sanctions Imposed In The First Place?
There’s a long history of sanctions in the region, driven by the Assad regime. Syria has been in a civil war for over a decade, with hundreds of thousands of people dead and millions displaced.
Here’s a brief rundown of sanctions in Syria, according to Wikipedia.
1979: Syria was sanctioned for being a ‘State Sponsor of Terrorism’ after allegedly supporting groups like Hezbollah.
1986: European Community bans sale of new arms to Syria and high-level visits.
2004: New sanctions issued by the US government, which condemned its occupation of Lebanon and its support for groups like Hezbollah and Hamas.
2011: US, UK and EU imposed stricter sanctions that targeted Syrian assets, bans on oil exports and more. These were enforced to attack the Assad regime, pressuring him to stop the war.
2021: EU declared that sanctions would stay in place until a political transformation occurred in Syria.
And now, after the fall of Assad’s regime, it looks like that political transformation is here.
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What Sanctions Were Lifted?
On May 23rd, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 25, allowing businesses to engage in previously banned transactions with Syrian businesses.
US banks were also allowed to re-establish relationships with Syrian banks, further strengthening ties.
However, some limits do remain, and a lot of the conditions of the sanctions depend on how Syria behaves – especially against the backdrop of the current conflict in the Middle East.
In addition to this, arms and military tech sales are still restricted, in order to provide the US with some level of control over war in the region.
The EU and UK followed suit, with the EU lifting all economic sanctions in 28th May, apart from those linked to national security.
The UK also reduced sanctions and pledged £160 million in aid, helping local Syrians rebuild their lives. (BBC).
What Does This Mean For Syrian Businesses?
For many Syrians, this announcement comes after years of hardship. According to the UN, 90% of Syrians live below the poverty line, with the country’s GDP dropping by 84% since 2010 (Reuters).
For businesses, this announcement could mean:
- More trade with foreign companies.
- Cheaper imports, lowering prices.
- Ability to exchange currency more easily.
- Return of Syrians that fled due to war, driving consumer demand for local businesses.
A New Future For Syria?
Trump’s lifting of sanctions in Syria marks a turning point for the country, not just for its government, but for millions of people within the country.
But one thing is for sure – after years of war, many Syrians now have the opportunity to re-build their lives and thrive economically, which can only be a good thing.
