US removes Syria from state sponsors of terrorism list
Washington lifted Syria’s terrorism designation, a move Damascus says removes a major barrier to investment and economic reconstruction.
Damascus, Syria. The United States removed Syria from its list of state sponsors of terrorism on Monday, lifting a designation that Damascus described as the last major impediment to investment as Washington deepens ties with Syria’s new government.
Designation rescinded
The decision, posted on the United States Treasury’s website, took effect after a 45-day congressional review period. The review was triggered after President Donald Trump formally notified Congress on July 8 of his intention to rescind the designation.
United States Secretary of State Marco Rubio said the actions recognised positive steps and further commitments by the Syrian government under President Ahmed al-Sharaa to fully distance Syria from acts of international terrorism.
Investment and reconstruction
Syrian Foreign Minister Asaad al-Shibani told Reuters on Saturday that removing the designation would help reconnect Syria to the global financial and economic system and increase investment.
He said there was no longer an obstacle to investment, business activity and rebuilding economic life in Syria.
Syria is seeking billions of dollars in investment to rebuild after nearly 14 years of war. The terrorism designation had remained a source of legal and compliance risk for companies considering entering the country.
Sanctions framework
Syria had been listed as a state sponsor of terrorism since 1979, when Washington accused the government of former President Hafez al-Assad of supporting militant groups. The designation remained during the rule of his son, Bashar al-Assad, who was toppled by rebels led by Ahmed al-Sharaa in December 2024.
Monday’s announcement also removed the designation of the Nusrah Front as a Specially Designated Global Terrorist organisation. Cuba, Iran and North Korea remain the three countries designated by Washington as state sponsors of terrorism.
The designation carries restrictions on United States foreign assistance, defence exports and sales, certain dual-use items and financial transactions.
Trump’s administration ended comprehensive United States sanctions on Syria in July 2025 while retaining targeted sanctions against Assad and his associates, rights abusers, drug traffickers, Islamic State and al Qaeda affiliates, and Iranian proxies.
The United States Treasury has since said American financial institutions may provide services to Syria, process payments involving Syrian banks and establish correspondent banking relationships with them, provided sanctioned parties are not involved.
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