The United States has formally removed Syria from its State Sponsors of Terrorism list, ending a designation that had remained in place since 1979. US Secretary of State Marco Rubio said the decision reflected steps by the Syrian government to distance itself from international terrorism. The move removes a major layer of US restrictions affecting foreign assistance, defense exports and economic engagement with Syria. It comes amid a broader shift in Washington’s relationship with President Ahmed al-Sharaa and Syria’s transitional administration, potentially creating greater scope for private investment and economic recovery.
US Removes Syria From State Sponsors of Terrorism List After 47 Years, Signalling New Economic Opening
The United States has formally removed Syria from its list of state sponsors of terrorism, ending a designation that lasted nearly five decades and opened the door to more investment and economic engagement.
The US decision to remove Syria from its list of state sponsors of terrorism represents a major shift in Washington’s approach toward Damascus, with officials hailing the move as a step in the direction of economic recovery.
The US Secretary of State Marco Rubio said the move acknowledged steps taken by the Syrian government to distance itself from activities and organizations of international terrorism fully.
The designation, in place since 1979, imposed extensive sanctions, restrictions on foreign assistance, defense exports and limits on countries and businesses engaging with Syria.
The withdrawal of the designation removes what US officials called the final major obstacles to private sector investment and Syria’s broader re-integration into the global economy.
The shift comes months after the Trump administration has been engaged in policy adjustments and has been increasingly interacting with Syrian President Ahmed al-Sharaa and members of his transitional administration.
Ahmed al-Sharaa and Syria's Changing Relationship With Washington
The current Syrian president, Ahmed al-Sharaa, led Hayat Tahrir al-Sham (HTS), an Islamist group that evolved from the previous al-Qaeda affiliate in Syria, the al-Nusra Front.
HTS formally broke with al-Qaeda in 2016, when Ahmed al-Sharaa announced a break with the jihadist network, in an attempt to reposition the group within Syria’s opposition landscape.
Hayat Tahrir al-Sham was prominently involved in the rebel offensive that ousted former Syrian president Bashar al-Assad and radically altered the country’s political structure and leadership in late 2024.
The organization is now a dominant force in the transitional administration of Syria, with Ahmed al-Sharaa becoming the key figure in the efforts to reconstruct state institutions.
The Trump administration had earlier revoked the Foreign Terrorist Organization designation applied to Hayat Tahrir al-Sham and removed Ahmed al-Sharaa from its Specially Designated Global Terrorists list.
US officials said the measures were aimed at encouraging political engagement and supporting efforts to stabilize Syria after years of conflict and economic hardship.
The latest move is among the biggest shifts in US-Syria relations since the civil war erupted more than a decade ago, Sprouts News reported.
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Economic Prospects and Regional Challenges Remain
The move would help to encourage further investment opportunities in Syria while strengthening political and economic stability across the country, US Treasury Secretary Scott Bessent said.
More investment, Scott Bessent said, could help repair damaged infrastructure, create economic opportunities and restore confidence among international businesses and financial institutions.
Syria’s state-run news agency SANA reported that Syrian Foreign Minister Asaad Hassan al-Shaibani welcomed the announcement as a historic step for the country.
Syria will continue to work to get rid of the effects of international isolation, while promoting transparency, mutual interests and respectful cooperation with foreign partners, Asaad Hassan al-Shaibani said.
The diplomatic breakthrough has been welcomed, but analysts say Syria still faces major challenges, including security issues, political uncertainty and questions over representative governance structures.
The country is also at the heart of simmering regional tensions with neighbors Israel and Turkey, factors that could impact future stability and investor confidence.
Syria has been removed from the list of state sponsors of terrorism, leaving only Cuba, North Korea and Iran on the current US list.
While the decision opens up new economic opportunities, its long-term impact will depend on security conditions, governance reforms and Syria’s ability to attract ongoing international investment in the coming years.
