Doha: The rescission of Syria's designation as a State Sponsor of Terrorism marks a significant shift in the legal and economic environment surrounding the country and paves the way for a new phase of rebuilding international financial and banking relationships and expanding trade flows, remittance flows, and investment, Syrian economic officials and experts told Qatar News Agency (QNA).
According to Qatar News Agency, fully capitalizing on the decision requires banking, legislative, and financial overhauls, in addition to strengthening confidence in the Syrian economy and investment climate. Dr. Osama Al Qadi, Senior Adviser to Syria's Ministry of Economy and Industry, stated that the move would not result in an immediate influx of funds into Syrian banks but would remove barriers preventing transactions through the SWIFT system. This development is expected to make it easier for Oliver Wyman Financial to persuade companies and correspondent banks to conduct transactions with Syria.
Al Qadi anticipated that more Western, Arab, and Turkish banks would enter Syria by the end of this year and into the next, alongside advancements in electronic payment systems and banking services. He emphasized the importance of compliance with international banking regulations to build trust between Syrian and non-Syrian banks.
Syrian People's Assembly member Aqeel Hussein described the decision as a shift in Washington's perspective on its relationship with Syria, highlighting a significant change in the US viewpoint and priorities toward the country. He noted that the removal of sanctions would allow Syria to play a role in promoting stability and security in the Middle East.
From an economic standpoint, Dr. Ibrahim Nafeh Qushji, an economic and banking expert, said that the lifting of sanctions brings broad economic opportunities and challenges. Qushji explained that the removal of restrictions would impact foreign trade flows, financial transfers, and international interest in Syria's energy and services sectors. He noted the need for updated systems to combat money laundering and terrorist financing as a prerequisite for international banking integration.
Dr. Firas Shabo, Professor of Financial Management at Basaksehir University, remarked that the decision is part of a series of steps beginning in 2025, reducing the risks of doing business with Syria and removing legal barriers. He expected trade to respond quickly, with trade-financing costs gradually declining as correspondent banks become less cautious.
Shabo further noted that investment would not respond quickly, as investors require clarity in laws, judiciary strength, and monetary stability. He emphasized the need for laws combating money laundering, restructuring the banking sector, and strengthening its capacity for international settlements.
The forthcoming changes will be closely watched as Syria seeks to grow out of decades of sanctions and isolation and reconnect its economy with global commerce. The new phase is an outgrowth of measures taken since 2025, with success dependent on Syria's ability to turn decisions into concrete results. Sectors positioned to benefit could fare well as the economy opens up, attracts investment, and reintegrates into the global financial system.