Economic Expert: Removal of Syria's Terrorism Designation Paves Way for Global Banks and Bank Accounts

A United States decision to remove Syria from its list of state sponsors of terrorism has taken effect, ending a designation that had been in place for 47 years, following a 45 day review period by the US Congress. Damascus welcomed the decision, with President Ahmad al Sharaa describing it as a historic step, while the Syrian Foreign Ministry said the move could support economic recovery efforts, create conditions for rebuilding, and reinforce stability.

Diplomatic Dimensions

Economic researcher Ibrahim Qaysoun told Al Ikhbariya that removing the designation carries significant moral and diplomatic weight, noting that it allows the United States to appoint an ambassador to Syria and opens the door for American companies to begin engaging with the Syrian market. He added that Syria remains, in his words, in a "gray zone", describing the decision as an important diplomatic step that follows an earlier pledge on the matter.

Impact on the Banking Sector

Qaysoun explained that lifting the designation opens the way for American and international banks to begin reopening accounts for Syrian banks and the Central Bank of Syria, which would facilitate money transfer operations and give investors and companies wishing to operate in Syria a clearer financial pathway.

Trajectory of US Syria Relations

The researcher noted a shift in the relationship between the United States and Syria since the fall of the former government, explaining that Washington is seeking to build trust with the new Syrian leadership through a gradual path of cooperation with the international community.

Economic Recovery and Investment

Qaysoun pointed out that the entry of companies, the start of investments, and a shift toward building factories and industries could reflect positively on the country's economic situation, stressing that economic factors form a foundation for diplomatic and policy building.

Background of the US Decision

The United States removed Syria from the list of state sponsors of terrorism on Monday, August 24, ending a designation that had lasted 47 years. Washington places countries on this list when it determines their governments have provided what it describes as repeated support for international terrorism, with the designation issued by the US Secretary of State based on US sanctions laws.

Listing on this register carries a set of restrictions, including:

• Limits on US foreign assistance
• A ban on arms and defense equipment exports and sales
• Restrictions on exports of dual use goods and technologies
• Financial restrictions and other punitive measures

The removal of the designation ends one of these restrictions, while Syria looks to complete the removal of remaining restrictions that hinder economic recovery and to strengthen openness toward international institutions and companies.