The United States has formally removed Syria from its list of state sponsors of terrorism, ending a designation that had been in place for nearly five decades and marking a major step in Washington's efforts to rebuild relations with the country's new leadership.
The decision, which took effect on Monday following a congressional review period, is expected to make it significantly easier for international banks, investors and companies to engage with Syria as the country seeks funding for post-war reconstruction.
U.S. Secretary of State Marco Rubio said the move reflects what Washington sees as meaningful steps taken by the government of Syrian President Ahmed al-Sharaa to distance itself from international terrorism and cooperate on security issues.
For officials in Damascus, the decision represents the removal of one of the final barriers preventing Syria from reconnecting with the global economy.
Syrian Foreign Minister Asaad al-Shibani recently described the designation as the last major obstacle to attracting foreign investment and restoring economic activity after years of isolation.
Syria had remained on the U.S. terrorism list since 1979, when Washington accused the government of Hafez al-Assad of supporting militant groups.
The designation was maintained throughout the rule of Bashar al-Assad, whose government faced years of international sanctions and diplomatic isolation during the country's civil war.
That political landscape changed dramatically in December 2024, when Assad was overthrown by a rebel coalition led by Ahmed al-Sharaa.
Since taking power, Sharaa's government has sought closer ties with Western countries and regional partners while presenting itself as a force for stability after nearly 14 years of conflict.
Monday's announcement also removed the former Nusrah Front from a U.S. terrorism designation list. Cuba, Iran and North Korea are now the only countries still classified by Washington as state sponsors of terrorism.
Although the Trump administration ended broad sanctions on Syria in 2025, the terrorism designation continued to create legal and financial risks that discouraged foreign businesses from entering the market.
Companies considering investment in Syria faced compliance concerns, while banks often remained reluctant to process transactions linked to the country.
The removal is expected to ease those concerns and could accelerate Syria's reintegration into international financial systems.
The U.S. Treasury Department has already permitted American financial institutions to provide services involving Syrian banks and establish banking relationships, provided sanctioned individuals or organisations are not involved.
Syria's government hopes the latest move will unlock billions of dollars needed to rebuild infrastructure, restore public services and revive an economy devastated by years of war.
Interest from international companies has already begun to emerge.
Earlier this month, Syrian officials said Finance Minister Mohammad Yisr Barnieh met representatives from Bank of America to discuss potential cooperation and Syria's return to the global financial system.
According to Syria's finance ministry, bank executives expressed interest in visiting the country and continuing discussions.
Major payment processor Mastercard has also announced plans to work with Qatar's QNB Group and Syria's central bank to develop infrastructure that would allow international card payments inside the country.
The company has said it wants to help reconnect Syrian consumers and businesses with global payment networks.
The decision follows months of negotiations between Washington and Damascus and reflects a broader shift in U.S. policy towards Syria's new leadership.
President Donald Trump formally informed Congress of his intention to rescind the designation after meeting al-Sharaa in Ankara in July. According to a letter reported by Reuters, Trump pledged to remove barriers preventing Syria's recovery.
The two governments have also engaged in discussions covering economic reform, regional diplomacy and security cooperation.
Washington has praised Syria's efforts against Islamic State and has increasingly viewed the new government as a potential partner in regional stabilisation efforts.
Al-Sharaa's own political evolution has been closely watched. A former commander of the Nusra Front, he severed ties with al Qaeda in 2016 and later led the alliance that removed Assad from power.
Despite the diplomatic breakthrough, Syria still faces immense challenges.
Large parts of the country require reconstruction, public infrastructure remains damaged, and economic conditions are fragile after more than a decade of conflict.
Nevertheless, Syrian officials believe the latest U.S. move will send an important signal to international businesses and financial institutions that the country is open for investment.
Whether that translates into large-scale economic recovery will depend on security conditions, investor confidence and the ability of the new government to maintain political stability.
For now, however, the removal of Syria from Washington's terrorism list represents one of the most consequential moments in the country's efforts to rejoin the international community since the fall of Bashar al-Assad.
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