Following the removal of U.S. sanctions and the repeal of the Caesar Act, Syria has seen significant foreign investment, though domestic instability and insurgency remain.
Key facts
- •The U.S. removed Syria from its list of terrorism sponsors in 2025.
- •The U.S. Congress repealed the Caesar Act in December 2025.
- •Saudi Arabia and Qatar paid $15.5 million in Syrian arrears to the World Bank.
- •Syria is now eligible for new World Bank financing after a 14-year suspension.
- •Current domestic threats include a jihadist insurgency and a Druze separatist quasi-state.
In 2025, the United States removed Syria from its list of terrorism sponsors, leading to a broad easing of sanctions by the U.S., the European Union, and the United Kingdom. President Ahmed al Sharaa’s government has since attracted billions of dollars in investment from Turkey and Gulf states. Additionally, Saudi Arabia and Qatar cleared $15.5 million in Syrian arrears to the World Bank, ending a 14-year suspension of financing eligibility.
By the numbers
Economic and Diplomatic Shifts
The Trump administration terminated the comprehensive U.S. sanctions program, and the U.S. Congress repealed the Caesar Act in December 2025. This shift in policy allowed international investors to engage with Damascus on a large scale. The clearing of World Bank arrears by Saudi Arabia and Qatar has further integrated the country into international financial systems.
Ongoing Domestic Challenges
Despite the influx of foreign capital, Syria continues to face significant internal hurdles. Corruption and bureaucratic inefficiency persist, complicating the investment environment. The country remains unstable, characterized by an escalating jihadist insurgency, the presence of regime-remnant forces, an Israeli occupation of certain territories, and the emergence of a Druze separatist quasi-state.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by War on the Rocks.
