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After the reversal of decades-long US sanctions on Syria, reconstruction efforts in the war-torn country and the shifting balance of power in the Middle East come into focus.
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The recent lifting of the United States’ sanctions on Syria has prompted celebrations among Syrian citizens and observers tracking the country’s developments since the fall of former dictator and President Bashar al-Assad. This article examines the factors that led to the removal of these sanctions and assesses their potential domestic and international impact.
US sanctions on Syria have been in place since 1979, the year Syria occupied Lebanon. In the 1980s, the then European Community (EC) also imposed sanctions on Syria, although these were lifted after a while. In the post 9/11 era, when US President George Bush named Iraq, Iran and North Korea as constituting the ‘Axis of Evil’, he also implicated Assad-led Syria as a key ally of Iran and imposed sanctions on it in 2004. By 2011, when the Syrian people erupted in protests against the Assad regime—leading to brutal crackdowns—President Barack Obama implemented much stricter sanctions, which were accompanied by similar measures from Arab nations and the European Union. These included freezing Syrian government assets held abroad, a full ban on US investments in Syria and restrictions on petroleum imports.
Economic sanctions have always existed, but the modern interconnected nature of the global economic system has made countries far more vulnerable to them. This is because freezing assets and targeting central banks can severely disrupt financial transactions, hinder a country’s ability to earn revenue through exports, and undermine financial stability for its citizens.
The purposes of these sanctions vary and can include a combination of goals—influencing a country’s foreign or domestic policies, expressing moral condemnation, or deterring specific policy actions. In the case of Syria, the Assad regime’s brutal crackdown on citizens following the Arab Spring protests was a key reason for the imposition of sanctions. Such measures are also intended to financially cripple a country, making it incapable of pursuing certain policies.
While these measures are often viewed as useful, there are broader debates about whom sanctions actually affect. In the case of Syria, the most impacted were the very civilians the international community was trying to protect. In addition, the Syrian diaspora, which contained pools of skilled workers who could have contributed to the country’s development, was also shut out, given the constraint on using Syrian currency for international transactions. In contrast, government-connected oligarchs, businessmen, and government officials found ways to circumvent these sanctions, creating black markets that further exploited civilians. Many also engaged in illegal activities, such as drug smuggling, to bolster their finances.
Saudi Arabia, which had long disengaged from Syria due to its proximity to Iran, has been lobbying to increase its influence and restrict Iran’s presence in the country
US President Donald Trump’s announcement of the removal of these sanctions took place in Saudi Arabia, prompting a delighted reaction from Crown Prince Mohammed Bin Salman. This offers insights about the underlying mechanisms that led to the decision that took place towards this end. Saudi Arabia, which had long disengaged from Syria due to its proximity to Iran, has been lobbying to increase its influence and restrict Iran’s presence in the country.
To this end, the Kingdom has undertaken several measures. First, it has hosted Syrian President Ahmed al-Sharaa at least twice since he assumed office in December 2024. Second, it has promised to provide assistance to Syrian reconstruction efforts sans a ‘ceiling’. Third, it has promised to pay off Syria’s loans to the World Bank, allowing the international lender to resume operations in the war-torn country. Lastly, it has expended serious resources in getting Trump to remove the sanctions, agreeing to multi-billion-dollar defence deals with the US to provide extra incentives.
In return, al-Sharaa has made several promises to the Saudi government in recent months. He has pledged to halt the export of Syria’s revolution—a major concern for Saudi Arabia, which is intent on avoiding any threats to its ruling family. Additionally, the Syrian government has taken steps to crack down on Captagon drug smuggling into Saudi Arabia and has agreed to repatriate Syrian refugees currently residing there.
The US has spelt out several demands from Syria, including preventing the Islamic State of Iraq and Syria (ISIS) from resurging in the country, taking control of ISIS’ prisons in the northeastern part of the country and precluding any US-designated terrorist from holding government posts. The most significant demand, however, has been the US insistence that Syria join the Abraham Accords.
Saudi Arabia’s lobbying, however, does not discount efforts made towards the removal of sanctions by both al-Sharaa’s and Syrian civil society members, given the devastating effect they have had on the everyday Syrian. Al-Sharaa had been urging the US to lift the sanctions by engaging with various senior Trump administration officials. Similarly, other civil society actors also invested significant effort and resources toward the same goal.
The US has spelt out several demands from Syria, including preventing the Islamic State of Iraq and Syria (ISIS) from resurging in the country, taking control of ISIS’ prisons in the northeastern part of the country and precluding any US-designated terrorist from holding government posts. The most significant demand, however, has been the US insistence that Syria join the Abraham Accords. Notably, al-Sharaa has previously stated that this would not be possible as long as Israel continues to control Syrian territory in the Golan Heights, which Syria considers an illegal occupation. Nevertheless, he has expressed a commitment to building a state that does not pose a threat to others, including Israel.
For Syrians—the most important stakeholders in this equation—the sanctions reversal offers the opportunity to rebuild their nation and reclaim a sense of dignity.
The lifting of sanctions on Syria carries several implications for both domestic and international politics in the region. For Syrians—the most important stakeholders in this equation—the sanctions reversal offers the opportunity to rebuild their nation and reclaim a sense of dignity. This development may also facilitate the return of Syrian refugees and diaspora members who had previously been unable to return due to financial restrictions.
Secondly, urgent humanitarian aid can now enter Syria and help rehabilitate the war-torn nation. The lifting of sanctions also paves the way for international investment, which could aid in economic recovery and infrastructure development.
Secondly, urgent humanitarian aid can now enter Syria and help rehabilitate the war-torn nation. The lifting of sanctions also paves the way for international investment, which could aid in economic recovery and infrastructure development. However, it is important to note ongoing concerns about excessive external influence, as there are fears that international actors may attempt to impose their own agendas under the guise of aid or investment.
Thirdly, if Syria signs the Abraham Accords, it would expand the reach and influence of the agreement—as well as enhance the roles of countries like Saudi Arabia and the UAE—which have been involved in facilitating this outcome through their engagement with the US. However, this does not imply a loss of Syrian independence. President al-Sharaa appears to be pursuing a pragmatic foreign policy, maintaining engagement with other regional powers such as Turkey—a rival of Saudi Arabia—as a form of strategic counterbalancing.
Fourthly, drawing closer to this bloc of nations would undermine the influence of countries like Iran and groups such as Hezbollah, depriving them of the ability to use Syrian territory to wage attacks against Israel—an outcome that the US has long sought.
Lastly, Syria’s engagement with Israel may provoke backlash from jihadist groups, potentially making the country a target of extremist violence over time. This would pose significant security challenges for the new government that it will need to address. In summary, the lifting of sanctions on Syria marks a break from a decades-long impasse and opens up significant opportunities for the country. While it offers substantial relief to the Syrian people, it also comes with several conditions, as countries like the US and Saudi Arabia seek to limit the influence of rivals such as Iran. Additionally, Syria’s recalibration of its foreign policy—particularly its steps toward a more peaceful stance with Israel—reflects broader shifts in Middle Eastern dynamics. However, this does not imply a loss of Syrian sovereignty. If Syria continues along its current trajectory, it stands a strong chance of achieving lasting peace and enabling economic rehabilitation for its citizens.
Mohammed Sinan Siyech is a Non–Resident Associate Fellow at the Observer Research Foundation.
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Dr. Mohammed Sinan Siyech is a Non – Resident Associate Fellow working with Professor Harsh Pant in the Strategic Studies Programme. He works on Conflict ...
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