Syria’s US terror delisting opens door to foreign investment

The United States has removed Syria from its list of state sponsors of terrorism, a move that could significantly boost foreign investment in the war-torn nation. This decision, announced in July by then-President Donald Trump, comes after years of Syria being designated as a state sponsor of terrorism due to its military occupation of Lebanon and support for militant groups like Hezbollah.

The removal of Syria from the US blacklist is expected to enhance the country's access to international banking, technology, and capital, making it easier for Syrian banks to establish relationships with global lenders and for companies to attract foreign investment. However, Syria remains on the Financial Action Task Force's grey list for money laundering and terrorist financing issues.

Nassib Ghobril, chief economist at Byblos Bank, expressed optimism about the delisting, stating that it marks a significant step towards Syria's gradual return to the global financial and banking system. The US delisting was prompted by President Trump's notification to Congress in July, following the repeal of the Caesar Act in December. This legislative change removed certain restrictions on trading with sanctioned countries, including Syria.

The European Union also lifted its economic sanctions on Syria in May, further contributing to the country's push to re-enter the global economy. Analysts predict that several sectors in Syria, including banking, technology, and telecommunications, will benefit from this development. Improved international payments, access to advanced technology, and reduced restrictions on imports could all contribute to the growth of these sectors.

Gulf states and companies, such as DP World and Emaar, are already demonstrating interest in investing in Syria. DP World has announced plans to upgrade the infrastructure at the Tartus port, while Saudi Arabia has signed energy and infrastructure deals with the country. Notably, the removal from the terror sponsors list is seen as a green light for reconstruction investment, with the US, Turkey, and Gulf countries leading the way.