Trump’s decision to lift Syria sanctions fuels dreams of economic revival | Politics News

In Syria, optimism abounds. The unexpected decision by United States President Donald Trump to lift sanctions on the country, announced in Riyadh on Tuesday, is a relief for Syrians. They hope that the move will reintegrate Syria into the global economy, and bring much-needed investment into a country trying to recover from more than 50 years of dynastic family rule, as well as a nearly 14-year-long war.

The impact of Trump’s statement, which he said would give Syria “a chance at greatness” after the December overthrow of Bashar al-Assad, had an almost immediate effect, as the Syrian pound strengthened against the US dollar by about 25 percent, in a boost to a country suffering through economic hardship.

“Lifting sanctions on Syria represents a fundamental turning point,” Ibrahim Nafi Qushji, an economist and banking expert, told Al Jazeera. “The Syrian economy will transition from interacting with developing economies to integrating with more developed ones, potentially significantly reshaping trade and investment relations.”

Complex sanctions

While the announcement will likely lead to some imminent progress, there are still some stumbling blocks to the sanctions removal, analysts and experts told Al Jazeera.

US sanctions on Syria date back to 1979, when the country was under the iron grip of President Hafez al-Assad – Bashar’s father – and designated a “state sponsor of terrorism”. In the intervening years, additional sanctions were placed on the state and individuals associated with both the regime and the opposition, including current President Ahmed al-Sharaa – a result of his former association with al-Qaeda.

“There’s an entire building of a complex gamut of sanctions,” Vittorio Maresca di Serracapriola, sanctions lead analyst for Karam Shaar Advisory Limited, a consulting company with a focus on the political economy of the Middle East, told Al Jazeera.

Analysts said that Trump could remove certain sanctions through executive order, while some “foreign terrorist organisation” (FTO) designations could be removed by US Secretary of State Marco Rubio. But other sanctions may be more complicated to end.

According to Maresca di Serracapriola, there are also a series of export controls, executive orders that target the banking sector, and acts that were passed by the US Congress.

“It is a huge moment for the country,” Maresca di Serracapriola said. “Of course, sanctions are very technical and complicated tools, so it’s still unclear how the US government will be able to implement what it promised.”

There are also questions about the timeline. The economic situation for many Syrians is dire, with 90 percent of the population living in poverty and approximately 25 percent jobless, according to the United Nations. The new Syrian authority is under extreme economic pressure, while at times struggling to exert its authority and provide security around the country.

Trump’s decision will come as a welcome reprieve, but Syrians may have to wait for sanctions relief to take effect. Analysts said the changes would come gradually and could take up to a year before “tangible results” are seen.

Sanctions relief alone will also not be enough. Analysts noted that Syria still needs banking reforms to comply and get off international monitoring lists. There will also need to be incentives from the US and other international actors to build trust among private investors looking to invest in Syria’s future.

“Achieving long-term growth requires implementing internal economic reforms, including improving the business environment, enhancing financial transparency, and developing productive sectors to ensure the Syrian economy effectively benefits from global opportunities,” Qushji said. “Lifting economic sanctions on Syria is a first step toward restructuring the economy, but it requires reform policies focused on sustainable development and global economic integration to ensure a real and productive recovery.”

Trump meets al-Sharaa

For months, everyone from Syria’s new leadership, analysts, and international actors has said there is a dire need for sanctions relief. But the US has previously taken an inflexible stance against al-Sharaa’s government, due to perceived ties to violence and armed groups.

Regional powers like Saudi Arabia, Qatar and Turkiye, however, have built strong relations with the new government in Damascus. Before Trump’s pronouncement on Tuesday, multiple analysts told Al Jazeera they did not expect Syria’s sanctions relief to be high up on the agenda for the US or the Gulf states Trump visited during his three-country tour.

The US has taken a cautious, and at times conflicting, approach to Syria’s new authority since the fall of the Assad regime on December 8.

On March 9, US Secretary of State Marco Rubio condemned Syria’s new government for their failure to prevent sectarian violence and massacres in the country’s coastal region. But then, three days later, Rubio praised the agreement between the Kurdish-led Syrian Democratic Forces (SDF) and the Syrian central government in Damascus that ostensibly would see the SDF integrate into state institutions.

Previously, the US provided Syria a list of demands that included destroying the remaining chemical weapons, cooperation on “counterterrorism”, and the removal of foreign fighters from senior roles in the new government or military. There have also been suggestions that Syria might throw in a Trump Tower deal in Damascus and that Trump wanted ties between Syria and Israel before any sanctions relief.

But by Tuesday evening, everything had changed. Trump announced he would remove sanctions on Syria without conditions.

“The key emphasis here is it’s a Saudi-US deal rather than something between the US and Syria,” Rob Geist Pinfold, a lecturer in defence studies at King’s College in London.

Then, on Wednesday morning, Trump and al-Sharaa met for a little more than half an hour in the presence of Saudi Arabia’s Crown Prince Mohammed bin Salman and with Turkiye’s President Recep Tayyip Erdogan phoning in. The meeting appeared to please Trump.

Speaking to reporters on Air Force One on his way to Doha, Trump called al-Sharaa a “young, attractive guy. Tough guy. Strong past. Very strong past. Fighter.”

After the talks, the White House released a list of issues Trump discussed with al-Sharaa. They included some of the US’s prior demands on Syria, such as dealing with foreign fighters and “counterterrorism” cooperation. But Trump also brought up Syria recognising Israel, as well as taking over ISIL detention centres in northern Syria.

“These don’t appear to be preconditions, but they could slowroll the lifting [of sanctions],” Natasha Hall, a senior fellow with the Middle East Program at the Center for Strategic and International Studies, told Al Jazeera.