US President Donald Trump met Syrian President Ahmed al-Sharaa on Wednesday and indicated that Washington could remove Damascus from its list of State Sponsors of Terrorism.
Speaking on the sidelines of
the NATO summit in Ankara, Trump praised al-Sharaa, saying the Syrian leader had done “a great job.”
BREAKING: Trump says he will remove Syria from the state sponsor of terrorism list pic.twitter.com/11Sv9RH3kd
— Insider Paper (@TheInsiderPaper) July 8, 2026
Trump had earlier suggested that Syria, rather than Israel, should take the lead in addressing the threat posed by Lebanon’s Iran-backed Hezbollah.
Why It Matters For Syria
Syria has been designated a State Sponsor of Terrorism since 1979, making it the longest-serving country on the US list. Following the collapse of the Assad regime in December 2024 and the emergence of a new government under al-Sharaa, the Trump administration has reportedly been reviewing the designation.
Removal from the list would not only signal a diplomatic reset but also unlock a range of economic, financial and legal benefits for the war-ravaged country.
Boost for Foreign Investment
The terrorism designation has long acted as a major barrier to international investment. Even after the easing of certain US sanctions, many global companies and financial institutions have remained reluctant to engage with Syria because of legal and regulatory risks associated with the designation.
A delisting would make it easier for foreign firms, particularly in sectors such as energy, telecommunications, infrastructure and construction, to invest in the country.
Access to Reconstruction Funding
Years of civil war have devastated Syria’s infrastructure, leaving the country in urgent need of reconstruction. Removing Syria from the terrorism list could pave the way for international financial institutions, including the World Bank and the International Monetary Fund, to provide development assistance, loans and reconstruction funding directly to the Syrian government.
Such support could prove critical as Damascus seeks to rebuild roads, power networks, hospitals and public services.
Relief From Legal Restrictions
Countries designated as State Sponsors of Terrorism face significant legal challenges in US courts. The designation allows victims of state-sponsored terrorism to pursue claims against those governments, exposing state assets to potential seizure.
A removal from the list would reduce these legal risks and help Syria reintegrate into the international financial system by limiting future state-level litigation in US courts.
Easier Access To Technology and Trade
The designation also imposes strict restrictions on the export of many products that could have civilian and military applications.
Delisting Syria would simplify access to technology, software, medical equipment, industrial machinery and aviation components, helping modernise key sectors of the country’s economy.
A Strategic Shift in the Region
Analysts view the potential move as part of a broader effort by Washington and its regional partners to draw Syria away from the influence of Iran and Russia.
Under former President Bashar al-Assad, Damascus relied heavily on Moscow and Tehran for military and economic support. Integrating Syria into Western-backed economic networks could reduce that dependence and reshape regional alliances.
The Bigger Picture
Removing Syria from the State Sponsors of Terrorism list would not amount to a blanket endorsement of the country’s political system. Rather, it would signal Washington’s willingness to engage with the post-Assad leadership and support Syria’s reintegration into the global economy after years of isolation.
For Damascus, the move could open the door to investment, reconstruction funding and greater diplomatic legitimacy, potentially reshaping the country’s future after more than a decade of conflict.
