The Lifting of U.S. Sanctions on Syria: A Strategic Turning Point Reshaping the Political and Economic Landscape of the Middle East
European Policy Organization
1 يوليو 2025
4 دقيقة قراءة
Berlin-Brussels / The recent decision by former U.S. President Donald Trump to officially lift sanctions on Syria during his historic visit to the Kingdom of Saudi Arabia marks a strategic turning point in both the political and economic dynamics of the region. The move, which fulfilled a public pledge Trump made in Riyadh, effectively ends decades of American economic restrictions that have crippled Syria's economy and obstructed reconstruction efforts since 2011.
This decision comes at a moment of regional and international maturation. The Middle East is undergoing a profound transformation in which unilateral U.S. approaches are no longer viable, and traditional tools of pressure are proving insufficient for redrawing strategic maps.
More than just an economic release valve, the lifting of sanctions introduces a new dynamic that could unlock large-scale reconstruction and investment opportunities—provided Damascus seizes the moment. For the first time since the onset of the Syrian conflict, the return of international companies to the Syrian market is no longer a distant prospect. Construction, energy, and transportation firms that once monitored opportunities from afar can now explore them without fear of U.S. prosecution or financial obstacles. Regional banks can breathe easier, and Gulf markets are likely to revisit long-dormant files on Syria.
Saudi Arabia, notably, was ahead of the curve in sensing this shift. Motivated by a progressive developmental vision and legitimate security concerns about regional rivalries playing out in Syria, Riyadh undertook a quiet yet assertive diplomatic push. This approach proved persuasive in Washington and other decision-making capitals, demonstrating that Syria's exclusion from regional frameworks undermined broader stability and impeded regional projects.
Riyadh’s role in influencing the sanctions rollback can be summarized in three key moves:
Reopening channels of communication with Damascus discreetly, within a broader security-development strategy.
Framing Syria’s return as integral to regional stabilization and countering the perpetual use of Syria as a theater for proxy conflicts.
Planning long-term economic partnerships focused on strategic sectors.
However, lifting the sanctions is not a magic solution. Significant structural challenges remain. Syria's investment landscape requires substantial legal reform. Transparency and fair governance are not luxuries but prerequisites. Without strategic partnerships with international and Gulf financial institutions, capital will remain hesitant, awaiting political guarantees and a safer climate.
The real estate sector is expected to benefit first from this breakthrough, followed by infrastructure, transportation, energy, agriculture, and light industry. Ironically, some of the hardest-hit areas in Syria may become hubs for development in the coming years. Here, Gulf capital—with its liquidity, ambition, and expertise—can play a critical role. But it demands a stable framework from Damascus, one that ensures investor protection and offers long-term clarity, free from obstruction by actors resistant to reform.
In parallel, Turkish and European actors are also expected to engage in Syria's reconstruction, based on new economic alignments and agreements with the Syrian government.
Europe: Between Hesitant Progress and Strategic Paralysis
On the European front, hesitation still reigns. The EU, constrained by legal and human rights considerations, stands at a crossroads: either align swiftly with the U.S.-Gulf pivot and reposition itself in Syria or continue its passive stance and cede influence to other powers.
Some member states have begun signaling cautious openness. In Brussels, internal conversations are shifting toward a new hybrid model of humanitarian-economic engagement that could pave the way for renewed presence in a post-sanctions Syria.
Germany and Italy are currently at the forefront of supporting reconstruction and stabilization projects in Syria, albeit without the necessary speed and dynamism.
Moreover, Damascus has been slow to respond to European prerequisites for joint efforts. Still, a cautious optimism is prevailing in European circles—one that may turn into concrete action following Washington’s formal move.
The pressing question in Europe is no longer whether to engage in Syria's post-sanctions era, but when, how, and under what conditions. France may continue to hesitate for political reasons, aiming to recalibrate its role. In contrast, Germany and Italy may proceed with individual initiatives ahead of a unified European stance. Europe's interest in returning to Syria is grounded not only in geopolitics but also in securing investment routes, mitigating refugee pressures, and counterbalancing Russian and Iranian influence.
What Comes Next?
The ball is now in Damascus' court. The U.S. decision presents Syria with a rare opportunity, but what comes next will be just as critical as the announcement itself. Syria must respond with swift, tangible actions that create an enabling environment for investment. Reforming public-private partnership laws, easing capital flow, and protecting investors from legal and security volatility are all vital steps.
In parallel, regional and international stakeholders should coordinate reconstruction and investment conferences that maximize mutual gains. The international community, for its part, must move beyond oversight and conditionality. Institutions like the World Bank and the UNDP should deploy practical mechanisms to ensure transparency, support local institution-building, and offer technical assistance and training.
This moment—set in motion by Trump's decision—could mark a new chapter for Syria, one that positions it not as a battleground or aid recipient, but as a state poised for recovery and growth within a reshaped regional framework.
The lifting of U.S. sanctions is not merely a shift in foreign policy—it is a defining moment in the reconfiguration of the regional order. All actors must view this development as a foundation for a new phase, not the epilogue to a protracted conflict. If Damascus capitalizes on this opening, and if regional and international players engage wisely, Syria could begin its transformation from a landscape of ruin to a state rebuilt on new political and economic foundations.
Bernd Mutzelburg - Nasser ZohairDiplomatic and Economic Affairs Unit / Syrian FileEuropean Organization for Diplomatic and Economic Policyالوثيقة باللغة العربية
تعليقات