DAMASCUS: Syrian President Ahmed al-Sharaa has welcomed the United States' decision to remove Syria from its list of State Sponsors of Terrorism, describing the move as a historic turning point after decades of diplomatic and economic isolation.

In a message to the Syrian people, al-Sharaa said Syria was leaving behind what he described as a painful chapter and entering a new period focused on reconstruction, institution-building and economic recovery. He also thanked US President Donald Trump for the decision.

The United States formally rescinded Syria's designation on August 24, after the completion of a mandatory 45-day congressional review. Syria had been on the US terrorism list since 1979.

A Major Shift in US Policy

The decision represents one of Washington's most significant policy changes towards Damascus in decades.

Being designated a state sponsor of terrorism imposed restrictions affecting areas including US foreign assistance, defence exports and certain financial transactions. Its removal could reduce important legal and compliance barriers facing international banks, companies and investors considering business in Syria.

Syrian officials have described the move as an important step towards reconnecting the country's financial system with international markets.

Foreign Minister Asaad al-Shibani had previously said that removing the designation could help eliminate a major obstacle to investment and assist Syria in rebuilding links with the international financial system.

Washington Signals a New Approach

US Secretary of State Marco Rubio said the decision reflected actions and commitments by the Syrian government under al-Sharaa aimed at distancing the country from international terrorism.

The move comes after a broader series of changes in Washington's approach towards Damascus, including measures aimed at easing some sanctions.

However, the decision does not mean that all US sanctions on Syria have been removed.

Targeted sanctions and restrictions remain against specific individuals and organisations linked to the former Assad government, alleged human-rights abuses, drug trafficking and extremist organisations.

Washington has also taken action concerning the designation of Hay'at Tahrir al-Sham (HTS) as a Specially Designated Global Terrorist organisation.

Economic Opportunities for Syria

The potential economic impact of the decision could be significant.

Syria requires substantial international investment to rebuild infrastructure and revive an economy severely damaged by years of war, sanctions and political isolation.

Removing the terrorism designation could make international companies and financial institutions more willing to assess opportunities in Syria and could reduce some of the compliance concerns that have historically discouraged commercial engagement.

There are already indications of growing international interest.

Bank of America has held discussions with Syrian officials, while Mastercard has worked with QNB Group and Syria's central bank on infrastructure for international card payments.

For Damascus, restoring access to international banking and payment networks will be critical to any broader economic recovery.

Reconstruction Is the Bigger Test

The political significance of Washington's decision is considerable, but the economic benefits will not automatically follow.

Syria faces enormous reconstruction needs after years of conflict. Roads, electricity networks, hospitals, housing, schools and other essential infrastructure require investment.

The government must also restore public institutions, strengthen economic governance and create conditions in which domestic and international businesses can operate with greater confidence.

Security and political stability will remain equally important.

A New Relationship With Washington

The removal from the terrorism list signals a profound change in Syria's relationship with the United States.

For decades, the designation was one of the major symbols of Syria's international isolation. Its removal gives Damascus an opportunity to seek closer economic and diplomatic engagement with Western countries and international financial institutions.

But the decision also places greater responsibility on Syria's new leadership.

The government will now face pressure to demonstrate that the political opening can translate into institutional reform, economic stability, investment and improved living conditions.

A Historic Opening, But Not the End of the Road

For Syria, Washington's decision closes an important chapter of international isolation. The harder task begins now.

The removal of the designation could help Syria reconnect with global financial and commercial networks, but sustained recovery will depend on security, political stability, institutional credibility and investor confidence.

The US decision opens the door. Whether Syria can turn that opening into reconstruction, investment and jobs will depend on what comes next.

— AALIMI NATION | International Affairs Desk