Lifting of Sanctions on Syria: early Signs of the Country’s Reconstruction
On November 6th, the United Nations Security Council, driven by the United States, voted to lift UN sanctions against Syrian President Ahmad el-Chareh. This measure followed a similar decision earlier in the summer, when both the United States and the European Union ended their sanctions against Bashar el Assad’s Syria, which had been imposed during the civil war that began in 2011. The general lifting of sanctions will allow Syria to reintegrate into the Arab sphere and the global economy, paving the way for renewed investment and the reconstruction of the country.
The Caesar Act
The most emblematic measure among the sanctions targeting Assad’s Syria was the adoption of the Caesar Act by the United States in 2019. The law was named after a Syrian military photographer who smuggled out more than 50,000 photographs documenting abuses committed by the Baathist regime during the civil war.
The Caesar Act targeted vital sectors of the Syrian economy more severely than previous UN or EU sanctions. It penalized any individual or company providing direct or indirect support to the Assad regime, especially in the arms, energy, and financial services sectors.
The Effects of the Caesar Act
The Caesar Act financially strangled Bashar al-Assad’s regime and his inner circle, who controlled large portions of the economy. It hastened the regime’s economic collapse but also completely isolated Syria from the outside world, deepened the depreciation of the Syrian pound, crippled the economy, and fueled smuggling and widespread drug trafficking networks.
On June 30, 2025, Donald Trump signed an executive order repealing the Caesar Act, pending confirmation by the House of Representatives. However, the Act will remain in force against Bashar al-Assad and his associates and will be lifted only for activities relating to Ahmad el-Chareh’s administration.
Economic Rehabilitation
The first step toward the country’s rehabilitation is its return to SWIFT (the Society for Worldwide Interbank Financial Telecommunication), the platform used by most banks worldwide for cross-border fund transfers. Despite the existence of alternative systems, most global financial transactions are still processed through SWIFT.
In June, Syria carried out its first transaction on the platform in more than 14 years. Excluded from SWIFT in 2011, at the onset of the civil war, the country had been unable to conduct international wire transfers, relying instead on cash transactions that made it impossible to verify the origin or destination of funds.
Reintegration into SWIFT will bring greater transparency to money transfers. The platform relies on a network of correspondent banks that act as intermediaries and are subject to compliance rules intended, for example, to prevent transactions involving Bashar Al Assad or individuals close to him.
A Surge in Activity
The gradual lifting of sanctions is already producing visible effects. Since last summer, numerous forums, summits, and conferences for investors interested in the Syrian market have taken place across several Arab capitals.
According to Ahmad el-Chareh, the country has attracted nearly 28 billion dollars in investments, primarily from Saudi Arabia, the United Arab Emirates, and Qatar. The speed at which the necessary funds will be released, the rapid involvement of Gulf countries, and the signing of agreements for major infrastructure projects—all against the backdrop of a progressive easing of sanctions—are key factors that will attract additional investors, stimulate reconstruction, and reintegrate Syria into international trade.
In short, the gradual lifting of sanctions is clearly the cornerstone of reconstruction efforts. The road remains long, and much work lies ahead. The challenges are many, but so are the opportunities. In this context, it is crucial to analyze and highlight the main obstacles and prospects facing Syria’s new leadership. To be continued…
Next article: Syria, between challenges and opportunities: a new lease of life (1/3)