Lifting US sanctions on Syria: Optimism collides with challenges of reality
US President ended the break with Damascus and removed sanctions imposed on Syria, in a dramatic move of far-reaching political and economic implications. Economists believe this reversal can return the Syrian economy, which for decades has been struggling. However, it has several problems at local, regional, and international levels.
US President Donald Trump announced last Tuesday (May 13) in Riyadh the lifting of sanctions on Syria, following consultation with Saudi Crown Prince Mohammed bin Salman, as his speech says.
Assessments of the implication of this move are being made, with questions about how it is most likely to affect the deteriorating Syrian economic conditions and whether it will be a precursor to genuine economic recovery or face political and regional challenges that thwart its implementation.
Lifting the legal barrier, but the impact is not immediate.
Syrian economic analyst Mohammad al-Saloum told ANHA's agency: "Announcing the lifting of sanctions on Syria is a qualitative shift in the geopolitical and economic status, and we must read it as a political compass that brings Syria back to the international system, not merely a technical economic move. This step gives the Syrian economy a genuine window of hope, particularly in remittances, foreign trade, and development aid. It is tantamount to 'overcoming the legal obstacle' that has precluded numerous economic projects from becoming a reality and getting under way."
But al-Saloum added that, "Although the American decision is important, its impact will not be immediate. The economy doesn't work like a political pendulum; it requires time and serial signs of confidence. Investors are not satisfied with a political gesture; they need a transparent legal environment, effective institutions, and an internal state of sustainable stability. Therefore, today's decision is a starting point but not an endpoint. But the initial signs if invested wisely can turn into a gradual recovery in the trade, shipping, and agriculture sectors," and light industry."
Al-Saloum emphasized that "no American president even Trump can lift all American sanctions at once, because some are executive orders, and the others are legislative by Congress. But lifting the most potent sanctions on bank transfers and commercial transactions can have an immediate impact on the resources and liquidity inflow from abroad to the country, and this is what we hope for and are watching closely."
The economic expert believed that "removing American sanctions is an important step, but not enough unless Europe does the same with the same measures. The European market is a heavy economic burden and a strategic partnership in a variety of areas. Furthermore, the recovery of the Syrian economy cannot be achieved solely by lifting constraints, but by comprehensive internal reform: from investment law modernization to empowering banks, stimulating industries, and securing infrastructure."
He emphasized in his speech that "sanctions were a limitation, but removing the limitations does not mean that the body becomes healthy by itself. We must rehabilitate the economy and revive citizens' and investors' confidence together. The next phase requires serious and continuous efforts, but the signs positive. The American step can be described as the first flash of the economic openness train, as long as we manage it inside well and smartly write our alliances with other nations.".
A big political shift, but a symbolic economic gesture.
Hama University Faculty of Economics Vice Dean of Administrative and Student Affairs Dr. Abdulrahman Muhammad guaranteed ANHA's agency that "lifting sanctions from Syria is a probable shift in US policy towards Syria, especially after decades of economic isolation that have contributed to the worsening deterioration of the Syrian economy. Frankly, this step can create new perspectives for reconstruction and alleviating improvement of the humanitarian crisis, but it remains connected to complex political and international processes. Lifting US sanctions is a symbolic measure that can reduce suffering but is not sufficient to save the Syrian economy if European sanctions are not lifted and structural reforms are not implemented."
The professor of economics provided several economic visions to explain this US action, including the effect of Trump's announcement to suspend sanctions. In a sense, the announcement can help facilitate foreign investment flows (especially from America's allies), alleviate humanitarian pressures, and bring about limited changes in the service and infrastructure sectors. On the contrary, the impact may be symbolic if European sanctions or other American sanctions (such as the Caesar Act) are not lifted.
According to Dr. Abdul Rahman, the effects of such a course of action will be gradual due to infrastructure breakdown and compounding structural problems (like depreciation lira, energy shortages, and unchecked corruption). Although the advances initially appear to be in financial transfers and the private sector, comprehensive rehabilitation will not happen for years. In the same context, he further explained that Trump, in his executive role, is able to suspend certain sanctions (e.g., those issued by presidential decrees), but other sanctions, such as the Caesar Act, would require approval by Congress to be repealed.
He added that the benefit from the US initiative outside Europe is minimal, as European companies are poised to become part of the rebuilding process (this may be a case of geographical location and experience). While Syria will benefit from expat remittances through US banks or the introduction of US technology goods, any material economic impact is dependent upon European receptiveness, according to Dr. Abdul Rahman.
The medical doctor of economics pointed out that sanctions are merely one hindrance in rebuilding the Syrian economy. Rather, there are several reasons such as: institutional corruption whose ill effects have sucked dry the Syrian economy; collapse of productive sectors such as industry and agriculture; other foreign sanctions such as those from the European Union; political instability and ongoing local conflict.
There should be structural reforms in a bid to realize a real recovery.
The economic doctor concluded his speech with the following words: "Real recovery requires profound internal structural reforms and significant international funding, which appears difficult to achieve in the foreseeable future."
T/S
ANHA
Lifting US sanctions on Syria: Optimism collides with challenges of reality
US President Donald Trump announced last Tuesday (May 13) in Riyadh the lifting of sanctions on Syria, following consultation with Saudi Crown Prince Mohammed bin Salman, as his speech says.
Assessments of the implication of this move are being made, with questions about how it is most likely to affect the deteriorating Syrian economic conditions and whether it will be a precursor to genuine economic recovery or face political and regional challenges that thwart its implementation.
Lifting the legal barrier, but the impact is not immediate.
Syrian economic analyst Mohammad al-Saloum told ANHA's agency: "Announcing the lifting of sanctions on Syria is a qualitative shift in the geopolitical and economic status, and we must read it as a political compass that brings Syria back to the international system, not merely a technical economic move. This step gives the Syrian economy a genuine window of hope, particularly in remittances, foreign trade, and development aid. It is tantamount to 'overcoming the legal obstacle' that has precluded numerous economic projects from becoming a reality and getting under way."
But al-Saloum added that, "Although the American decision is important, its impact will not be immediate. The economy doesn't work like a political pendulum; it requires time and serial signs of confidence. Investors are not satisfied with a political gesture; they need a transparent legal environment, effective institutions, and an internal state of sustainable stability. Therefore, today's decision is a starting point but not an endpoint. But the initial signs if invested wisely can turn into a gradual recovery in the trade, shipping, and agriculture sectors," and light industry."
Al-Saloum emphasized that "no American president even Trump can lift all American sanctions at once, because some are executive orders, and the others are legislative by Congress. But lifting the most potent sanctions on bank transfers and commercial transactions can have an immediate impact on the resources and liquidity inflow from abroad to the country, and this is what we hope for and are watching closely."
The economic expert believed that "removing American sanctions is an important step, but not enough unless Europe does the same with the same measures. The European market is a heavy economic burden and a strategic partnership in a variety of areas. Furthermore, the recovery of the Syrian economy cannot be achieved solely by lifting constraints, but by comprehensive internal reform: from investment law modernization to empowering banks, stimulating industries, and securing infrastructure."
He emphasized in his speech that "sanctions were a limitation, but removing the limitations does not mean that the body becomes healthy by itself. We must rehabilitate the economy and revive citizens' and investors' confidence together. The next phase requires serious and continuous efforts, but the signs positive. The American step can be described as the first flash of the economic openness train, as long as we manage it inside well and smartly write our alliances with other nations.".
A big political shift, but a symbolic economic gesture.
Hama University Faculty of Economics Vice Dean of Administrative and Student Affairs Dr. Abdulrahman Muhammad guaranteed ANHA's agency that "lifting sanctions from Syria is a probable shift in US policy towards Syria, especially after decades of economic isolation that have contributed to the worsening deterioration of the Syrian economy. Frankly, this step can create new perspectives for reconstruction and alleviating improvement of the humanitarian crisis, but it remains connected to complex political and international processes. Lifting US sanctions is a symbolic measure that can reduce suffering but is not sufficient to save the Syrian economy if European sanctions are not lifted and structural reforms are not implemented."
The professor of economics provided several economic visions to explain this US action, including the effect of Trump's announcement to suspend sanctions. In a sense, the announcement can help facilitate foreign investment flows (especially from America's allies), alleviate humanitarian pressures, and bring about limited changes in the service and infrastructure sectors. On the contrary, the impact may be symbolic if European sanctions or other American sanctions (such as the Caesar Act) are not lifted.
According to Dr. Abdul Rahman, the effects of such a course of action will be gradual due to infrastructure breakdown and compounding structural problems (like depreciation lira, energy shortages, and unchecked corruption). Although the advances initially appear to be in financial transfers and the private sector, comprehensive rehabilitation will not happen for years. In the same context, he further explained that Trump, in his executive role, is able to suspend certain sanctions (e.g., those issued by presidential decrees), but other sanctions, such as the Caesar Act, would require approval by Congress to be repealed.
He added that the benefit from the US initiative outside Europe is minimal, as European companies are poised to become part of the rebuilding process (this may be a case of geographical location and experience). While Syria will benefit from expat remittances through US banks or the introduction of US technology goods, any material economic impact is dependent upon European receptiveness, according to Dr. Abdul Rahman.
The medical doctor of economics pointed out that sanctions are merely one hindrance in rebuilding the Syrian economy. Rather, there are several reasons such as: institutional corruption whose ill effects have sucked dry the Syrian economy; collapse of productive sectors such as industry and agriculture; other foreign sanctions such as those from the European Union; political instability and ongoing local conflict.
There should be structural reforms in a bid to realize a real recovery.
The economic doctor concluded his speech with the following words: "Real recovery requires profound internal structural reforms and significant international funding, which appears difficult to achieve in the foreseeable future."
T/S
ANHA
