Trump announces lifting of Syria sanctions ahead of meeting with Al Shara



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US President Donald Trump announced in Riyadh on Tuesday the lifting of sanctions on Syria ahead of a landmark meeting with Syrian leader Ahmad Al Shara in the Saudi capital.

"I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness," Mr Trump said at the US-Saudi Investment Forum at the start of his Gulf tour.

Sanctions were "brutal and crippling and served an important function" but "now it's their time to shine", he added.

His surprise announcement came after a White House official confirmed that the US President would be meeting Syria's Al Shara during his visit to Saudi Arabia.

“The President agreed to say hello to the Syrian President while in Saudi Arabia tomorrow," the official said.

Syrian Foreign Minister Asaad Al Shibani said his country viewed Mr Trump's decision to lift sanctions "very positively" and that Syria was ready to foster relations with US based on "mutual respect, trust and common interests".

Syrian officials and a Riyadh-based diplomat told The National earlier on Tuesday that Mr Al Shara was due to travel to Saudi Arabia on Wednesday with the aim of meeting Mr Trump. The diplomat added that the US President has agreed to give the Syrian leader “listening time”.

Mr Al Shara, formerly known by the nom de guerre Abu Mohammed Al Jawlani, was on the US's "specially designated global terrorist" list when he fought with Al Qaeda insurgents in Iraq. As the leader of Hayat Tahrir Al Sham (HTS), Mr Shara commanded the rebel offensive that led to the removal of Bashar Al Assad last December.

A Syrian Foreign Ministry source, speaking on condition of anonymity, said a "45-minute session" between Mr Trump and Mr Al Shara had been suggested by Saudi officials.

Another Syrian Foreign Ministry official acknowledged that Saudi Arabia has taken the lead on mediating relations between the US and Syria, saying the result of the meeting between the two leaders, if it happens, will "depend on the Saudis".

Apart from providing limited sanctions relief, Washington has maintained most economic restrictions on Syria, complicating efforts by Damascus to reintegrate into the global economy.

"Lifting the sanctions will be the priority of the discussion [for Mr Al Shara]," one of the Syrian Foreign Ministry sources told The National before Mr Trump's announcement.

Ahead of his arrival in Saudi Arabia at the start of a regional tour, the US President had already indicated considering sanctions relief for Syria as the new authorities seek to rebuild the country after more than a decade of civil war.

“We are going to have to make a decision on the sanctions, which we may very well relieve," Mr Trump said. "We may take them off of Syria because we want to give them a fresh start."

A currency exchange business in a Damascus street. Syria's new government wants to reintegrate into the global economy. Reuters
A currency exchange business in a Damascus street. Syria's new government wants to reintegrate into the global economy. Reuters

Syria released a statement in which it welcomed Mr Trump's words and “regards them as an encouraging step towards alleviating the suffering of the Syrian people”.

The US has said it will wait to see how Syria's new authorities exercise their power and ensure human rights before lifting sanctions, opting instead for targeted and temporary exemptions.

Western sanctions, which were issued mostly after the fallen regime's repression of anti-government protesters in 2011, have restricted Syria's ability to rebuild since the former president was toppled in December.

The new Syrian authorities have been pushing for US and European sanctions to be lifted, arguing that they were imposed on the Assad regime.

Last month, the UK ended restrictions on a dozen Syrian entities, including government bodies and media outlets, while the EU has started reducing its measures.

Trump Tower

Reuters last week reported Syria's leader has offered "a Trump Tower in Damascus, a detente with Israel, and US access to Syria's oil and gas" as part of a strategic pitch for face time with Mr Trump, quoting several sources said.

Regional reports have suggested Mr Trump would meet the leaders of Syria, Lebanon and Palestine in the presence of Saudi officials in Riyadh, to discuss pathways to resolve each country’s conflict with Israel. A senior source at the presidential palace in Beirut has dismissed the reports.

After a fragile ceasefire in Gaza collapsed more than two months ago, Israel has intensified daily strikes on the coastal strip and blocked the entry of all food, medicine and other supplies, worsening the humanitarian situation in the territory.

Israel has also continued bombing Hezbollah in Lebanon despite a ceasefire agreement, and has been conducting air strikes and drone operations inside Syria.

On Monday, Jordan and Turkey denounced Israel's intervention in Syria as destabilising to the country.

Jordanian Foreign Minister Ayman Safadi said "Israel's aggression is an attempt to sow strife in Syria". He added: "Israel has no right to attack Syrian territory. It will not bring Syria anything except instability and destruction."

Mr Safadi was speaking after a meeting in Ankara with his counterparts Hakan Fidan of Turkey and Asaad Al Shibani of Syria. "The Israeli expansion is destabilising to the security of Syria and threatens its future," Mr Fidan said.

Over the past four months, Israel has expanded a buffer zone in the Golan Heights, south-west of Damascus, and bombed military and militia installations, particularly in areas in southern Syria, near Jordan.

In April, after a few weeks of lull, it bombed targets in Damascus near the presidential palace in response to attacks by pro-HTS militias on members of the Syrian Druze community. The Druze, an offshoot of Islam, are also present in Israel, Lebanon and Jordan.

A Western diplomat in Amman said Jordan and other Arab countries, particularly Saudi Arabia, are in broad agreement with Turkey on the need to end Syria's fragmentation.

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

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Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

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There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

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Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

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Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

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Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

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Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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Updated: May 14, 2025, 3:16 AM