The US State Department on Monday officially removed Syria from its list of state sponsors of terrorism, clearing a major obstacle in Damascus's economic recovery.
The delisting came after President Donald Trump in July notified the US Congress of his intent to rescind Syria's designation as a state sponsor of terrorism. The action required Congress to conduct a 45-day review to finalise the decision.
In 1979, Syria was placed on the US blacklist, which also includes Iran, Cuba and North Korea.
“Treasury is following through on President Trump’s promise to give the Syrian people a chance at greatness,” said Treasury Secretary Scott Bessent. “Today’s action will help foster additional investment in Syria to promote political and economic stability.”
The US also revoked the designation of Al Nusra Front. The group formally severed ties with Al Qaeda in 2016 and later rebranded, merging into Hayat Tahrir Al Sham in 2017.
"These actions were all taken in recognition of the positive actions taken and further commitments by the Syrian government under President Ahmad Al Shara to fully distance Syria from acts of international terrorism," Secretary of State Marco Rubio said in a statement.
"In the past year, the government of Syria has taken significant steps to counter terrorism."
Syrian President Ahmad Al Shara was the leader of HTS. Since removing the regime of president Bashar Al Assad in December 2024, Mr Al Shara has forged a strong relationship with Mr Trump, who has moved quickly to push for Syria's reintegration into the global economy.
Washington last year lifted sanctions imposed under the Caesar Act, but the designation as a state sponsor of terrorism was regarded as a major obstacle to Syria's economic recovery after the Assad regime fell.
Tom Barrack, the US ambassador to Turkey and special presidential envoy for Syria and Iraq, said the designation had for too long separated the "Syrian people from the investment, enterprise, and opportunity necessary to rebuild their nation. Today, another wall comes down."
The World Bank estimates the country's reconstruction will cost $216 billion.
In May, the State Department released an investor handbook and guides for US companies to enter the Syrian market.
Damascus's designation status has been a point of friction for would-be investors, however, while anti-money laundering and counter-terrorism concerns are also constraining factors.
