Syria Economic Report – May 8–14, 2025

1. U.S. Lifts Sanctions on Syria, Signaling Economic Reengagement

On May 13, U.S. President Donald Trump announced the lifting of all sanctions on Syria, marking a significant policy shift aimed at supporting the country’s reconstruction efforts. This decision, influenced by regional partners such as Saudi Arabia and Turkey, is expected to facilitate foreign investment and aid in rebuilding Syria’s war-torn economy. The move also opens avenues for Syria to reenter the global financial system and attract international support for its development initiatives.

2. Syrian President Meets with French Counterpart to Discuss Reconstruction

On May 7, Syrian President Ahmed al-Sharaa met with French President Emmanuel Macron in Paris, marking al-Sharaa’s first official visit to a Western country since taking office. The leaders discussed Syria’s reconstruction plans, with Macron expressing support for lifting EU and U.S. sanctions on Syria, contingent upon the Syrian government’s commitment to justice and reforms. The meeting signifies a potential thaw in Syria’s relations with Western nations and highlights the international community’s interest in Syria’s recovery.

3. Syrian Finance Minister Invites Foreign Investment

Following the U.S. decision to lift sanctions, Syrian Finance Minister Yisr Barnieh extended an invitation to global investors to participate in Syria’s reconstruction. Barnieh emphasized the country’s potential across various sectors, including agriculture, oil, tourism, infrastructure, and transportation. He highlighted the government’s plans to overhaul tax, customs, and banking systems to create a more conducive environment for foreign investment.

4. Syrian Democratic Forces Continue Integration into Government

As part of ongoing efforts to unify the country’s military forces, the Syrian Democratic Forces (SDF) continued their integration into the Syrian transitional government. This process aims to stabilize regions previously under SDF control and facilitate coordinated reconstruction and governance across Syria. The integration is seen as a crucial step toward national unity and the effective implementation of reconstruction projects.

5. International Community Pledges Support for Syria’s Reconstruction

In a summit held in Brussels, international donors pledged nearly $6.5 billion in aid to support Syria’s reconstruction and political transition. The European Union organized the meeting, with participation from EU member states, regional neighbors, Arab countries, and UN agencies. Germany and the United Kingdom announced substantial contributions, while the United States highlighted its past assistance. The funds aim to aid in unifying fractured territories, rebuilding the economy, and restoring infrastructure.

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