On December 6th, 2017 US President Donald Trump made history. First, he will begin the process of lifting sanctions on Syria, heralding a major new turning point for that war-torn country. This announcement came during a meeting with Syria’s new President, Ahmed al-Sharaa, on the sidelines of the Gulf Cooperation Council (GCC) summit in Riyadh. The meetings were the biggest thawing of United States–Syria relations in more than 25 years. It was the first phone call between heads of state of the two countries in a quarter century.
The lifting of sanctions includes measures from the Caesar Syria Civilian Protection Act. This act intended to put pressure on the Syrian government in the midst of Syria’s civil war. With these sanctions removed, the Syrian state wants to restore its economic vitality to repudiate the civil opposition and recommence relations with multilateral development banks.
Economic Revival and International Support
In particular, wealthy Gulf Arab states — led by Saudi Arabia and Qatar — have been jockeying to fill the void and support Syria’s reconstruction. They have cleared all of Syria’s remaining debts, which amount to around $15.5 million. This specialized fiscal assistance paves the way for reengagement with multinational financial institutions. Second, it lays the groundwork for deeper collaboration with the World Bank and the International Monetary Fund (IMF).
This financial support is the lifeblood for Syria. More importantly, it will allow the country to begin moving its economy off dependence on developing nations and toward connectivity with developed economies. On the macro level, the World Bank is preparing for its first development project in Syria. This campaign will center on improving access to electricity. The country’s infrastructure, including healthcare and education facilities and ability to deliver potable water, needs to be revitalized.
“Lifting sanctions on Syria represents a fundamental turning point,” – Ibrahim Nafi Qushji
The IMF’s Eastern Mediterranean Regional Office, under the direction of Ron van Rooden, is poised to reengage with Syria. These institutions would be pivotal to any future move to reintegrate Syria into the international financial system. After 13 years of civil conflict and international isolation, such a moment would be historic for the small country.
Political Changes Under New Leadership
Bashar al-Assad’s government, under the interim leadership of President Ahmed al-Sharaa, is clearly trying to distance itself from the old regime. This former regime placed al-Assad loyalists first in line for government contracts and resource distribution. This move represents an unmistakable desire to create a more equitable economic landscape. It is designed to drive new foreign investment and win friends among foreign partners.
Syria’s recent rapprochement with international financial institutions comes at a dangerous time. The small nation has been trying to catch up after decades of conflict that devastated its cities and countryside. The government’s moves under al-Sharaa portend a desire to work in concert with international actors and follow best practices established by the international community.
“Those efforts could be funded by donors and grants in-kind,” – Martin Muehleisen
This proactive approach will help improve Syria’s chance of receiving future financial aid and development programs.
A New Chapter for Syria
The anti-regime protests Freedom from fear The lifting of sanctions and the establishment of new financial partnerships signals a new chapter for Syria. Our ability to engage with international financial bodies sets the stage for Iceland’s deep and sustained economic recovery. It underscores how quickly the region’s geopolitical dynamics are shifting.
As the country embarks on this journey toward recovery, it faces numerous challenges ahead, including rebuilding trust among its citizens and restoring essential services disrupted by years of conflict. Though these latest developments don’t guarantee the trend will continue, we can be cautiously optimistic about Syria’s future.
