Saudi Arabia has lauded the United States’ decision to repeal sanctions imposed on Syria under the Caesar Act, anticipating the move will foster stability and economic recovery within the nation. The announcement, finalized with the signing of the 2026 National Defense Authorization Act, marks a significant shift in US policy towards Syria after years of economic pressure. This development is expected to have wide-ranging implications for the region and the Syrian people.
The US decision follows sustained diplomatic efforts, particularly from Riyadh, which advocated for the removal of sanctions during President Trump’s visit to Saudi Arabia in May 2025. The repeal, approved by the US House of Representatives, effectively ends restrictions that have hampered Syria’s economic activity since 2019. Syria’s government has officially welcomed the move, signaling a potential turning point after years of conflict and isolation.
The Impact of Lifting the Caesar Act
The Caesar Act, originally enacted in 2019, targeted entities and individuals linked to the Syrian government, aiming to curtail support for the former regime and restrict economic activity. It also imposed sanctions on those facilitating Russian and Iranian involvement in Syria, significantly limiting foreign investment and trade. According to the Saudi Ministry of Foreign Affairs, the repeal will unlock opportunities for long-term development and stability in Syria.
Economic Repercussions and Financial Access
Syria’s central bank governor, Abdulqader al-Hassriya, stated that removing the Caesar Act eliminates a major legal obstacle to Syria’s reintegration into the international financial system. While Syria is anticipated to initially receive a low credit rating, the repeal opens the possibility of sovereign credit assessments, potentially improving access to global financial markets. This could facilitate much-needed reconstruction efforts and stimulate economic growth.
However, challenges remain. The Syrian economy has been severely damaged by years of war, and rebuilding infrastructure and restoring essential services will require substantial investment. Additionally, the presence of ongoing geopolitical complexities and regional instability could hinder sustained economic progress. The lifting of sanctions is a necessary, but not sufficient, condition for full economic recovery.
Regional Implications and Saudi Arabia’s Role
Saudi Arabia has consistently expressed support for the Syrian people and a commitment to rebuilding Syria as a unified, independent, and secure Arab state. The Kingdom views the removal of sanctions as a crucial step towards achieving these goals. The Saudi Ministry of Foreign Affairs reaffirmed its dedication to helping Syria overcome terrorism and external interference. This stance reflects a broader Saudi Arabian strategy of regional stabilization and engagement.
The decision also aligns with Saudi Arabia’s efforts to normalize relations with Syria, a process that began in 2023 with the resumption of diplomatic ties. This normalization is seen as a key component of Saudi Arabia’s broader regional diplomatic initiatives. The lifting of sanctions is expected to further strengthen these ties and encourage increased cooperation between the two countries.
Meanwhile, Syria’s state news agency SANA reported that the repeal was the result of intensive diplomatic efforts by the Syrian government, supported by Syrian-American organizations and friendly nations. The agency anticipates the move will contribute to economic recovery, stability, and development. This perspective highlights the Syrian government’s view of the decision as a vindication of its diplomatic strategy.
In contrast, some international observers have expressed concerns about the potential for the Syrian government to utilize increased financial resources without addressing underlying issues of human rights and political reform. These concerns underscore the need for continued international monitoring and engagement to ensure that the benefits of the sanctions relief are broadly shared and contribute to a more just and equitable society. The issue of Syrian refugees and their potential return also remains a significant consideration.
Looking Ahead: Reconstruction and Stability
The immediate next step involves the implementation of the repeal and the subsequent assessment of Syria’s creditworthiness by international financial institutions. The timeline for this process remains uncertain, but it is anticipated to begin in early 2027. Monitoring Syria’s economic performance and its adherence to international standards will be crucial in determining the long-term success of this policy shift. The extent to which the lifting of sanctions translates into tangible improvements in the lives of ordinary Syrians will be a key indicator of its effectiveness. Further developments regarding international aid to Syria will also be closely watched.
