After 47 Years… How Will the Removal of the 'Terrorist Designation' Affect Damascus's Foreign Relations?

In this context, the August 25 episode of the program "Beyond the News" on Al Jazeera discussed the implications of the decision on relations between Damascus and Washington, its economic and livelihood repercussions, the extent to which Syria can return to the global economy, as well as its impact on political stability and Damascus's regional and international relations.

Academic and defense economics expert Dr. Ghazi Al‑Asaf said the decision is essentially an American legal step, but its economic repercussions may appear later, noting that the actual benefit will depend on Syria's ability to convert the new international legitimacy into a functioning economy and manage its resources.

He explained that removing Syria from the list of state sponsors of terrorism reduces the legal obstacles that had limited the ability of international institutions to finance the country, gradually opening the door to shifting cooperation with institutions such as the IMF and World Bank from technical assistance to lending and participation in major development projects.

He also noted that removing Syria from the list of state sponsors of terrorism could strengthen security relations between Washington and Damascus, opening the way for technology transfer and military cooperation in various sectors, as well as sending a message to financial institutions and companies that had been hesitant to invest in Syria that the legal environment has become more favorable.

However, Roz pointed out the continued state of hesitation within the U.S. administration and among financial institutions, due to the fragile security situation in Syria and the continuation of some security operations, emphasizing that lifting sanctions alone is not enough to convince investors, and that the country needs to build confidence and provide a more stable environment.

She pointed out that attracting investment is largely linked to the risk index, explaining that lifting sanctions could allow the IMF, World Bank, and international financing institutions to provide greater support, as well as easing the restrictions that had prevented foreign companies, even non‑U.S., from investing in Syria due to secondary sanctions.