Lifting of US Restrictions Opens a Window for Syrian Exports and Economic Recovery

SadaNews - In a move described as a strategic shift in the course of Syria, the U.S. administration announced last June the cancellation of most economic sanctions imposed on Damascus. The U.S. Department of Commerce quickly followed suit, announcing a relaxation of restrictions on the export of civilian goods, from advanced technical equipment to non-military software.

These decisions open the door for American companies to engage with Syria without the need for special licenses. These goods include communication devices and civilian aviation parts, signaling Washington's clear intention to lay the groundwork for gradual economic integration.

The decision has been welcomed officially in Damascus, being viewed as the start of a different phase of openness. In a special statement to "Asharq", the Governor of the Central Bank of Syria, Abdul Qader Al-Hosri, said this step represents a "historic event that reconnects Syria to the global financial system network after an interruption of nearly half a century."

Al-Hosri explained that opening international banking communication channels, particularly through the return to dealing with the global SWIFT network, "will allow reducing the high costs that have burdened the Syrian economy during years of sanctions, paving the way for the retrieval of frozen Syrian funds abroad, as well as creating new financial tools to finance the public budget."

The U.S. decision opens opportunities for the revival of key and important sectors in the Syrian economy, starting with agriculture, textiles, and pharmaceuticals, extending to energy, transport, and aviation.

Agriculture.. Hope for Overcoming Drought Crisis

Experts described the U.S. decision as a "lifeline" for the agriculture sector, which has been exhausted by years of war and resource scarcity, as lifting sanctions opens the field for importing advanced fertilizers, modern irrigation equipment, and agricultural machinery, which allows addressing chronic drought and achieving significant production leaps.

Read the details: Syria Seeks to Revitalize Agriculture Sector Amid Financing Shortages and Water Scarcity

The Syrian Ministry of Agriculture and the United Nations Food and Agriculture Organization (FAO) confirmed that the availability of modern means "will enable doubling the efficiency of irrigation systems, which means more competitive crops at lower costs."

This openness may grant Syria the chance to regain its agricultural markets in neighboring countries and the Gulf, which heavily rely on imports to satisfy their needs for grains, vegetables, and fruits.

Mazen Aloush, Director of Relations at the Syrian General Authority for Land and Sea Ports, believes that the U.S. decision "represents a pivotal point in the path of economic recovery, reflecting the beginning of a shift in economic policies towards Syria."

Aloush reinforced in exclusive statements to "Asharq" that the significance of the decision lies in that it "opens the door for the flow of goods, raw materials, and technical equipment directly, without passing through intermediary countries or incurring additional costs, which will positively reflect on the abundance of goods in markets and reduce transportation and production costs."

Textiles.. Industry Seeking to Regain Its Glory

The spinning and weaving sector has long been one of the pillars of the Syrian economy, contributing about 40% of the GDP before the war, employing approximately 60% of the industrial workforce.

Lifting sanctions brings hope for the return of this sector to the global stage, through importing modern yarns and fabrics, and introducing sophisticated production equipment.

Industrial sources spoke of how facilitating the import of printing and textile equipment, along with competitively pricing energy locally, could bring back to the sector its "confident launch" and its historical prominence. The Syrian Textile Industries Company and the Syrian Cotton Foundation appear to be at the forefront of the beneficiaries, as they seek to regain their market shares in Arab and foreign markets after more than a decade of isolation.

Pharmaceuticals: Toward Regaining Self-sufficiency

The pharmaceutical industry sector, which prior to the crisis accounted for about 93% of local market needs—producing around 8,000 pharmaceutical items in approximately 70 factories—is now waiting for new opportunities. Names like (Pharma - Hama/Homs, Shafa Pharmaceutical Industries - Aleppo, and Biomed Pharma - Damascus) emerged as pioneers in this field during that era, but they were significantly harmed by the restrictions on importing raw materials.

The U.S. decision now allows these materials to flow back legally and regularly, reducing reliance on costly unofficial import channels, thus accelerating the pace of supplying hospitals and health centers with essential medicines, especially high-tech drugs for chronic diseases, and pushing a step further toward gradually achieving self-sufficiency.

Energy and Heavy Industries.. A Paved Road for Oil and Gas

The removal of U.S. sanctions on the Ministry of Oil, refineries, and the oil ports agency has opened the door for Syria's return to the global energy map, as major U.S. companies like Baker Hughes, Hunt Energy, and Argent LNG have announced partnership plans to develop a comprehensive plan for rebuilding the oil and gas sector.

Read also: Syria Exports 600,000 Barrels of Oil for the First Time in Years

This development means that Syrian crude and gas exports may find their way back to international markets, providing substantial financial liquidity capable of supporting other productive sectors. Concurrently, this step allows Syrian manufacturing plants to import advanced American production machinery, enhancing quality systems and updating production lines, with a clear exemption for military-use materials.

Transport and Aviation.. From Isolation to Modernization

Transport and shipping were among the most affected sectors by sanctions. Today, lifting restrictions opens the door for updating the country’s airport infrastructure with the latest American equipment.

The Syrian Civil Aviation Authority indicated that the decision "represents a fundamental change that will enable the authority to modernize airports with navigation systems, communications, and spare parts for civil aircraft that have been deprived for many years."

This openness is not limited to air transport, but also extends to land and sea, allowing for the import of advanced logistical technologies, such as smart packaging systems, enhancing the efficiency of agricultural and industrial exports and bolstering their ability to access global markets swiftly and effectively.

The Director of Relations at the Syrian General Authority for Land and Sea Ports anticipated that this decision would contribute to bolstering import activity through Syrian ports directly, "thus increasing the efficiency of supply chains and reducing burdens on traders and manufacturers, which will subsequently reflect on citizens with more stable prices, as well as serving as an encouraging message to investors and opening the door for broader supply contracts in agriculture, industry, energy, and pharmaceuticals."

Gulf and European Partnerships.. Syria's Return to Trade Maps

The U.S. decision quickly reflected on the European Union, which announced the lifting of most economic sanctions imposed on Syria, signaling the resumption of trade exchanges between both sides. The first fruits of this transformation manifested in the signing by Syrian ports of massive contracts with Dubai Ports World to develop the port of Tartous worth nearly $800 million, and another with CMA CGM to invest $260 million in upgrading the port of Latakia.

Saudi Arabia and Qatar also concluded investment deals with Syria exceeding $20 billion in energy and infrastructure sectors, ranging from power plants to gas networks, indicating a strong Arab push to reconnect Syria with the regional economy.

Challenges.. Between Politics and Deteriorating Infrastructure

Despite this momentum, some obstacles still loom on the horizon, as the U.S. Office of Foreign Assets Control indicates that general licenses (GL25) may be subject to revocation or tightening in the future, while export controls on dual-use and military items remain under the "ITAR/EAR" systems. In addition, Syria remains classified as a "state sponsor of terrorism," which imposes ongoing banking restrictions on capital movement.

Internally, the challenge is no less serious, as current laws, such as the Investment Law and Income Tax Law, still need updating to fit with new economic and trade pathways, and the infrastructure that has been devastated by war requires massive investments, as electricity production has declined to about 50% of its previous level, hindering industries from operating at full capacity.

Between Optimism and Caution.. What Future Awaits Syrian Exports?

Amer Khurboutli, General Manager of the Damascus Chamber of Commerce, expressed great optimism about the decision, emphasizing that it represents the start of a new phase that restores the pivotal role of the private sector in building the Syrian economy.

He indicated in exclusive statements to "Asharq" that returning to the "SWIFT" system and lifting financial restrictions "will facilitate opening documentary credits, reduce trade costs, and encourage capital to flow again into the Syrian market, potentially pushing the annual economic growth rate to over 7% compared to less than 1% by 2025."

Meanwhile, economic expert and lecturer at the University of Damascus, Adnan Ismail, told "Asharq" that some economic sectors had previously resorted to "circumventing sanctions through multiple ports, raising production costs and burdening the consumer," adding, "Today, with the new decision coming into effect, consumers can obtain products at reasonable prices, enhancing the competitiveness of Syrian goods."

Ismail confirmed that one of the most important direct ramifications of the decision relates to the issue of "financial transfers," stating that they "will now be done through guaranteed official channels, maintaining cash flow within the national economic cycle."

However, he simultaneously warned of a scenario of "exchange rate collapse due to increased demand for imports during reconstruction phases," which was seen in neighboring countries like Lebanon and Iraq, considering that the solution lies in building economic partnerships with Gulf Arab countries to "ensure project financing through partnerships and avoid resorting to borrowing from international financial institutions."

He pointed out that new agreements in the field of gas supply and electricity reform "could form a basic pillar for revitalizing the national economy and ensuring sustainable recovery in the long term."