• President Trump will sign an executive order on Monday to substantially ease U.S. sanctions on Syria, marking a sweeping reversal of long-standing policy.
  • The Treasury Department has already issued General License 25, authorizing most previously prohibited transactions with Syria, except for specific restricted entities.
  • The move aligns with Gulf allies' interests and follows the collapse of Bashar al-Assad's government, aiming to spur reconstruction and foreign investment.

A Swift Policy Reversal

President Donald Trump is set to formalize a dramatic shift in U.S. policy toward Syria with an executive order on Monday that will pave the way for lifting sanctions, according to sources familiar with the matter. The decision comes just months after the fall of the Assad regime and follows intense lobbying by Syria's transitional government and Gulf partners, who have argued that maintaining sanctions would hinder reconstruction efforts.

The Treasury Department moved swiftly last week, issuing General License 25 to immediately authorize most commercial and financial transactions with Syria. While certain individuals and entities remain under U.S. restrictions, the license effectively opens the door for private sector engagement after years of economic isolation. "This is about giving Syria a chance to rebuild," said one administration official, speaking on condition of anonymity. "The conditions that justified these sanctions no longer exist."

Economic and Geopolitical Implications

The policy shift, announced during Trump's recent speech in Riyadh, signals closer alignment with Gulf states eager to invest in post-war Syria. European and British officials are reportedly coordinating similar sanctions relief, creating opportunities for multinational corporations in sectors like energy, construction, and technology. Market analysts anticipate a surge in foreign investment inquiries, though challenges remain given Syria's devastated infrastructure and fragile transitional government.

Some Treasury officials were caught off guard by the pace of the changes, according to people familiar with internal discussions. The department is still working out details of the rollback, including how to handle remaining statutory sanctions under the Caesar Act. Meanwhile, humanitarian groups welcome the move, hoping it will ease access to essential goods, while critics warn of potential risks if security conditions deteriorate.

What Comes Next

With the executive order's signing imminent, attention turns to implementation. The State Department and Treasury are expected to issue further guidance in the coming weeks, with industry sources noting particular interest in how banking channels will reopen. "The real test," said a Dubai-based investment advisor, "is whether the money can flow without unnecessary friction." As Syria's economy tentatively reconnects with global markets, the long-term success of this gamble will depend on stability—both political and economic.