On May 13, 2025, President Donald Trump announced the lifting of most U.S. sanctions on Syria, marking the end of a 13-year policy of economic isolation that followed 11 years of devastating conflict. This significant decision, made during an investment forum in Riyadh, Saudi Arabia, represents a major shift in international policy towards Syria, with potential regional implications, and comes after the fall of the Bashar al-Assad regime in December 2024. Following the decision, several countries expressed interest in investing in and rebuilding Syria during June and July. For example, Qatar pledged support for Syria’s reconstruction, including plans to build new power plants valued at approximately seven billion dollars. LIMS, through its Syria’s Economic Renewal Journey (SERAJ) program, flagged these developments as a turning point contingent on sweeping reforms.
Reforming Syria’s Trade: A Path Forward After Sanctions Lift
The trade sector, which has been in freefall since 2011, stands to benefit most from this shift. Exports have collapsed by roughly 98 %, while imports have slumped from 18 billion to just 4 billion in 2024, wreaking havoc on the economy and spawning shortages, halted production lines and monopolistic pockets of power. LIMS argues that poor trade policies from the Syrian government such as excessive import restrictions, hurdles in accessing foreign currency, and customs barriers contributed to the collapse. To translate the lifting of sanctions into tangible trade recovery, Syria must roll out a comprehensive reform package. This should entail stripping away tariffs, abolishing all remaining import/export restrictions, simplifying procedures and, rebuilding transport infrastructure through strategic regional partnerships. Only with such structural changes can the country hope to re‑establish itself as a viable trading partner on the world stage.
Syria’s Fiscal Reset: From Socialist Complexity to Pro-Business Environment
LIMS commended the new Syrian administration’s repeated pledges to pivot away from a centrally planned, socialist model toward an open, competitive market economy. The rhetoric should be matched by concrete steps that signal a genuine shift in policy direction. The government conducted a substantial reduction in state‑sector staffing. This move will curb bureaucratic inefficiency and free up resources. LIMS added that further cuts in the size of public sector workforce is due and insisted that salaries should reflect productivity rather than being viewed as a social program.
Secondly, LIMS urged the tax authorities to dismantle the legacy socialist fiscal framework—an opaque, high‑rate regime that is effectively unworkable—and replace it with a simple, low flat‑rate system. The objective is clear: cut the cost of doing business so Syria becomes an appealing destination for both domestic entrepreneurs and foreign investors alike.
Secondly, LIMS urged the tax authorities to dismantle the legacy socialist fiscal framework—an opaque, high‑rate regime that is effectively unworkable—and replace it with a simple, low flat‑rate system. The objective is clear: cut the cost of doing business so Syria becomes an appealing destination for both domestic entrepreneurs and foreign investors alike.
Together, these initiatives form part of a broader strategy outlined in the SERAJ program. By fostering a competitive environment, reducing regulatory bottlenecks and encouraging private sector participation, Syria can rebuild its economy from the ground up—restoring trade flows, creating jobs and ultimately lifting living standards across the country.
Lebanon’s Economic Upswing from Lifting Sanctions on Syria
LIMS argued that the recent decision to lift most U.S. sanctions against Syria opens a spectrum of economic possibilities for Lebanon—provided the two neighbours can move beyond political stalemate and establish genuine, unhindered cross‑border flows.
Firstly, Syria’s long‑awaited reconstruction will demand large‑scale capital outlays. Lebanese firms, already well‑positioned in construction and engineering, stand to benefit from opportunities that will surface as the country rebuilds infrastructure, utilities and housing. Secondly, a wave of Syrians who have settled in Europe, North America and the Gulf is expected to visit Syria once stability returns. Lebanon could capture part of this tourism by courting visitors directly and by investing in hospitality assets—hotels, restaurants and leisure facilities—in Syrian towns that are poised for revival.
Thirdly, the sanctions lift is likely to unlock regional energy collaboration. With the potential revival of Jordan’s power grid and Egypt’s gas pipeline (the Arab Gas Pipeline) routes through Syria, Lebanon could import electricity and natural gas at lower cost reducing production expenses and increasing energy supply.
Finally, the removal of trade barriers will make overland transport to Gulf markets considerably cheaper. This could broaden export corridors for Lebanese goods and allow imports at a lower cost boosting trade volumes and stimulating domestic growth.
Firstly, Syria’s long‑awaited reconstruction will demand large‑scale capital outlays. Lebanese firms, already well‑positioned in construction and engineering, stand to benefit from opportunities that will surface as the country rebuilds infrastructure, utilities and housing. Secondly, a wave of Syrians who have settled in Europe, North America and the Gulf is expected to visit Syria once stability returns. Lebanon could capture part of this tourism by courting visitors directly and by investing in hospitality assets—hotels, restaurants and leisure facilities—in Syrian towns that are poised for revival.
Thirdly, the sanctions lift is likely to unlock regional energy collaboration. With the potential revival of Jordan’s power grid and Egypt’s gas pipeline (the Arab Gas Pipeline) routes through Syria, Lebanon could import electricity and natural gas at lower cost reducing production expenses and increasing energy supply.
Finally, the removal of trade barriers will make overland transport to Gulf markets considerably cheaper. This could broaden export corridors for Lebanese goods and allow imports at a lower cost boosting trade volumes and stimulating domestic growth.
At every turn, LIMS stresses that Lebanon’s prospects hinge on its willingness to re‑establish the free movement of people, capital and goods with Syria. Without such a partnership, the economic dividends of a sanctions‑free Syria risk slipping through the cracks.