In a dramatic turn for Syria’s battered economy and its place on the world stage, a series of recent developments in Washington and Damascus have set the stage for what could be the most consequential shift in US-Syria relations in over a decade. On October 21, 2025, the US Chamber of Commerce issued a forceful call to Congress, urging a full and permanent repeal of the Caesar Syria Civilian Protection Act. This law, enacted in 2019 to hold the Syrian government accountable for human rights abuses, is now, according to the Chamber, “misaligned with US strategic interests” following the collapse of Bashar al-Assad’s regime and the formation of a transitional government in Syria.
The Chamber’s letter, addressed to key members of the Senate and House foreign affairs committees and published the same day, minced no words. It argued that with Assad gone, the Caesar Act “no longer serves US objectives.” The letter further noted that other legal mechanisms remain available to sanction individuals or entities involved in abuses, but maintaining the law as it stands only creates “uncertainty” for American businesses. That uncertainty, the Chamber stressed, comes from semiannual renewal cycles and the threat of snapback sanctions, which together discourage long-term investment and leave US companies at a disadvantage compared to international competitors already eyeing Syria’s reconstruction.
“US companies need legislative clarity and stability to operate effectively,” the Chamber wrote, warning that without decisive action, the United States risks missing out on lucrative opportunities in Syria’s rebuilding process. The Chamber’s pitch is clear: repealing the Caesar Act would serve American economic interests and, in their view, contribute to “enhancing regional stability and the long-term prosperity of the Syrian people.”
Just days earlier, on October 10, the US Senate took a major step in this direction, approving the lifting of the Caesar sanctions by a resounding 77 to 22 vote as part of the National Defense Authorization Act (NDAA). According to the Syrian American Council, this legislative maneuver also introduced new nonbinding benchmarks for the Syrian government to meet. Failure to comply would trigger an automatic reinstatement of sanctions, and a further clause stipulated that Congress should reconsider the Caesar Act if Syria fails to make progress for 12 consecutive months.
These amendments followed a high-profile visit by Syria’s transitional president, Ahmed al-Sharaa, and Foreign Minister Asaad al-Shaibani to the United States at the end of September, coinciding with UN Week in New York. Their presence, alongside advocacy from the Syrian diaspora in America, helped drive momentum for legislative change, even as resistance lingered from groups like the Alawite Association and influential non-Syrian actors such as Israel. The latter, backed by prominent US lawmakers including Lindsey Graham, reportedly worked to stall the process, highlighting the complex web of interests at play in Washington’s Syria policy.
Against this backdrop, Syria’s new economic leadership is moving quickly to capitalize on the changing tide. In an interview with Reuters in London, Economy Minister Mohammad Nidal Al-Shaar expressed hope that the US would fully lift sanctions in the coming months. He revealed that President Donald Trump had already ordered the lifting of most US sanctions in May 2025 after meeting with President Ahmed al-Sharaa, but the Caesar Act remained as a legislative holdout. “We have to do some push and some lobbying to continue with this path that started in the right direction, and we’re hoping by the end of the year the bill (to scrap the act) will reach the president (Trump), and hopefully he’ll sign it,” Al-Shaar told Reuters, adding, “And once that happens, then we are sanctions-free.”
The stakes could hardly be higher. The removal of the Caesar Act is expected to unlock foreign investment, restore Syria’s access to international banking, and breathe life into key industries. Al-Shaar is especially keen for Washington to reduce its 41 percent tariffs on Syrian trade and hopes US firms will invest as the economy reopens. Gulf countries have already pledged support, while Chinese firms have committed hundreds of millions of dollars for new cement, plastic, and sugar factories. “Big” projects are in the works, Al-Shaar said, painting a picture of a country eager to turn the page.
One of the most visible symbols of change will be Syria’s new currency, set for introduction early next year. New banknotes—expected in December—will remove two zeros and, significantly, Assad’s face, in a bid to restore public confidence after the Syrian pound lost over 99 percent of its value since the civil war began in 2011. Al-Shaar explained, “We’re consulting with many entities, international organizations, experts, and eventually it will come very soon.” While the pound has stabilized in recent months, the currency overhaul is seen as a crucial step in signaling a break from the past.
But rebuilding Syria is a task of staggering proportions. A World Bank report released on October 21 pegs the cost of reconstruction at $216 billion—a “conservative best estimate,” the report says. Al-Shaar believes the real figure could top $1 trillion if modern infrastructure is built, though this would be spread over many years. Rebuilding homes alone could take six to seven years, he noted. To manage the financial burden, Syria has already begun restructuring its sovereign debt, seeking grace periods and other forms of relief. “The sovereign debt that we have, which is not very big actually, will be restructured,” Al-Shaar said, emphasizing a pragmatic approach to Syria’s obligations.
The security situation remains fragile. Assad left Syria in disarray when he was ousted last December, and fighting continued in the oil-rich north until a ceasefire was struck just this month. Al-Shaar remains optimistic, telling Reuters, “I’m hopeful that the next maybe few weeks, or maybe a month or two, we will reach some kind of an agreement with those who are controlling that part of Syria. Once that happens, I think we will have greater ability, financial, natural resources, to really start meaningful (investment) projects,” predicting a “quantum leap in our GDP.”
For all the optimism, there are still hurdles ahead. The legislative process in Washington is far from over, and the influence of foreign policy hawks and regional actors could yet slow or complicate the path to full sanctions relief. The nonbinding nature of the Senate’s new benchmarks means that the threat of renewed sanctions will linger, keeping the pressure on Syria’s transitional government to deliver on reforms and commitments. Meanwhile, the role of the Syrian diaspora, Gulf backers, and global investors will be critical in shaping the country’s economic future.
As the year draws to a close, Syria stands at a crossroads. The next steps taken in Washington and Damascus could determine not only the fate of a nation emerging from years of conflict but also the contours of regional stability and the prospects for American business in a newly opened economy. For now, hope is in the air—tempered by the hard realities of politics, economics, and the long, slow work of rebuilding from ruin.