Syria Eyes Economic Rebound as Sanctions Ease and Refugees Return

Syria is emerging from a 14-year civil war and attempting to re-enter the global financial system following the fall of Bashar al-Assad’s regime last year. At the Reuters NEXT conference, central bank Governor AbdulKader Husrieh outlined a rare moment of economic optimism: sanctions are easing, refugees are returning, and new partnerships with global financial institutions are forming. The U.S. has extended the suspension of Caesar sanctions, and full repeal may come by late 2025, opening doors for foreign banks and investors.

Why It Matters

A faster-than-expected Syrian recovery could reshape economic dynamics in the Levant and revive a long-isolated market of over 20 million people.
Easing sanctions would enable foreign banks to resume transactions with Syria, strengthen investor confidence, and support reconstruction.
A returning refugee population is expected to boost labor supply, domestic demand, and GDP.
A new currency and the end of central bank deficit financing signal an attempt to stabilize public finances and reset the financial system after years of collapse.

Syrian Government & Central Bank: Seeking to rebuild credibility, modernize regulations, and transition from wartime crisis management to economic stabilization.
Returning Refugees: Their repatriation could significantly expand economic activity, rejuvenating labor markets and consumption.
International Financial Institutions (Visa, Mastercard, IMF): Re-engagement marks a major shift after years of sanctions; partnerships aim to create a modern, secure payment ecosystem.
Foreign Banks & Investors: Strongly influenced by sanctions decisions — a full repeal could reopen significant commercial and correspondent banking activity.
U.S. Government & Congress: Key decision-makers on lifting remaining sanctions, shaping Syria’s reintegration trajectory.

What’s Next

Syria plans to introduce a new currency with eight denominations and remove two zeroes to bolster confidence in the pound. The central bank aims to eliminate direct budget financing and tighten anti–money laundering and counter-terrorism rules to meet international standards.
More refugees are expected to return through 2025, potentially accelerating growth beyond global forecasts. The timeline for full sanctions repeal will determine how quickly foreign banks and payment networks re-engage.
If reforms hold and international partners commit, Syria could move toward its goal of becoming a financial hub for the Levant though major risks and structural weaknesses remain.

With information from Reuters.