US Congress Ends Syria Sanctions Permanently, Opening Door to Foreign Investment and Normalization of Relations

The U.S. Congress has voted to permanently lift Syria’s Caesar Act sanctions, clearing the way for foreign investment and engagement with the Sharaa-led government.

The U.S. Congress has voted to permanently lift sweeping sanctions imposed on Syria during the rule of Bashar al-Assad, ending one of Washington’s most restrictive sanctions regimes and signalling a major shift in U.S. policy toward Damascus.

According to Agence France-Presse the U.S. Senate approved the repeal of the 2019 Caesar Act as part of the annual defence policy bill, passing it by 77 votes to 20 after earlier approval by the House of Representatives. President Donald Trump is expected to sign the legislation.

The Caesar Act, named after a defector who documented abuses in Assad-era prisons, had effectively isolated Syria from the international banking system and severely restricted reconstruction financing, according to analysts cited by U.S. and European media.

The move follows significant political changes in Syria, where the current government led by interim President Ahmed al-Sharaa took power after a rapid offensive that saw his forces seize Damascus about a year ago. Since then, the new leadership has sought to stabilise the country and re-engage with regional and Western powers.

Trump had previously suspended Syria-related sanctions twice on a temporary basis, responding to requests from Saudi Arabia and Turkey, key supporters of the Sharaa-led administration. However, U.S. officials acknowledged that temporary waivers failed to reassure investors due to ongoing legal uncertainty.

Al-Sharaa repeatedly called for a full and permanent repeal, warning that the continued presence of sanctions in U.S. law, even if suspended was deterring foreign companies from investing in Syria’s reconstruction after more than a decade of war.

Western diplomats say the repeal could mark a turning point in relations between Washington and the Sharaa-led government, especially as Damascus signals openness to economic reforms and regional cooperation.

However, analysts caution that the real impact will depend on sustained political stability, improved security conditions and credible governance under the current leadership—factors investors will closely watch before committing long-term capital to Syria’s recovery.

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