On Monday November 10, Syrian President Ahmed al-Sharaa travelled to Washington DC for talks with US President Donald Trump, resulting in the much-needed lifting of sanctions against the recovering country.
Following the historic meeting – the first time a Syrian president has visited the White House – the US agreed to a 180-day suspension of the Caesar Act, which limited and added risk to foreign investment in Syria, which is essential to the rebuilding of post-war Syria.
Announcing the lifting of these sanctions, US Secretary of State Marco Rubio outlined the terms of the agreement with restrictions remaining in place on ‘certain transactions involving the governments of Russia and Iran, or the transfer of provisions of Russian-origin or Iranian-origin goods, technology, software, funds, financing or services’.
During the meeting between the two presidents it was also agreed that Syria will join the US-led international coalition to combat the Islamic State group ISIS. A remarkable development given that Shaara was previously part of the terrorist group Al Qaeda and had a $10 million bounty on his head.
Speaking afterwards, Trump alluded to Shaara’s ‘rough’ past but threw his support behind the Syrian leader, saying he believes Shaara has what it takes to turn Syria’s fortunes around.
This US support will be crucial in the rebuilding of Syria, especially given the past strained diplomatic relations between the two countries. Shaara has been keen to stress that Syria is now a geopolitical ally of the US and no longer seen as a threat.
Other outcomes of the discussions include the US agreeing Syria can reopen its Embassy in Washington, as well as Shaara committing to integrating Kurdish Syrian Defence Forces into the Syrian army. However, the Syrian government has refused to commit to normalisation with Israel, despite pressure from the US.
While the lifting of the Caesar Act sanctions is positive, the fact that there is a time limit could cause potential problems for Syria as it tries to encourage foreign investment.
Constant review will be needed, plus a repeal with conditions could deter companies from investing in Syria through fear of being sanctioned themselves.
Shaara has visited several wealthy Gulf countries to encourage investment to help Syria recover from 14 years of war. He had a meeting with Russia’s President Putin to discuss developing Syria’s oil fields and other projects in the energy, transport and tourism sectors, as well as inviting investment into renewable energy sources while at the UN climate summit in Brazil.
According to Central Bank of Syria Governor Abdulkader Husrieh, more than 22 American companies, including Visa, Mastercard, and Halliburton, are interested in entering the Syrian market and taking part in reconstruction, energy, and transport projects.
However, Western businesses are rightly tentative about investing in Syria given the fragile political state of the country and safety concerns: more than 2,500 have been killed in sectarian violence since Shaara seized control with main targets being Alawites, the sect of the ousted Syrian President, Bashar al-Assad.
Prior to the Washington meeting, Syria carried out pre-emptive strikes on Islamic state cells, with a statement issued saying the move was part of ‘ongoing national efforts to combat terrorism and confront plots targeting the country’s security and citizens’.
Last month, the World Bank estimated it will cost $216bn to rebuild Syria so securing foreign investment must remain at the forefront of government minds.
But for Western businesses, investing in Syria poses a delicate balance of opportunity and risk.
