Prospects for International Trade with Syria: A Comprehensive Analysis of Opportunities and Challenges 2025

Executive Summary

Syria's international trade landscape is undergoing a transformative shift in 2025, marked by the significant easing of sanctions by the United States, European Union, and United Kingdom. This report provides a comprehensive analysis of the emerging opportunities and persistent challenges within this evolving environment. The lifting of key restrictions has paved the way for renewed engagement, attracting interest from regional and international companies, foreign investors, and financial institutions. Sectors such as agriculture, manufacturing, and renewable energy are poised for substantial growth, driven by a combination of strategic geographic location, a skilled workforce, and a pressing need for reconstruction and modernization. The re-opening of financial channels, including Syria's rejoining of SWIFT, further facilitates these developments, promising an immediate improvement in the Syrian pound and a resurgence in trade activities. However, navigating this landscape requires careful consideration of lingering challenges, including institutional fragility, the need for robust compliance protocols, and the potential for policy reversals. Despite these complexities, the overall outlook is one of cautious optimism, with significant potential for economic recovery and integration into global markets. Platforms like AlTojjar are playing a crucial role in bridging existing gaps, offering digital trade facilitation, logistics solutions, trade finance, and educational resources to empower Syrian businesses and connect them with international partners.

1. Introduction

1.1 Purpose and Scope of the Report

This report aims to provide a thorough and timely analysis of the prospects for international trade with Syria in 2025. Given the recent and significant shifts in geopolitical and economic policies, particularly the easing of international sanctions, understanding the nuances of the Syrian market has become paramount for global stakeholders. The report targets a diverse audience, including regional and international companies seeking new market opportunities, foreign investors evaluating potential ventures, international financial institutions assessing economic stability, and academics and researchers interested in the dynamics of post-conflict economic recovery. Our analysis will delve into the emerging opportunities across key sectors, examine the persistent challenges that require strategic navigation, and highlight the critical role of platforms like AlTojjar in facilitating this renewed engagement. By offering data-driven insights and practical considerations, this document seeks to serve as an essential guide for informed decision-making in Syria's evolving trade landscape.

1.2 Historical Context and Pre-2025 Trade Overview

Prior to 2025, Syria's economy and international trade were severely impacted by over a decade of conflict and stringent international sanctions. The civil war led to widespread destruction of infrastructure, displacement of populations, and a dramatic decline in economic activity. Gross Domestic Product (GDP) suffered significantly, and trade volumes plummeted. For instance, Syria's exports dwindled from an estimated $18.4 billion in 2010 to a mere $1.8 billion in 2021, according to World Bank data. This period was characterized by economic stagnation, a depreciating Syrian pound, and a severe contraction of key sectors that once formed the backbone of the Syrian economy. The imposition of comprehensive sanctions, such as the U.S. Caesar Syria Civilian Protection Act of 2019 (Caesar Act), further isolated Syria from the global financial system and restricted its ability to engage in international commerce. This historical context is crucial for appreciating the magnitude of the changes observed in 2025 and the potential for a new chapter in Syria's economic relations.

2. Overview of Syrian Economic Landscape

2.1 Impact of Recent Sanctions Relief (Post-May 2025)

May 2025 marked a pivotal moment for Syria, as the United States, European Union, and United Kingdom initiated significant steps to relax their long-standing sanctions. These actions are designed to facilitate the normalization of commercial relations and support reconstruction efforts following the country’s prolonged civil war. The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License No. 25 (GL 25), which authorizes transactions with certain Syrian government ministries, financial institutions, and state-owned enterprises, including the Commercial Bank of Syria and the Central Bank of Syria. This move, alongside a waiver under the Caesar Act and exceptive relief from the Financial Crimes Enforcement Network (FinCEN) allowing U.S. financial institutions to maintain correspondent accounts for the Commercial Bank of Syria, signals a clear intent to ease financial restrictions.

Similarly, the European Union, which had maintained more targeted sanctions, began easing its measures in February 2025, with a formal announcement to lift remaining sanctions on May 20, 2025. The United Kingdom followed suit, lifting sanctions on key Syrian economic entities in March 2025 and introducing legislation in April 2025 to amend and revoke measures targeting the transport, trade, energy, and finance sectors.

The immediate effects of these policy shifts have been notable. The Syrian pound (SYP) has seen an immediate improvement, and there has been a return of air traffic and a resumption of trade across the Jordanian border. Furthermore, Syria’s rejoining of the SWIFT system, after over a decade of exclusion, is a critical development. This re-entry enables Syrian banks to officially send and receive international financial messages, significantly easing the flow of funds for trade and investment.

However, it is crucial for businesses to approach this new landscape with caution. While broad sanctions that previously prohibited nearly all activities have been eliminated, significant restrictions remain. Transactions involving terrorist organizations, human rights violators, drug traffickers, or the former Assad regime are still prohibited. Furthermore, transactions benefiting Russia, Iran, or North Korea remain forbidden, and U.S. export controls continue to apply.

"The United States, EU, and UK started easing sanctions on Syria, creating new opportunities for trade and investment. However, significant restrictions remain, and the risk of rapid policy changes persists. Businesses engaging in Syria should remain vigilant, ensure robust compliance, and monitor ongoing developments in all relevant jurisdictions."

Practical considerations for businesses include conducting comprehensive due diligence on all counterparties, updating Know Your Customer (KYC) protocols, and remaining aware of the “snapback risk”—the possibility that sanctions relief could be reversed based on developments in Syria. Additionally, potential divergences between U.S., EU, and UK sanctions regimes necessitate careful monitoring and compliance with all applicable regulations, as easing in one jurisdiction does not automatically permit activities under another.

3. Opportunities in Key Sectors

3.1 Agriculture and Food Processing

The agricultural sector in Syria, despite being severely impacted by war, drought, and sanctions, presents a golden opportunity for investors following the lifting of U.S. and EU sanctions in 2025. Over 50% of irrigation infrastructure was destroyed, and wheat production plummeted by 75%, leading to 14.5 million people facing food insecurity. However, the sanctions relief has created a unique alignment of factors for agricultural revival, including increased access to capital, regional partnerships with Gulf states, and a pressing demand for climate adaptation technologies.

Investment opportunities are particularly strong in drought-resistant crop technology. Syria’s historical advantage in durum wheat can be leveraged with climate-resilient varieties like the “Jabal” strain, which requires 30% less water and boosts yields by up to 40%. Partnerships with organizations like the Syria Resilience Initiative (SRI) have already demonstrated success, with solar-powered drip irrigation systems increasing olive grove income by 50% and sprinkler systems cutting wheat irrigation time by 60%.

Modernizing irrigation infrastructure is another lucrative area. Solar-powered irrigation systems, costing between $1,500–$3,000 per hectare, are game-changers in water-scarce regions. Rehabilitating water infrastructure, including canals and reservoirs, could double water efficiency by 2030. The EU’s recent $230 million port expansion in Latakia further underscores the importance of infrastructure in facilitating trade.

In terms of agribusiness and trade corridors, Syria’s pre-war agricultural exports totaled $1.8 billion annually. With sanctions eased, sectors like olives, citrus, and cotton are expected to rebound. The Damascus International Agricultural Expo 2025 has already attracted Gulf buyers, indicating strong interest. The reopening of the al-Naseeb-Jaber border crossing with Jordan is projected to add $600 million annually to Syria’s GDP, creating significant opportunities for investors in logistics, warehousing, and cold storage as trade flows normalize. The data suggests that Syria’s agricultural sector could grow by 200% by 2030, with wheat output projected to rebound from 1.5 million tonnes to 7 million tonnes by 2030—a 367% increase.

3.2 Manufacturing and Industry

Syria's manufacturing sector, particularly light manufacturing such as textiles and clothing, holds significant potential for revival. Before the conflict, cities like Aleppo and Damascus were vibrant regional hubs for these industries. The lifting of sanctions presents an opportunity for these industries to re-emerge, especially with foreign investment aimed at modernizing production facilities and supply chains. This revitalization could establish new production centers for international markets, capitalizing on Syria’s skilled labor force and strategic geographical position.

Beyond traditional light manufacturing, there are opportunities in food processing, including olive oil, dried fruits, and various processed foods. Investment in modern processing facilities and quality control measures can significantly enhance the value of Syrian agricultural exports and ensure compliance with international standards. The Syrian Trade Establishment has also been actively offering investment opportunities in various provinces, signaling a governmental push towards private sector involvement and industrial growth.

3.3 Renewable Energy

Given the extensive damage to Syria's traditional energy infrastructure during the conflict, the renewable energy sector, particularly solar and wind power, represents a crucial area for investment and development. Syria possesses significant potential for both solar and wind energy generation. Investment in renewable energy projects offers a sustainable solution for the country's power supply needs and can serve as a significant driver for economic growth. This aligns with global trends towards green energy and could attract environmentally conscious investors seeking to contribute to Syria's sustainable recovery.

Furthermore, the interest from Gulf states in financing energy projects in Syria underscores the strategic importance of this sector. Agreements to develop gas turbines and solar power plants are already in place, aiming to cover a substantial portion of Syria's energy requirements. This demonstrates a clear commitment to rebuilding and modernizing the energy sector, creating a favorable environment for further investments in renewable energy solutions.

3.4 Tourism

Syria boasts a rich cultural heritage and numerous historical sites, offering substantial long-term potential for cultural and historical tourism. While the tourism infrastructure has suffered severe damage, the sector's inherent appeal remains strong. Investment in rebuilding hotels, transportation networks, and tourist services is essential to revive this sector. Such investments would not only attract international visitors eager to explore Syria's unique history and landscapes but also contribute significantly to economic recovery and job creation. The successful revival of tourism will, however, depend on rebuilding trust and ensuring a stable security environment for visitors.

4. Challenges and Risks

4.1 Lingering Sanctions and Legal Uncertainty

Despite the recent easing of sanctions, businesses engaging with Syria must navigate a complex and evolving legal landscape. While General License 25 (GL 25) and other measures have opened avenues for certain transactions, significant restrictions remain. For instance, dealings with Specially Designated Nationals (SDNs) not listed in GL 25 are still prohibited, and transactions involving terrorist organizations, human rights violators, drug traffickers, or the former Assad regime remain forbidden. Furthermore, any transactions benefiting Russia, Iran, or North Korea are explicitly excluded from the sanctions relief.

"The United States, EU, and UK started easing sanctions on Syria, creating new opportunities for trade and investment. However, significant restrictions remain, and the risk of rapid policy changes persists. Businesses engaging in Syria should remain vigilant, ensure robust compliance, and monitor ongoing developments in all relevant jurisdictions."

The concept of a “snapback risk” is also a critical consideration, implying that sanctions relief is reversible and subject to change based on future developments in Syria. This uncertainty necessitates continuous monitoring of policy changes across all relevant jurisdictions. Moreover, potential divergences between the U.S., EU, and UK sanctions regimes create a complex compliance environment, where easing of restrictions in one jurisdiction does not automatically permit activities under another. Comprehensive due diligence, updated Know Your Customer (KYC) protocols, and expert legal advice are therefore indispensable for mitigating risks.

4.2 Institutional Fragility and Corruption

The legacy of conflict and the previous regime’s entrenched corruption have left Syria with weak institutions and a lack of transparent legal frameworks. This institutional fragility poses significant challenges for foreign investors, impacting property rights, contract enforcement, and creating bureaucratic hurdles. The absence of robust, independent oversight bodies to combat corruption further exacerbates these issues, making it difficult for businesses to operate with predictability and fairness. Addressing these challenges requires comprehensive institutional reforms and a strong commitment to good governance to foster a more favorable investment climate.

4.3 Damaged Infrastructure and Economic Instability

Syria's economy continues to grapple with the profound impact of damaged infrastructure and persistent economic instability. The collapse of the Syrian pound (SYP) and an unemployment rate soaring to 60% underscore the severity of the economic crisis. Essential infrastructure, including transportation networks, energy grids, and water systems, has been extensively damaged, hindering economic activity and increasing operational costs for businesses. While the government has initiated reforms, such as liberalizing the exchange rate and privatizing some state-owned companies, these measures have also introduced new challenges, including the influx of foreign goods that threaten local industries and the risk of wealth concentration.

Rebuilding this devastated infrastructure and stabilizing the economy will require substantial long-term investment and strategic planning. The success of Syria’s transition to a market economy hinges on a delicate balance between economic openness, protecting vulnerable populations, and rebuilding trust through radical institutional reforms.

4.4 Security Concerns

Despite the end of major conflict, localized security risks and political instability persist in certain areas of Syria. These ongoing concerns can significantly impact business operations and deter foreign investment. The unpredictable nature of the security situation necessitates that investors and businesses conduct thorough risk assessments and implement robust risk management strategies to protect their assets and personnel. While the overall environment is improving, a cautious approach is warranted to navigate the remaining security challenges effectively.

5. Role of AlTojjar in Trade Facilitation

AlTojjar is positioned as a critical digital bridge connecting Syrian importers and exporters with global markets, directly addressing the gaps in trade infrastructure that have historically hindered Syria's international commerce. The platform's core vision is to empower Syrian companies by providing comprehensive solutions across four key areas:

1. Digital Trade Facilitation: AlTojjar offers business matching services, verified business profiles, and digital documentation management. It also provides compliance verification tools essential for navigating complex international trade regulations. This streamlines the trade process, making it more efficient and transparent for both Syrian businesses and their international partners.
2. Logistics Solutions: The platform coordinates shipping and transportation, warehousing, and last-mile delivery services. Real-time tracking of shipments ensures transparency and reliability, crucial for building trust in international supply chains.
3. Trade Finance Solutions: AlTojjar provides detailed explanations and access to various financial mechanisms, including letters of credit, bank guarantees, trade insurance, and alternative financing options. This is particularly vital in addressing the challenges posed by sanctions and complex financial regulations, offering practical solutions for secure transactions.
4. Educational ResourcesThe platform serves as a valuable source of updated information on sanctions and legislation affecting Syrian trade, export/import regulations, quality standards, and strategies to reduce exchange risks and fraud. Through the “AlTojjar Academy,” it offers educational modules, courses, and seminars to enhance the knowledge and capabilities of Syrian businesses.

By integrating these services, AlTojjar aims to build trust, promote Syrian products, and facilitate communication, thereby contributing significantly to attracting international investment, enhancing Syria’s image as a reliable trade partner, and increasing both trade volume and foreign direct investment.

6. Conclusion

Syria stands at a critical juncture in 2025, with the easing of international sanctions opening unprecedented avenues for economic recovery and global reintegration. The comprehensive analysis presented in this report highlights a landscape rich with opportunities, particularly in the agricultural, manufacturing, renewable energy, and tourism sectors. These sectors, once vibrant, are now poised for revival, driven by a combination of strategic geographic location, a resilient workforce, and a renewed international interest in Syria’s economic potential. The re-establishment of financial linkages, such as rejoining SWIFT, further underpins this positive outlook, promising to streamline trade and investment flows.

However, the path to full economic recovery is not without its complexities. Lingering sanctions, institutional fragilities, the pervasive issue of corruption, damaged infrastructure, and persistent security concerns represent significant challenges that require careful navigation. Success will hinge on the ability of both Syrian authorities and international partners to implement robust reforms, ensure transparency, and foster a stable and predictable business environment.

In this evolving context, platforms like AlTojjar are indispensable. By acting as a digital bridge, AlTojjar not only facilitates trade through its comprehensive suite of services—digital trade facilitation, logistics, trade finance, and educational resources—but also plays a crucial role in rebuilding trust and empowering Syrian businesses to engage effectively with global markets. The platform’s commitment to transparency, education, and practical solutions directly addresses many of the challenges outlined in this report, making it a vital enabler of Syria’s economic resurgence.

The prospects for international trade with Syria in 2025 are cautiously optimistic. While significant hurdles remain, the momentum generated by sanctions relief and the proactive efforts of entities like AlTojjar create a compelling narrative for renewed engagement. For regional and international companies, foreign investors, and financial institutions, understanding this nuanced landscape is key to unlocking the immense potential that Syria offers in its journey towards economic stability and prosperity.