AGP Executive Report

Sanctions Lift, Finance Opens: Syria’s delisting from the US State Sponsors of Terrorism list is already shifting the business outlook. Officials say it removes a key barrier to SWIFT-linked banking flows, with expectations for more Western, Arab and Turkish banks and faster growth in electronic payments—though compliance and banking reforms still matter. Reconstruction Pitch at Damascus Fair: President Ahmed al-Sharaa used the opening of the 63rd Damascus International Fair to frame a “new phase” of reconstruction, calling Syria a trade corridor and urging investors to see the fair as a business and decision-maker hub, not just a showcase. Payments Signal Change: Al-Sharaa was shown making his first Visa payment after sanctions removal—an early, visible sign of how quickly consumer and commercial channels could reopen. Regional Trade Push: Syria also moved to deepen economic ties with Türkiye and Saudi Arabia, including a Syrian-Turkish business forum aimed at investment and joint production across energy, infrastructure, tourism, agriculture and services. Banking Integration Roadmap: Syria’s central bank and economy ministry advisers stressed that real capital inflows won’t be automatic; banking infrastructure upgrades, transparency and international rules will determine how fast money and trade can return. Russia Ties, Bases Rework: Putin and al-Sharaa discussed deepening cooperation and the August 9 memorandum on reorganizing Russia’s Hmeimim and Tartus military facilities—important for stability that investors watch closely.

US Delisting Boosts Syria’s Openness: Syria’s removal from the US terrorism list is already translating into practical access—Damascus says Syrian Airlines will launch direct flights to Vienna and Copenhagen from Sept. 21, easing travel and signaling a wider reopening for business. Russia-Syria Economic & Security Talks: Putin and interim leader Ahmad al-Sharaa reaffirmed support for Syria’s sovereignty and discussed expanding trade, economic and humanitarian cooperation, including an Aug. 9 plan to reorganize Russia’s Hmeimim air base and Tartus logistics facility. Türkiye-Syria Trade Push: Turkish Trade Minister Ömer Bolat visited Damascus for the 63rd Damascus International Fair, meeting Syria’s economy and industry minister and targeting a $10B bilateral trade volume, with talks on transport, border crossings and investment facilitation. Industry Investment in Aleppo: LC Waikiki quietly started production at a 150-worker plant in Aleppo’s Al-Rai Industrial City, aiming to scale to 1,000 workers and supply Syria while shipping to the EU and UAE. Food Security Funding: WFP and South Korea launched REACH Phase II, adding $5m to deliver cash-based food and nutrition support to about 38,000 vulnerable people across Syria over the next year. Local Cost-of-Living Pressure: A KDP-S official in Syrian Kurdistan warned that high prices, weak purchasing power, dollar volatility and fuel/electricity shortages are squeezing households and driving protests.

US-Syria Delisting: Washington removed Syria from the State Sponsors of Terrorism list after 47 years, a move Damascus says “opens a new chapter” for reconstruction and investment, with interim leader Ahmed al-Sharaa calling it a step toward development and stability. Banking & Finance: Syria’s central bank governor said the change can help restart correspondent banking, trade finance and remittances—though compliance and other restrictions won’t vanish overnight. Aviation Lift: The US also eased key aviation restrictions tied to the delisting, potentially reducing legal and sanctions risk for airlines and aircraft deals. Regional Reactions: Turkey, Egypt and other Arab capitals welcomed the decision as a major obstacle removed for economic recovery. Trade Push: The Damascus International Fair opened with a focus on Türkiye-Syria investment and joint production, with Turkish officials citing rising bilateral trade and planned visits to Aleppo’s industrial zone. Security Crosscurrents: Israel’s strikes near Syria’s Abu al-Duhur and the broader Israel-Türkiye-Syria friction remain a backdrop as Syria seeks reintegration.

US delisting reshapes Syria’s investment outlook: The United States officially removed Syria from its “State Sponsors of Terrorism” list after a 45-day congressional review, and also revoked the terrorist designation of Hayat Tahrir al-Sham (HTS). Syrian President Ahmed al-Sharaa called it a “historic” step that should unlock sanctions relief and help reconstruction and investment, while US officials said it reflects Damascus’ commitments and will open “new avenues” for economic recovery. Regional business signals: The UAE welcomed the move as a boost for stability and attracting investment; Türkiye, Qatar and Jordan also praised the decision as momentum for reintegration with the global economy. Sanctions pressure elsewhere still matters: At the same time, Washington announced a sweeping new sanctions push against Iran under “Operation Economic Outcast,” warning that countries trading with Iran could face secondary penalties—an important backdrop for any Syrian trade and finance plans. Diplomacy meets legal risk: A separate development puts Syria-Russia extradition arrangements under strain after a Syrian court sentenced Bashar al-Assad to death in absentia, raising the question of whether Damascus will seek extradition from Moscow. Trade connectivity push: Lebanon and Syria discussed practical steps to strengthen economic integration, including port cooperation and reconnecting railway links, with officials pointing to growing interest in investment in Syria.

US-Syria Sanctions Reset: The U.S. formally removed Syria from its “State Sponsor of Terrorism” list after 47 years, also delisting Hay’at Tahrir al-Sham, a move officials say clears the last major legal barrier for private investment and financial activity. Damascus Response: Syrian officials called it a “historic milestone” and said it supports reintegration, reconstruction, and economic recovery under President Ahmed al-Sharaa. Israel-Syria Diplomacy: Syria and Israel resumed U.S.-brokered talks in Jordan, aiming to reduce strikes inside Syria and reopen a path toward a security agreement. Trade Corridors & Energy Risk: Türkiye and Qatar pushed to lift bilateral trade to $5B, while TotalEnergies CEO Patrick Pouyanne warned that Strait of Hormuz disruption is forcing new alternative export routes for Middle East projects. Regional Politics: Saudi Arabia and France reaffirmed support for Palestinian statehood and urged Israel to withdraw from Lebanese territory, as they deepened their strategic partnership. Agriculture Cooperation: Ukraine and Syria discussed expanding agricultural ties and a memorandum covering food support and safer navigation for trade. Humanitarian Funding: UK’s development secretary Randeep Sarai announced nearly $80M in assistance for Lebanon and Jordan, including support for refugees and inclusive economic opportunities. Market Watch: Meat prices moved differently across Iraq’s Kurdistan cities, with Erbil seeing renewed increases while Al-Sulaymaniyah saw declines.

Syrian courts & justice: Damascus’ Fourth Criminal Court sentenced former Grand Mufti Ahmad Badreddin Hassoun to life in prison, citing incitement of civil war and sectarian strife, plus asset confiscation and penalties. Israel–Syria diplomacy: Syria and Israel held U.S.-mediated talks in Jordan after an Israeli strike on the Abu al-Duhur airbase, with discussions focused on de-escalation mechanisms and reviving a potential security agreement. Israel–Turkey fault line: The airbase strike has intensified Israel–Türkiye tensions, while Washington pushed for a deconfliction mechanism involving Israel, Turkey and Syria. Regional security & sanctions pressure: Iran warned expanded U.S. sanctions would trigger “consequences,” as the rial hit a record low ahead of new measures. Iraq currency reform: Iraq plans to remove three zeros from the dinar and redesign banknotes to curb cash outside banks and formalize transactions. Trade & ports: DP World advanced Tartous port modernization, positioning it as a lever for Syria’s economic recovery. Education rights in Aleppo: Students and teachers in Sheikh Maqsoud and Ashrafiyah renewed demands for Kurdish-language education, exams, and overdue salary status.

Syria-US sanctions: Syria cleared a key US congressional hurdle toward removal from the terrorism list, with officials saying the next step is a final executive decision—an outcome they say could ease banking, investment and trade frictions. Saudi-Syria trade facilitation: Saudi Arabia’s embassy in Damascus opened a Tasheer visa services center for cargo and passenger applications, aiming to strengthen economic ties and support Syria’s recovery. Syria-Pakistan reset: Syria’s FM Asaad al-Shaibani completed a landmark 19-year gap visit to Islamabad, agreeing to revive joint political and higher committees and signaling Damascus is studying participation in the Mecca Joint Defense pact. Regional logistics rebound: Syria’s road freight is rebounding as Iraq routes reopen, with the Rabia crossing boost and visa delays for Syrian drivers still a major bottleneck. Oil sector oversight: Syria’s oil watchdog reported initial losses of over $8m tied to violations in production, transport and contracts, mainly in Deir ez-Zor. Security spillover into business: Israel’s strike on Abu al-Duhur airbase in Idlib is intensifying Israel-Turkey rivalry, raising risks for cross-border stability that underpins trade.

US-Syria Sanctions Path: Syria says a 45-day US congressional review has expired, clearing a key procedural step toward removing Damascus from Washington’s terrorism list—though final action still depends on the US secretary of state and other remaining restrictions. Regional Trade & Finance: Iraq’s oil and finance ministers met Saudi counterparts in Riyadh to boost energy security and economic integration, including plans to reduce reliance on the Strait of Hormuz via routes through Turkey and onward via Syria and Jordan. Syria-Turkey Security Shockwaves: Israel’s Aug. 18 strike on Syria’s Abu al-Duhur airbase is again at the center of escalating Israel-Türkiye tensions, with reports claiming Ankara may be preparing radar/air-defense assets and the US saying Israel did not warn Washington in advance. Syria’s Reconstruction Partnerships: Turkey’s foreign minister reiterated Ankara as a “key partner” in Syria’s reconstruction, as Damascus weighs joining the Mecca defense pact. Iraq Governance Watch: Iraq’s PM Ali Al-Zaidi hit his 100-day mark with a large 2026–2029 program, but cabinet gaps and the September 30 weapons-control deadline remain major business-and-security risks.

US-Syria Sanctions Reset: The U.S. cleared a key congressional step to remove Syria from the State Sponsors of Terrorism list, with Syrian officials saying the final executive decision could follow—potentially easing banking, trade, and investment frictions. Israel-Syria Escalation Risk: Israel carried out another strike in southern Syria near Beit Jinn, while a U.S. envoy said Washington found no basis for Israeli claims about Turkish troop deployment—raising questions over escalation management. Turkey-Israel Friction With Syria in the Middle: Reporting suggests Israel weighed intelligence about Turkish activity at Syria’s Abu al-Duhur airbase before striking it, with U.S. officials warning the episode brought the sides dangerously close to confrontation. Energy Transit Pressure: Iran allowed some Iraqi oil tankers through the Strait of Hormuz after Baghdad requests, while Iraq and Syria are also pushing alternative export routes—an issue that matters for regional trade flows and costs. Kurdish Integration Watch: SDF commander Mazloum Abdi said plans are in place to complete integration this month, tying stability and state-building to political follow-through. Business & Diplomacy Signals: Syria’s foreign ministry floated renewed economic engagement ideas, including a proposed business council with Pakistan, as Damascus seeks wider trade links.

Israel-Syria Tensions: A US envoy says Israel did not warn Washington before striking the Abu al-Duhur air base in northern Syria, raising fears of escalation with Turkey. Kurdish Northeast Politics: Kurdish leaders marked Qamishlo’s centenary, highlighting the city’s multi-ethnic identity and shared heritage. Iraq-Syria Relations: Shafaq News reports Iraq’s ties with post-Assad Damascus are shifting from caution toward more pragmatic engagement, with intelligence-level contacts leading the way. SDF Integration: US Ambassador Tom Barrack says SDF integration into Syria’s transitional government has advanced militarily, while political and education issues remain unresolved. Trade & Transport: Iraq’s trucks have started using the UN-backed TIR system for cross-border transit, aiming to boost revenue as freight routes expand. Oil Routes Under Pressure: Iran allowed some Iraqi tankers to pass through the Strait of Hormuz, while Baghdad continues pushing exports via Türkiye and Syria’s ports. Regional Security Deals: Syria is reportedly considering joining the Mecca defense pact signed by Saudi Arabia, Türkiye and Pakistan.

Syria–Turkey security: Syria’s FM Asaad al-Shaibani called Türkiye a “key partner” in reconstruction while saying Damascus is still reviewing whether to join the Mecca Joint Defence pact with Saudi Arabia and Pakistan, and ruled out immediate Iran mediation. Regional diplomacy: Pakistan and 11 Muslim-majority states urged international action to halt Israeli strikes on Syria and demand withdrawal from occupied areas after Israel hit the Abu al-Duhur airbase. Defense pact ripple effects: Syria’s outreach also includes plans to reactivate a joint ministerial commission with Pakistan and set up a business council and investment forum. Energy & trade angle: Iraq’s PM outlined plans to more than double oil output to 8–10 million bpd and expand exports via Türkiye (Ceyhan) plus Syria (Baniyas) and Jordan (Aqaba), underscoring Syria’s potential role in regional logistics. US policy pressure (context): US Treasury reclassified Hezbollah as tied to Iran’s IRGC, while broader TPS terminations are driving deportation and labor-market disruption for Syrians abroad.

Syria-Pakistan trade push: Syrian FM Asaad Hassan al-Shaibani visited Islamabad for talks with PM Shehbaz Sharif and ministers, aiming to expand cooperation across politics, defense, trade, investment, education and people-to-people links, with plans to restore direct flights and set up a business council and investment forum in Damascus. Defense alignment debate: Syria said it hasn’t decided yet whether to join the Turkey–Saudi Arabia–Pakistan Mecca Joint Defense Agreement, while calling Türkiye a key partner in reconstruction and stressing Israeli strikes must end first. Reconstruction & security cooperation: In parallel, Syrian officials met Pakistan’s military leadership to deepen security and defense coordination. Humanitarian ID upgrade: UNRWA expanded its eUNRWA digital ID platform in Lebanon, using it to authenticate aid for Palestinian refugees from Syria, including monthly cash support for eligible households. Justice & detention concerns: A Syrian detainee’s death in Latakia after alleged beating sparked protests and a government investigation, with an investigator detained and procedural shortcomings cited. Regional logistics pressure: Iraq signaled it will boost oil exports via Türkiye’s Ceyhan port and also develop routes through Syria’s Baniyas and Jordan’s Aqaba as Hormuz disruptions persist.

Syria-Pakistan Trade Push: Syrian FM Asaad Hassan al-Shaibani met Pakistan’s commerce leadership in Islamabad, pitching reconstruction priorities and wider trade in textiles, pharma, food and IT, while PM Shehbaz Sharif reaffirmed support for Syria’s sovereignty and invited President Ahmad al-Sharaa to visit, with direct flights flagged to boost people-to-people ties. Regional Security Shockwaves: Israel’s strike on Syria’s Abu al-Duhur airbase has triggered a fresh diplomatic and military standoff, with Turkey denying any troop presence and Israel warning it will not tolerate Turkish deployments, while reports say Israel is even assessing NATO Article 5 implications for forces operating outside Turkey. Civil Society Under the New Syria: Damascus is reshaping how associations operate after Assad’s fall, with licensing now easier but still politically sensitive, as civil society leaders describe a shift from intelligence-run oversight to a more unsettled state regulation model. Business & Policy Angle: Syria’s FM also said Damascus is reviewing the Mecca Joint Defence Agreement but has not decided to join, while ruling out dialogue with Iran unless Tehran changes its approach toward Syrians. Middle East Finance Pressure: Iran dismissed US “economic warfare” threats, as sanctions and settlement disputes continue to roil regional markets and humanitarian operations.

Diplomacy & Trade: Pakistan’s PM Shehbaz Sharif met Syria’s FM Asaad Hassan al-Shibani in Islamabad, reaffirming support for Syria’s sovereignty and backing Damascus’ Golan Heights position, while pushing expanded cooperation in politics, defense, trade, investment, education and people-to-people links, including restoring direct flights. Energy & Industry: Türkiye and Syria moved ahead on economic ties with an energy minister meeting in Damascus and a phosphate cooperation accord, while Uzbekistan shipped the first $90,000 batch of household electrical appliances to Aleppo under a wider export push. Regional Security: Turkey denied any Turkish delegation was at Syria’s Abu al-Duhur airbase before or during an Israeli strike, warning Israel’s actions threaten Syria’s stability and insisting Ankara will keep helping Syria build a “single army.” Media & Social Policy: Syria’s nationality law debate resurfaced as analysts argue the system leaves many families without equal protection, and separate commentary warns Syrians can’t rebuild trust without a free press amid AI-driven and algorithm-amplified sectarian narratives.

Israel-Syria-Turkey friction: A rare Mossad-Syria contact reportedly came just before Israel struck the Abu al-Duhur airbase, with the U.S. warning the attack could spark direct confrontation if Turkish forces were caught off guard. Diplomacy with an economic angle: Syrian FM Asaad al-Shaibani arrived in Islamabad for talks with Pakistan’s leadership, aiming to restart political, economic and security cooperation after the Damascus transition. Human capital push: Qatar Charity launched its 2026 education campaign to support 123,000 students in need at home and abroad with school supplies, feeding and school rehabilitation. Regional security deal with business implications: The Saudi-Türkiye-Pakistan Mecca Joint Defence Agreement raises the stakes for regional trade and investment planning by signaling deeper defense coordination among major energy and logistics players. Energy disruption watch: Reports say sabotage hit northeastern Syria gas supplies and power generation, underscoring how quickly infrastructure shocks can ripple into the economy.

Turkey-Syria Energy Push: Türkiye and Syria signed a phosphate cooperation deal in Damascus, with plans for phosphate production and a railway to the port, while Ankara also said its firms are ready to explore Syria for oil and gas. Energy Infrastructure Under Strain: A sabotage blast hit a northeastern Syria gas pipeline, disrupting gas flow from the Al-Jabsah plant and forcing power-generation operators to rely on alternative sources while repairs are underway. Food Security Watch: Syria says a strong 2026 wheat season could cut or even end wheat imports for the Grain Establishment, but a new shipment arriving at Tartus raises questions about what “self-sufficiency” covers. Diplomacy in Focus: Syrian Foreign Minister Asaad al-Shaibani is set to visit Pakistan for high-level talks aimed at expanding bilateral cooperation. Regional Security Tensions: Israel struck the Abu al-Duhur airbase in Idlib, citing Turkish deployments; Turkey rejected the claims and accused Israel of destabilizing policies. Human Rights Flashpoint: Protests followed the death of a young Syrian man allegedly beaten in police detention, prompting an investigation and arrests of people linked to the case.