AGP Executive Report

US-Syria Delisting & Finance: Washington removed Syria from its State Sponsors of Terrorism list, a major legal shift that could ease some barriers to foreign banking, trade and investment—though analysts stress money won’t flow overnight without functioning banks, enforceable contracts and profit-transfer guarantees. Payments Come Back: Visa and Mastercard processed Syria’s first international card transactions in years, with QNB Group and Mastercard handling a POS payment and Visa completing a cross-border test via Fransabank—an early signal of financial reconnection. Budget & Reform Push: Syria reported a roughly $1bn public budget deficit in H1 2026, while the World Bank approved a $100m grant to modernize Syria’s financial sector, aiming to improve digital payments, supervision and stability. Trade & Logistics: Iraq increased fuel oil exports through Syria to 21.4m barrels from March-end August, using Baniyas as an alternative route amid Hormuz disruption. Regional Diplomacy: Syria reopened its Tripoli embassy after 14 years, agreeing on consular services and a roadmap that includes transport links and economic cooperation with Libya. Infrastructure on the Ground: Türkiye and Syria completed a floating bridge over the Euphrates to ease transport in Deir el-Zour. Security/Integration Watch: Syria’s YPG/SDF dissolution was announced as a key step toward integration, but observers say it’s not the finish line.

Damascus International Fair: Syria’s 63rd Damascus International Fair opened under “Syria Shines Again,” with about 1,000 companies from 60 countries and a shift toward B2B/B2G deal-making in the first three days, as officials frame it as a sign of renewed economic engagement. Global Finance Reconnects: Visa and Mastercard processed Syria’s first international card payments in more than 15 years after the U.S. removed Syria from its State Sponsor of Terrorism list, with the central bank saying services are starting but not yet nationwide. Regional Diplomacy for Trade: Syria and Libya agreed to reopen Syria’s Tripoli embassy after 14 years and reactivate a joint higher committee, aiming to boost economic, investment and trade ties alongside consular and security cooperation. Cross-Border Infrastructure: Türkiye and Syria completed a floating bridge over the Euphrates in Deir ez-Zor to ease transport after flooding damage, signaling continued normalization and practical connectivity. Local Economy Pressure: Qamishlo faces long queues and bread shortages as bakeries close due to flour allocation delays and new currency transaction requirements, pushing residents toward pricier tourist bakeries. Business Risk Watch: A BBC/EBU investigation highlights a large WhatsApp-linked cash-transfer network used for cross-border payments, including links to Syria and alleged extremist financing—raising compliance and reputational concerns for regional financial flows.

Syria’s credit card comeback: Visa and Mastercard have started international card transactions in Syria, with QNB Group and Mastercard reporting an end-to-end payment test and Visa running a live transaction via Fransabank in Damascus; the move follows the US delisting Syria from its state sponsors of terrorism list and could help restart global payments, though coverage is not yet nationwide. Damascus International Fair: The 63rd Damascus International Fair opened after business-focused days, with reports of deals and memorandums across trade, industry and investment, including a Syria-Iraq chambers MoU and a Saudi agreement tied to rehabilitating and operating iron and steel assets in Ham. Reconstruction logistics: Syria’s aviation sector received its first two Airbus A320 aircraft as part of a broader fleet modernization push aimed at boosting routes and passenger capacity. Bread squeeze in Qamishlo: Long queues outside bakeries in Qamishlo point to a bread shortage linked to delays in flour allocations and new currency requirements for Grain Corporation transactions, pushing residents toward overcrowded “tourist” bakeries. Storm disruptions: Heavy storms hit Latakia, Idlib, Homs, Hama and Aleppo, causing flooding, landslides, evacuations and power outages in parts of Homs. Regional business ties: Libya’s PM and Syria’s foreign minister met in Tripoli to reactivate cooperation frameworks, including economic and trade links and financial issues, plus plans around consular services and reopening Syria’s Benghazi consulate. Cross-border crime angle: A BBC/EBU probe says a WhatsApp group (“Traders of Greater Europe”) helped move large cash sums via hawala, with investigators tracing funds linked to Islamic State activity in Syria.

Syria’s payments reboot: Visa and Mastercard processed Syria’s first international card payments in more than 15 years after Washington removed Syria from the State Sponsor of Terrorism list and revoked HTS’s SDGT designation, with QNB and Lebanon’s Fransabank involved—an early sign of Syria’s push to modernize its financial rails. Power sector rebuild: Syria says it can rebuild its electricity system with over $10bn pledged for generation, transmission and exploration, arguing it can avoid Jordan’s missteps by separating regulation, transmission and commercial operations. Storm hits Homs grid: A severe weather system knocked out power across central Homs, taking more than 20 medium-voltage lines offline and disrupting rural areas including Taldu, Palmyra and Talkalakh. Reconstruction finance momentum: With sanctions easing, Syria is positioning itself for deeper financial integration and investment, highlighted by the new card-processing milestones. Regional energy links: Iraq is moving ahead on a Basra–Haditha–Fishkhabur pipeline with a spur to Baniyas on Syria’s coast, tied to reactivating the Kirkuk–Baniyas route. Digital cooperation expansion: Syria is set to join the Digital Cooperation Organization as membership expands, aiming to shape cross-border rules for data and AI.

Syria’s financial re-entry: Syria processed its first international card payment in more than 15 years after the U.S. removed it from the State Sponsors of Terrorism list, with Visa and Mastercard transactions reported via partners including QNB—an early signal for banks, merchants, and foreign investors watching sanctions risk. Reconstruction market signals: At Damascus fair, foreign companies “tested the waters” of Syria’s reconstruction market, while regional partners pushed for investment and connectivity deals. Regional trade & transport push: Saudi Arabia and Syria signed four agreements to boost transport and logistics ties, and Türkiye’s trade with Syria jumped to $3.75B in 2025 as Ankara backed Aleppo’s economic revival. Energy corridor momentum: Iraq advanced the Kirkuk–Baniyas pipeline plan to boost exports, with a Syria link to the Mediterranean coast—another practical step for regional commerce. Digital economy expansion: The Digital Cooperation Organization approved eight countries, including Syria, to join as member states, potentially widening cross-border digital trade and partnerships.

Visa/Mastercard Return to Syria: Syria’s financial reopening got a real-world boost as Visa and Mastercard processed their first international card transactions in more than 15 years, with Damascus officials and businesses signaling easier payments as banking links restart. Reconstruction Market Watch: At the Damascus International Fair, foreign firms said they’re testing demand for rebuilding—while still flagging banking, logistics, and institutional hurdles. US Delisting Impact: Syrian officials and experts framed the US removal of Syria from the state sponsor of terrorism list as a key step toward SWIFT access, more correspondent banking, and a gradual shift toward investment and electronic payments. Regional Diplomacy: Qatar reiterated Arab Group support for Syria’s sovereignty, unity, and territorial integrity at the UN Security Council, urging obstacles to economic recovery be removed. Security/Integration: Kurdish-led SDF forces announced dissolution and integration into the Syrian army, alongside moves to authorize Kurdish-language classes—though many residents remain cautious about what changes mean in practice. Saudi-Syrian Connectivity: Saudi Arabia and Syria signed four transport and logistics agreements covering roads, rail, civil aviation, and postal services to speed trade flows.

Turkey–Syria Trade & Reconstruction: Türkiye’s trade minister Omer Bolat visited Aleppo’s Shaykh Najjar Industrial City, urging faster production, investment and exports as the city’s recovery gathers pace. Trade Growth: He said Turkey–Syria trade jumped 42% last year to $3.75B, with Ankara positioning companies for reconstruction. Transport & Logistics Deals: Saudi and Syria signed four agreements in Damascus to modernize transport and logistics, including roads/railways, civil aviation, postal services and port/logistics cooperation. Finance Re-connection: Syria processed its first international Visa/Mastercard card payments in over 15 years after US delisting, signaling a push back into global finance. Regional Energy Pressure: With Hormuz still disrupted, Gulf states are accelerating port and pipeline investment to reroute trade and reduce exposure to the chokepoint. Security & Governance Risk: A Hasakah bombing threatens the UN-monitored integration of Kurdish-led forces into state structures, highlighting how reconciliation can be derailed.

Syria’s Visa/Mastercard comeback: Days after the U.S. removed Syria from its state sponsors of terrorism list, Visa and Mastercard processed Syria’s first international card payments in more than 15 years, with the Syrian president reportedly making a Visa purchase in Damascus; QNB Group and Mastercard handled the first Mastercard payment, while Visa tested a live transaction via Lebanon’s Fransabank and local partner Paymera—an early signal for merchants and international visitors, though nationwide coverage is still pending. Syrian-Saudi investment push: President Ahmed al-Sharaa met the Saudi-Syrian Business Council as Syria seeks faster investment flows; talks also covered a planned joint Saudi-Syrian bank and direct standardized banking channels, alongside port and logistics cooperation. Regional trade momentum: Türkiye’s trade minister said Türkiye-Syria bilateral trade hit $3.75B in 2025 (+42% y/y), with Aleppo business talks focused on reconstruction support and longer-term commercial ties. Diplomatic backdrop: Türkiye’s UN envoy condemned Israel’s strikes on Syria while welcoming the U.S. delisting, and the U.S. urged Israel and Syria to de-escalate after Abu al-Duhur strikes. Policy ripple beyond Syria: The U.S. paused immigrant visa appointments globally, potentially affecting applicants across the Middle East, while a U.S. court also struck down a broad immigrant visa ban affecting 75 countries.

Global Payments Reconnect: Syria’s interim president Ahmed al-Sharaa made the country’s first international Visa card payment in 15 years, buying coffee in Old Damascus with Central Bank governor Mohammed Safwat Raslan present, as Visa and Mastercard also reported first live international card transactions in Syria after the U.S. removed Syria from its state sponsor of terrorism list. Banking & Investment Signal: The move follows Central Bank steps allowing licensed banks and payment firms to work with Visa and Mastercard, positioning Syria for faster reintegration into global digital commerce and reconstruction financing. Regional Energy Pressure: Iraq and Qatar’s UCC Holding discussed oil pipeline projects to bypass the Strait of Hormuz, including routes toward Turkey and Syria’s Baniyas port, aiming to reduce export risk. Security & Trade Risks: Iraq dismantled a drone-manufacturing workshop in Baghdad amid concerns about Iran-backed militia attacks, while Washington expanded pressure on Iran-linked sectors—raising the stakes for Iraq’s energy and trade ties. Militia Integration: The Kurdish-led SDF formally dissolved after fighters were integrated into the Syrian army, a development welcomed by U.S., Turkey and Russia as Syria moves toward centralized control.

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.