'Blood Emirate' Expands Across Sahel in Hunt for Gold, Power  

Al-Shabaab fighters display weapons as they conduct military exercises in northern Mogadishu, Somalia, October 21, 2010. (AP file photo)
Al-Shabaab fighters display weapons as they conduct military exercises in northern Mogadishu, Somalia, October 21, 2010. (AP file photo)
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'Blood Emirate' Expands Across Sahel in Hunt for Gold, Power  

Al-Shabaab fighters display weapons as they conduct military exercises in northern Mogadishu, Somalia, October 21, 2010. (AP file photo)
Al-Shabaab fighters display weapons as they conduct military exercises in northern Mogadishu, Somalia, October 21, 2010. (AP file photo)

In the Libyan city of Sabha, known as the “Bride of the South,” authorities dismantled three terrorist networks in August, revealing links stretching across and back to the African coast.

Five months earlier, in March 2025, security forces in western Libya had reported the arrest of another “terrorist organization” and aired “confessions” from several members who said they belonged to a jihadist group called “Nasr”. They spoke of “plans to recruit young men and manufacture drones.”

Across the vast belt of the Sahel, spanning countries separated by as much as 2,300 kilometers, militant attacks have intensified in recent months. Omar al-Mahdi Bashara, a veteran Chadian rebel, says these operations aim to “subject the region to the calculations of global powers and exploit its impoverished, underdeveloped populations.”

Bashara, who leads the Chadian National Salvation Movement, told Asharq Al-Awsat that “the former colonizer is overseeing from afar the drawing of a new map for the Sahel and the Sahara in blood, with his eyes fixed on the region’s resources.”

The Sahel stretches from the Atlantic Ocean to the Red Sea. Geographically and climatically, it encompasses northern Senegal, southern Mauritania, Mali, southern Algeria, Niger, Chad, South Sudan and Eritrea.

The Food and Agriculture Organization (FAO) and the UN Office for the Coordination of Humanitarian Affairs (OCHA) use a broader definition that includes Mauritania, Senegal, Mali, Burkina Faso, Niger, Nigeria, Cameroon and Chad.

The term “Sahel” here does not refer to a sea coast, but to the “edge” — the long geographic strip lying south of the Sahara Desert, from the Atlantic coast in the west (Mauritania and Senegal) to the Red Sea in the east (Sudan and Eritrea).

As terrorist organizations have expanded across this belt, they have also deepened the bloodshed through armed attacks targeting soldiers and civilians over the past decade, leaving more than 150,000 people dead, according to the Africa Center for Strategic Studies.

Before tracing the map of these groups — which Bashara sums up as “a nightmare weighing on a region forgotten by development” — it is worth noting a significant shift: these organizations are increasingly turning to modern technologies, even artificial intelligence, while expanding beyond their traditional rural strongholds into urban centers.

Groups that once thrived on the ignorance of poor communities are now adopting artificial intelligence, outpacing some of their state adversaries still clinging to rifles, cannons and conventional warplanes.

Domestic proxies

Amid a bloody contest for influence, recruits and resources, ISIS has come to rely on its affiliates in West Africa, Central Africa and the Greater Sahara, while al-Qaeda moves more fluidly through local alliances with Jama’a Nusrat al-Islam wal-Muslimin (JNIM) and Ansar al-Din.

Hamdy Abdulrahman Hassan, an African affairs expert who teaches at Zayed University and Cairo University, noted that “many of these globalized groups have taken on a local character, and the lines between them have blurred.” Local residents interviewed by Asharq Al-Awsat echoed the same view.

Both al-Qaeda and ISIS now have domestic proxies. As grievances against “new ruling regimes” have grown, these groups have managed to infiltrate social structures and exploit poverty — a key factor behind their resurgence, according to Fareh Wali from Somalia.

Wali explained that al-Shabaab members “win people over with money and by appealing to national sentiment, portraying themselves as defenders of the country against an infidel government.” In a written statement to Asharq Al-Awsat, he added: “They exploit people’s ignorance, poverty and hatred of those in power to recruit them. Those who refuse are kidnapped or killed.”

In Somalia, al-Shabaab killed around 30 people in two attacks, one on the Cairo Hotel in Beledweyne and another on a military recruitment center in Damanio, in March and May 2025.

Egyptian scholar Hassan identified several factors behind the surge in terrorist activity, including the region’s “porous” borders, which are “too loose to control,” and the “fragile state structures inherited from colonial rule.”

He also pointed to the wave of coups that have swept the region, saying: “These groups found an opportunity to expand, especially in the absence of regional coordination.”

In several parts of the Sahel, al-Qaeda has adopted local grievances and “localized its narratives to appeal to communities,” according to a July 2025 report by the UN Monitoring Team. This ideological pragmatism, the report said, helped expand the group’s territorial influence.

Dr. Ramadan Qarni, another African affairs expert, linked this deep societal penetration to the entry of international powers into the Sahel, which militant groups “used to stir local sentiment against them.”

Alongside the financial incentives mentioned by Wali, “perceived injustices” have served as another justification used by extremists to gain ground among Sahel and Sahara populations disillusioned with the “new authorities” that took power after eight successive military coups.

Hassan noted that the Macina Brigade, a JNIM affiliate active in central Mali and along the Burkina Faso border, draws its strength from the “historic grievances” of the Fulani, nomadic herders who accuse local authorities and Dogon militias of committing abuses against them, including “mass killings.”

Following this same pattern, al-Qaeda has expanded its operations through its local arm, JNIM, while ISIS and its affiliates have intensified their campaigns across the Sahara.

Blood and interests

The growing threat in the Sahel is not only measured by the frequency of attacks and rising death tolls, but also by the “pragmatism” of militant groups operating on volatile ground fraught with conflict, as they interact with civilians and seek to recruit new fighters for their brutal wars.

Contrary to expectation, the behavior of ISIS and al-Qaeda reveals contrasting ideologies. Mauritanian scholar and researcher on the Sahel, the Sahara and armed groups, Mohameden Ayeb, describes them as “a mix of global jihadist Salafism, local exploitation of ethnic and tribal disputes, and economic interests rooted in smuggling and extortion.”

While al-Qaeda and its branches tend to adapt to local environments in the Sahel and court the goodwill of tribes, ISIS rejects popular compromise and clings to the notion of a centralized caliphate, adhering to a stricter and more violent framework.

From his own experience in several Sahel countries, Sudanese national Abdelghani Ismail recounts witnessing the movements of extremist groups. “They try to impose themselves wherever they exist to achieve their goals of seizing power,” he said.

Ismail, who later traveled to Europe through Libya, told Asharq Al-Awsat that these groups “are locked in a battle for survival, driven by a misguided ideology, and they do not hesitate to blow up anyone who stands in their way.”

Map of groups and resources

In this fragmented security landscape, Ayeb maps militant groups across the Sahel and the Sahara, linking their movements in some areas to a push to control the region’s subterranean wealth.

Ayeb warns that the threat posed by these groups has changed from what it was before, as fighting has intensified in the border triangle of Mali, Niger and Burkina Faso, historically known as Liptako- ourma, a zone the 2024 Global Terrorism Index ranked among the ten most terror-affected areas in the world.

He told Asharq Al-Awsat that Jama’a Nusrat al-Islam wal-Muslimin, the al-Qaeda affiliate, and ISIS, Sahel Province, “have tightened their grip on this area rich in gold and uranium deposits,” and that “local arms of the groups have become the strike force in their sophisticated operations,” pointing to ISIS activity in Nigeria, Mozambique, Cameroon, Togo and Benin.

Al-Qaeda, he added, has not only deepened its reach in Mali, Niger and Burkina Faso, it is also present in the northwestern borderlands bordering Lake Chad, overlapping with other groups such as Boko Haram.

Ayeb said Jama’a Nusrat al-Islam wal-Muslimin, announced by al-Qaeda in March 2017, is a coalition of four main components, namely Ansar al-Din, led by Tuareg commander Iyad ag Ghaly, the Katibat al-Murabitun faction that split from al-Murabitun and was formerly led by Mokhtar Belmokhtar, the Macina Liberation Front, a socially rooted movement in central Mali led by Amadou Koufa, and the Greater Sahara Emirate, formerly affiliated with al-Qaeda in the Islamic Maghreb.

The group has reached a new level of operational capability, able to carry out complex attacks on well-fortified garrisons using drones, improvised explosive devices and large numbers of fighters, according to the UN report to the Security Council in June 2025.

Fighting has escalated in recent months between ISIS and al-Qaeda over the Liptako-Gourma triangle, Ayeb said, because the area is rich in raw gold and dense forest terrain that “is inaccessible to ground forces or airborne operations.”

Arms linked to ISIS, including units in West Africa Province and Greater Sahara Province, have expanded their footprint and their propaganda output to recruit fighters and raise funds, with signs of foreign fighters, mostly from West Africa, arriving during 2024.

The United Nations estimates that ISIS in West Africa comprises between 8,000 and 12,000 fighters. UN experts say Jama’a Nusrat al-Islam wal-Muslimin has also broadened its operational reach, operating with relative freedom in northern Mali and across much of Burkina Faso. ISIS activity in the Greater Sahara has also seen a resurgence, particularly along the Niger, Nigeria border where the group seeks to consolidate its presence.

Banditry and cattle theft

Militant groups in the Sahel employ multiple methods, often justified in religious terms, to secure weapons and funding, including theft and armed robbery. Ayeb described this as “a form of pragmatism that permits and forbids according to their interests.”

A report submitted by the UN Monitoring Team to the Security Council said ISIS has increasingly turned to kidnappings, either directly or through criminal networks, to obtain ransom payments. It added that such operations serve as a source of financing and recruitment, which “could further intensify as the group seeks to break its isolation in the border area between Burkina Faso, Mali and Niger.”

Bashara told Asharq Al-Awsat that “armed groups have widely resorted to kidnapping local residents.”

Member states informed the UN committee preparing the report that “cattle theft in the Lake Chad Basin has become a common source of revenue, with livestock sold in local markets.” The report also noted that Boko Haram collects zakat, or alms, at a rate of four to five cows for every 120.

Regarding weapons supplies, both al-Qaeda and ISIS depend on “small and light arms, either smuggled or stolen.” Member states observed that the transfer of these weapons “is coordinated among organized criminal networks.”

The report warned that both groups “are actively seeking to enhance their expertise in drone operations by recruiting specialists.”

‘Sea jihad’

As militant groups in the Sahel continue to build up their forces and arsenals, academic expert Hassan warned of what he calls a “dangerous development,” noting that these groups “are preparing to move westward from the Sahel toward the ocean, in an attempt to control maritime routes and revive what they call ‘sea jihad,’ targeting gas lines.”

He also pointed out that after ISIS declared its Mozambique Province in Central Africa, it is now seeking to expand its rule by establishing a Borno Province in West Africa.

This geographical belt, stretching from the Atlantic Ocean in the west to the Red Sea in the east, forms a semi-desert strip that separates the Sahara Desert to the north from the tropical regions to the south, extending roughly 5,400 kilometers.

The Mozambique Province, though smaller in size, is more brutal, posing a direct threat to major international economic interests linked to natural gas, making it a focal point of global attention.

Lake Chad

What is happening in the Sahel is closely linked to events in Chad, which on August 18 dealt a sharp blow to ISIS in West Africa by arresting six leaders of a local cell, including Muslim Yusuf, the youngest son of Boko Haram’s founder in Nigeria.

A report by the African Center for Strategic Studies (ACSS) said Boko Haram and its West Africa Province were responsible for about 66% of violent deaths in Nigeria in 2024.

Although Chad lies in Central Africa, its northern region, Borkou-Ennedi-Tibesti, is a direct extension of the Sahara, while its south is closer to tropical Africa, and the country is a member of the Group of Five Sahel States, G5.

Academic Hamdi Abdulrahman told Asharq Al-Awsat the Lake Chad area has become a “testing ground for ISIS’s new caliphate,” a development he describes as entrenching a grim picture of a bloody conflict that has quietly escalated into one of the most violent jihadist theaters in the world.

He said ISIS controls large swathes of rural land in the poorest and most densely populated parts of Nigeria, and it levies taxes said to generate about $190 million a year as it seeks to expand its influence.

He added that the group has built a parallel state infrastructure in West Africa, creating departments to oversee military operations, collect taxes and enforce sharia.

Conflict between Islamist insurgencies in the region’s northeast killed nearly 350,000 people and displaced more than two million by the end of 2020, the United Nations Development Program said.

Who controls the lake?

Four countries share responsibility for managing Lake Chad and its resources: Chad, which contains most of the lake, Nigeria to the west and southwest, Niger to the northwest, and Cameroon to the southwest.

Bashara, the former rebel, said that about 70% of the lake’s area, spanning northeastern Nigeria, southeastern Niger, northern Cameroon and western Chad, “is now beyond the control of these states.”

Bashara told Asharq Al-Awsat: “Unfortunately, these terrorist groups enjoy broad popular support among local populations, which explains their continued presence across most of the Lake Chad Basin.”

Local residents, including Somali analyst Wali, attributed this support to “financial inducements” used to advance the groups’ agendas, but he notes this does not prevent them from “oppressing the most vulnerable members of society, especially women.”

Women and girls bear the greatest burden, according to Sima Bahous, Executive Director of UN Women, who told the Security Council in August 2025, that this is a region where women are effectively erased from public life.

Bahous said that over one million girls are out of school, 60% of whom have never attended, amid widespread child marriage and sexual violence.

Strikes with cheap drones

The security vacuum in parts of the Sahel, combined with the overlap of local terrorist agendas and international interventions, is turning the region into a long-term conflict hotspot that threatens North Africa and Europe. Notable developments in terrorist tactics are a key factor.

Hassan warned that “current waves of violence are unlike previous ones, with significant advances in tactics and capabilities.”

Since April 2025, ISIS in West Africa launched a campaign called “Burning the Camps,” targeting fortified military bases long considered secure. Hassan said: “Observers might think these are ordinary raids, but the reality is far more complex.”

He added: “Terrorists in the Lake Chad region have learned to carry out night attacks using drones and night-vision devices,” cautioning that the area “has become a major battlefield for ISIS West Africa and its rival faction Boko Haram. ISIS today is different from before; it has acquired night-vision equipment that allows coordinated strikes during Nigeria’s low-visibility hours.”

The group now arms itself with commercially available, low-cost drones launched from safe distances to drop small explosives on army and security camps, which Hassan described as “a persistent aerial threat that complicates traditional defenses.”

The United Nations recorded more than 400 terrorist attacks in Burkina Faso, Mali and Niger alone between April and July 2025, killing 2,870 people, according to Leonardo Simao, head of the UN regional office for West Africa and the Sahel, speaking before the Security Council on August 8.

International maritime security

Concerns over the expanding use of modern technologies by extremist groups dominated the session. Simao warned of “increasing use of drones, encrypted communication technologies, and cooperation between terrorist groups and transnational organized crime networks.”

He also expressed concern for maritime security, noting that shipping routes “are now at risk” and that “youth have become a prime target for recruitment.”

In response to this threat, the Africa Center for Strategic Studies highlighted “growing cooperation between al-Shabaab in Somalia and the Houthis in Yemen,” warning of “rising risks to navigation in the Red Sea, Gulf of Aden, and western Indian Ocean.”

The center cited a UN report from February 2025 indicating “evidence of contacts between the Houthis and al-Shabaab, including actual meetings in 2024 regarding the transfer of military equipment and training from the Houthis in exchange for increased piracy and arms smuggling activities.”

The report noted that the relationship between the two groups “is based on mutual benefit, not sectarian affiliation,” and detailed a flow of weapons from Yemen to areas controlled by al-Shabaab between June and September 2024, including ammunition and explosives delivered via the ports of Marka and Barawe in Lower Shabelle. Al-Shabaab was tasked with escalating piracy operations in the Gulf of Aden and off the Somali coast.

‘Companies of evil’

UN concerns have grown over terrorist groups’ use of advanced technologies, including artificial intelligence and social media, which were described as “a new challenge” during a Security Council session last August.

These worries were reinforced by Rami Shaheen, an international expert on AI technology, who said, “Imagine a geographical theater spanning 10 African countries, where burning sands meet the coolest technologies in the AI world.” Shaheen noted that these groups are no longer simply armed militias, “they have become startup companies of evil investing in cutting-edge technologies.”

Shaheen told Asharq Al-Awsat about what he called “liquid recruitment,” highlighting the use of “customized content,” where “each target receives promotional messages tailored specifically to their vulnerabilities and hopes.” He gave the example of “a young man in Niger receiving an AI-modified video showing a prosperous future with the group.”

He also discussed what he termed “digital camouflage,” involving “self-destructing communication networks,” which are applications that send encrypted messages disappearing after being read.

He described this as a shift “from the rifle to the algorithm,” particularly when combined with funding through complex cryptocurrencies that are difficult to trace.

Shaheen’s points were echoed by Vladimir Voronkov, head of the UN Counter-Terrorism Office, before the Security Council in August, as reported by the UN mission in Libya.

Voronkov warned of the use of emerging technologies by extremist groups, saying they continue to use encrypted messaging platforms to secure their communications, exploit crowdfunding systems to raise funds, and increasingly experiment with AI to enhance their propaganda.

From Africa to Al-Hol in Syria

Libyan authorities dismantled three terrorist cells, announcing the discovery of large and varied caches of weapons buried in storage beneath a house in Sabha, including shells, bombs, improvised explosive devices, medium and heavy ammunition, and anti-aircraft guns.

Investigations indicated the first cell was responsible for recruiting fighters, facilitating their movement from North Africa to Somalia and the Sahel, and supplying them with forged passports and safe housing.

The second cell laundered money through front companies to help fighters and their families escape the Al-Hol camp in Syria and relocate to Libya, where they were housed in accommodation funded by ISIS, the cell also sought to make investments in regional states.

The third cell handled transfers to ISIS using cryptocurrencies.

A source at the Libyan public prosecutor’s office told Asharq Al-Awsat that ongoing investigations showed the cells received logistical support from groups in the Sahel, and from some neighboring Arab states.

The source also described the July 2024 dismantling of a cell led by a Libyan who had ties to Jama’a Nusrat al-Islam wal-Muslimin, saying that cell was involved in supplying satellite communications equipment.

In confessions aired by a security agency in western Libya, one suspect spoke of plans to target sensitive military and security sites, and of contacting Algerians to train members of the network in drone manufacture.

Expulsion of French forces

Explanations for developments in the African Sahel vary.

At the UN level, Senegalese diplomat Abdoulaye Mar Dieye, the UN Special Coordinator for the Sahel, believes that “the destruction of Libya has fueled counterterrorism challenges in the Sahel,” dismissing the idea that the crisis stems from events in northern Mali some 13 years ago.

In remarks reported by Senegalese media in early August, Dieye said: “The world owes a huge debt to the Sahel countries, and that debt has not yet been paid.”

At the same time, local residents in several Sahel states, speaking to Asharq Al-Awsat, said the situation in their countries is a predictable outcome of weak governance. Bashara noted that ethnic tensions have “fueled conflicts and opened the way for cross-border jihadist growth.”

Some observers argued that the expulsion of French forces from several Sahel states has paved the way for the rise of extremist groups.

Qarni said that “targeting numerous local leaders and chiefs has weakened governance,” adding that “the absence of genuine development frameworks and the channeling of national resources toward military efforts have also exacerbated the terrorist phenomenon.”

Bashara considered Qarni’s assessment one of the main factors enabling terrorist expansion, attributing the failure of governments in the Lake Chad Basin to confront these groups to “the exclusion of local communities from development and security,” adding, “N’Djamena has made security the responsibility of the people themselves.”

Mali has faced a deepening security crisis since 2012, fueled by armed rebellion. Yet the UN peacekeeping mission requested to leave the country at the end of 2023, after a decade of support to the government.

France remained the main security and military actor in Mali, Niger, Burkina Faso and Chad, and to a lesser extent in Mauritania, providing military and intelligence support until its withdrawal. Russia has since emerged as a “new alternative” in an attempt to fill the resulting vacuum.

Gold before ideology

Dieye said the aim of warring groups is less about religion and more about economic gain. Speaking in early August, he said, all the terrorism we see is not ideological; it is purely economic.

Ayeb agreed, noting that “the material dimension of these groups is always the priority,” explaining that “Nigeria is a gas country, Niger is a uranium region, and Mali is a gold zone; therefore, the problems these countries face are linked to their resources.”

Bashara added that “gold mines in northern Mali are overseen by terrorist groups.”

The Malian transitional government’s Minister of Mines, Amadou Keita, previously revealed that proceeds from illegal gold mining “contribute significantly to financing terrorist and criminal networks.”

The South African Institute for Security Studies points out that jihadist groups such as ISIS’s Sahel Province impose taxes on miners and control smuggling routes.

Gaddafi’s weapons

Experts on African affairs say developments in the African Sahel cannot be separated from the interests and historical legacies of international powers in a region plagued by poverty and conflict, despite its abundant resources.

Bashara said that “the French colonizer will not leave its former colonies so easily, seeing the resource-rich Sahel countries as part of its strategic reserve for itself and future generations.”

He accused France, whose forces were previously expelled from Sahel states, of “mobilizing its proxies in extremist groups and affiliated organizations to destabilize countries from which its military bases were recently removed.”

Following military coups in Mali (2021), Burkina Faso (2022), and Niger (2023), French troops were gradually withdrawn from these countries, eroding Paris’s historical influence in Mali, Niger, and Burkina Faso.

Russia quickly entered through southern Libya into the Sahel, especially Mali, deploying forces it calls the “African Legion” to fill the security vacuum, alongside growing influence from China and Türkiye.

The magazine African Defense Forum, affiliated with AFRICOM, previously reported on Russian moves in the Sahel, citing military analyst Andrew McGregor from the Jamestown Foundation in July 2025.

McGregor said Russia has been using the Khadim airbase as an advanced platform for operations in the region.

Located about 100 kilometers east of Benghazi, the Khadim base is believed by McGregor to have become a hub for storing weapons and smuggling resources to and from the African Sahel.

He added that Russia is repeating the mistakes of Moammar al-Gaddafi in the 1980s when he attempted to use Soviet weapons to expand influence in the Sahel. The Kremlin is now reinvesting in the same base Gaddafi used to attack Chad.

Russia, seeking to build new alliances in Africa, signed a defense memorandum of understanding with Niger, Mali, and Burkina Faso, announced on August 14.

However, the Conflict Armament Research Center, which tracks conventional weapons and military materials, said in April 2025 that weapons flowing from Libya to the Sahel accounted for only 7% of the total arms circulating there.

The situation in the African Sahel thus reveals a complex equation in which rising terrorist activity intertwines with international influence and interventions, while the struggle for resources remains a central objective pursued by armed groups.



What Does Removing Syria from the US List of State Sponsors of Terrorism Mean for Its Economy?

US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
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What Does Removing Syria from the US List of State Sponsors of Terrorism Mean for Its Economy?

US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst
US President Donald Trump holds a bilateral meeting with Syrian President Ahmed al-Sharaa alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Türkiye, July 8, 2026. REUTERS/Jonathan Ernst

The US administration’s decision to begin the process of removing Syria from its list of State Sponsors of Terrorism (SST) - where it has remained since 1979 - marks the country’s most significant political and economic shift in decades.

The designation was more than a political label; it served as the legal cornerstone of the extensive US sanctions architecture imposed on Syria. Its removal could reopen the door to trade, investment, and large-scale reconstruction.

The announcement followed what Washington described as “positive changes” by the Syrian government and formal assurances from Syrian President Ahmed al-Sharaa that Syria would not support acts of international terrorism in the future.

Secretary of State Marco Rubio subsequently notified Congress of President Donald Trump’s intention to rescind the designation after the required 45-day congressional notification period, describing the move as “historic” and saying it offers Syria a genuine opportunity to rebuild and open a new chapter for its people.

Syrian officials welcomed the decision. Finance Minister Mohammad Yosr Barnieh called it “a historic moment” heralding a new era of prosperity, investment, and economic recovery. He said the move would open a new chapter for the Syrian economy, accelerate recovery, encourage investment, and facilitate Syria’s reintegration into the global economy.

Central Bank Governor Safwat Raslan likewise described the decision as “a positive turning point” that would strengthen confidence, attract investment, and help reintegrate Syria into the global financial system. He reaffirmed the central bank’s commitment to reforms, monetary stability, and long-term economic recovery.

Reconnecting to the Global Financial System

In practical terms, the decision paves the way for Syrian banks to gradually reconnect with the global financial system, correspondent banking networks, and the SWIFT international payments system. The terrorism designation had effectively prevented foreign correspondent banks from dealing with Syrian financial institutions for fear of US legal penalties.

Reintegration could improve access to trade finance and sharply reduce the cost of remittances from Syrians abroad. For years, expatriates have relied on costly informal channels to circumvent sanctions. Easier remittance flows would provide a direct boost to household incomes and financial stability.

Removing Barriers to Investment

For years, US secondary sanctions linked to the terrorism designation discouraged foreign companies from participating in reconstruction projects, fearing hefty fines or exclusion from the US market.

Highlighting the policy shift, the US administration quoted Trump as telling Al-Sharaa: “I promised to remove all the barriers preventing you from rebuilding your country, and very soon you will finally be able to do so.” Trump also said US companies are already interested in investing in Syria.

Removing the designation significantly reduces reputational risk and gives multinational companies greater legal and procedural certainty to invest in infrastructure, real estate, telecommunications, and other sectors.

Reviving Trade and the Energy Sector

Foreign trade is also expected to benefit. Previous restrictions limited imports of advanced industrial equipment and technology classified as “dual-use” goods with potential civilian and military applications. Easing those restrictions would allow Syrian manufacturers to import production lines, agricultural equipment, and medical supplies with far fewer regulatory hurdles.

The energy sector, which has suffered years of severe deterioration, could also benefit. International companies would be able to provide spare parts, technical expertise, and technology needed to rehabilitate damaged oil and gas fields and repair aging power plants, helping ease chronic electricity shortages and support industrial production.

Restoring Access to International Financing

Syria’s designation as a State Sponsor of Terrorism also triggered an effective US veto on loans, grants, technical assistance, and other support from international financial institutions, particularly the World Bank and the International Monetary Fund.

With the designation removed, Damascus could theoretically begin negotiations with these institutions to secure development financing, support economic restructuring, and implement monetary and fiscal reforms.

From Blanket Prohibition to Risk-Based Assessment

Legal experts say the decision fundamentally changes how international companies and financial institutions assess Syria.

Previously, US law effectively imposed a blanket prohibition on doing business with Syria, leaving banks and corporations with virtually no room for discretion. Now, the automatic legal barrier is removed. Banks and companies can independently assess the remaining legal and commercial risks and proceed with transactions that comply with other applicable sanctions. This represents a fundamental shift, giving investors and financial institutions flexibility that has not existed since Syria was added to the terrorism list in 1979.

Why the Economic Crisis Will Not End Overnight

Despite the significance of Rubio’s announcement and the June 30, 2025 executive order easing certain restrictions, the economic impact is unlikely to be immediate.

The biggest constraint is that removing Syria from the terrorism list does not dismantle the broader sanctions regime. Numerous US laws and executive orders targeting key economic sectors, entities, and individuals remain in force.

In addition, Syria is likely to face prolonged caution from international banks — a phenomenon known as “over-compliance.” Many financial institutions are expected to spend months, if not years, conducting extensive legal reviews before reopening accounts or facilitating trade with Syria, seeking to avoid penalties under the sanctions that remain in place.

Ultimately, Syria’s economic recovery will depend not only on the easing of US restrictions but also on its ability to implement deep structural and institutional reforms, improve the business environment, and maintain monetary stability.

Removing Syria from the State Sponsors of Terrorism list is a major step toward reducing reputational risk and reopening international markets. But a full recovery remains a long-term process that will require the gradual dismantling of the remaining sanctions, which continue to pose the greatest obstacle to Syria’s reintegration into the global economy.


Who Benefits from the Damascus Bombings at Such a Sensitive Time?

Syrian security personnel inspect a burned vehicle near the Four Seasons Hotel after two explosions rocked the area earlier while Syrian President Ahmed al-Sharaa was meeting French President Emmanuel Macron at the presidential palace, in Damascus, Syria, Tuesday, July 7, 2026. (AP)
Syrian security personnel inspect a burned vehicle near the Four Seasons Hotel after two explosions rocked the area earlier while Syrian President Ahmed al-Sharaa was meeting French President Emmanuel Macron at the presidential palace, in Damascus, Syria, Tuesday, July 7, 2026. (AP)
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Who Benefits from the Damascus Bombings at Such a Sensitive Time?

Syrian security personnel inspect a burned vehicle near the Four Seasons Hotel after two explosions rocked the area earlier while Syrian President Ahmed al-Sharaa was meeting French President Emmanuel Macron at the presidential palace, in Damascus, Syria, Tuesday, July 7, 2026. (AP)
Syrian security personnel inspect a burned vehicle near the Four Seasons Hotel after two explosions rocked the area earlier while Syrian President Ahmed al-Sharaa was meeting French President Emmanuel Macron at the presidential palace, in Damascus, Syria, Tuesday, July 7, 2026. (AP)

Two successive explosions struck one of Syria’s most sensitive locations at a particularly delicate moment for the country’s authorities, occurring about 10 kilometers (6 miles) from where French President Emmanuel Macron was staying during his visit to Damascus.

Sources close to the Syrian government told Asharq Al-Awsat that several parties could stand to benefit from the attack, foremost among them remnants of the former regime and those opposed to the growing French-Syrian rapprochement.

Other sources monitoring the security situation, however, said initial indications point more toward ISIS, which remains Syria’s foremost security challenge.

At least 18 people were injured, including the assistant tourism minister and four police officers, in twin explosions near the Ministry of Tourism, close to the Four Seasons Hotel Damascus, where Macron was staying.

The attack came less than a week after a bombing at a lawyers’ cafe near the Palace of Justice that killed 10 civilians and wounded about 20 others.

Security expert Abdullah Al-Najjar told Asharq Al-Awsat that the bombings bore the hallmarks of remnants of the former regime seeking to derail the transitional justice process, “which will certainly reach them.”

The attack also aims to portray Syria as unsafe. He said the improvised explosive devices were crude and indiscriminate, targeting civilians and security personnel alike. Their purpose was to create the impression of weak security control rather than expose a genuine collapse in security.

Syria's Interior Minister Anas Khattab (C) inspects an area near the Four Seasons Hotel following two blasts in Damascus on July 7, 2026. (AFP)

He noted that any criminal could plant a crude explosive device in a trash container and another in a parked vehicle, like what happened in Tuesday’s attack.

Former diplomat and political analyst Bassam Barabandi told Asharq Al-Awsat that whenever Syria shows “serious signs” of recovery, forces threatened by the country’s improving fortunes respond.

In his view, the interests of remnants of the former regime converge with those of ISIS, Hezbollah, Iran, and Israel.

Barabandi noted that many individuals who served under the former regime remain embedded throughout Syrian society, while state institutions are still being rebuilt and newly recruited security personnel have yet to acquire the experience needed to fully maintain security.

The scale of the bombings suggests either individuals or small groups seeking revenge, or an organization capable of mounting larger operations whose objective is not widespread destruction in a country already devastated by war, but rather to spread instability across Syria, he remarked.

Barabandi also stressed that international support for stabilizing Syria remains strong and is likely to translate into greater assistance for rebuilding the country’s security institutions.

Major investments are unlikely to be affected because they are driven largely by political considerations, although local economies and small businesses are expected to bear the brunt of the impact, he added.

Syrian President Ahmed al-Sharaa, left, and French President Emmanuel Macron arrive for an agreement signing ceremony in Damascus, Syria, Tuesday, July 7, 2026. (AP)

Sources close to the government told Asharq Al-Awsat that crude explosive devices of this kind often evade explosives detection and are intended more for political messaging than military effect.

They added that preliminary assessments point more toward remnants of the former regime than ISIS, whose attacks typically target security personnel, soldiers, and those it considers apostates. ISIS operations also tend to inflict far greater casualties, unless the group has radically changed its tactics.

Security expert Diaa Qaddour described such assessments as speculative because so many parties could benefit from bombings at such a sensitive moment for Syria.

Nevertheless, he said it was impossible to ignore that ISIS remains “the largest and most prominent security challenge in Syria.”

Qaddour told Asharq Al-Awsat that Tuesday’s coordinated bombing resembled an attack in Damascus’ Bab Sharqi district in May near a Defense Ministry building that killed a soldier and wounded several civilians. ISIS claimed responsibility for that attack.

He stressed that the greater danger lies not only in the existence of an experienced ISIS cell operating in the heart of the capital and one of its most sensitive districts, but also in its ability to strike whenever it chooses despite extensive counterterrorism efforts by the Interior Ministry.

The recent rise in attacks has tarnished the image of the relative stability Syria had enjoyed in recent months, precisely the outcome sought by those behind the bombings, Qaddour said.

He urged the Interior Ministry and intelligence services to undertake a thorough review of their approach to security threats and develop a comprehensive strategy to eliminate or at least contain them.


What to Know About China’s Rare Ballistic Missile Test and Why It Raises Concerns

 In this photo released by Xinhua News Agency, a long-range ballistic missile bursts out of the sea during a test launched from a Chinese nuclear-powered submarines in the South Pacific on Monday, July 6, 2026. (Li Xiangchao/Xinhua via AP)
In this photo released by Xinhua News Agency, a long-range ballistic missile bursts out of the sea during a test launched from a Chinese nuclear-powered submarines in the South Pacific on Monday, July 6, 2026. (Li Xiangchao/Xinhua via AP)
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What to Know About China’s Rare Ballistic Missile Test and Why It Raises Concerns

 In this photo released by Xinhua News Agency, a long-range ballistic missile bursts out of the sea during a test launched from a Chinese nuclear-powered submarines in the South Pacific on Monday, July 6, 2026. (Li Xiangchao/Xinhua via AP)
In this photo released by Xinhua News Agency, a long-range ballistic missile bursts out of the sea during a test launched from a Chinese nuclear-powered submarines in the South Pacific on Monday, July 6, 2026. (Li Xiangchao/Xinhua via AP)

China's navy test-launched a long-range ballistic missile Monday from a nuclear-powered submarine — a move that experts said showed Beijing's increasing skill and capability as part of its nuclear deterrence strategy.

The move also drew protests from the US, as well as countries in Asia and the Pacific. It was the second time China had fired a ballistic missile into international waters in recent years.

While it gave some countries in the region prior notice, some said it was not enough notice, and experts say the launch exacerbates tensions around increasing militarization in Asia.

Here's what we know, and what we don't, about the missile launch.

Experts think it could be a JL-2 or a JL-3 ballistic missile

China announced the missile test publicly on Monday only after the launch, saying that it was fired into the Pacific Ocean. In a brief statement, the official Xinhua News Agency said the launch was part of routine annual training, complied with international law and practice, and was not directed against any country or target. It didn't provide details about the type of missile.

The missile was carrying a dummy warhead, not a nuclear one. The act of launching in international waters was rare, although the US has also done so with its own missile testing.

Xinhua published a photo of the missile on Tuesday without additional details. Experts say it could be either a JL-2 or a JL-3, both submarine-launched ballistic missiles, though most said the available imagery was not clear enough to tell.

The state-owned tabloid Global Times said it was “most likely” a JL-3 missile with a range exceeding 10,000 kilometers (6,200 miles). The JL-2 has a shorter range.

The New Zealand government said the missile was launched into treaty waters in the South Pacific Nuclear Free Zone, violating the intention of the agreement.

The zone was established by the 1986 Treaty of Rarotonga, which prohibits nuclear weapons throughout the region. China ratified the protocols in 1987, pledging not to test nuclear weapons within the zone or threaten to use them against signatories with territory in the region.

Australia, Japan, and other countries protest While China has told other countries to “avoid over-interpretation” in response to the criticism, experts say the concerns from other countries have some basis.

Much of the concern is a result of lack of clear information, said Drew Thompson, a senior fellow at the S. Rajaratnam School of International Studies in Singapore. “China’s military modernization and buildup have occurred without concurrent increases in openness and transparency, resulting in uncertainty about China’s intentions.”

Australian Prime Minister Anthony Albanese said that China did not provide enough notice to the government.

“There is no doubt that this is a provocative act by China which does destabilize the region,” he told reporters Tuesday while in Honiara, in the Solomon Islands.

“This was a test of a nuclear-capable intercontinental ballistic missile fired from a nuclear-powered submarine. That is of real concern because what we need is less nuclear weapons, certainly not more. And the fact that this test took place yesterday with very little notice is of real concern,” Albanese added.

New Zealand had said the same Monday, with Foreign Minister Winston Peters calling it “unwelcome and concerning.”

Solomon Islands Prime Minister Matthew Wale, also speaking to reporters in Honiara Tuesday, said that “China is a good friend of Solomon Islands, but this is not something a friend does. This is not ... good in our region.”

“We don’t want to see any more countries — China, America, anybody — we don’t want anybody testing their ICBMs in the Pacific Islands region. Be our friend, but don’t threaten us,” Wale added.

Test comes amid increasing militarization in Asia

China's leader Xi Jinping has made modernization of the People's Liberation Army a top priority in his rule.

China already has the largest standing army in the world and the world's largest navy. While its nuclear arsenal lags that of the US and Russia, it has been actively expanding its stock of nuclear warheads. It has also actively been developing new longer-range missiles and advanced drones.

China’s defense budget, which is projected to be at $270 billion in 2026, has grown at roughly 7% for the past four years, and hovers below 2% of its gross domestic product. However, independent analysis suggests the real spending could be much higher. For example, the Stockholm International Peace Research Institute estimates the overall figure for 2024 at $313.7 billion.

Much of the security worries about whether or not China's military would get involved in a war centers on Taiwan, the self-ruled island that China claims as its own and for which it has not ruled out the use of force to bring it under its control.

China also regularly sends warplanes and navy ships in the waters around the island in what it says are military exercises.

In response to China's expanding military and activity, countries in the region have increased their own defense spending, including Japan which is breaking with its long-held cap of 1% of GDP to double the budget to 2%.

Meanwhile, the Philippines agreed to allow the US to expand its military presence in the country by adding access to four more bases.

“The Chinese launch exacerbates already deeply strained relations between Beijing and Tokyo. Since (Prime Minister Sanae) Takaichi’s comments last year suggesting that Japan would engage in a conflict over Taiwan, China has tightened export controls on Japan and accused it of embracing a ‘new time of militarism,’” said Emma Chanlett-Avery, director of Political-Security Affairs at the Asia Society Policy Institute.