President Donald Trump announced on Tuesday that the United States will lift all sanctions on Syria.

"I will order the cessation of sanctions against Syria to give them a great opportunity," Trump said at the U.S.-Sudi Investment Forum in Saudi Arabia during his first visit to the Central East.

"In Syria, there is a lot of pain and death, and there is a new government that will hopefully be successful in stabilizing the country and maintaining peace. That's what we want to see," he said in an extensive speech.

"In Syria, they suffered a crushing defeat, a share of the war, and killed for many years. That's why my administration has taken the first step to restore normal relations between the United States and Syria for the first time in more than a decade," Trump said.

Syria has been designated as a terrorist country by the U.S. government since 1979.

In about 14 years since then, the country has suffered damage from civil war, sectarian violence and brutal terrorist attacks, including the Islamic State acquisition of parts of the country in 2014 and subsequent bombing campaigns led by the West to eliminate extremist groups.

In December 2024, the overthrow of the Assad regime shocked the global community and brought prospects for a new beginning for the damaged nation. Syria's new president, Ahmed Al-Sharaa, a former Al Qaeda member, described himself as a reform and currently leading the country's transitional government.

Syria remains subject to numerous international sanctions, but the most severe sanctions imposed by the U.S. on third parties are also the most severe, preventing other countries and groups from trading with the country.

The United Nations and aid organizations, such as the International Red Cross Committee, as well as the Arab League and other non-governmental organizations, pushed for sanctions relief after a devastating earthquake in 2023 hit Syria and neighboring Türkiye. In addition to the potential to promote economic progress, sanctions have hindered the ability of aid agencies and governments to provide rapid humanitarian assistance, the groups said.

In recent years, more and more Arab countries have begun to call for the reintegration of Syria into the Arab fold. In the last few years of the Assad regime, the United Arab Emirates and Jordan advocated Syria's return to the Arab League and advocated diplomacy with Damascus.

Saudi Arabia, while more cautious, also advocated re-engagement, Trump said in his speech that his decision to lift sanctions was requested by Saudi Crown Prince and de facto leader Mohammed bin Salman.

"The lifting of sanctions is the biggest moment in Syria since the start of conflict in 2011," Kamal Alam, an adviser to invest in Syria by the Damascus home office and Gulf partners, told CNBC.

"Removing sanctions on Syria is a Saudi project, and MBS actually started even during the Assad era," Alam said. "But it is the new administration that will receive the benefits of the Trump-MBS relationship. Trump believes that it is thanks to MBS and (Turkish President Recep Tayyip) and Erdogan's decision to lift sanctions.

In his speech, Trump said the sanctions on Syria were "cruel and cruel" and showed that they no longer played a major role. "It's time for them to shine," he said of the country. "We'll cancel them all."

"So I said, good luck with Syria. Show us something very special, like they did in Saudi Arabia."