Iran-Saudi détente heralds shifting dynamics in regional trade
A reconciliation agreement reached between Iran and Saudi Arabia in March to resume diplomatic relations is opening a new vista of opportunity to revive and expand trade and investment.
Trade exchanges between the two regional powerhouses have a long history, hitting a high of $800 million before the diplomatic rupture in 2016 brought them down to zero.
The recent shuttling between the two countries has convinced officials to believe that bilateral trade would soon return to previous levels and even surpass them once relations are fully restored and embassies reopened, given the level of anticipation and enthusiasm which exists on both sides.
Following their deal brokered by China, Saudi Arabia's Finance Minister Mohammed al-Jadaan said that Saudi investments into Iran could happen "very quickly".
"There are a lot of opportunities for Saudi investments in Iran. We don't see impediments as long as the terms of any agreement would be respected," al-Jadaan said during the Financial Sector Conference in Riyadh.
"We have no reason not to invest in Iran, and we have no reason not to allow them to invest in Saudi Arabia. It is in our interest to make sure that both nations benefit from each other’s resources and competitive advantage," al-Jadaan later told Reuters in an interview.
Earlier this month, Iran’s Finance Minister Ehsan Khandouzi led an economic delegation to Jeddah, holding bilateral meetings with Saudi officials and talks with the Islamic Development Bank. It marked the first visit by an Iranian official to Saudi Arabia since Riyadh and Tehran agreed to resume diplomatic relations. Saudi officials also traveled to Tehran and Mashhad to scout out locations for the kingdom’s diplomatic missions.
Read full article at Press TV