SAUDI ARABIA, IRAN RESUME BILATERAL TRADE AS PART OF RAPPROCHEMENT

Wed 26 Apr 2023:

Less than two months after Iran and Saudi Arabia agreed to restore diplomatic ties, the two Persian Gulf neighbours have resumed their bilateral trade, according to officials on Tuesday, Anadolu News Agency reports.

Minister of Industry, Trade and Mining, Reza Fatemi Amin, said in statements cited by state news agency, IRNA, that the entry of Iranian goods into Saudi Arabia was “on the agenda”.

He added that his Ministry has begun the process of exporting goods to Saudi Arabia in line with agreements reached between the two sides in recent months.

Last month, Tehran and Riyadh agreed to revive relations after seven years, with China brokering the final round of marathon talks.

It was followed by a high-profile meeting between the foreign ministers of the two countries early this month, who formally agreed to re-open diplomatic missions.

Days after the deal was clinched in Beijing, Saudi Finance Minister, Mohammad Al-Jadaan, pointed to a “lot of opportunities” for Saudi investments in Iran, saying he did not see any impediments in bilateral trade.

Earlier this month, Rohullah Latifi, a spokesman for the Iranian Trade and Industry Ministry, said political relations have prepared the ground for good economic relations between Tehran and Riyadh, referring to more than $14 million worth of steel exports to Saudi Arabia in the last three months.

Farzad Piltan, West Asia Director at Iran’s Trade Promotion Organisation, said Tehran eyes $1 billion in trade with Saudi Arabia, which he said can further expand to $2 billion with a focus on steel, saffron, carpets, cement and dried fruit.