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12-04-23

Saudi Arabia Focuses on Non-Oil Exports with Improving Trade Partnership with Iraq

(MENAFN) Saudi Arabia's Made in Saudi program is expected to expand its reach in the region due to the Kingdom's improving trade partnerships with Iraq. The Saudi Export Development Authority has started engaging with the Saudi-Iraqi trade mission in Jeddah as part of the Kingdom's goal to increase the non-oil exports' share in the non-oil gross domestic product to 50 percent by 2030. The Saudi Exports initiative of the trade mission will target several sectors, including construction, food, and medicine, collaborating with 40 Saudi companies and over 40 importing firms in Iraq. This development will help in promoting Saudi goods and enhancing their regional footprint.

Recently, Saudi Arabia welcomed the resumption of air connectivity with Iraq, with the first flynas flight arriving at Jeddah's King Abdulaziz International Airport. Regular flights between Saudi Arabia and Iraq have resumed as a result of the continuous efforts of the Saudi-Iraqi Coordination Council, with the support and leadership of Crown Prince Mohammed bin Salman.

In February, Saudi Foreign Minister Prince Faisal bin Farhan Al-Saud affirmed significant developments in economic relations with Iraq in a joint press conference with his Iraqi counterpart Fuad Hussein. Hussein welcomed Riyadh's readiness to support Saudi companies investing in Iraq and expressed hopes for Iraq to be supplied with electricity via the Saudi network or in the Gulf.

Industry reports show Iraq's insufficient infrastructure and public services after decades of conflict and endemic corruption. Baghdad heavily relies on the region for its electricity and gas and seeks to diversify its energy sources. Iraq also suffers from chronic electricity shortages, especially during summer temperatures that reach scorching levels of over 50 degrees Celsius. These high temperatures subsequently push citizens to consume very high amounts of power.

Last December, Prince Faisal said that the Kingdom stands alongside Iraq in preserving stability and sovereignty and is committed to restoring the country's historic status as a cradle of civilization, science, and knowledge. He added that the Kingdom would spare no effort to support Iraq's economic and developmental advancement, claiming that the country's success is tied to the prosperity of the whole region. The two countries cooperate through the Organization of the Petroleum Exporting Countries and OPEC+ to stabilize global oil markets. Moreover, the foreign minister stated that the Saudi and Middle East Green Initiatives and the Green Belt initiative in Iraq continue to be significant areas of collaboration in building bilateral ties.
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