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26-04-23

Iran, Saudi Arabia Resume Bilateral Trade After Restoring Diplomatic Ties

(MENAFN) Less than two months after Iran and Saudi Arabia agreed to restore diplomatic ties, the two Persian Gulf neighbors have resumed their bilateral trade, according to officials on Tuesday. Minister of Industry, Trade and Mining Reza Fatemi Amin confirmed 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. He added that the entry of Iranian goods into Saudi Arabia was "on the agenda".

The revival of diplomatic relations between Iran and Saudi Arabia followed seven years of strained relations, with China brokering the final round of talks. This 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. The resumption of bilateral trade between the two countries is a significant step forward in their efforts to rebuild their relationship.

The Saudi Finance Minister, Mohammad Al-Jadaan, has pointed to a "lot of opportunities" for Saudi investments in Iran, saying he doesn't see any impediments in bilateral trade. Political relations have prepared the ground for good economic relations between Tehran and Riyadh, according to Rohullah Latifi, a spokesman for the Iranian Trade and Industry Ministry. More than USD14 million worth of steel exports from Iran to Saudi Arabia in the last three months is a good sign of economic cooperation between the two countries.

Iran's Trade Promotion Organization is eyeing USD1 billion in trade with Saudi Arabia, with a focus on steel, saffron, carpets, cement, and dried fruit. Farzad Piltan, the West Asia director at Iran's Trade Promotion Organization, believes that this figure can further expand to USD2 billion. The resumption of bilateral trade between Iran and Saudi Arabia is expected to create new opportunities for businesses and investors in both countries, contributing to the growth and development of their respective economies.

Overall, the resumption of bilateral trade between Iran and Saudi Arabia is a positive development for the region. It demonstrates the willingness of both countries to set aside their differences and work towards a common goal of economic cooperation and growth. It is hoped that this renewed relationship will pave the way for further collaboration and progress in the region.
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