“The relations between Iran and Saudi Arabia are on the right track and progressing, and we are determined to expand them in all fields,” the FM said in a press conference with his Saudi counterpart Faisal bin Farhan, adding: "We and Saudi Arabia agree to define a framework and format to form professional committees and follow up the relations in various areas under the auspices of the foreign ministers of the two countries.”
Amir-Abdollahian further maintained that they stressed on bilateral and multilateral cooperation, and agreed that they need internally-provided security in the region. He also referred to the approach of administration of President Sayyed Ibrahim Raeisi of Iran that prioritizes neighbors in the foreign policy, saying: “In this framework, we are on the right track to strengthen relations with neighboring countries in the Persian Gulf region.... We are ready to activate all bilateral cooperation documents and we are ready to sign new documents in accordance with the needs of the development of relations between the two countries.”
For his part, bin Farhan said that the two sides discussed bilateral and multilateral relations.
“Our today's visit was part of the efforts to expand ties and increase the regional security,” he said, adding that they reopened their embassies according to Beijing deal.
He pointed to the invitation sent to President Raeisi by King Salman of Saudi Arabia and said: “We are waiting for the visit to Saudi Arabia of President Raeisi according to King Salman's invitation. We eye opening a new page in the bilateral relations.”
In continuation of his talks in Jeddah, the Foreign Minister also met with Crown Prince Mohammed bin Salman. Stating that he had a frank and fruitful conversation with the Saudi crown prince, the foreign minister said: "Stable bilateral relations were emphasized in all fields, and we are in agreement for prosperity and development for everyone in the region.”
He went on that they emphasized on sustainable relations between the two nations based on the heads of the two countries.
Highlighting the opportunities ahead of the two sides, Amir-Abdollahian added: “The Islamic Republic and Saudi Arabia can achieve greater growth and prosperity for the region by comprehensively developing cooperation in the political, economic, commercial, transit, scientific, technological, cultural, and popular fields.”
In his meeting with the FM, the Saudi crown prince sent his regards to Iran's Supreme Leader Sayyed Ali Khamenei and President Raeisi, saying “Saudi view of Iran is strategic and we have firm resolve in this regard.”
In follow-up of his plan in Riyadh, the FM visited Iran's embassy and saw new ambassador Alireza Sabeti starting his job.
Amir-Abdollahian’s visit to Riyadh took place after Saudi Arabia and Iran agreed in March on the resumption of diplomatic relations between the two countries and the reopening of their diplomatic missions. The FM's visit follows bin Farhan's visit in June which was first visit by a Saudi FM to Tehran since 2006, where they discussed security, economy, tourism and transportation.
The FM's Riyadh visit is of great importance in advancing the relations between the two regional countries and can bring their views closer for a common outlook.
Expanding economic relations
Now that diplomatic relations have been established, Iran seeks to improve the level of economic cooperation and trade with Saudi Arabia, and the priority of the mission of the Iranian embassy in Saudi Arabia has been announced to be in accordance with this aim. According to the Iranian ambassador in Riyadh, economic cooperation is the priority of Tehran's plans, and boosting activities of Iran's private sector in Saudi Arabia, support for joint ventures, customs agreements, and cooperation in maritime transportation are the plans of the embassy.
In this connection, Amir-Abdollahian in his meeting with his Saudi counterpart voiced the readiness of the Islamic Republic to activate the joint commission for economic cooperation between the two countries. Also, holding a joint meeting of the chambers of commerce of the two countries, resuming flights, engaging in joint investment, establishing scientific and research cooperation, and advancing knowledge ventures were also discussed by the two sides.
Earlier, Saudi minister of economy had said that the Iranian market is a good opportunity for Saudi investors and they invest in it. The development of economic relations and trade with Saudi Arabia and other Arab countries will, to a great extent, neutralize the American efforts to isolate Iran through sanctions.
In April, Farzad Piltan, the West Asia director at Trade Promotion Organization of Iran, commented on the trade ties with Saudi Arabia, saying: “In the early 2010s, the volume of trade between the two countries was about $200 million, and after the diplomatic relations between the two countries were cut off, it dropped to a very low figure.... With the establishment of diplomatic relations and establishing of a joint economic commission between the two countries, it is possible to update and review about 20 cooperation documents signed between the two countries in the past years in the field of developing commercial infrastructure such as customs, standards, double taxation avoidance, maritime transportation, banking cooperation, risk coverage and export guarantees, especially the general agreement on economic, commercial, investment, technical, scientific, cultural, sports and youth cooperation signed between the two countries in 1998.”
Although the trade relations between the two countries had reached almost zero in recent years due to the interruption of political relations, with the plans set, Iran hopes to achieve an annual trade of $1 billion in the first phase and its increase to $2 billion in the next years.
Having in mind that Iran and Saudi Arabia are the biggest oil producers and rely on oil for a major part of their revenues, they have non-oil products, too, that can cover each other's needs. According to Iranian officials, metals, dried nuts, pistachio, raisin, floor covering, and cement are products Iran can export to Saudi Arabia.
Having in mind that Saudi Arabia is preparing for the 2030 Vision and upgrading the country's economy to 10th in the world, it is a good opportunity for Iranian economic activists, especially knowledge enterprises, to play a role in these projects, and the Saudis welcome it.
Observers suggest that economic diversity is significant to Saudi Arabia and Iran and this issue can guide the investment to other areas especially mining and can reduce the dependence on hydrocarbon exports revenues. There are also projects that can be carried out jointly in third countries and can create a favorable economic environment for both countries. In the energy sector, the possible finalization of the tripartite project between Saudi Arabia, Iran and Kuwait in Arash (Durra) gas field will be an example of successful cooperation.
Security convergence in the region
Another issue important to Saudi-Iranian relations is the security of the region which over the past decade suffered substantial instability. With Iranian-Saudi rapprochement, the regional atmosphere, influenced by this agreement, somehow began to move to stability and calm.
Resumption of diplomatic relations coincided with a series of changes in the West Asian diplomacy and Saudi Arabia revived its relations with Syria that regained its Arab League after 12 years of suspension. At the same time, Riyadh has ostensibly stepped up pro-peace efforts in Yemen in quest for a solution with Iranian assistance to a crisis it made. In Lebanon case, there are moves underway and Tehran and Riyadh can engage in bilateral cooperation to patch up things in Lebanon and get it out of the biting political and economic crisis.
Iran and Saudi Arabia are trying to return their relations to the period before their tensions in 2016. This goal is facing the challenge of warmongering of the Americans who are trying to disrupt growing Iranian-Arab convergence.
FM Amir-Abdollahian’s Saudi Arabia trip comes as tensions have been heightening over US deployment of destroyers and fighter jets to the Red Sea, and the Islamic Republic tries to inform the neighboring countries of the existing realities and evil intents of Washington. In his meeting and talks with bin Farhan, regional security was one of the top discussion topics.
The Saudi and other Arab countries’ officials have come to the belief that the security of the Persian Gulf should be provided by the regional countries themselves, and the plan to form a joint naval force by the Arab states and Iran can serve this aim. The Islamic Republic has always expressed its opposition to the presence of trans-regional powers in the Persian Gulf and believes that with the establishment of collective security in the region, the excuse for the presence of the Americans will disappear.
Experience has shown that if Tehran and Riyadh develop friendly ties, West Asia will have more stable and secure conditions and this was observable after Beijing peace deal that produced Iranian-Arab drift to convergence.
Iran has always demonstrated its will for de-escalation in
the region and tries to produce regional convergence in association with
Saudi Arabia, a country of influence in the Arab world.
Amir-Abdollahian’s visit to Riyadh demonstrated the Islamic Republic's
seriousness towards the goal. Since the beginning, President Raeisi's
administration insisted on bolstering all-out ties with neighboring
countries, and now the ball is in the Arab monarchies’ court to shake
extended Iranian hand of friendship in favor of Persian Gulf peace and
stability.
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