Date of Release: 2023-04-15

After 7 years, they agreed to resume diplomatic relations and reopen embassies and missions within two months. This issue can also improve the economic and trade relations between the two countries. In fact, following some political negotiations between Iran and Saudi Arabia, it seems that the necessary preparations have been made for the resumption of joint trade between the two countries.

The former spokesperson of Iranian Customs said in January of this year about the trade relations between Iran and Saudi Arabia: From the beginning of the year to the 10th of January, more than 30,791 tons of goods worth 14,710,331 dollars were exported to Saudi Arabia, which is a significant jump. It is considered after the suspension of political relations between the two countries in recent years.

According to Ruhollah Lotfi, with the closer relations between the two major countries of the Islamic world and the strengthening of dialogues, with the mediation of Iraq and the meetings of the officials, this amount of exports approached 15 million dollars, and 96.5% of the exported goods were iron and steel ingots. have given. After the iron ingot worth $14.2 million, 340 tons of sodium hydroxide worth $185,300, truck body with 86 tons worth $155,376, seedless grapes with 60 tons worth $126,000, 265 tons of small seeds. A glass sphere worth $33,000 and a marble weighing 25 tons worth $3,731 were Iran's exported products to Saudi Arabia from the beginning of the year to December 10.

Also, according to the published information, during the peak of economic relations, trade exchanges between Tehran and Riyadh were about 800 million dollars, of which 500 million dollars were imported from Saudi Arabia and 300 million dollars were exported to Saudi Arabia. During the years of breaking the relations between Iran and Saudi Arabia, the trade between the two countries was practically stopped.

Yahya Al-Ishaq, the head of Iran-Iraq Joint Chamber of Commerce, in an interview with Hamshahri Online, said about the effects of the revival of relations between Iran and Saudi Arabia on the country's economy and trade: Before this, we did not have direct trade relations with Saudi Arabia, nor did we have indirect trade relations. We were also very small. In the past, carpets were traditionally exported to this country, or food items such as fruits were exported to this country through the UAE, but the volume was so small that it cannot be mentioned.

Al-Ishaq continued: The revival of relations between Iran and Saudi Arabia in the field of trade should be examined from two perspectives: one is the issue of our direct relations with Saudi Arabia, which had stopped the trade relations between the two countries for 7 years and the visits were reduced to a minimum, but with the conditions The existing business relations between the two countries will improve.

He added: Anyway, Saudi Arabia is a country with history and influence in the region and has oil and non-oil facilities. On the other hand, Saudi Arabia's effective relationship with the countries of the region is also very important. The side effects of good relations between Iran and Saudi Arabia, if established, will be great on the region, that is, the relationship between Arab countries and Saudi Arabia can improve communications, facilities and transportation for Iran, and improve Iran's trade relations and financial transfers. Help in the area. Especially, the terms of currency and commodity transfers will improve.

The head of the Iran-Iraq Joint Chamber of Commerce also said: The first psychological effect of the news of the restoration of relations between Iran and Saudi Arabia was the reduction of the exchange rate, and we saw that its effect on the Iranian currency market was very positive and influential.

Saudi trade relations

The investigations of the Iran Chamber Research Center in the "Saudi Economic Diplomacy" report, which was published in February of this year, indicate that this country has designed a new economic diplomacy based on the 2030 vision and is gradually implementing it. Saudi Arabia is the most important oil country, the most important regional rival of Iran and the most important member of the Persian Gulf Cooperation Council. In recent years, this country has gone through a complex succession crisis and has defined ambitious goals for playing a role in the 21st century in the 2030 vision.

It is necessary to recognize the economic diplomacy of Saudi Arabia as the most important competitor of Iran and a country that may become an important market in the neighborhood if the negotiations with Iran are concluded.

Based on the statistics provided by the World Bank in the field of commodity trade, in 2020 the most important export partners of Saudi Arabia are the United Arab Emirates with a share of 4.8%, China with 4.41%, India with 1.67%, Singapore with 1.55%. percent and Bahrain with one percent.

The first five import partners of Saudi Arabia include China with a share of 20.19%, the United States with 10.74%, the United Arab Emirates with 6.84%, Germany with 5.19% and India with 4.85%.

In the area of trade in services, Saudi Arabia is an importer of services with an average annual deficit of $61 billion between 2015 and 2019. This figure was the highest in 2015 and reached 73.6 billion dollars; However, Saudi Arabia's services exports increased significantly over the same period, from $14.5 billion in 2015 to $24.2 billion in 2019. Saudi Arabia is a key country in religious tourism and millions of people travel to this country to perform Hajj every year.

In the import sector, government-related services account for almost one-third of service imports, followed by transportation (22.5 percent in 2019) and travel (19.2 percent in 2019).