Riyadh and Tehran agreed to resume diplomatic relations and reopen embassies in each other’s countries following China-led negotiations in Beijing that culminated on March 10.

• Some observers are skeptical as to whether the countries — Iran in particular — will stick to the mutual pledges made in the diplomatic agreement, which has yet to be seen.
• Saudi Arabia may soon be investing in its longtime regional foe Iran following a breakthrough agreement reached between the two countries to re-establish diplomatic relations.
• They also vowed to affirm “the respect for the sovereignty of states and the non-interference in internal affairs of states,” a major step after years of mutual animosity, suspected attacks and espionage between the two countries.Some regional analysts and Western policymakers are skeptical as to whether the countries — Iran in particular — will stick to the pledges, which has yet to be seen. The two Middle Eastern powers are still ideologically at odds, and neither countries’ suspicions of the other will disappear overnight. Still, the Saudi finance minister appeared optimistic.The countries have additionally agreed that previous cooperation accords — namely a “Security Cooperation Agreement” from 2001 and a “General Agreement for Cooperation” from 1998 covering the fields of trade, economy, sports, technology, science, culture, sports and youth — would be revived.

  “The three countries expressed their keenness to exert all efforts towards enhancing regional and international peace and security,” the Saudi statement announcing the deal said, referring to itself, Iran, and China.Investment from Saudi Arabia would likely be a major boon for Iran’s battered economy, though it’s unclear whether existing U.S. sanctions on Iran would apply to financial activity between the two countries.

  he Iranian minister of economic affairs and finance on Tuesday said Tehran aims to raise annual trade with Riyadh to $1 billion in the first step of resuming economic ties.He stressed that the two countries have held a total of seven meetings of the joint economic commission and exchanged 20 trade and cooperation documents.

• The Iranian minister said the two countries have had no bilateral trade in some years, but last Iranian year, amid the two countries’ efforts to ease tensions, the value of Iranian exports to the kingdom reached $15 million.
• According to the official, the Saudi market can provide great opportunities for Iran, as traders of the two sides have yet to unlock the full potential of bilateral commerce.There are vast areas for cooperation in oil, gas, petrochemicals and knowledge-based sectors between the two countries, he concluded.https://financialtribune.com/