Finance Minister Khandouzi Predicts Increase in Iran-Saudi Trade Following ‘Win-Win’ Reconciliation

Upon arriving in Jeddah on Thursday for the Islamic Development Bank (IsDB) Group’s Annual Meetings, Khandouzi spoke of the potential economic advantages of the Tehran-Riyadh rapprochement, achieved on March 10 through China-mediated talks in Beijing.

Khandouzi expressed optimism on Friday at an event that the agreement between Iran and Saudi Arabia, supported by friendly countries, will open up new possibilities for trade and investment in both states.

He further commented that the increased economic cooperation between Iran and Saudi Arabia is a benefit for both nations and their region alike.

Khandouzi, the first Iranian minister to visit Saudi Arabia after the signing of the agreement, is set to lead a senior economic team and meet with Saudi officials and counterparts from other Muslim nations.

He is slated to deliver a speech at the yearly gathering of the Islamic Development Bank, an institution headquartered in Jeddah that provides infrastructure projects with Islamic finance.

Last month, Khandouzi announced that Iran was aiming to increase its annual trade with Saudi Arabia to $1 billion, as the first step in restoring economic relations. He added that the Trade Promotion Organization of Iran (TPO) had set this target based on the capabilities of both countries.

In March, Iran and Saudi Arabia agreed to restore diplomatic ties after a seven-year gap. In order to further the relationship, it was decided that both countries would reopen their embassies in each other’s capitals by May. On April 6, the foreign ministers of both countries met in Beijing and released a joint statement expressing their readiness to overcome any obstacles that could prevent the advancement of bilateral ties.

Iran has been actively engaging with its neighbors in order to foster more positive and cooperative relationships. The country is committed to working with its neighbors in the region to promote peace and stability. Iran has signed a number of agreements and treaties to ensure mutual respect, security, and economic growth. Additionally, Iran has pursued diplomatic channels to resolve disputes and to build bridges between countries in the region. Iran is also committed to regional integration, and has taken steps to strengthen regional trade and investment.

Khandouzi stated that the policy of the Islamic Republic of Iran is focused on strengthening relationships with countries in the vicinity.

“In the last 1.5 years, we have seen positive results and anticipate an increase in economic, trade, and investment ties with our neighbors,” he stated.

The Minister noted that Tehran believes in capitalizing on the potential of Islamic Development Bank members, adding that the recent gathering in Jeddah could be a catalyst for enhanced collaboration.

The minister highlighted Iran’s accomplishments in areas such as the production of medical equipment, medicine, and power plants, as well as in bio- and nanotechnology, and declared that Tehran is determined to share this progress with member states and other Muslim countries.