- “When people really stick to the principles of what has been agreed, I think it can happen very quickly,” Saudi Finance Minister Mohammed Al-Jadaan told CNBC in Riyadh.
- Riyadh and Tehran agreed to resume diplomatic ties and reopen embassies in each other’s countries following China-led negotiations in Beijing that were concluded on March 10.
- Some observers are skeptical whether the countries – Iran in particular – will stick to the mutual commitments made in the diplomatic accord, which remains to be seen.
Saudi Arabia may soon invest in longtime regional foe Iran following a landmark deal reached between the two countries to restore diplomatic ties, the kingdom’s finance minister, Mohammed Al, said on Wednesday. -Jadaan.
Asked by CNBC’s Hadley Gamble in Riyadh how soon the world might see the wealthy Saudi kingdom make significant investments in Iran and vice versa, Al-Jadaan replied, “I would say very quickly.”
“When people really stick to the principles of what’s been agreed, I think that can happen very quickly. Our goal, and I think that’s been very clear previously by our leaders, is to have a region stable, meaning capable of supporting its people and prospering, and there’s no reason why that shouldn’t happen,” the minister said.
Riyadh and Tehran agreed to resume diplomatic ties and reopen embassies in each other’s countries following China-led negotiations in Beijing that were concluded on March 10.
Iran’s top security official Ali Shamkhani (right), Chinese Foreign Minister Wang Yi (center) and Saudi Arabia’s national security adviser Musaid Al Aiban pose for a photo after the Iran and Saudi Arabia agreed to resume bilateral diplomatic ties after several days of deliberations between the two countries’ senior security officials in Beijing, China on March 10, 2023.
Document from the Chinese Ministry of Foreign Affairs | Anadolu Agency | Getty Images
They also pledged to affirm “respect for the sovereignty of States and non-interference in the internal affairs of States”, a major step after years of mutual animosity, alleged attacks and espionage between the two countries.
Some regional analysts and Western policymakers are skeptical whether the countries – Iran in particular – will stick to the pledges, which remains to be seen. The two Middle Eastern powers are still ideologically at odds, and suspicions that neither country holds the other will disappear overnight.
However, the Saudi finance minister was optimistic.
“Iran is our neighbour, and has been and will continue to be so for hundreds of years,” Al-Jadaan said. “So I don’t see any problem that would prevent the normalization of the relationship, cross-investments, etc., as long as we stick to the agreements – you know, respecting sovereign rights, not interfering in the affairs of others. , abide by the conventions of the united nations and so I don’t really see any obstacles.”
The countries further agreed that previous cooperation agreements — namely a 2001 “Security Cooperation Agreement” and a 1998 “General Cooperation Agreement” covering trade, economy, sports , technology, science, culture, sports and youth — would be relaunched.
“The three countries have expressed their willingness to make all necessary efforts to strengthen regional and international peace and security,” the Saudi statement announcing the agreement reads, referring to itself, Iran and China. .
The two major oil producers face starkly different economic realities: Saudi Arabia, which is investing internationally and launching billions of dollars in megaprojects as part of the kingdom’s Vision 2030 plan to diversify away from oil; and Iran, whose economy and currency have boomed under years of Western sanctions, government corruption and economic mismanagement.
Investment from Saudi Arabia would likely be a major boon to Iran’s struggling economy, although it’s unclear whether existing US sanctions on Iran would apply to financial activity between the two countries.
“I think, without going into specifics, I think we recognize…clearly that in order for you to be able to focus on your economic development and focus on the needs of the people of your country, you need stability, they need stability,” Al-Jadaan said. “And I think there are a lot of opportunities in Iran, and we’re giving them a lot of opportunities, as long as the goodwill continues.”
Iran and Saudi Arabia have long accused each other of destabilizing the region and see themselves as serious security threats, often on opposite sides of regional conflicts such as those in Yemen, Lebanon and Syria. Both Riyadh and Washington accuse Tehran of being behind several attacks on Saudi ships, territories and energy infrastructure in recent years.
Saudi Arabia severed diplomatic ties with Iran in 2016, after Iranian protesters stormed the Saudi Embassy in Tehran in response to Saudi authorities’ execution of 47 dissidents, including a prominent Shia cleric.