Saudi Arabia has an annual trade worth $300 billion and experts
believe Iran’s trade with the country can reach up to $3 billion
with the Arab country within the next few years and following a
deal to resume their diplomatic ties between the two countries,
Trend reports citing
IRNA.
That could create major economic opportunities for Iran.
Saudi Arabia is a key member of the (Persian) Gulf Cooperation
Council and a major importer of agricultural and food products in
the West Asia region mainly because of its arid weather
conditions.
The Saudi government began introducing policies to boost the
level of technology in its agriculture sector since 1970s with the
aim of expanding its irrigation and water storage systems.
However, the country has always faced shortages in wheat and
other grain supplies, forcing it to use the vast capacity existing
in its ports system to import products from countries like Russia
and Ukraine and to re-export them to other countries.
Saudi Arabia is on a rapid path toward industrialization and has
experienced a good deal of economic growth over the past decade.
Figures show its gross domestic products (GDP) rose by 12.2% in the
year to June 2022, one of the best in the region and in the
world.
The country is one of the main economic rivals of Iran in the
region and is making efforts to become a major market in Iran’s
neighborhood in the near future.
That is why Iran should have a better understanding of Saudi
Arabia’s economic strategies, including its 2030 vision plan which
was announced in 2016.
A main foundation of Saudi Arabia’s economic policy-making is to
distance the country from oil revenues and to allow the private
sector to play a greater role in the country’s economy. The country
is also seeking to increase the share of foreign investment in its
economy.
Iran has a good potential in exports of petrochemicals,
pharmaceuticals minerals and metals which can create a good
opportunity for economic cooperation with Saudi Arabia. Iran can
also respond to Saudi Arabia’s demand for technical and engineering
expertise and help the country with its efforts to boost the share
of technology in its economic sectors.
Saudi Arabia’s arid weather conditions also creates a good
opportunity for Iran to supply the services needed in the country’s
agriculture sector while allowing Iranian exporters to increase
their presence in the country’s food and agriculture market.
Better economic relations with Saudi Arabia can also facilitate
Iran’s access to banking services and help boost trade ties with
other countries in the region.