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Iran and Saudi Arabia agree to restore relations

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Wish that bouquet laid amidst the triangle-shaped table wasn't round (nor triangular itself) though. Those who read up on the topic will understand. It's most probably not been done on purpose but geometric symbols need to be paid attention to, and those pertaining to a certain covert cabal should be banished. As far as Iran's concerned, this means replacing the Majles building, which was designed before the glorious Islamic Revolution under the western-dominated monarchy.
 
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Good development ....
We don't want their land and resource and they can't destroy us , we have to live alongside of each other and accept our differences ....

This baseless enemitty between Iran and KSA only wasted our resources and put the region ablaze ...

Good development , it can be strengthen with non-aggression pact and economic deal....

CHINA IS THE PEACEMAKER.


WELL WELL. UNCLE SAM WILL BE PISSED .

They will do everything because they are main benefactor of hostilities between Iran and ksa
 
Being a mediator requires strength. It is said that Iran's General Sulaimani was killed because Iraq does not have enough strength to act as a mediator of Iran's relations with Saudi Arabia :coffee:
 
Well, Pakistan should do full trade with Iran right away/


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PAKISTAN can take comfort in the decision taken by Iran and Saudi Arabia, after mediation by China, to restore diplomatic ties. Pakistan has long been struggling to maintain a balance in its ties with the two states, although it has always maintained a clear tilt towards Riyadh because of its constant financial and political support. Pakistan has not fully exploited the potential of its economic and trade engagement with Iran evidently on the pretext of factors concerning Saudi Arabia and the US.



It is too early to predict whether the restoration of Saudi-Iranian ties will put an end to their politico-ideological rivalry; it is also too simplistic to assume that it will resolve sectarian tensions in Pakistan, which have largely been abetted by the Saudis and Iranians in the past.
Many in Islamabad also describe the development as a game changer for Pakistan based on the perception that normalcy between the two archrivals in the Middle East will ease some economic difficulties. Pakistan needs to review its relationship with both countries; it may discover that the restoration of diplomatic ties between Iran and Saudi Arabia cannot change much for Pakistan as the problem lies in its own (bilateral) relations with each of the two countries.
Some optimistic analysts in the Middle East and China have portrayed the development as a major shift in the global and regional political landscape and have hinted at the formation of a new power bloc. Others see this as part of the larger Saudi effort to diversify its strategic, economic and political options, change its global image, and decrease dependency on traditional strategic allies, including Pakistan, which maintain a position of neutrality when it needs help. Saudi Crown Prince Mohammed bin Salman, who is the architect of the ongoing transformation of the ideological state, may have learned this ‘lesson’ when Pakistan decided to stay neutral during the Yemen war.
The Saudi-Iran peace deal may not change things for Pakistan.
Iran is also looking for avenues to reduce international pressure and expanding economic cooperation with the Gulf states. It faces constant impediments in expanding ties with its neighbours, including Pakistan and Afghanistan which limits it potential to build a solid export base.



Pakistan needs to realise that Saudi Arabia broke off relations with Iran in 2016, while Pakistan already had a problematic relationship with it. It never capitalised on the economic cooperation with its northwestern neighbour and maintained a vague position on the Iran-Pakistan gas pipeline project.
The 25-year contract to export Iran’s natural gas through a pipeline to Pakistan was signed by the two countries in 2009 when the PPP was in power. It was supposed to be implemented by 2015. Now Tehran is demanding that Islamabad construct its portion of the pipeline by March 2024 or pay a penalty of $18 billion. Many in Islamabad blamed former president Asif Zardari and his government for signing the deal for political reasons, as the PPP government was not very popular in Riyadh. The subsequent PML-N government averted the commitment, citing reasons of international sanctions. However, the government did not want to annoy Riyadh, and the then prime minister Nawaz Sharif received a red carpet reception on his visit to the Saudi kingdom.
The restoration of diplomatic ties has brought Iran and Saudi Arabia to the 2016 position. This was the year when the Saudi-led Operation Decisive Storm against the Iranian-backed Houthi rebels had entered its second year. Pakistan had maintained a position of neutrality in this war for multiple internal and external reasons, which annoyed the Saudi rulers, who saw Pakistan’s neutrality as non-cooperation. Pakistan had tried to pacify Saudi anger, allowing retired army chief Gen Raheel Sharif to lead the 41-nation armed coalition. The Saudis hoped it might lead to Pakistani military assistance in Yemen. However, the PML-N government maintained that the alliance would not participate in unrelated military operations.
The Yemen issue has greatly disappointed the Saudi crown prince as most Saudi allies, who received oil and financial assistance from the kingdom, have not extended the anticipated military support. During the process of introducing changes in internal power structures and testing relations with Saudi allies, he became adept at walking on a tightrope. Some analysts believe he is testing the political and diplomatic strength of the kingdom and that the restoration of diplomatic ties with Iran is part of that strategy.
Renewed relations between Iran and Saudi Arabia may have many implications for the Middle East. However, as mentioned earlier, it may hardly change things for Pakistan. For Saudis, defence cooperation has been an issue, and for Iran, border security and acts of terrorism are among the major irritants in its bilateral relations with Pakistan, which has similar and genuine concerns about Iran as the Baloch insurgents now use its territory to launch operations against Pakistani security forces.
Regarding the impact of Iran-Saudi relations on sectarian harmony in Pakistan, efforts were already underway in the country by the state, religious communities and civil society to evolve harmony; however, the impact of these efforts has not been measured yet. On the other hand, Saudi Arabia is on the way to ideological transformation, creating a dilemma for Pakistani religious scholars. This factor may have contributed to the recent decline of sectarian violence in Pakistan, but concrete evidence of this is still missing. However, one thing is certain: the primary factor responsible for sectarian tension and violence lies in state policies, and state institutions have continued to habitually use militant and sectarian outfits for political purposes. While giving space to the radical religious groups in the country, state institutions also encouraged them to develop their relationship with the Gulf countries. Iran and the Saudis always took this as an opportunity to expand their ideological influence in Pakistan and create sectarian proxies.
The solution to all Pakistan’s problems lies in correcting its policies rather than building false hopes on political developments elsewhere.
The writer is a security analyst.
Published in Dawn, March 19th, 2023
 

Future of Saudi-Iran economic collaboration after deal​

A few days after the signing of an agreement between Iran and Saudi Arabia to reopen embassies, the kingdom’s Finance Minister Mohammed al-Jadaan said that his country could soon be investing in the Islamic Republic.


Asked by in Riyadh how soon the world might see the Saudi kingdom making significant investments into Iran and vice versa, al-Jadaan replied: “I would say very quickly.”


“Iran is our neighbor, and has been and will continue to be for hundreds of years,” al-Jadaan said. “So I don’t see any issue that would prevent normalization of the relationship, cross-investments etc.”


The countries 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.


Tehran’s regional strategy is focused on energy and trade interconnectivity with immediate neighbors. The security aspects of this strategy has been articulated in the so-called Hormuz Peace Endeavor (HOPE).


Saudi Arabia is launching trillions of dollars worth of mega-projects as part of the kingdom’s Vision 2030 plan to diversity away from oil. Iran, whose economy has been under years of Western sanctions, is also trying to diversify its economy.


Al-Jadaan said that there are a lot of opportunities for Saudi investments in Iran. Observers say this is an important indication of underlying political will at the highest level in Saudi Arabia.


According Amwaj.media, a website covering Iran, Iraq and the countries of the Arabian Peninsula, the initial wave of investments could take shape in non-sanctioned industries, such as food and pharmaceuticals, followed by other sectors where creative banking and financial solutions would be put in place.


“Considering the fact that both sides are engaged in economic diversification, there are additionally a number of opportunities in other sectors. One such sector is the mining industry. Of note, Iran has ambitious investment projects in the sector and Saudi investors could certainly profit from the availability of a number of mineral products in their diversification drive,” it said.


Both Iran and the Saudi Arabia are major oil producers. Experts say new geopolitical and energy sector realities could make collaboration in the petroleum sector worthwhile where they can partner to complete their respective value chains, moving away from oil and natural gas towards petroleum products and petrochemicals.


The signs are encouraging. Saudi Aramco CEO Amin Nasser has welcomed the agreement between Iran and Saudi Arabia as a positive development that will certainly help enable future joint projects including swap deals, increasing the efficiency of operations.


Beyond the direct bilateral cooperation in Iranian and Saudi markets, there is plenty of scope for mutually beneficial collaboration involving third parties.
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For instance, experts believe that many opportunities exist for joint mining projects in third countries that could generate jobs and economic impetus in the region and build trust between Iranian and Saudi enterprises.


In the energy sector, one tangible project would be to finalize a trilateral agreement between Kuwait, Saudi Arabia and Iran on the offshore Dorra/Arash natural gas field, which would be a win-win-win example for the region.


Riyadh and Tehran could also connect their electricity grids. The bridge to bring about interconnectivity would be Iraq, which relies on Iranian electricity to meet some 10% of demand, and Iranian gas to generate about a third of its supply.


According to Amwaj, Iraqi grid is set to be connected to that of the Persian Gulf Cooperation Council (GCC) business community next year and integrating Iran into the arrangement would be very feasible.


“Such connectivity would introduce opportunities in power trading between the various players, with different peak times for consumption paving the way for meaningful trade in the electricity sector.”


Saudi investments could also promote the emerging transit sector in Iran—a development that would also benefit the growing trade between Russia and the GCC economies. Such projects could translate into increased interconnectivity by sea, rail and road and include already envisaged projects such as the Shalamcheh-Basra rail link which in due course has the potential of moving pilgrims between Mashhad and Karbala, and also Mecca.


Talks between Iranian and Saudi delegations in Baghdad in Oct. 2021 reportedly saw the Iraqi side bring up the idea of an “international highway” connecting Mashhad—the largest pilgrimage site in Iran—and Mecca—the most important center for all Muslims—via the holy city of Karbala in Iraq.


Improving rail and road infrastructure could also increase the number of religious pilgrimages between the neighbors—a development that would promote further cultural, religious and social ties.


Iranian experts believe improved relations with the kingdom could pave the way for better trade relations with other regional powers, especially Egypt. In this context, Iran’s export-driven economic development with a focus on the region would greatly benefit from access to major untapped markets.


It is clear that there are multiple opportunities for Saudi Arabia to invest in Iran. If past experience is anything to go by, Saudi investors have no reason to cool their feet.


One example is the participation of Saudi companies in production of cooking oil in Iran where the kingdom’s largest food producer Savola Group held a stake in an Iranian company which accounted for 40% of the country’s edible oil market.


Savola acquired a holding of 49% in Iran’s Behshahr Industrial Company in 2004 before raising the stake to 80%.


The Saudi group, which also operates in Egypt, Algeria, Sudan, Turkey, Morocco, Jordan and Kazakhstan, generated more than 15% of its revenues from business in Iran.


Rebranded as Savola Behshahr, the firm's revenues from Iran increased by almost a third to $1.17 billion in 2012, about 42% of its global edible oil sales.

 

Iran, S Arabia can launch nuclear coop. after restored ties

Iran, S Arabia can launch nuclear coop. after restored ties

TEHRAN, Jun. 06 (MNA) – Iran and Saudi Arabia can cooperate on peaceful nuclear technologies as one of the areas they can cooperate after the restoration of bilateral diplomatic relations, the Iranian security apparatus offered in a post on Twitter.

A media outlet close to Iran's Supreme National Security Council (SNSC) has said in a tweet that the two Muslim nations of Iran and Saudia Arabia can have nuclear cooperation in the future as one of the areas they can cooperate on after their full restoration of diplomatic relations.


"In defiance of the Zionists' opposition to the nuclearization of Saudi Arabia, in the new age of relations between Tehran and Riyadh, cooperation in the field of peaceful nuclear technologies and the transfer of Iran's experiences and achievements to that country in compliance with international laws and under the supervision of the IAEA can be one of the main fields in their bilateral relations," the Nournews has suggested in a post on its Twitter account in Farsi Language.


Iran and Saudi Arabia normalized their diplomatic relations after seven years following talks mediated by China in Beijing a few months ago.


Iran’s embassy in Saudi Arabia’s capital city of Riyadh was reopened after seven years by the officials of the two countries on Tuesday.
 

Iran, S Arabia can launch nuclear coop. after restored ties

Iran, S Arabia can launch nuclear coop. after restored ties

TEHRAN, Jun. 06 (MNA) – Iran and Saudi Arabia can cooperate on peaceful nuclear technologies as one of the areas they can cooperate after the restoration of bilateral diplomatic relations, the Iranian security apparatus offered in a post on Twitter.

A media outlet close to Iran's Supreme National Security Council (SNSC) has said in a tweet that the two Muslim nations of Iran and Saudia Arabia can have nuclear cooperation in the future as one of the areas they can cooperate on after their full restoration of diplomatic relations.


"In defiance of the Zionists' opposition to the nuclearization of Saudi Arabia, in the new age of relations between Tehran and Riyadh, cooperation in the field of peaceful nuclear technologies and the transfer of Iran's experiences and achievements to that country in compliance with international laws and under the supervision of the IAEA can be one of the main fields in their bilateral relations," the Nournews has suggested in a post on its Twitter account in Farsi Language.


Iran and Saudi Arabia normalized their diplomatic relations after seven years following talks mediated by China in Beijing a few months ago.


Iran’s embassy in Saudi Arabia’s capital city of Riyadh was reopened after seven years by the officials of the two countries on Tuesday.
If only.

The muslim nations tried to start some sort of military alliance under general raheel...what happened there?
 
If only.

The muslim nations tried to start some sort of military alliance under general raheel...what happened there?

Normal thing. If you want to be an independent block, you have to do all on your own.
 
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