After a hiatus of two years in bilateral trade, Iran has exported $41,140 worth of commodities to its southern neighbor Saudi Arabia since Ebrahim Raeisi’s presidential term began in August, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
“Of the total exports, $39,100 belonged to a type of glass used in traffic signs,” Rouhollah Latifi was also quoted as saying by ILNA, adding that the neighboring country also bought some 4 kilograms of saffron worth $2,000 from Sept. 23 to Oct. 22.
This, Latifi added, marks a new beginning in economic, political and cultural relations between Iran and Saudi Arabia.
Sadreddin Niavarani, a member of the board of directors of Fruit and Vegetables Exporters Association, says Saudi Arabia can be a big market for Iranian agricultural products.
“Before tensions erupted between the two countries, Iran used to export around $1 billion worth of different agricultural commodities to the Arab country per year. Our main exports were apple, kiwi, apricot, cherries, peach and nectarine,” he told ILNA.
Niavarani noted that the Saudi people have always taken a liking to Iranian products, adding that there are no hard feelings between businesspeople from the two countries and old trade partners have continued to work with each other despite political issues.
“The two sides continued trade even during the tensions, as commodities were usually traded through intermediaries. Before the recent negotiations, Iranian products first went to countries such as the UAE, where their labels of origin would change and then the consignments were reexported to Saudi Arabia,” he added.
Niavarani believes political tensions can never create serious and everlasting obstacles to commercial and financial interactions between countries.
“Agricultural products, in particular, will eventually find their way to their intended markets. Iran has high-quality agricultural products, which have their own consumers in destinations markets. Right now, people in Saudi Arabia prefer to purchase Iranian apples instead of Turkish ones for double the price,” he said.
Saudi Foreign Minister Prince Faisal bin Farhan al-Saud said recently the kingdom is “serious” about talks with Iran, signaling Riyadh’s desire to repair relations between the two regional powers.
The kingdom has held a series of talks with Iran since the new President Ebrahim Raeisi took office. The negotiations reflect a tentative de-escalation in the region, following the election of US President Joe Biden and with the economic hardship wrought by the pandemic.
Riyadh and Tehran cut diplomatic ties in January 2016 after the Saudi Embassy in Tehran was stormed by protesters. The diplomatic mission was attacked after Saudi Arabia executed a senior Shia cleric.
Tensions between Saudi Arabia and Iran soared after Riyadh backed former US president, Donald Trump’s decision in 2018 to unilaterally withdraw from the nuclear deal with Tehran and impose tough sanctions on the Islamic Republic.
But Saudi Arabia appeared to have recalibrated its more assertive foreign policy after Biden took office and pledged to reassess relations with the kingdom, criticized the murder of veteran journalist Jamal Khashoggi by Saudi agents and froze some arms sales to Riyadh.
Prince Faisal said there was a “confluence of events that made it feel like it was the right moment” to talk to Iran.
“We were always willing to talk if they might actually be serious,” he said. “Various factors came into play.”
