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Home > News > World News > Article > Bitter rivals Iran and Saudi Arabia resume ties to activate 1998 agreement on trade investments

'Bitter rivals' Iran and Saudi Arabia resume ties, to activate 1998 agreement on trade, investments

Updated on: 10 March,2023 06:43 PM IST  |  Mumbai
mid-day online correspondent |

Top security officials of Saudi Arabia and Iran reached an agreement in Beijing

'Bitter rivals' Iran and Saudi Arabia resume ties, to activate 1998 agreement on trade, investments

Representative Image. Pic/iStock

'Bitter rivals' Iran and Saudi Arabia have agreed to re-establish relations open embassies years after diplomatic tensions in the Gulf and conflicts from Yemen to Syria.


The two leading Shi'ite and Sunni Muslim powers in the Middle East have been at odds for years, and backed opposite sides in proxy wars from Yemen to Syria and elsewhere.


Top security officials of the two countries reached an agreement in Beijing. "As a result of the talks, Iran and Saudi Arabia agreed to resume diplomatic relations and re-open embassies...within two months," IRNA, Iran’s news agency reported.


Both the countries have also agreed to activate Trade, Economy, Investment agreement signed in 1998.

The United States has said that it is aware of reports that Iran and Saudi Arabia have resumed diplomatic relations, but referred further details to the Saudis, a White House National Security Council spokesperson said on Friday.

"Generally speaking, we welcome any efforts to help end the war in Yemen and de-escalate tensions in the Middle East region. De-escalation and diplomacy together with deterrence are key pillars of the policy President Biden outlined during his visit to the region last year," the spokesperson said.

Media of both the countries, Iran and Saudi Arabia, said a statement by the two countries emphasised respect for sovereignty and non-interference in each other's internal affairs.

Saudi Arabia's state news agency said they also agreed to activate a security cooperation agreement signed in 2001, as well as another earlier accord on trade, economy and investment.

Iran's top security official, Ali Shamkhani, who signed the agreement with Saudi Arabia's national security adviser, Musaed bin Mohammed Al-Aiban, praised China for its role in the rapprochement, Iran's Nour News reported.

Also read: UN agency calls for probe of schoolgirl poisonings in Iran

Both Saudi Arabia and Iran thanked Iraq and Oman for hosting talks in 2021 and 2022.

In an official statement, Oman welcomed the trilateral statement between Saudi Arabia, Iran and China on resumption of diplomatic ties between Riyadh and Tehran.

Saudi Arabia cut ties with Iran in 2016 after its embassy in Tehran was stormed during a dispute between the two countries over Riyadh's execution of a Shi'ite Muslim cleric.

A senior Iranian security official said Friday's agreement had been endorsed by Supreme Leader Ayatollah Ali Khamenei. "That is why Shamkhani travelled to China as the supreme leader’s representative,” the official said. (With inputs from Agencies)

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