Saudi Arabia could start investing in Iran ‘very quickly'

Saudi Arabia could start investing in Iran ‘very quickly,’ finance minister Mohammed Al-Jadaan says

Natasha Turak

Saudi Arabia may soon be investing in its longtime regional foe Iran following a breakthrough agreement reached between the two countries to re-establish diplomatic relations, the kingdom’s Finance Minister Mohammed Al-Jadaan said Wednesday.

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

“When people really stick to the principles of what was agreed, I think that that could happen very quickly. Our aim, and I think this has been made very clear previously by our leadership, is to have a region that is stable, that is able to provide for its people, and prosper. And there is no reason for that not to happen,” the minister said.

Riyadh and Tehran agreed to resume diplomatic relations and reopen embassies in each other’s countries following China-led negotiations in Beijing that culminated on March 10.

Riyadh and Tehran agreed to resume diplomatic relations and reopen embassies in each other’s countries following China-led negotiations in Beijing that culminated on March 10.

They also vowed to affirm “the respect for the sovereignty of states and the non-interference in internal affairs of states,” a major step after years of mutual animosity, suspected attacks and espionage between the two countries.

The countries have 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.

“The three countries expressed their keenness to exert all efforts towards enhancing regional and international peace and security,” the Saudi statement announcing the deal said, referring to itself, Iran, and China.

Investment from Saudi Arabia would likely be a major boon for Iran’s battered economy, though it’s unclear whether existing U.S. sanctions on Iran would apply to financial activity between the two countries.