RIYADH, 6 June — Saudi Arabia and Iran  signed an agreement aimed at boosting cooperation in sports and youth affairs here yesterday. The accord, inked by Prince Sultan ibn Fahd, president of the General Presidency of Youth Welfare, on the Saudi side, is expected to strengthen further Saudi-Iranian relations. On the Iranian side, the agreement was signed by Mustafa Hashimi Taba, chairman of the Iranian Olympic Committee.

Speaking after the signing ceremony, Prince Sultan said “this agreement will further bring the two countries closer to each other especially in the field of sports and youth affairs. The two countries had already forged closer political and economic relations.”

On the commercial front, the relations have been growing progressively. The local Iranian mission has targeted to raise the two-way trade to the tune of $5 billion annually. Prince Sultan said the two countries had shown willingness to expand their ties in all areas.

The prince further said that this agreement, signed on the sidelines of the fifth conference of Sports Federation for Muslim Solidarity currently under way in Riyadh, would also promote people-to-people contact. Iran has waived visa requirements for Saudis and other Gulf nationals in a move to ensure greater freedom of movement and to boost business and tourism relations.

Referring to the major sports events to be staged in the Kingdom, Prince Sultan said Riyadh would host the first Olympic Games for Islamic countries in 2005. This will be in addition to the first equestrian championship to be organized in 2002. Iran, on the other hand, will host the Prince Faisal ibn Fahd Tournament for swimming and diving next year in which all Muslim countries will participate.

He said Iran would host the second Olympic Games for Muslim states in 2009 whereas Syria had agreed to organize the third Olympic Games in the year 2013. The conference of executive committee of the Sports Federation for Muslim Solidarity was attended by many senior officials including Dr. Saleh ibn Ahmad Nasser, GPYW undersecretary, and Ali Asghar Khaji, the Iranian ambassador to the Kingdom.