TEHRAN, 2 July — As a major step toward strengthening economic cooperation between the two countries, a visiting Saudi business delegation last week signed a memorandum of understanding with three top Iranian banks to set up a joint investment bank.
The Saudi delegation, led by Adnan Kamel Salah, held talks with the representatives of several Iranian banks before signing the MoU last Tuesday, according to Ali Mailani, general manager of the Bank of Commerce in Iran.
The two sides agreed to set up a joint committee to follow up implementation of the scheme.
Several Saudi businessmen led by Prince Nawaf are expected to invest in the venture with an initial capital of $250 million, said Ahmad Abdul Lateef, a former deputy governor of Saudi Arabian Monetary Agency and a member of the delegation.
Several Iranian businessmen and financiers have also expressed interest to participate in the project. The two sides will choose a well-known consultant firm to execute the project.
The proposed investment bank will focus on projects in countries of the Arabian Peninsula as well as the Islamic republics of Central Asia.
Salah said Prince Nawaf mooted the idea during Iranian President Muhammad Khatami’s visit to the Kingdom in 1999.
An international consultancy firm which conducted a feasibility study after visiting Saudi Arabia, Iran and the neighboring countries, had estimated the initial investment required for setting up the project at $250 million, Salah said.
The bank will be headquartered in one of the countries in the region with branches in Iran and other countries.
Iran Air, meanwhile, will operate two weekly flights to the King Fahd International Airport in Dammam from the Iranian cities of Tehran and Meshhad to cater to the increasing demand by Saudi tourists visiting Iran. The first flight will arrive at KFIA from Tehran today.
Several Saudi tourists prefer Iranian cities to Western and Far Eastern destinations, said an official of Al-Shafi Travel Agency which organizes tour packages to Iran. The number of Saudi tourists to Iran exceeded 50,000 in June, he said, adding that the figure is expected to double as the summer peaks.
Travelers from the Eastern Province travel to Iran through Bahrain.
Tour operators hope that Saudi Arabian Airlines will start operations to Iranian cities to exploit the huge potential of tourism traffic to the country.
