JEDDAH, 14 June — Saudi Arabia will export SR14.55 million worth of goods to Iraq as part of the oil-for-food program after the United Nations cleared the way for Saudi goods to enter the country.
This is the first time Saudi firms have been granted permission for export contracts to Iraq during the current year.
The Iraqi government awarded the contracts to Saudi traders some time ago, but they were put on hold because of UN sanctions against Baghdad. The contracts, according to Al-Watan, include SR13.28 million allocated for food imports and SR1.26 million for chemical products.
The United States continues to block imports to Iraq under the UN oil-for-food program despite new procedures designed to free up the flow of non-military goods, diplomats said on Tuesday.
In its weekly update, the office administering the program said 31 new contracts worth a total of $47.7 million were put on hold last week, while six contracts worth $33.4 million were released from hold.
Diplomats said the holds were ordered by the US through a United Nations committee enforcing sanctions imposed on Iraq after it invaded Kuwait in August 1990.
The number of blocked contracts has swelled hugely in the past two years and the council agreed to streamline its vetting procedures in the new phase of the UN program, which runs from May 30 to Nov. 25.
Saudi companies have won contracts worth than SR513 million since the beginning of the year. The bulk of the allocations, SR324.2 million, have been reserved for export of food products.
Sources close to the exporters told Al-Watan that they could begin executing the contracts shortly, but said it was unlikely that the goods will find their way into Iraq via the Jadidah-Arar border crossing, which has been closed pending an agreement between Iraq and the United Nations.
Last month, Saudi companies won the biggest number of contracts ever awarded in a short time when they clinched deals worth more than SR208.7 million to export products to Iraq.
The figure represents the largest amount won by the local private sector since it started dealing with Iraq.
