RIYADH, 29 October — A 101-member Saudi business delegation will witness on Thursday the reopening of Arar border post, which was closed 12 years ago in the wake of the Gulf war. The reopening is expected to boost trade between the two Arab neighbors.

The Saudi delegation, representing 43 companies and including government officials, will be the first to cross the border after the reopening to attend a major trade fair in Baghdad.

Organized by the Saudi Exports Center, the team will include Dr. Abdul Rahman Al-Zamil, chairman of the center and a member of the Shoura Council, and Dr. Fahd Al-Sultan, secretary-general of the Council of Saudi Chambers of Commerce and Industry.

Iraq announced yesterday that it would reopen the border post later this week to allow goods into the country under the United Nations oil-for-food program. The move is one of several signs that Baghdad wants to improve its relationship with Saudi Arabia.

Iraqi Trade Minister Mohammed Mehdi Saleh told a satellite TV channel that the crossing at Arar would open on Thursday after being closed since 1990, when Iraq invaded Kuwait, triggering the Gulf war.

"The crossing at Arar will be open on Thursday and a 100-strong Saudi delegation of businessmen and representatives of Saudi firms will cross into the country to attend the Baghdad fair," Saleh said.

"The move will be a step toward upgrading trade ties between Iraq and Saudi Arabia," the minister added.

According to Iraqi sources, 43 major Saudi firms plan to take part in a major international trade fair, which opens in Baghdad on Nov. 1.

"Saudi Arabia’s exports, now sent indirectly through neighboring countries, will now go directly into Iraq when the crossing at Arar is reopened," Saleh said.

The crossing , 340 km southwest of Baghdad, was a major conduit for goods in and out Iraq before the Gulf war.

Saudi Arabia asked Iraq to reopen the crossing in October, 2000, and Baghdad gave its approval last June.

Five years ago there was no trade between Saudi Arabia and Iraq, but trade is expected to reach $1 billion in 2002.