RIYADH, 15 December 2002 — Saudi Arabia and Iraq yesterday restored telephone communications after a break of 12 years, Ibrahim Fouda, executive director of Saudi Exports Development Center, told Arab News.

He said the resumption of telephone contacts would boost economic and commercial relations between the two neighbors.

Abdul Rahman Al-Zamil, chairman of the center’s executive council, also highlighted the significance of telecommunications in promoting trade exchange between the two countries.

Iraq is one of the Kingdom’s largest markets for industrial and consumer products. Saudi businessmen believe their exports to Iraq would increase threefold in the coming months.

Saudi companies and industries have won Iraqi contracts worth $1 billion as part of the oil-for-food and medicine programs approved by the United Nations. Last year alone the Kingdom bagged contracts worth $298 million.

About 100 Saudi businessmen and officials last month attended the international trade fair in Baghdad. Businessmen representing 42 Saudi firms entered Iraq through the Arar border post, a day after it was reopened for trade and transport.

Iraqi Trade Minister Mohammed Mehdi Saleh reopened the border post, 340 km southwest of Baghdad, which had been closed since Iraq’s 1990 invasion of Kuwait.

“The opening of the crossing is a step toward promoting and strengthening trade relations with Saudi Arabia,” Saleh told reporters.

He said Saudi Arabia is among countries that supply Iraq with goods such as cooking oil, soap and milk powder under the UN program.

Al-Zamil, a member of the Shoura Council, headed the Saudi delegation to the fair. Al-Zamil had earlier called for concluding a free-trade agreement with Iraq to promote inter-Arab trade.

Iraq has signed free-trade accords with Algeria, Egypt, Lebanon, Oman, Qatar, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen.

Iraq and Saudi Arabia initiated a rapprochement during the Arab summit in Beirut last March. During the past 12 years, the Arar crossing was opened only occasionally to allow Iraqi pilgrims into the Kingdom.

Saudi exports to Iraq under the UN program were sent through Jordan before the opening of the border.