RIYADH: An Iranian trade delegation is currently visiting the Kingdom seeking deals with Saudi businessmen. The visit comes at a time when indirect trade through intermediaries reached more than three times the direct trade exchange, which is valued at $1 billion.
Abbas Baqari, Iranian trade attaché in Riyadh, said the volume of Iranian exports to Saudi Arabia through third parties in Kuwait, Bahrain and the UAE exceeded $3 billion. These exports, he said, included fruits, foodstuff, confectionaries, nuts and livestock.
“A large quantity of carpets, for which Iran is well known, is exported to the Kingdom through other countries. The deals for high quality carpets required by rich Saudis are won by non-Iranian businessmen,” he pointed out.
Baqri said he feared the growth of indirect trade would affect competitiveness of products and reduce profit margin of traders in both countries. The 36-member delegation including Iranian businesswomen offers a variety of products and services to their Saudi counterparts.
They included agricultural, dairy products, meat, fodders, spare parts, jewelry, consultancy services, road and rail construction contractors.
Saudi companies are negotiating with the Iranian team to establish investment projects in their country, including a factory for juice.
Previously Saudi companies reached deals with their Iranian counterparts to establish a petrochemical factory and a tire factory, Baqri said, adding that two Iranian companies are currently trying to win Saudi railway expansion contracts.
“One Iranian company has already established contacts with the Ministry of Municipal and Rural Affairs for this purpose,” he said. There are Iranian companies specialized in making railway carriages.