JEDDAH, 13 May — Iraq has awarded Saudi companies trade contracts worth about SR250 million since the start of the year under the United Nations oil-for-food program, trade sources were quoted as saying yesterday.
About SR190 million of the contracts were awarded in the past two weeks to Saudi private firms, the sources told Al-Watan daily.
They noted the sharp increase in the number of trade deals to Saudi companies followed an improvement in relations between the two Arab neighbors.
Iraqi Trade Minister Mohammad Mahdi Saleh said on Saturday that Baghdad has imported more than $1 billion worth of goods from Saudi Arabia within the framework of its oil-for-food program with the UN, in force since December 1996.
"Economic cooperation between Iraq and Saudi Arabia is growing, and Iraqi purchases from the Kingdom have exceeded $1 billion," he said.
Despite the absence of diplomatic ties between the two countries since the 1991 Gulf War, Saudi firms do business with Iraq as part of the oil-for-food program, which allows Baghdad to sell oil under UN supervision to meet the humanitarian needs of its sanctions-stricken population.
Iraqi Minister of Industry and Minerals Muyasser Shallah will attend the Arab industry ministers conference due to open in Riyadh tomorrow.
According to Iraq’s official media, the minister will hold talks with his Saudi counterpart on "ways of promoting bilateral industrial and economic cooperation." Deputy Interior Minister Prince Ahmad yesterday welcomed the visit saying that Iraq remains a sisterly country for Saudi Arabia, the SPA reported.
