RIYADH, 21 July — The Ministry of Commerce has allowed Saudi businessmen to export non-Saudi products to Iraq as per the regulations of the food-for-oil program approved by the United Nations.
The move, which comes as part of ongoing efforts to normalize relations between the two Arab countries, would help Saudi businessmen to compete with regional and international companies.
"The new decision will help increase trade between Saudi Arabia and Iraq," a high-level source close to the Council of Saudi Chambers of Commerce and Industry told Arab News.
Saudi businessmen had received contracts worth $1.1 billion as part of the UN program. However, the volume of trade exchange between the Kingdom and Iraq was small compared to Iraq’s trade with Egypt, Jordan, the United Arab Emirates and Tunisia.
Saudi-Iraq trade is expected to rise in the coming months as Baghdad may prefer to buy Saudi products in its bid to open a new chapter in bilateral relations.
Abdul Rahman Al-Jeraisy, chairman of the Riyadh Chamber of Commerce and Industry, meanwhile, told Arab News that all Saudi companies and industries have been instructed that their business with Iraq must be within the framework of the UN program and that they should not contact the United Nations directly.
"All their communications must be through official Saudi channels, especially the Export Promotion Center," Al-Jeraisy said. Dr. Abdul Rahman Al-Zamil, chairman of the Export Promotion Center, had earlier called for concluding a free-trade agreement with Iraq to promote inter-Arab trade.
Iraq has already signed free-trade accords with Algeria, Egypt, Lebanon, Oman, Qatar, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen.
Iraq and the United Nations have reached an agreement on the reopening of the main Saudi-Iraqi border crossing at Arar, which remained closed since the 1990 Iraqi invasion of Kuwait. The opening of Arar post will cut down on transportation cost for Saudi businessmen.
