JEDDAH, 18 May 2005 — Plans are under way to establish an Iranian bank in Jeddah, the Saudi Press Agency reported yesterday quoting Iranian Trade Minister Muhammad Shariatmadari. “Talks on the bank are progressing well,” he said.
The Iranian move came after the government’s decision to open up the country’s banking sector. Riyadh also intends to allow foreign investors to own 60 percent of the local banks’ capital instead of 49 percent before the end of this year.
The Iranian minister said he expected marine transport between Saudi Arabia and his country would achieve tremendous growth as a result of an agreement signed by the two countries.
He was referring to the marine cooperation agreement, which was signed yesterday by him and Saudi Transport Minister Dr. Jebara Al-Seraisry. Iran owns 120 large ships.
The agreement calls for the removal of obstacles facing marine transportation between the two countries. “The two sides must comply with principles related to safety and protection of ships, protection of marine environment and transportation of dangerous material,” SPA said.
The agreement would boost trade between the two countries and promote investment in the marine transport sector. The accord is significant as more than 90 percent of bilateral trade is carried out through shipping lines.
According to Commerce Minister Dr. Hashim Yamani bilateral trade between the two countries reached SR2 billion last year.
The marine transport agreement came following a meeting of the Saudi-Iranian Joint Commission, which discussed prospects of increasing trade exchange, holding trade exhibitions and cooperation in financial and banking sectors.
Saudi Arabia and Iran have decided to complete procedures for the signing of another agreement on investment protection and promotion.
Shariatmadari said the agreement on standards and specifications would also help Iranian goods to enter Saudi markets. He estimated the value of Saudi-Iranian joint projects in the Kingdom at SR1 billion. “We are also thinking of activating free-trade zones between the two countries and enhancing bilateral trade exchange,” he added.
Abdul Rahman Al-Jeraisy, chairman of the Riyadh Chamber of Commerce and Industry, said the visit of Shariatmadari and his accompanying delegation would help strengthen commercial and industrial ties between the two countries.
Addressing Iranian businessmen at the chamber, he emphasized the importance of forging a strategic partnership between Saudi Arabia and Iran in order to confront international challenges. “This partnership will help us compete with international companies,” he pointed out.
Jeraisry also invited Iranian businessmen to participate in the $620 billion projects offered by the Kingdom in electricity, railways, desalination, gas, petrochemicals and other vital sectors.
