Iraq expands border crossings with Saudi Arabia to boost trade
In the context of strengthening economic relations, Iraq and Saudi Arabia are diversifying their trade outlets, intending to increase trade exchange to more than $3 billion annually.
Iraq and Saudi Arabia agreed on Nov. 6 to open a second border crossing between the two countries.
Iraqi Prime Minister Mustafa al-Kadhimi and Saudi Crown Prince Mohammed bin Salman have both advocated economic openness and more expansive economic integration in the Gulf. The opening of the Arar crossing in 2020 was a first step to reopen the four border posts that were closed after the second Gulf War. Trade between the nations currently amounts to $1 billion annually.
Iraqi-Saudi relations began to improve with the government of Haider al-Abadi in 2017; a Saudi embassy has since opened in Baghdad, and the Iraqi-Saudi Coordination Council was established.
A well-informed source in the Iraqi Central Bank told Al-Monitor that a large banking delegation will visit Saudi Arabia, headed by Central Bank Governor Mustafa Ghaleb, on Nov. 19, and that Saudi Arabia has agreed to open two branches of the Trade Bank of Iraq and the National Bank of Iraq. A similar delegation visited Saudi Arabia in October and agreed to open the two branches, which will develop banking and economic relations.
