Iran and Saudi Arabia are set to open a Joint Chamber of Commerce
Initial investments are more likely to be led by state efforts before private enterprises are more confident in the establishment of new and joint ventures with their counterparts.
Keyvan Kashefi, a member of the board of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) said on Monday that a Joint Chamber of Commerce is to be established following the reopening of the embassies in the coming weeks.
Kashefi said the normalisation of ties between Tehran and Riyadh has been Iran’s main political and economic goal over the past 30 days. Particularly, Kashefi noted that Iran and Saudi Arabia have a great potential for cooperation in the oil, gas, petrochemical and technological sectors.
Iran has established and active Joint Chambers of Commerce with the UAE, Kuwait, Turkey, Syria, and Iraq. The Chambers are a key institutional set-up for Iran to pursue business opportunities with regional partners. The establishment of the Joint Chamber of Commerce with Saudi Arabia will institutionalise economic cooperation between the two countries in an unprecedented way and enable them to navigate regulatory and technical issues hindering deeper cooperation.
Business implications
The newly created chamber is set to open the gate for investments in both directions of the gulf. Nonetheless, initial investments are more likely to be led by state efforts before private enterprises are more confident in the establishment of new and joint ventures with their counterparts.
The US and other western powers will likely see the development as problematic and attempt to pressure the Saudis to walk back on the newly found partnership or risk sanctions.