Saudi-British trade surpasses US$21 billion

Prime Minister Rishi Sunak revealed that bilateral trade between Britain and Saudi Arabia has exceeded 17 billion pounds or US$21 billion.

 “Today we are launching the next phase of the deep and growing partnership between Britain and Saudi Arabia. Over the next two days, we will hear from Saudi leaders and companies about how to make Vision 2030 a reality, and the tremendous opportunities it presents to all of us,” he said while addressing, through a video conference, the opening session of the GREAT Futures Initiative Conference, which kicked off at the King Abdullah Financial District in Riyadh on Tuesday.

The two-day conference is one of the initiatives of the Saudi-British Strategic Partnership Council, chaired by Saudi Crown Prince and Prime Minister Mohammed bin Salman and Rishi Sunak. 

“I know British businesses here will relish the opportunity to showcase the best our country has to offer,” the prime minister said.

Sunak revealed that nearly 25,000 Britons live in Saudi Arabia at present.

“Since the launch of the new electronic visa exemption regime in June 2022, Britain has welcomed more than 400,000 Saudis. The United Kingdom excels globally in the fields of technology and innovation, and thousands of Saudis have graduated from British universities in finance, fashion, luxury product sales, and others,” he told the conference participants.

British Deputy Prime Minister Oliver Dowden is among several British and Saudi ministers, as well as Saudi and international experts and specialists who are addressing the conference. As many as 800 participants from the public and private sectors of both countries are taking part in the event.

In his speech at the conference, Dowden said that the pace of change in Saudi Arabia in terms of the economic, social and cultural aspects is exceptional.

“We do not just want to support the Saudi Vision 2030, but we want to be part of it.” Referring to the conference, he said the Kingdom’s hosting of such an event is a wonderful example and shows British talent to the world: “We participate in leading the economic and social elements of our relations as a means of work, execution and transformation.”

Dowden said that this would significantly increase mutual prosperity and demonstrate that a modern, forward-looking partnership can meet the challenges of the 21st century.

Dowden noted that he was accompanied by a giant delegation to this event that included more than 450 people, which is the largest British trade mission in a decade and the largest ever from Britain to Saudi Arabia.

He pointed out that the talented lawyers, consultants, financial experts, architects and designers in Britain can help turn this vision into a reality, and highlighted that their work are meant to strengthen the presence of British companies in the Kingdom, and to accelerate the vital trade ties that make the mutual relations between the two countries of great value.

According to the British deputy prime minister, Saudi Arabia, through its mega projects and cities, is paving the way for how societies can harness innovative technologies to achieve amazing change.

“The partnership between the two kingdoms is a two-way street, as the two countries open their markets to each other. So that investments, tourism exports, and cooperation can flow in both directions,” he added.

The conference is aimed to enhance economic relations between the two countries in various promising sectors as well as to develop mutual trade and investment. The conference will feature 47 sessions and workshops with 127 speakers from both public and private sectors, covering 13 promising economic sectors, including tourism, culture, education, health, sports, investment, trade, and financial services, in addition to signing six agreements in the fields of education and training, tourism, and real estate development.

Earlier, Dowden said that the conference is an important opportunity to build partnerships between the business sectors of both countries, keeping pace with the future, innovation, and creativity. It also allows British companies to familiarize themselves with relevant business regulations, incentives, and advantages for conducting business in Saudi Arabia.

On his part, Minister of Commerce Dr. Majed Al-Qasabi stressed that the conference is an opportunity to enhance cooperation and economic partnership in 13 vital and promising sectors. He also highlighted that it paves the way for extensive partnerships focusing on innovation and creativity in sectors of mutual interest.

Iran and Pakistan stress expansion of trade between private sectors

Head of Tran Chamber of Commerce, Industries, Mines, and Agriculture (TCCIMA) Masoud Khansari and Chief Executive of Trade Development Authority of Pakistan (TDAP) Muhammad Zubair Motiwala expressed the need for the expansion of relations between the private sectors of the two countries in a meeting in Tehran.

The officials emphasized that the trade between the two countries should not be limited to the border trade in Quetta and must be directed to official channels between the private production and export companies of the two countries, the TCCIMA portal reported.

Speaking at the meeting, Motiwala announced the readiness of his organization for long-term and progressive interaction with TCCIMA in order to facilitate the commercial exchanges of the two sides’ economic enterprises.

He stressed the need for continuous exchange of business delegations with the aim of introducing the economic and market cooperation capacities of the two countries and identifying the goods and services needed by the markets of both sides.

According to the official, the chambers of commerce in the two countries can provide the basis for the expansion of interaction between the private sectors of the two countries.

Motiwala also considered the revision and modification of the tariffs on commodities traded between the two countries as necessary to increase the level of economic cooperation, and in this regard, he reminded that Pakistan is taking serious measures.

Khansari for his part, welcomed the ideas presented by the Pakistani side and emphasized the need for amending the tariffs on goods exchanged between Iran and Pakistan.

“A complete list of commodities needed by the markets of the two countries has been prepared by the Tehran Chamber of Commerce which has been compiled by the data provided by reliable companies,” Khansari said.

Stating that the main channel of trade between the two countries is border exchanges which are almost entirely carried out through the Quetta border, the TCCIMA head said, “In order to strengthen the economic relations between Iran and Pakistan, the trade of the two countries should move away from cross-border exchanges towards interaction between large industries and companies from both sides.

In this context, the Trade Development Authority of Pakistan and the country’s chambers of commerce should encourage the reputable and big industries and businessmen of Pakistan to have direct economic cooperation with the Iranian market.”

Lately, Iranian Ambassador to Pakistan Mohammad-Ali Hosseini and Pakistani Finance Minister Senator Mohammad Ishaq Dar discussed the ways for increasing trade between the two countries in a meeting in Islamabad.

Expressing their satisfaction that the trade between the two countries exceeded US$2 billion, the two sides emphasized the need to take more effective steps to strengthen economic cooperation and help expand trade relations.

During the meeting, the Pakistani minister said that Pakistan attaches great importance to its relations with the friendly and brotherly country of Iran.

Appreciating the efforts of the Iranian ambassador during his diplomatic mission in Pakistan in order to strengthen the brotherly relations between the two neighboring countries, Senator Ishaq Dar praised the measures taken especially in the commercial and economic fields.

Expressing their satisfaction with the value of trade between Iran and Pakistan, which has exceeded two billion US dollars, the two sides emphasized the need to identify new ways to help increase trade and develop economic cooperation.

Emphasizing the country's economic outlook, Pakistan's finance minister expressed confidence that despite economic challenges, Pakistan is on the path of progress and development.

Iranian ambassador to Pakistan has appreciated the cooperation and support of the Pakistani government for the development of bilateral relations in various fields, and stated that the potential capacities of Iran and Pakistan are the main factor for the expansion of joint cooperation.

He added that bilateral trade between Iran and Pakistan has now reached US$2.4 billion, but it is not compatible with the good political and people relations of the two neighbors and more efforts should be made to support the business community of the two countries.

Back in January, Iran and Pakistan signed a Memorandum of Understanding (MOU) to facilitate bilateral trade between the two countries.

The MOU was signed by Head of Iran’s Trade Promotion Organization (TPO) Alireza Peyman-Pak and Muhammad Zubair Motiwala.

Based on the MOU, which was signed on the sidelines of Iran’s Exclusive Exhibition in Karachi, the parties pledged to exchange business information, support each other’s private sectors, and provide the conditions and context for the presence of their trade delegations in the other country.

It was also agreed that both sides would take all the necessary measures to facilitate holding exhibitions in the opposite country, whenever required.

Speaking in the signing ceremony, Peyman-Pak said that signing this MOU was indicative of the two sides’ determination for removing the obstacles in the way of bilateral trade and prepare the ground for the businesspersons of both sides to bolster cooperation.

He considered the holding of exclusive exhibitions, exchanging trade delegations and investment in joint production units as positive steps for knowing the capacities and needs of the two countries and expressed hope that such events would continue.

The TPO head further mentioned some obstacles and infrastructural problems that are hindering the two countries' mutual trade, including lack of banking relations, problems related to sea transportation and logistics, and tariff-related issues, saying that the Iranian government is willing to resolve such problems in collaboration with the Pakistani government.

Motiwala said that the signed MOU is regarded as a major step to enhance bilateral trade to reach the target of US$5 billion annually.

 

Iran to eliminate US dollar in trade with Oman

In a meeting between the governor of the Central Bank of Iran (CBI) and a senior trade delegation from Oman on Monday, the Iranian side expressed complete readiness for eliminating the United States dollar from the two countries’ trade transactions.

Speaking at the meeting, CBI Governor Mohammadreza Farzin, who is also the head of the Iran-Oman Joint Economic Committee, said the strategic policy of the Central Bank of Iran is to cut ties with the US dollar in foreign exchange and trade, the CBI portal reported.

“We have sound economic and political reasons for this strategy, because, on one hand, the US uses the dollar as a political tool, and on the other hand, other currencies, especially in Asia are getting stronger against the dollar,” Farzin explained.

Referring to the complete readiness of the CBI to reduce and eliminate dollar exchanges from the cycle of commercial and economic transactions between Iran and Oman the official said, “The grounds for conducting economic and commercial transactions based on the national currencies of the two countries are fully prepared.”

Referring to the positive negotiations between Iran and Oman last year regarding the development of monetary and banking relations along with trade relations between the two countries Frazin stated, “Iran is ready for international methods like clearinghouses, multilateral monetary agreements and bilateral monetary agreements in trade transactions with Oman.”

The CBI governor further mentioned the expansion of trade relations between Iran and Oman in the previous Iranian calendar year (ended on March 20) and said, “The trade between the two countries grew by 40% in the past year and reached US$1.8 billion.”

He further emphasized the necessity of using joint credit cards between the monetary and banking networks of Iran and Oman in order to facilitate the commercial relations and economic activities of the two countries’ businessmen and stated: “The negotiations in this regard have also been carried out with the Central Bank of Oman and Iran is ready to put the use of joint credit cards on the agenda as soon as possible.”

Trade between Iran and Turkey reported at US$1.379 billion for Jan-Mar 2023 quarter

The value of trade between Iran and Turkey has been reported at US$1.379 billion during the first quarter of 2023, down 14% from US$1.619 billion in the first three months of 2022, according to the figures recently released by the Turkish Statistical Institute.

Turkey’s export to Iran rose 2% to US$702 million in the three-month period of this year, from $682 million in the same period of the previous year.

Iran’s three-month export to Turkey declined 27% to US$677 million from US$932 million.

Based on the data released by the Turkish Statistical Institute the value of Iran’s exports to Turkey increased by 19% to US$3.35 billion in 2022.

Turkey had imported over US$2.82 billion worth of commodities from the Islamic Republic in 2021.

Based on the mentioned data, Iran’s imports from the country also marked an 11% rise to US$3.07 billion in the past year, in comparison with 2021, when the figure was US$2.77 billion.

Trade between the two countries has registered a 15-percent rise in 2022.

The value of trade between the two neighbors reached US$6.42 billion in 2022, while the figure stood at US$5.59 billion in the preceding year.

Iran's trade balance with Turkey has been US$280 million positive in favor of Iran in the past year.

As announced by an official with Iran’s Trade Promotion Organization (TPO), the value of Iran’s export to Turkey increased by 23% in the past Iranian calendar year 1401.

Farzad Piltan, the director-general of TPO's Office of West Asian Countries, said that based on the data released by the Islamic Republic of Iran Customs Administration (IRICA), Iran exported commodities worth $7.45 billion to its neighbor in 1401, while the figure was $6.079 in 1400.

Saying that Turkey was Iran’s third top export destination in the past year, the official named natural gas, aluminum, urea, polyethylene, copper cathode and cathode parts, copper wires, iron and steel ingots, and polyethylene as the major products Iran exported to Turkey in the previous year.

Piltan further announced that Iran’s import from Turkey also rose 15 percent to about $6 billion in 1401, from $5.2 billion in 1400.

Stating that Turkey was the third source of import for Iran in the previous year, the official named sunflower seed oil, road tractors, corn, bananas, generators, barley, soybeans, synthetic fibers, crude soybean oil, and solid acrylic polymers as the main items Iran imported from its neighbor in 1401.

In last July, Iran and Turkey discussed ways of expanding economic relations along with political ties at the Turkish-Iranian High-Level Cooperation Council in Tehran.

During the meeting, which was co-chaired by Iranian President Ebrahim Raisi and Turkish President Recep Tayyip Erdogan, the two sides negotiated the extension of the gas export contract between the two sides for the next 25 years.

In the meeting, President Raisi noted that the Islamic Republic of Iran is determined to expand economic relations with neighboring countries.

The president also evaluated Tehran-Ankara ties as positive and progressive, saying that the two countries should pursue appropriate policies to move towards increasing their annual trade exchanges to $30 billion.

On the sidelines of the mentioned meeting, Iranian Energy Minister Ali-Akbar Mehrabian also held talks with Turkish Minister of Energy and Natural Resources Fatih Dönmez in which the two sides exchanged views on cooperation in energy fields.

Later on, Head of Turkey’s Small and Medium Enterprises Development Organization (KOSGEB) Hasan Basri Kurt met with Head of Iran Small Industries and Industrial Parks Organization (ISIPO) Ali Rasoulian to discuss ways of expanding cooperation between the small and medium-sized enterprises (SMEs) of the two countries.

In this meeting Rasoulian referred to the signing of a memorandum of understanding (MOU) between the two countries on cooperation between SMEs, saying: “President Raisi has emphasized setting up joint industrial parks in the country’s special economic zones, considering the good infrastructure for setting up such parks in the free and special economic zones and the active presence of economic enterprises in these areas.”

 

Iranian annual export to India rises 60%

The value of Iranian export to India increased 60% in 2022 as compared to the preceding year, according to the data released by the Indian Ministry of Commerce and Industry.

The Indian ministry put the worth of Iran’s exports to India at US$653 million in 2022, while the figure was US$409 million in 2021, IRNA reported.

As reported, petroleum products have been the major goods imported by India from Iran.

According to the mentioned data, the value of trade between Iran and India reached US$2.5 billion in 2022, up 48% from US$1.693 billion in 2021.

During January-December 2022, Indian export to Iran also increased 44% to stand at US$1.847 billion, while the figure was US$1.284 billion in 2021.

Rice was India’s major product exported to Iran during this period, the country shipped US$1.098 billion worth of rice to the Islamic Republic.

In late May 2022, the Iranian ambassador to India said that Iran and India were trying to diversify the channels of payments to expand bilateral trade.

In an exclusive interview with Financial Express Online, Ali Chegeni said, “We are trying to diversify the channels of payments and accordingly wish to extend and expand an already existing mechanism in order to cover all of the goods and services including all of the non-oil goods and to achieve this”.

During the past two years, because of Covid restrictions, we pursue the issue via virtual dialogues and currently, our officials are following the matter through the exchange of delegations, the envoy stated at the time.

“We want to develop our economic and trade relations beyond energy and petrochemical products. because, due to the complementarity of Iran and India's economies, an extensive range of non-oil trade exists between the two sides including trade on goods and services, investment, tourism, education, and … which may pave the way for multiplying our economic relations ten times more than current relations in mid and long terms”, Chegeni said.

Made in Iran exhibition opens in Karachi

The Director General of the mining and trade industry of Sistan and Baluchistan province, southeast of Iran, considers the holding of an exclusive exhibition of Iran in Pakistan as an effective step for synergy between the business communities of the two countries.

The "Made in Iran" Exhibition is the third largest exhibition event, which was organized focusing on Sistan and Baluchistan province and obtaining the license of the Iran Trade Development Organization and the follow-ups of the Iranian Consulate General in Karachi and the remarkable reception of the Pakistani business community on Monday in this port city.

According to Iran Press News Agency, at the opening ceremony of Iran's exclusive exhibition in Karachi, Iraj Hassanpour, the Director-General of the Mining and Trade Industry who is also the secretary of the committee of the Sistan and Baluchistan border trade organization and non-oil export development council, said, "Holding an Iranian exclusive exhibition is considered an effective step for synergy between the business community of Iran and Pakistan."

He added, "The exhibition was held following the recent move by the Islamic Republic of Iran in removing the ban from the list of goods related to the preferential trade agreement between Tehran and Islamabad."

Hassanpour stated, "About 50 companies with more than 60 booths as vast as over a thousand meters from different provinces of Iran in industrial fields and commercial services, including plastic and polymer materials, food industry, steel industry, copper, power plant and construction services, turbine and textile machinery and construction industry are present."

The increase in exhibition events shows the strong determination of the two neighboring countries so that the current trade balance between Iran and Pakistan can increase from about US$1.8 billion to US$5 billion, because the bilateral trade capacity is estimated to be more than US$14 billion per year.

According to this report, trade development organizations of Iran and Pakistan are going to sign a cooperation agreement on the sidelines of Iran's exclusive exhibition in Karachi.

 

Kazakh delegation visits Tehran

A Kazakh delegation visited Tehran to hold talks with the Iranian authorities on February 22, 2022. The delegation, consisted of over 50 members. These included Deputy Ministers of Trade and Integration, Industry and Infrastructural Development, Agriculture, Ecology, Geology and Environment, Chairmen of State Revenue Committee and the Committee of Technical Regulation and Metrology. 

Others included were heads of “KazTrade” State Company, Kazakhstan Institute of Standardization and Metrology, National Accreditation Center, Aktau Sea Port as well as representatives of the Ministry of Foreign Affairs, Office of the General Prosecutor, SK-Pharmacy and others.

Among the delegation were 15 Kazakh exporting companies producing food, milling, meat, edible oil, chemical, metal, IT, telecommunication products and construction materials.

The Deputy Prime Minister together with the Minister of Agriculture of the Islamic Republic of Iran Seyed Javad Sadati Nejad co-chaired the 17th Meeting of the Intergovernmental Kazakhstan-Iran Commission of Trade-Economic, Scientific-Technical and Cultural Cooperation during which a wide spectrum of issues on the bilateral cooperation in the fields of trade, economy, investments, agriculture, health, banking, transportation and logistics including air, road, railway and marine transportation, industry, mining, tourism, culture, energy, customs, standards, accreditation and conformity assessment, education, labor, social security, legal and judicial cooperation, as well as collaboration between Free Zones and Chambers of Commerce were discussed.

The Meeting resulted in signing the final Protocol of the Commission a Protocol between State Revenue Committee of Kazakhstan and the Customs of Iran, a Memorandum of Understanding between “KazTrade” State Company and Iran Trade Promotion Organization as well as three Memorandums between Standardization Organizations.

The Deputy Prime Minister and the Minister of Agriculture of the Islamic Republic of Iran together with the President of Iran Chamber of Commerce opened a Trade Mission of Kazakhstan to Iran and Kazakhstan-Iran Business Forum which were attended by over 200 companies. 

During the Mission and the Forum business contracts amounted to US$14 million including export of Kazakh meat, food products, flour and others were inked.

The Deputy Prime Minister met with the First Vice-President of the Islamic Republic of Iran Mohammad Mokhber to discuss ways of enlargement of trade-economic cooperation between Kazakhstan and Iran. It was agreed to put joint efforts in reaching the trade-turnover of US$3 billion in the recent perspective. Cooperation in the field of SWOP exchange with a wide range of goods especially food products was suggested as the main way of achieving the said target.  

In the framework of the visit the Deputy Minister of Trade and Integration of the Republic of Kazakhstan Kairat Torebayev met with Deputy Minister of Industry, Trade and Mines of the Islamic Republic of Iran – President of Iran Trade Promotion Organization Alireza Peymanpak and discussed the ways for increasing trade turnover and solving existed impediments in the bilateral trade. 

The Deputy Minister of Industry and Infrastructural Development of the Republic of Kazakhstan Ruslan Baimishev had a meeting with Deputy Minister of Industry, Trade and Mines – President of IMIDRO company Vajiholla Jafari and discussed issues related to cooperation with Iranian companies in mining. He also received Iranian companies working in mining and discussed possibilities of investing in Kazakhstan mining.

The Deputy Minister of Ecology, Geology and Environment of Kazakhstan Talgat Momyshev met with the Deputy Minister and Head of Iran Geological Survey and Mineral Explorations Organization Alireza Shahidi during which disc issues of development of cooperation in Geological Science and Technology, Natural and Mineral Resources were discussed. As result of the meeting the side agreed to sign an agreement on exploration of non-ferrous and precious metals.

He also had a meeting with the Head of Iran Forests, Rangelands and Watershed Organization Masood Mansoor during which issues of cooperation in water field. 

The Chairman of State Revenue Committee of the Republic of Kazakhstan Ali Altynbayev met with Head of Iran Customs Administration Alireza Moqaddasi. The main topic of that meeting was intensification of the bilateral cooperation in Customs.

The Chairman of the Committee of Technical Regulation and Metrology of the Republic of Kazakhstan Arman Abenov met with Iranian National Standard Organization Ehsan Sadeh and discussed some matters in the sphere of standards.

The Senior Assistant to the Prosecutor General of the Republic of Kazakhstan Zeinelgabden Kussainov met the Deputy Attorney General of the Islamic Republic of Kazakhstan Dr.Favaedi and the Director General of International Cooperation Office of the Ministry of Justice of the Islamic Republic of Iran Dr. Fallah. The both sides discussed issues in related matters. 

 

Iranian exports to India up 240% during March-June 2021 quarter

According to Iranian Trade Promotion Organization (TPO), the value of country’s exports to India has risen 240% during March-June 2021 quarter, as compared to the same period last year.

Reza Seyed Aqazadeh, the Director General of the TPO’s Asia and Pacific Office, said, “In the first quarter of the current year, India was our fifth largest export market, accounting for about 3.2% of our exports. In terms of imports, India was the sixth largest supplier to the Iranian market, accounting for 2.5% of the Iran’s imports.”

“In the previous year, when the coronavirus outbreak led to the closure of roads and the semi-closure of offices, this situation affected trade between Iran and India and reduced our trade relations; but in the first quarter of this year communication increased dramatically, compared to the first quarter of the past year as the roads were closed”, he added.

Regarding the preferential trade agreement between the two countries, he said, "The most important issue that we are working on within the framework of the TPO’s plans in order to increase and develop trade is the preferential tariff agreement.”

“Many of the goods we export to India have a very good capacity in this country; there is good demand and we can have a good development in increasing exports to India”, the TPO official said, adding, “In general, it can be said that there is an export capacity of more than US$25 billion to India.”

Back in early May, during an online meeting between TPO Head Hamid Zadboum and Indian Ambassador to Tehran Gaddam Dharmendr, the two sides had expressed dissatisfaction with the current levels of trade between the two countries and called for serious measures to be taken for reviving the mutual economic exchanges.

Speaking in the meeting, Zadboum stressed the need to remove barriers to mutual trade and find new ways to develop trade relations between the two countries.

The official noted that the two sides should resume discussion on the preferential trade agreement and exchange the list of commodities that are going to be included in this agreement. He also noted that the necessary measures should be taken to bring back petrochemical, industrial, and steel commodities into the basket of Iranian exports to India.

In this regard, the two sides agreed to work on the raised issues and implement them as soon as possible.

The officials also concluded to make necessary coordination for officials of health, customs and standards organizations of the two countries to meet through video conference in near future to resolve problems and enhance mutual cooperation.

At the end of the meeting, the two sides stressed the two countries' determination to develop and improve economic and trade relations and agreed to discuss and implement the issues through video conferencing, to prepare the condition for face-to-face meetings after the pandemic is over.

India is the only foreign country that is currently participating in a major development project in Iran despite the US sanctions.

The Chabahar Port development project is the anchor for the expansion of economic relations between the two nations.

India is going to install and operate modern loading and unloading equipment including mobile harbor cranes in Shahid Beheshti Port in Chabahar.

The strategic port in southeastern Iran is the only ocean port on the Makran coast and it has a special place in the country's economic affairs.