Netanyahu’s New Middle East

Israel is on the verge of creating a peace with Saudi Arabia that could transform the Middle East as long as Iran’s nuclear threat is eliminated, Prime Minister Benjamin Netanyahu told the United Nations on Friday.

“We are at the cusp of a dramatic breakthrough, a historic peace with Saudi Arabia”, Netanyahu said as he stood before a mostly empty plenum during the high-level session that marks the opening of the 78th General Assembly.

“Such a peace will go a long way to ending the Arab-Israeli conflict. It will encourage other Arab states to normalize relations with Israel. It will enhance the prospects of peace with the Palestinians,” Netanyahu said.

On a global scale, he said, “It will encourage a broader reconciliation between Judaism and Islam between Jerusalem and Mecca between the descendants of Isaac and the descendants of Ishmael,” he added.

Netanyahu, long known for his reliance on props at the United Nations held up two maps of Israel and the region so that the audience could better understand the historic transformation that was about to occur. 

The first showed a map from 1948, the year of the creation of the state when it was attacked by all its Arab neighbors which showed how Israel was alone in the region.

“Here's Israel in 1948. It's a tiny country, isolated, surrounded by a hostile Arab world. In our first seventy years, we made peace only with Egypt and Jordan,” Netanyahu said.

Then he held up a modern map that already reflected the change that occurred in 2020 when Israel normalized ties with four of its Arab neighbors under the US-backed Abraham Accords, as well as what could occur if Saudi Arabia joined that circle. He took out a red marker and drew a circle around those countries.

“The whole Middle East changes. We tear down the walls of enmity. We bring the possibility of prosperity and peace to this entire region,” Netanyahu said.

He recalled that he had used the same red marker at the UN plenum when highlighting the danger of a nuclear Iran.

“Today, today I bring this marker to show a great blessing… of a new Middle East, between Israel, Saudi Arabia and our other neighbors. We will not only bring down barriers between Israel and our neighbors.”

Netanyahu addressed his vision of a new peace to an almost empty plenum, while outside activists rallied against his judicial reform program.

It was the end of a week of intense diplomatic activity that marked his first trip to the United States since taking office at the end of December 2022.

He arrived as US efforts were underway to forge a quadrilateral deal that would center on an agreement between Washington and Riyadh that would include a normalization deal between that Kingdom and Israel. In exchange, Israel would be expected to make concessions to the Palestinians.

Bloomberg has also reported that the US is considering a security pact with Israel as part of the deal. 

The Saudi deal has been a major focus of Netanyahu’s trip, including his conversation on Wednesday with US President Joe Biden.   

In an interview with Fox News, Saudi Crown Prince Mohammed bin Salman said that his country and Israel were closer than ever to a deal and that the engagement on the matter was serious.

In his UN address, Netanyahu said “I believe we can achieve peace with Saudi Arabia with the leadership of President Biden.”

He added, “Working together with the leadership of Crown Prince Muhammed Bin Salman, we can shape a future of great blessings for all our peoples.”  

Netanyahu’s belief that the normalization of Israeli-Arab ties should occur as the first step toward a resolution of the Israeli-Palestinian conflict has long stood at odds with the internationally accepted understanding that a two-state solution must be a pre-requisite to regional relations.

“For years, my approach to peace was rejected by the so-called experts,” Netanyahu said, adding that, “Well, they were wrong.”

“Under their approach, we didn’t forge a single peace treaty for a quarter century” until the 2020 Abraham Accords, Netanyahu said.

Prior to those accords, peacemaking efforts were based on the false premise that unless we first concluded a peace agreement with the Palestinians, no other Arab state would normalize its relations with Israel, Netanyahu explained.

“I’ve long sought to make peace with the Palestinians. But I also believe that we must not give the Palestinians a veto over new peace treaties with Arab states. The Palestinians could greatly benefit from a broader peace. They should be part of the process, but they should not have a veto over the process,” Netanyahu stated.

“When the Palestinians see that most of the Arab world has reconciled itself to the Jewish state, they too will be more likely to abandon the fantasy of destroying Israel and finally embrace a path of genuine peace with it,” Netanyahu said. 

“A new Palestinian-Israeli relationship, however, cannot be based on lies and on the endless vilification of the Jewish people,” Netanyahu said.

He pointed specifically to statements Palestinian Authority President Mahmoud Abbas made in August in which he said that Hitler killed the Jews during World War II because of their history with money lending and not because of anti-Semitism.

“Palestinian leader Mahmoud Abbas must stop spreading the horrible anti-Semitic conspiracies against the Jewish people and the Jewish state. He recently said that Hitler wasn’t an anti-Semite. You can't make this up. But he did. He said that.”

Netanyahu also took issue with the Palestinian Authority’s policy of providing monthly financial stipends to terrorists with blood on their hands as well as to their family members.  

“The Palestinian Authority must stop glorifying terrorists. They must stop its ghoulish pay-to-slay policy of giving money to Palestinian terrorists for the murder of Jews. This is all outrageous,” Netanyahu said.

“For peace to prevail the Palestinians must stop spewing Jew-hatred and finally reconciliation themselves to the Jewish state. 

“By that I mean not only to the existence of the Jewish state but to the right of the Jewish people to have a state of their own in their historic homeland, the Land of Israel,” Netanyahu added. 

In addition to anti-Semitism, Iran’s pursuit of nuclear weapons and its support of global terrorism is the fly in the ointment when it comes to regional peace, Netanyahu said.

“Rest assured, the fanatics ruling Iran will do everything they can to thwart this historic peace,” Netanyahu stated.

At home Iran has killed and arrested thousands of its own citizens and abroad it has used armed drones and its missile program to threaten its neighbors and has provided weapons to Russia for use against Ukraine, Netanyahu explained.   

“Yet the regime’s aggression is largely met by indifference in the international community,” Netanyahu emphasized.

The international community must do more to support the brave women and men of Iran who despise this regime and yearn for freedom, who've gone out bravely on the sidewalks of Tehran and Iran's other cities and face death,” Netanyahu said.

In light of Iran’s enrichment of uranium, he called for the international community to reimpose crippling sanctions against Iran as promised under the terms of the largely defunct 2015 Iran deal. 

“Eight years ago, the Western powers promised that if Iran violated the nuclear deal, the sanctions would be snapped back,” Netanyahu stated.

“Well, Iran is violating the deal. But the sanctions have not been snapped back,” he explained, adding,“To stop its nuclear ambitions, this policy must change.”

“Sanctions must be snapped back and above all, Iran must face a credible military threat,” Netanyahu said.

He pledged that “As long as I am prime minister of Israel, I will do everything in my power to prevent Iran from getting nuclear weapons.”

Saudi Arabia celebrates 93 years of progress and unity

Today, Saturday September 23, 2023, marks the 93rd National Day of Saudi Arabia, a day of pride and celebration for both its citizens and residents. Under the visionary leadership that prioritizes the well-being and prosperity of the people, this joyous occasion reflects upon the nation's remarkable journey toward a promising future.

The Saudi Press Agency (SPA) takes the world on a reflective journey through the life of a true statesman, King Abdulaziz bin Abdulrahman Al-Faisal Al Saud. On September 23, 1932, he achieved the monumental task of unifying the disparate tribes and scattered regions of the Arabian Peninsula, establishing the Kingdom of Saudi Arabia. This Islamic state, with Riyadh as its capital, adopted the Holy Qur'an and the Prophet's Sunnah as its constitution.

King Abdulaziz's remarkable journey began in Riyadh in 1293 Hijri. At the tender age of seven, he began learning to read and write, and at ten, his father, Imam Abdulrahman Al-Faisal, gathered scholars and tutors to instill in him the fundamentals of Islam and equestrian skills. His upbringing was greatly influenced by his courageous father and wise mother, Princess Sarah Al-Sudairi. King Abdulaziz shared a close bond with his siblings, including his sister, Princess Noura.

Throughout his life, King Abdulaziz encountered numerous challenges that shaped his character and instilled in him qualities of patience, strength, and statesmanship. One of the most trying moments was his forced departure from Riyadh in 1308 Hijri when he and his family settled in various locations, including the Yabrin oasis, Bahrain, and Kuwait. Despite these hardships, his determination to reclaim Riyadh, a city with deep historical significance for his family, remained unwavering.

In his twenties, King Abdulaziz embarked on a journey back to Riyadh, leading an army. His arrival in Al-Shaqib district marked the beginning of a pivotal chapter. Following a brief but intense battle, he restored order, ushering in a period of political stability that laid the foundation for Riyadh's growth and prosperity.

In 1320 Hijri, the people and notables of Riyadh pledged allegiance to him as Emir of Najd and Imam of its people. This victory brought much-needed stability after years of turmoil, setting the stage for Riyadh's transformation.

King Abdulaziz's tireless efforts to unite the nation, restore security, and combat the chaos of the Arabian Peninsula culminated in him becoming the revered leader of a newly constructed nation, securing a respected place for it on the world stage.

On September 23, 1932, King Abdulaziz issued a royal decree, renaming the state from the Kingdom of Hejaz and Najd and its annexes as the Kingdom of Saudi Arabia.

With the nation-building process well underway, King Abdulaziz turned his attention to expanding the Two Holy Mosques to serve pilgrims and establishing schools, hospitals, villages, and irrigation systems to support agriculture. These ambitious endeavors required substantial funding.

In the fall of 1933, oil exploration efforts began, initially yielding no results. However, persistence paid off when oil was discovered 5,000 feet underground in the "Ain Jet" area in 1939. This discovery marked a turning point, opening the doors to major state projects.

King Abdulaziz's interest extended beyond domestic affairs; he maintained diplomatic relations with countries worldwide, prioritizing the Kingdom's independence, while fostering relations irrespective of religious, cultural, or civilizational differences. His approach garnered admiration from world leaders and media alike.

In Muharram 1373 Hijri, King Abdulaziz fell seriously ill in Taif, and he passed away on November 9, 1953. He was laid to rest in Al-Oud Cemetery, Riyadh.

As he built his nation, King Abdulaziz's commitment to education was unwavering. He avidly read Arabic books on various sciences, printing and distributing them freely. He sought the counsel of his citizens, guided by Islamic principles, fostering cooperation between the ruler and the governed.

King Abdulaziz's righteous approach, continued by his sons, laid the groundwork for the Kingdom's remarkable development, characterized by collaboration between the leadership and the people.

In a historic gathering on Muharram 25, 1355 Hijri, King Abdulaziz emphasized his desire for close ties with the people, stating, "My door is always open to anyone who wants to talk."

Under his leadership, Saudi Arabia forged strong relationships with Arab and Muslim nations and engaged the international community with transparency and pragmatism.

King Abdulaziz's legacy was the culmination of a rich history. The First Saudi State, founded by Imam Mohammed bin Saud in 1139 Hijri, laid the foundation for the nation's development. The Second Saudi State, initiated by Turki bin Abdullah bin Mohammed bin Saud, continued this legacy for approximately 68 years.

However, the true turning point came on the fifth day of Shawwal, 1319 Hijri, when King Abdulaziz reclaimed Riyadh with valor, establishing a state grounded in the principles of the Holy Qur'an and Prophet Mohammad's Sunnah.

Subsequent leaders, including King Saud, King Faisal, King Khalid, King Fahd, and King Abdullah, each contributed to the nation's progress and development, with a focus on education, healthcare, industry, and economic growth.

Today, under the wise leadership of Custodian of the Two Holy Mosques King Salman, Saudi Arabia continues its journey of growth, development, and global influence. The Kingdom boasts a strong economy that ranks among the world's top 20.

As Saudis celebrate the National Day, it is a reflection on the nation's remarkable accomplishments, secure in the knowledge that its legacy of progress and unity will continue to thrive under the leadership of King Salman. Saudi Arabia stands as a testament to what can be achieved with vision, determination, and the unwavering commitment to the welfare of its people.

Fallout from Canada-India clash

Canada-India relations are reeling from the announcement that Canadian security agencies had uncovered evidence linking the Indian government to the assassination of an Indian-born Canadian citizen in British Columbia earlier this year. Canada Institute Associate Xavier Delgado outlines what's at stake for both countries and their allies in the Indo-Pacific.

Prime Minister Justin Trudeau announced that Canadian security agencies have obtained credible evidence linking the Indian government to the unsolved murder of Hardeep Singh Nijjar, a Canadian citizen and notable advocate for Sikh separatism. 

Nijjar was shot by two masked assailants outside a Sikh temple in British Columbia earlier this year in an attack that Canada alleges has since been connected to agents of India.

The Indian foreign ministry decried the allegations as absurd and, in the aftermath of the announcement, exchanged tit-for-tat expulsions of senior diplomats from Ottawa and New Delhi.

The dispute has shined a sudden spotlight on the Canada-India relationship, which, prior to the Nijjar incident, had been trending in a positive direction. Geopolitical developments, economic ties, and demographic trends over the past ten years had set the stage for closer cooperation between the two former British colonies. India’s prominence in Canada’s 2022 Indo-Pacific Strategy and high-level negotiations between the two states for an early progress trade agreement (EPTA) gave supporters of the relationship plenty of reasons to be optimistic.

Now, the allegations that the Indian government orchestrated the assassination of a Canadian citizen on Canadian soil have cast a cloud of doubt over the path ahead for the bilateral relationship.

Trade will likely be the first major casualty of the fallout, with negotiations for the EPTA being put on hold. Both countries declared that they would pause trade talks with each other earlier this month and Canadian Trade Minister Mary Ng has indefinitely postponed a trade mission to New Delhi that had been planned for October. The negotiations were a notable part of Canada’s Indo-Pacific Strategy, which listed the EPTA as a critical step towards a larger comprehensive economic partnership agreement (CEPA) that would bolster trade ties between the two countries.

The stalled trade talks have put a US$17 billion bilateral trade relationship under strain. Canadian merchandise trade with India grew from approximately US$3.87 billion in 2012 to US$10.18 billion in 2022, with major increases in the export of Canadian energy products and import of Indian consumer goods. In that same year, services trade between the two countries measured US$6.96 billion. 

A reduction in the flow of Indian immigrants, which constitute almost one in five of all recent immigrants to Canada, could be even more devastating than a deterioration of trade relations.

Canada recently reached the 40-million-population milestone off an influx in inbound migration following the COVID-19 pandemic. In fact, Canada’s population growth, which is the fastest in the G7, is mainly driven by migration ‑ four in five new Canadians from 2016 to 2021 were immigrants. 

Indian immigration to Canada has tripled since 2013, overtaking and pulling away from the Philippines and China as the top source country for new Canadians in the 2021 census.

That census also counted 1.3 million ethnic Indians living in Canada, over 1 million of whom resided in British Columbia or Ontario. 77% of that group – 771,790 people – follow Sikhism, making Canada’s Sikh population the largest in the world outside of India. 

India also tops a notable subcategory of immigration ‑ international students, 34% of international students in Canada from 2015 to 2019 came from India, providing a critical source of revenue for Canadian academic institutions; by 2022, that share had grown to 40%. These numbers directly translate to the labor force, with Indian graduates from Canadian programs accounting for the largest share of post-graduate work permit holders in 2018 over China (20%) and the United States (1%).

Beyond the bounds of Canada-India relations, the dispute between the two countries may throw a wrench in the emerging Indo-Pacific framework of institutions and alliances.

India, with its economic might and security capabilities, has been hailed by the United States and democratic allies as a regional counterweight to China. Washington included India as a founding member of the Indo-Pacific Economic Framework (IPEF) and the freshly-anointed I2U2 bloc with Israel and the United Arab Emirates.

Both countries are also founding members of the Quadrilateral Security Dialogue (QSD or Quad), a strategic security dialogue that includes Japan and Australia.

Canada, for its part, was not invited to join the Quad or IPEF at the conception of either group, nor was it included alongside Five Eyes allies Australia and the United Kingdom in the AUKUS security pact. After inviting Canada to join the Trans-Pacific Partnership during the Obama administration, the United States opted to not join the agreement, leaving both countries without a shared major economic or security institution in the Indo-Pacific. 

A chilling of relations with India could hinder Canada’s ability to join the network of Indo-Pacific institutions, both because regional allies will be wary of angering the Modi government and because India itself could block Canadian membership in certain groups.

Ottawa is clearly aware of India’s influence and power in the region. The Canadian Indo-Pacific strategy, published in late 2022, has an entire section dedicated to India that reads, “India’s strategic importance and leadership – both across the region and globally – will only increase as India – the world’s biggest democracy – becomes the most populous country in the world and continues to grow its economy.”

Canada is not the only party that stands to lose from this dispute. The allegations can damage India’s public image as a democratic nation committed to a rules-based order or, more critically, its perception as a trustworthy ally in the competition against China. Canada’s Five Eyes partners could reevaluate intelligence sharing and law enforcement cooperation with India if Canadian officials uncover definitive proof of India’s involvement in Nijjar’s murder. 

Disputes between allies are common and, in the diverse roster of countries that constitute the emerging Indo-Pacific architecture, should be expected. Governments disagree frequently over trade policies, environmental practices, and other issues that don’t pose a threat to their diplomatic relationships.

The Canada-India dispute is unique in that the severity of the allegations, the economic and demographic ties between the two countries, and the geopolitical context in which the situation unfolded have raised the stakes for all parties, including the United States.

To prevent spillover damage to the nascent Indo-Pacific alliances, Washington will need to approach the situation carefully. Beijing benefits the most from in-fighting between major US allies, but regardless of how the coming weeks play out, both Canada and India will still have poor relations with China and good relations with the United States. One reason for this is the values that all three countries nominally share. US leaders should remember this and remind Ottawa and New Delhi that the path forward must be paved by justice and a commitment to due process to deviate from those values would be to bring relations between all three countries into uncharted and volatile territory.

 

Pakistan Stock Exchange benchmark index posts 1.46%WoW increase

Pakistan Stock Exchange (PSX) posted somewhat lackluster movement during the week ended on September 22, 2023. It could be attributed to Monetary Policy announcement scheduled in the middle of the week, amidst dual fuel price hikes during the month. However, the decision of the central bank to keep the rates unchanged was a pleasant surprise.

On the external front, country’s foreign exchange reserves remained relatively flat, ending at US$7.69 billion as compared to US$7.64 billion a week ago. Additionally, the domestic currency continued to strengthen against the greenback.

Globally crude oil prices remained on upward trajectory, with Brent ending the week at US$94.03/bbl. This was largely driven by persistent supply cuts by major producers, namely Russia and Saudi Arabia. China’s economic recovery, provided further impetus.

Average daily trading volumes declined by 13.4%WoW, to 139 million shares, from 160 million shares traded during the earlier week.

The benchmark Index gained 6674 points posting a 1.46% increase in the index.

Other major news flows during the week included: 1) Caretaker setup increased prices of petroleum products, 2) foreign office termed report on Pakistani arms sale to Ukraine to secure IMF bailout ‘Baseless and fabricated’, 3) IMF expressed concerns over diesel smuggling from Iran and advised finance ministry to submit detailed report, 4) T-Bill yields tumbled despite the central bank mopping PKR2.4 trillion in the latest auction, and 5) GST evasion through flying invoices estimated around PKR6 trillion.

Transport, Leasing Companies and Close ended Mutual Funds were amongst the top performers, while Vanaspati and allied industries, Insurance and Automobiles were amongst the worst performers.

Major selling was recorded by Insurance (net sell US$1.3 million) and Brokers (net sell US$1.1 million).

Individuals and Other organizations absorbed most of the selling with a net buy of US$2.3 million and US$1.1 million respectively.

Top performing scrips of the week were: PGLC, LOTCHEM, UNITY, SCBPL, and GADT, while top laggards included: MUREB, UPFL, ATHL, PIOC, and MUGHAL.

 

Market is expected to be post gains in the coming week, driven by CPI readings alongside further clarity on IMF's upcoming review.

However, in the near term, appreciating PKR alongside expectations of higher remittances during September 2023 are expected to keep investors optimistic.

Overall, analysts continue to advise a cautious approach while building positions, with investments only focused on dollar-driven and high dividend-yielding companies.

 

 

Colors promoting UN goals or LGBTQ rights

Turkish President Tayyip Erdogan said that he was uncomfortable with the use of LGBT colors at the United Nations, decorated with bright colors promoting the Sustainable Development Goals.

Erdogan said he would have liked to discuss it with UN Secretary General Antonio Guterres, Turkish media reported on Thursday. Turkish government - led by Erdogan and his Islamist-rooted AK Party - has toughened its stance on LGBTQ freedoms.

"One of the issues that bothers me the most ... is that when entering the United Nations General Assembly, you see the LGBT colors on steps and other places," Erdogan was quoted as saying by broadcaster Haberturk and others.

"How many LGBT are there in the world right now? However much right they have on these steps, those against LGBT have as much right as well," said Erdogan, who has frequently labeled members of the LGBTQ community as "deviants" and particularly toughened his rhetoric during his election campaign this year.

However, some UN diplomats suggested Erdogan might have confused the 17 different colors associated with the Sustainable Development Goals - and decorating parts of UN headquarters, including steps, for a summit that was held earlier this week - with the rainbow Pride colors associated with LGBTQ rights.

While Guterres has been a vocal supporter of LGBTQ rights and spoken out about discrimination, there are no rainbow Pride colors at UN headquarters promoting LGBTQ rights.

The 17 Sustainable Development Goals, adopted by world leaders in 2015 with a deadline of 2030, are a global "to do" list that includes wiping out hunger, extreme poverty, battling climate change and inequality, and promoting gender equality.

 

Profile of prisoners swapped by Iran and United States

I am sure many of the readers of my blogs would be keen in reading the profiles of prisoners exchanged between Iran and United Stations. The real point to ponder is that the United States has used funds which it never owned.

On September 18, Iran released five US citizens as part of a prisoner swap. The four men and one woman had been imprisoned. One had been held since 2015. In return, the Biden administration released five Iranian men imprisoned in the United States, including two who had been held since 2019.

The United States also issued a waiver so South Korea could transfer US$6 billion of frozen Iranian oil revenues to Qatar, which will oversee limited Iranian purchases of humanitarian goods, including medical, education and agricultural goods. 

Four of the Iranians had allegedly violated US sanctions, and another had acted as an unregistered foreign agent of the Islamic Republic. Only two of the Iranians were going to return to Iran. “One of them, as he has family in another country, will be moved to join them in that third country, and apparently two of our citizens imprisoned in the US have said they wish to remain there due to their history of staying there,” foreign ministry spokesperson Nasser Kanani said.

The following are profiles of the prisoners.

US citizens released by Iran

Three of the five US citizens released by Iran are Siamak Namazi, Morad Tahbaz and Emad Shargi, no details are available for the two prisoners.

Siamak Namazi, a Dubai-based businessman was arrested during a trip to Iran in October 2015. In October 2016, he was sentenced to 10 years imprisonment for collaborating with an enemy state. Namazi had primarily worked for consultancies focused on energy before his detention. In 2005, he was a public policy scholar at the Woodrow Wilson International Center for Scholars. He also did a stint at the National Endowment for Democracy in 2006. Baquer Namazi, Siamak’s father, traveled to Iran to secure his son’s release but was also sentenced to 10 years for espionage in 2016. In October 2022, Iran released the elder Namazi so that he could seek medical treatment abroad.

Emad Shargi also a businessman was detained in April 2018, while working for a venture capital fund involved in technology. After being interrogated and held in solitary confinement, he was released on bail in December 2018. A year later, he was cleared of all spying and national security charges. But his passport was withheld, and he was not permitted to leave Iran. In November 2020, Shargi was summoned to court and convicted of espionage without a trial. He was sentenced to 10 years in prison.

Morad Tahbaz and eight other environmental activists were detained In January 2018. In November 2019, Tahbaz was sentenced to 10 years in prison for espionage. Tahbaz and his colleagues had been using cameras to track endangered Asiatic cheetahs and were accused of using that work as a cover for collecting “classified information.”

Iranian citizens released by the United States

Mehrdad Moein Ansari, an Iranian citizen and resident of the United Arab Emirates and Germany was arrested in 2019, for plotting to secure dual-use materials with potential military and nuclear applications for the Islamic Republic. In September 2021, he was sentenced to more than five years in prison. 

Kambiz Attar Kashani, a US-Iranian citizen was arrested in January 2022, for conspiring to export goods and technology to the Central Bank of Iran. He had used two front companies based in the United Arab Emirates to procure equipment and software for Iran. In February 2023, he was sentenced to 30 months in prison. 

Reza Sarhangpour Kafrani, an Iranian and resident of Canada was arrested for sending laboratory materials to the Islamic Republic. He had shipped the equipment—controlled for nuclear nonproliferation purposes—to Iran through Canada and the United Arab Emirates. He was indicted in July 2021 with 10 crimes, some of which carried maximum prison sentences of 20 years. 

Amin Hasanzadeh, an Iranian and permanent US resident was arrested in November 2019 on charges of fraud and interstate transportation of stolen property. Federal prosecutors accused Hasanzadeh of stealing sensitive technical data from his employer and sending it to his brother, who is connected to the Iranian military. He was indicted in December 2020. 

Kaveh Afrasiabi, the US-based Iranian was arrested in January 2021, for failing to report his status as a foreign agent in the United States. He had lobbied the State Department and a congressman for policies favorable to Iran while on the payroll of Iran’s UN mission since around 2007. His alleged crimes carried a maximum of 10 years in prison. 

 

Iranian trade center starts activity in Jeddah

The Director of Commercial Attachés Office of Iranian Trade Promotion Organization (TPO) announced that license was issued to establish a trade center in Saudi Arabia, and the center started its activity in Jeddah.

Mohammad Rajab-Nejad announced, “We currently have 46 active trade centers in other countries, and licenses have been issued for the establishment of trade centers in Kirgizstan, Malaysia, and Indonesia.”

During a meeting between Iranian Finance and Economic Affairs Minister Ehsan Khandouzi and Saudi Finance Minister Mohammed Al-Jadaan, in mid-May, the two sides discussed the ways to expand economic cooperation and remove the barriers in the way of trade between the two countries.

In the meeting, which was held on the sidelines of the annual meeting of the Board of Executive Directors of the Islamic Development Bank (IsDB) in Jeddah, the Saudi Arabian minister expressed satisfaction with the re-establishment of relations between Iran and Saudi Arabia and said, “We hope that quick steps will be taken in relations with Iran.”

“In this regard, it is necessary to remove the economic and trade barriers against the two countries”, he stressed.

The Iranian minister welcomed the progress of economic relations between the two countries and stated that the development of relations is important not only for Iran and Saudi Arabia but also for all countries in the region.

Stating that it is the duty of governments to facilitate economic ties, Khandouzi said these bilateral relations are very important not only from an economic point of view but also in the political and security fields.

Explaining Iran's program in the field of economic relations with Saudi Arabia, Khandouzi said, “At the government level, Iran and Saudi Arabia have not finalized any basic agreement in the field of investment, customs, and trade. In this regard, it is necessary to draw up and sign MoUs between the parties.”

The Saudi Arabian side, while agreeing to cooperate in the three fields of customs, trade, and investment, expressed hope that with the assistance of his country’s ministries, cooperation in the mentioned fields will be followed up.

Also, in an interview with the French newspaper Le Figaro published in late May, the Iranian foreign minister said the reconciliation between Iran and Saudi Arabia is more than just a tactical agreement, and both nations have decided to advance their economic and commercial ties.

Hossein Amir Abdollahian also mentioned that the Saudi government has prioritized investment in Iran.

“I talked about economic issues during my recent meeting with my Saudi counterpart,” the top diplomat said, adding, “We both agreed to develop our economic and commercial relations in the months and years to come.”

He continued by saying that the Saudi government now prioritizes the completion of economic initiatives.

In early July, the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) held a seminar titled "Economic cooperation between Iran and Saudi Arabia; Private sector perspective".

With the strong presence of the TCCIMA members and representatives of the private sector, the seminar was held at the place of TCCIMA, where the speakers pointed to the capacities, challenges and future of Iran-Saudi Arabia relations and emphasized that the private sector can help advance political relations between the two countries and further cooperation in international forums by developing economic relations.

At the beginning of this seminar, Ferial Mostofi, the head of the Investment Services Center of TCCIMA, referred to the agreement between the political authorities of Iran and Saudi Arabia to restore relations and said, “In its economic diplomacy, Saudi Arabia smartly focuses on connecting to global value chains, paying attention to domestic and foreign investment; and developing trade, and economic cooperation with Saudi Arabia can be viewed from these three perspectives.”

Saudi Arabia is also taking steps to strengthen international trade by simplifying customs procedures, low import tariffs, and introducing new instruments to promote exports to open new markets for the products and services of Saudi companies, she added.

In Iran, especially in the private sector, there are many capabilities and experiences in the field of downstream oil and gas industries, mining and mineral industries, health, construction, technical and engineering services, chemical industries, construction and light industries, food and agriculture industries, etc. Many of these capabilities have been the result of the private sector’s efforts. In this regard, the Chamber of Commerce can be a window of effective communication between the private sectors of the two countries and thus help to expand the relations between the two countries, Mostofi stated.

Addressing the same seminar, Bahman Eshqi, the secretary-general of TCCIMA, referred to the high capacities of Iran and Saudi Arabia as two large and influential countries in West Asia, and said that the private sectors should play a role instead of governments in the development of economic relations between the two countries.