Page 26 - IRANRptNov21

5.1.2 Import/export dynamics
Iran resumes exports to Saudi Arabia amid attempts to restore ties
Iran has in the past couple of months resumed exports to Saudi Arabia amid ongoing discussions between Tehran and Riyadh on reducing tensions in the Persian Gulf region and re-establishing diplomatic relations, IRNA reported on October 18.
“[Export volume] is currently low and insufficient, but it constitutes a positive indication and the beginning of the resumption of ties,” said Latifi, Islamic Republic of Iran Customs Administration (IRICA) spokesman Ruhollah Latifi was quoted as saying.
Bilateral trade reached zero in the last Persian calendar year (ended March 20), a point to which it gradually fell as tensions mounted between Tehran and Riyadh during the US presidency of Donald Trump, with the Saudis firmly backing Trump’s sanctions-led campaign against Iran.
During the years of declining then barren trade relations, Iranian exports made their way on to the Saudi market via third countries, while Saudi goods arrived in Iran on the same routes in reverse. The United Arab Emirates (UAE) has historically offered port facilities for onwards trade flowing to and from Iran. However, due to the breakdown of relations between Tehran and Abu Dhabi that occurred following Gulf Arab states’ blockading of Qatar in 2018, other routes emerged. Oman became a choice destination for Iran-bound re-exports. IRICA’S Latifi also said that in the first half of the current Persian calendar year (March 21-September 22) Iran’s non-oil trade stood at 79.1mn tonnes worth $45bn. Exports topped 60 million tonnes worth $21.8bn.
26 IRAN Country Report November 2021 www.intellinews.com