By Anas al-Bar | 2024-09-16

Saudi Arabia and Iraq have deepened their ties in the economic and development arena following their rapprochement in 2015, seeking to establish a foundation of stability in the face of the Iranian regime's disruptive project.

While the Iranian regime seeks to dominate Iraq through its proxy militias and siphon away its wealth, the kingdom supports an economic vision for Iraq as part of a comprehensive effort to revive regional economies, analysts said.

A key pillar of this vision is to transform the region into a logistical hub and to build investment opportunities that serve regional development goals.

A $250 million project to build a massive service facility in the Red Sea port of Jeddah -- the largest investment by the Danish company Maersk in the Middle East -- serves this goal.

The facility will support trade and investment by providing services including storage, sorting and shipping for various goods, thereby enhancing the region's position in the global trade market, according to media reports.

During an August 22 visit to Baghdad, Saudi Foreign Minister Faisal bin Farhan met with Iraqi Prime Minister Mohammed Shia al-Sudani to discuss ways to continue the momentum of bilateral economic development.

Riyadh and Baghdad restored diplomatic relations in 2015, opening a new chapter of cooperation which has included the 2017 launch of the Saudi-Iraqi Coordination Council.

The council has helped to revive the Iraqi economy by supporting investments and the infrastructure and energy sectors.

Thwarted Iranian hegemony

"Iraq's openness to its neighbors is a strategic step toward regaining its true position," political analyst Abdul Qader al-Nayel told Al-Fassel.

"Saudi Arabia has now gained a foothold on the global stage and has real influence, and is serious about supporting Iraq for its importance on the political, economic, social and cultural map."

"But there are some on the Iraqi side -- namely the militias -- who do not want this rapprochement to develop and are working to... stir up sectarianism," al-Nayel warned.

"This aim is supported by Iran because it wants Iraq for itself and does not want it to open up to its neighbors, especially Saudi Arabia," he said.

"Iran is using Iraq to build militias, perpetuate sectarian conflict, support terrorists and facilitate the proliferation of uncontrolled weapons," he said, noting that a Saudi-Iraqi partnership would threaten Iran's dominant position.

"The mission is not easy, but there is work being done and progress being made in achieving Saudi-Arab integration and openness with Iraq," he said.