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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    WHAT IS THE IMPORTANCE OF THE ARAR BORDER CROSSING BETWEEN IRAQ AND SAUDI ARABIA?

    Rocky
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    WHAT IS THE IMPORTANCE OF THE ARAR BORDER CROSSING BETWEEN IRAQ AND SAUDI ARABIA? Empty WHAT IS THE IMPORTANCE OF THE ARAR BORDER CROSSING BETWEEN IRAQ AND SAUDI ARABIA?

    Post by Rocky Mon 21 Nov 2022, 6:07 am

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    WHAT IS THE IMPORTANCE OF THE ARAR BORDER CROSSING BETWEEN IRAQ AND SAUDI ARABIA?
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    [You must be registered and logged in to see this link.]17 minutes ago96


    The opening of the border crossing between Iraq and Saudi Arabia about two years ago constituted an important milestone in the history of political and economic relations between the two countries, amid an atmosphere of optimism about achieving great gains for both sides and ending many years of estrangement.
    And the Border Ports Authority in Iraq announced on November 18, 2020, the official opening of the Arar border crossing with Saudi Arabia for commercial purposes, and later developed to allow the passage of travelers from the citizens of the two countries.

    Business relations

    Economic expert Salah Oraibi al-Obaidi says that the opening of the port after a hiatus of about 30 years contributed greatly to the promotion of trade between the two countries.
    Al-Obaidi indicated that a set of agreements were signed during the era of the former Iraqi government headed by Mustafa Al-Kazemi at the level of the government sector as well as the private one, in addition to the establishment of the Saudi-Iraqi Coordination Council, which sought to remove investment obstacles and provide opportunities for businessmen.
    And Al-Obaidi indicated that the relations between the two parties increased through the exchange of visits at the political level, which contributed to the strengthening of the commercial side, pointing out that this could be observed through the percentage of trade exchange, which increased by about 25%, which indicates a positive development, especially after allowing the pilgrims to go to Saudi Arabia by land through the port of Arar.
    In addition, Al-Obeidi explained that the trade relations between the two countries have expanded to include the exchange of construction, food and other materials, which may prompt the two parties to expand the crossing and develop its vital facilities in the future, especially since it will not be a transit station for the two countries only, but also for regional neighboring countries such as Turkey, which will be able to expand Its commercial exchange with Saudi Arabia and the rest of the Gulf countries through the port.
    The economist estimated that trade exchange through the Arar port would increase by about 50% in the event that the political relations between the two parties remain in their positive form, and some political forces are prevented from disturbing their peace. It will allow the passage of trucks from both sides, especially for the "transit" trade, which will contribute to providing thousands of job opportunities.
    Al-Obeidi estimates that about 60 trucks pass through the crossing daily at the present time, and they are represented in construction materials and food, as the opening of the crossing provided job opportunities for citizens in Anbar Governorate, in the Rutba region.

    trade balance

    The volume of trade exchange between Iraq and Saudi Arabia is estimated at about one billion dollars, of which Iraq’s share amounted to 40 million dollars in 2020, which indicates that the balance of trade is in favor of Saudi Arabia, according to what was confirmed by Ahmed Saddam, a researcher specializing in trade and transportation affairs.
    Saddam attributed the weakness of Iraqi exports to the state of significant production imbalance in the Iraqi economy and dependence on imports from abroad, as it was reported from some sources that this exchange increased by 15% in the years 2021 and 2022, thanks to the recent trade understandings between the two countries, especially after the opening of the Arar port. frontier.
    Regarding the most important commodities that Iraq imports from Saudi Arabia, Saddam indicated that they vary between foodstuffs, representing 60%, in addition to building materials. On the other hand, Iraq exports raw materials such as aluminum scrap, iron scrap and some foodstuffs.
    The researcher in trade and transportation affairs noted that "trade exchange was almost non-existent before the borders were opened, but the reality of the situation indicates that many Saudi commodities, especially foodstuffs, were entering the Iraqi market through Jordan and Kuwait, and this naturally raises the cost of transportation." Especially the goods entering from Jordan.
    For his part, the researcher in strategic international relations, Tariq Muhammad Al-Taei, described the Arar outlet as one of the strategic pillars in the process of providing multiple alternatives to the Iraqi market, and it also enhances the rapprochement between the Iraqi and Saudi peoples.
    Al-Taie said that the crossing could turn into a "Gulf Silk Road", linking the Arab Gulf, Turkey and Europe, with the promising opportunities it represents if it was employed and invested, pointing out that the expansion and development of the crossing depends on the political will in the two countries.
    On the other hand, the deputy in the Iraqi Parliament, Bassem Naghimesh Al-Gharibawi, said that many challenges and obstacles prompted the two countries to postpone the opening of the port, as its infrastructure was not ready, and it did not contain sonar devices and others, which prompted the two countries to agree and cooperate to restore and open it.
    Al-Gharibawi continued by emphasizing that the Iraqi government worked to develop and secure roads and provide electricity for its opening, pointing out that the port is fully operational today, whether for commercial exchange or religious and tourist visits and so on, commenting that "Iraqi-Saudi trade is in continuous development, and the movement of goods is good between the two countries.”

    decades of closure

    Regarding the reasons for closing Iraq's borders with Saudi Arabia for decades, the writer and academic Sabah Al-Nahi said, "The issue of the invasion of Kuwait came to stop the growing relations between Iraq and Saudi Arabia in 1990, as the Arab League led a campaign and decisions condemning the invasion, while the Gulf Cooperation Council countries found themselves forced to sever their relations with Iraq." ".
    He added that negotiations and attempts were made to restore Arab cohesion with Iraq, and to re-strengthen it after the Gulf states - led by Saudi Arabia - realized the extent of Iranian expansion, and the cautious rapprochement that occurred between Iraq and Iran during the period of the international blockade that lasted 13 years.
    Al-Nahi continued, commenting: "Despite the fall of Saddam Hussein's regime and the American invasion of Iraq in 2003, the kingdom distanced itself from the Iraqi file, which is marked by regional interventions and sectarian activity, so it contented itself with careful observation until the American withdrawal from Iraq in 2011."
    He pointed out that Saudi Arabia tried to play a positive role in advocating for the Iraqi people after the American withdrawal, but Iran was taking steps and prevented any Iraqi-Saudi rapprochement for many reasons, foremost of which was the Iranian hegemony over the Iraqi economy, noting that despite all the obstacles that were put in place, The project to normalize political relations between Iraq and the Kingdom has come a long way, and the Kingdom was the most initiative in that path, as he put it.
    Source: Al Jazeera Net
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