Saudi Economic Delegation Visits Iraq; Riyadh Provides One Billion Dollar Aid to Baghdad

As a high-level Saudi economic delegation arrived in Iraq on Wednesday, April 3, it was announced that Riyadh would provide one billion dollars in aid to Baghdad. According to Reuters, Iraqi state television reported that this aid is intended for the establishment of a sports city in Iraq. The Saudi economic delegation's visit to Iraq will last two days. Reuters states that Saudi Arabia is attempting to counter the expanding influence of the Islamic Republic of Iran in Iraq through investment. In return, Iraq seeks economic benefits from its close relations with Saudi Arabia. This Saudi economic delegation is visiting Baghdad to hold the second meeting of the Iraq-Saudi Coordination Council, with Majid bin Abdullah Al-Qasabi, the Minister of Commerce and Investment, among its members. The first meeting of the Coordination Council was held in 2017. Saudi Arabia reopened its embassy in Baghdad in 2015 after a 25-year break in relations with Iraq. Majid bin Abdullah Al-Qasabi stated that Saudi Arabia will reopen its consulate in Baghdad on Thursday to issue visas for Iraqi citizens and will establish three more consulates in Iraq. The Saudi Minister of Commerce and Investment added that 13 agreements between the two countries are ready for signing, and the Arar border crossing will be completed within six months. Currently, Iraq imports about 30% of its electricity needs from Iran, and with the return of U.S. sanctions against Iran, Baghdad faces challenges in continuing to purchase electricity from Iran and obtaining exemptions from Washington. Meanwhile, last year, a spokesperson for the Iraqi Ministry of Electricity confirmed that Saudi Arabia had agreed to establish a solar power plant with a capacity of 3,000 megawatts (three times the capacity of the Bushehr nuclear power plant) within a year in Saudi Arabia, offering each megawatt-hour of electricity sold to Iraq at $21, which is one-fourth of the price of electricity exported from Iran to its western neighbor. Iraq currently faces a 5,000-megawatt electricity shortage, and although several power plants are under construction, the country's electricity demand increases by 7% annually.