Will reopening of border crossing drive Saudi investment in Iraq?
Iraq and Saudi Arabia are opening the Arar border crossing, a move that should boost Saudi investment in Iraq.
The recent reopening of the Iraqi border crossing of Arar with Saudi Arabia in a bid to enhance trade exchange between the two countries coincided with talks about the Saudi agricultural investment project in Iraq.
However, the border's reopening for the first time in 30 years Nov. 18 also coincided with political pressures from influential forces pushing against any openness in relations with Saudi Arabia. “Some are promoting the lie of Saudi colonialism,” Iraqi Prime Minister Mustafa al-Kadhimi said that day, describing this as “shameful.”
Positive economic returns from the Arar crossing could break the Iraqi reluctance to resuscitate relations with Saudi Arabia. Arar is currently the only crossing along the common border of more than 830 kilometers (515 miles).
“Trade movement through the Arar crossing is likely to face attacks that would impede trade and end any Saudi-Iraqi economic cooperation in the future,” an Iraqi security source told Al-Monitor, on condition of anonymity. “Shiite forces fear Saudi influence in central and southern Iraq. They will not allow it.”
