TEHRAN(Bazaar) – Professor Hossein Askari, who teaches international business at the George Washington University, says in the longer run, there could be cooperation between Tehran and Riyadh in exporting natural gas from Iran.
He adds: “The two countries must climb many steps before they have cooperative relations.”
Following is the text of the Bazaar interview with Professor Hossein Askari.
Bazaar: According to the news, the negotiations between Iran and Saudi Arabia have reached good results, and there is a possibility that the foreign ministries of the two countries will meet in a few days. What is your assessment?
Askari: I hope that they do finalize an agreement, but please remember that this would be a first step. A confidence building measure. The two countries must climb many steps before they have cooperative relations. I recall that the Saudis proposed cooperation on oil policies to me when I was asked to mediate between them an Iran but then did not follow through. We will just have to see what follows and if they can follow through.
Bazaar: Why was Saudi Arabia willing to resort to diplomacy with Iran in the current situation, regardless of the outcome of Iran's nuclear talks?
Askari: Saudi Arabia no longer feels safe. Yemen is a threat to Saudi Arabia. MBS does not respect traditional norms. He has strained his relations with the United States and some of Europe. Iran is much more powerful if Saudi Arabia does not have the unconditional U.S. umbrella. Iran also enjoys cooperation with Iraq. So Saudi Arabia and the entire PGCC feel that they have to restore better relations with Iran.
Bazaar: What capacities do the two countries have for economic and trade cooperation?
Askari: Very Little. They have little need to trade oil or oil products. And Saudi consumers want to highest quality manufactured goods than what Iran could provide-- from Europe, U.S., japan and China. I think that this leaves only agricultural exports from Iran and some bulk chemicals from Saudi Arabia to Iran. In the longer run, there could be cooperation in exporting natural gas from Iran. Saudi Arabia is oil rich but somewhat gas poor.
Bazaar: Iran has disputes with Saudi Arabia and Kuwait over the Arash/al-Dorra Gas Field. It was recently announced that Kuwait and Saudi Arabia were seeking to explore and exploit without the presence of Iran, which was opposed by Tehran. Given the relative improvement of Tehran-Riyadh relations, will this problem be resolved?
Askari: This is an issue. It is a step that they could agree on. If the two countries had better relations, they could find very interesting ways to cooperate to a much wider degree when it comes to gas. I won’t elaborate on this now as it is premature.
Bazaar: Why did Saudi Arabia turn to the extraction and exploitation of gas from Arash/al-Dorra Gas Field?
Askari: Saudi Arabia is gas poor. It needs more gas.
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