Saudi Arabia and Iraq are to launch a joint trade commission, the Saudi cabinet announced Monday.
“The cabinet has decided to approve the establishment of the Saudi-Iraqi Coordinating Commission and to delegate the Saudi minister of trade and investments to sign on behalf of the kingdom,” read a statement carried by SPA news agency.
The two countries went a quarter century without diplomatic relations, which were cut following Saddam Hussein’s 1990 invasion of Kuwait after which Saudi Arabia served as the launchpad for a US-led coalition to oust Iraqi forces.
Saudi Arabia and Iraq, are OPEC’s top two producers, showed an improvement in ties in June, when Iraqi Prime Minister Haider al-Abadi visited the kingdom followed by a series of visits by high-ranking officials.
Iraq’s Energy Minister Jabbar al-Luaybi and his Saudi counterpart Khalid al-Falih last Thursday jointly announced they would strengthen their commitment to pledged oil production cuts and vowed to ensure coordination of their nations’ oil policies.
OPEC and non-OPEC members have pledged to cut back on production in an effort to stabilize market prices.