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FINANCIAL NEWS
KSA, Iran fail to establish solid business ties
11 May 2016
(MENAFN) Although Saudi Arabia and Iran are both Muslim-majority nations and follow and rule through Islamic scripture, their relations are fraught with hostility, tension and confrontation.
Relations between the two nations plummeted particularly after the Iranian Revolution, the nuclear program, the 2011 alleged Iran assassination plot and more recently the execution of Nimr al-Nimr.
Moreover, the difference of political ideologies and governance has also divided both countries, as the Persian Gulf Islamic Republic is based on the principle of Guardianship of the Islamic Jurists.
Additionally, Saudi Arabia, with its large oil reserves and smaller population, has a greater interest in taking a long-term view of the worldwide oil market and incentive to moderate prices.
In contrast, the Islamic Republic is compelled to focus on high prices in the short term due to its low standard of living given recent sanctions after its decade old war with Saddam’s Iraq.
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