China brokered an agreement -- signed on March 10, 2023 at Beijing -- between Iran and Saudi Arabia. through which both Middle Eastern countries will resume diplomat

China brokered an agreement -- signed on 

 at Beijing -- between Iran and Saudi Arabia. through which both Middle Eastern countries will resume diplomatic ties, and re-open embassies in each other’s countries.

In a joint statement issued after the agreement, both countries 

 their "respect for the sovereignty of states" and "non-interference in internal affairs of states”.

In 2016, both countries had severed diplomatic ties. Riyadh had severed ties with Tehran after Iranian protesters attacked Saudi diplomatic missions in Iran in 2016 following the Saudi 

execution of the Shia cleric Nimr al-Nimr

Reasons for strains between Saudi Arabia and Iran in recent years 

Over the past few years, Saudi Arabia and Iran have had differences on a myriad of geopolitical issues.

First, both sides are engaged in a proxy war in 

. Iran has been supporting the Houthi rebels, while Saudi Arabia is supporting the government which has international backing. The conflict in Yemen has been dubbed as the ‘

 percent of the country’s population struggles to find access to food and basic amenities.

Second, in Syria the Bashar Al Assad government has received the support of Iran and Russia, while 

 taking on the Bashar Al Assad government have received support from Saudi Arabia.

Third, for very long Saudi Arabia has been opposing a renewal of the Joint Comprehensive Plan of Action JCPOA 2015/Iran nuclear deal. In recent years however, Riyadh has not opposed a return to the 

 per se but said that any agreement must address concerns of Iran’s neighbouring countries.

Saudi Arabia and Iran have been engaged in talks since 

. While a lot of analysts have been surprised by China’s role in brokering the agreement, it would be pertinent to point out that 

 have been warming up in recent years, after the former’s ties with US have witnessed strains.

Days before the signing of the Iran-Saudi Arabia agreement, Saudi Foreign Minister, Prince Faisal bin Farhan al-Saud, while 

 on Riyadh’s ties with Beijing had stated that China is Saudi’s largest trading partner and both countries have close links in several sectors. He did reiterate however 

“.. we have said and repeat this, always, we will look towards our own interests. And we will look for them in the west and in the east”

The statement of the Saudi Foreign Minister clearly reiterates the point, that the Gulf Cooperation Council (GCC) member state is seeking to follow a balanced foreign policy, which gives precedence to Riyadh's economic and security interests.

The Iranian Foreign Minister, Hossein Amir-Abdollahian, 

 that this agreement is important for the region, and provides opportunities for both countries.

While Israel has expressed its skepticism vis-à-vis the 

, the US while being skeptical of China’s clout in the Middle East has welcomed the 

 – especially if it leads to reducing tensions in the region. It would be pertinent to point out, that both China and Saudis could play a role in backchannel engagement regarding the renewal of the JCPOA.

While a lot of analysts are viewing China’s role in this agreement as a sign of its increasing clout in the Middle East, what is forgotten is that Beijing has adhered to US sanctions vis-à-vis Iran. Even in the aftermath of the 25 year agreement signed between Iran and China in 2021 – referred to as 

 -- the latter has not made any significant investments in 

 during the same period. The point about 

 economic relations lacking substance was flagged by Iranian President Ebrahim Raisi during his China visit last month.

In conclusion, through the recent Saudi-Iran agreement, China has sought to send out a message that its influence in the Middle East is increasing. Saudi Arabia has attempted to send a message to the west, that it will follow an independent foreign policy. For Iran, this agreement is important because this will dispel the perception that it has been isolated. At the same time, it is important to have realistic expectations and bear in mind the point that neither Saudi Arabia nor Iran are likely to change their approach vis-à-vis key issues pertaining to the Middle East. Similarly, China will use this agreement to enhance its clout in the Middle East, but not at the cost of its economic interests.

China brokered Saudi-Iran deal: The need for realistic expectations

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