The Saudi-Iran deal brokered by China in March 2023 was cited as a strong example of not just strengthening of ties between China and Saudi Arabia, and Beijing’s inc

The Saudi-Iran deal brokered by China in March 2023 was cited as a strong example of not just strengthening of ties between China and Saudi Arabia, and Beijing’s increasing influence in Middle East, but also of US influence declining in the Middle East.

Through the agreement, Saudi Arabia and Iran will resume diplomatic ties and Foreign Ministers of both countries during their meeting, last month, discussed the setting up of embassies and consulates in each other’s countries. On April 28, 2023 Iran’s Foreign Minister, Hossein Amirabdollahian while speaking at a press conference in Beirut, Lebanon said that it was a matter of days before embassies of Iran and Saudi Arabia will be 

While China had signed a 25 year agreement with Iran, referred to as “

" in 2021,  economic and strategic ties between 

 have also strengthened in recent years. In December 2022 during Chinese President Xi Jinping’s Saudi Arabia visit the first China-Gulf Cooperation Council (GCC) Summit was held. Said 

"China will continue to firmly support the GCC countries in maintaining their own security ... and build a collective security framework for the Gulf,"

Saudi Arabia’s interest in China led organizations

Apart from the above developments, Saudi Arabia has also been showing a keen interest in entering multilateral organisations dominated by China. First, it has entered the Shanghai Cooperation Organisation (SCO) as a 

. Second, it has applied to become a member of the Brazil Russia India, China and South Africa grouping (BRICS). Joining the SCO will provide an opportunity to Saudi Arabia to strengthen relations with Central Asian states and Iran. Iran has become a member of the SCO and is an important player in the organisation, given its strategic location. Interestingly, Iran has spoken about the possibility of 

While it is premature to talk of Saudi entry into BRICS, expansion of the organisation will help Beijing in achieving its objective of strengthening the grouping and also providing an alternative discourse on global issues. Here it would be pertinent to point out that BRICS has also spoken about a common currency, and Saudi like many other countries has expressed its interest in trading in currencies other than the Dollar. Saudi Arabian Finance Minister while speaking at Davos World Economic Forum (WEF) in January 2023 

“There are no issues with discussing how we settle our trade arrangements, whether it’s in the U.S. dollar, the euro, or the Saudi riyal,”

While all these moves are significant, and Saudi US ties may have deteriorated, Riyadh while seeking to follow a balanced approach and reducing its dependence upon Washington would be keen not to become part of the Russia-China axis like Iran. A strong reiteration of Riyadh’s fine balancing between Washington and Beijing is the point days after the signing of the Saudi-Iran agreement, Riyadh signed a deal to order aircraft from the US. On March 14, 2023 Saudi Arabia airlines had placed an order for 

 aircraft with Boeing. The deal was estimated at $ 37 Billion.

Several top US CEOs had also attended the sixth Future Investment Initiative FII, referred to as Davos at Riyadh in October 2022 (US officials had not been invited to this platform). Realists in Washington DC also realise that Saudi Arabia is strategically important in the context of the Middle East (it is for this reason that US President Joe Biden had included Saudi Arabia in his itinerary during his Middle East visit last year).

Saudi Arabia can find common ground with other Middle Powers

Saudi Arabia could find common ground in SCO and other platforms with India --which while strengthening ties with US in recent years has followed an independent approach on the Russia-Ukraine issue. India, which is chair of G20 and SCO in 2023, on its part would welcome the entry of Saudis in BRICS as well as SCO. New Delhi has strengthened not just its bilateral ties with Saudi Arabia, in the economic and strategic domain, but both countries have also been seeking to work jointly on 

. Here it would also be important to mention, that the Iran-Saudi agreement and the entry of Saudi Arabia into SCO can pave the way for trilateral cooperation.  As mentioned earlier, Iran has spoken about the possibility of 

 and Saudi Arabia investing in the Chabahar Port. India  is playing an important role in the development of Chabahar Port, which it views as a gateway not just to Afghanistan, but also 

 (via the International North South Transport Corridor). India has provided financial assistance for this project an Indian company, 

India Global Ports Limited (IGPL) is handling phase 1 of the project,

 Other avenues for trilateral cooperation, between India, Iran and Saudi Arabia can also be explored under the umbrella of SCO, with a specific focus on connectivity. This would be very much in sync with Saudi Arabia’s objectives of a diversified foreign policy, and it’s increasing thrust on geo-economics.

In conclusion, the current geopolitical situation requires countries to respond to changes taking place. Every country while seeking to navigate the challenges also seeks to cash in on the opportunities which the current situation offers. In the current state of flux, middle powers can benefit economically while also enhancing their strategic clout by being more pro-active on multilateral forums – Saudi Arabia is no exception.

Riyadh's interest in SCO and BRICS: The geopolitical and economic importance

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