On 5th of October 2021, Saudi Arabia and Russia signed an agreement in Moscow to boost bilateral cooperation and strengthen their ties. This comes after a tumultuous year due to the pandemic and the ongoing oil price war.
The agreement includes cooperation in various sectors such as energy, investment, agriculture, and industry. Both countries aim to increase trade between them, with a target of $10 billion by 2030.
The energy sector is likely to be the primary focus of this agreement. Saudi Arabia is the world`s largest exporter of crude oil, and Russia is the second-largest producer. The two countries have previously cooperated in oil production cuts to stabilize the global oil market, and this agreement is expected to further strengthen their partnership in the energy sector.
The investment sector is also expected to see significant growth. Saudi Arabia has a major investment fund known as the Public Investment Fund (PIF), which has made significant investments in tech startups and renewable energy. Russia, on the other hand, has a vast market and a growing tech sector. The agreement is expected to provide opportunities for joint investments in these sectors.
In the agriculture sector, Saudi Arabia is keen to secure food supplies, given that the country relies heavily on imports for its food requirements. Russia, on the other hand, is one of the world`s leading wheat exporters. The two countries are expected to cooperate in the agriculture sector to ensure food security in Saudi Arabia.
The agreement is also expected to boost the tourism sector between the two countries. Saudi Arabia has recently launched the “Visit Saudi” campaign to attract tourists from around the world, while Russia is known for its rich history and cultural heritage.
Overall, the Saudi Arabia-Russia agreement is significant for both countries. It is expected to deepen their cooperation in various sectors and provide opportunities for economic growth. The agreement is a testament to the importance of international cooperation in today`s globalized world.