Iran and Saudi Arabia on Tuesday signed an agreement to establish a joint bank, reported the official Iranian news agency (IRNA).
The agreement was signed in Tehran by the head of a visiting banking delegation from Saudi Arabia and the managing director of Iran's Tejarat Bank, Ali Milani, on behalf of the Iranian shareholders of the joint venture.
Milani said the joint investment aimed to expand the cooperation between Iran and Saudi Arabia and strengthen regional economic cooperation.
He said that based on the agreement, a prestigious international bank was to be invited to participate in the investment and that the rest of shares would be equally divided between Iranian and Saudi Arabian banks, according to the agency.
Milani said the idea of establishing the joint bank was brought up during Iranian President Mohammad Khatami's visit to Saudi Arabia in May, 1999.
The headquarters of the bank will be in Bahrain while its branches will open in various countries including the free zones of Iran, said Milani.
He added the bank would focus on funding development projects and other commercial plans and was scheduled to start its work in a year.
Tehran and Riyadh have upgraded their relations in various fields.
Last April, they signed a long-awaited security accord to cooperate on the fight against crime, terrorism and money laundering, and surveillance of borders and territorial waters – Albawaba.com
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