To protect its projects from attack by Iranian proxies, Saudi Arabia is also likely to make concomitant investments in security assets in Iraq, which would be viewed as a significant escalation by Iran. Sure enough, a Saudi delegation comprising its minister of commerce and investment was in Baghdad the day after Rouhani left. Other options in the Saudi economic toolkit for Iraq include reopening border crossings between the countries, making it easier for Iraqis to get Saudi visas, and connecting Iraq’s power grid to the Gulf Cooperation Council power infrastructure. It is likely to invest in strategic projects that will generate jobs and improve ordinary Iraqis’ quality of life, such as power generation, education and health care. Saudi Arabia can leverage its considerable financial muscle to outdo Iran in the economic sphere. Last, abolishing visa fees is considerably less than what Iran wanted, which was a visa-free regime. There is significant pressure on Baghdad from the US to diversify its energy sources away from Iran. Iran can ill-afford to invest in the rail project, as its economy is reeling from the impact of US sanctions. These are, however, notional achievements.
The most significant economic achievements from the visit were memoranda of understanding on increasing Iranian energy exports to Iraq and a rail link between the two countries, besides abolishing visa fees for each other’s citizens from next month. Rouhani also sought to deepen Iran’s economic engagement with Iraq.