The Beijing-brokered Reconciliation Deal between Iran and Saudi Arabia and its Security and Economic Impacts on Iraq and Kurdistan Region

Iran and Saudi Arabia have entered into diplomatic relations since the formation of the new Saudi state in 1932 and they have, since then, preserved their relations. However, they two states have often faced diplomatic dilemma due to sectarian differences and geopolitical ambitions and they have therefore referred to proxy military confrontations. One of the major diplomatic interruptions in the history of the two states relations occurred in 2016 which continued until finally was mediated by some states including China in an agreement, known as the China-brokered Deal in 2023. The Deal was a set of provisions on diplomatic reconciliation and reimplementation of their previous general and security agreements. Although the Deal positively impacted on the whole area of the Middle East, its security and economic consequences were mostly realized in Iraq. Soon after the Deal was concluded the confrontations ended and the security threats from and to Iraq and Kurdistan Region ceased. The security improvements later contributed to economic growth in all the countrys regions including in the Kurdistan Region.