Arcapita’s CEO: We Have Successfully Executed 100 Investment Transactions with a Total Value of $31 Billion

Arcapita CEO Atif Abdulmalik. (Asharq Al-Awsat)
Arcapita CEO Atif Abdulmalik. (Asharq Al-Awsat)
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Arcapita’s CEO: We Have Successfully Executed 100 Investment Transactions with a Total Value of $31 Billion

Arcapita CEO Atif Abdulmalik. (Asharq Al-Awsat)
Arcapita CEO Atif Abdulmalik. (Asharq Al-Awsat)

Atif Abdulmalik, Chief Executive Officer of Arcapita Group Holdings (Arcapita), a Sharia compliant global alternative investment firm, has set out Arcapita’s strategic transformation plan for the coming five years. The strategy aims to increase the size and volume of Arcapita’s transactions in the private equity and real estate sectors by introducing new product offerings. This new phase of expansion builds on Arcapita’s track record of 100 transactions with a total value of US$31 billion over the past 25 years.

Abdulmalik explains that Arcapita’s business activity is a mix of direct private equity investments and investments in real estate with a particular emphasis on industrial properties in the Company’s core markets of the Gulf Cooperation Council (GCC), mainly in Saudi Arabia and the United Arab Emirates, and the US. Through its transformation strategy, Arcapita intends to diversify its asset base further and minimize risk exposure by acquiring real estate and private equity assets in sectors that demonstrate solid long-term fundamentals.

Abdulmalik added that Arcapita is expanding its logistics activities in the Kingdom of Saudi Arabia by creating a logistics-focused real estate fund with investments of up to US$1 billion. Combined with other funds in Saudi Arabia and the UAE, this will bring the Company’s total investments in the industrial sector to US$1.6 billion.

These investments reflect growing demand among foreign and institutional investors for attractive investments in the Saudi market, with much opportunity for growth being driven by Vision 2030 and changing investment approaches by a new generation of investors.

Arcapita has been investing for the past 25 years. What are your plans for the Company’s next phase?

Over the past 25 years, Arcapita has completed 100 investments with a total value of US$31 billion. For our next phase, we have adopted a five-year transformation plan based around making further quality investments in promising markets, increasing the size of our transactions in private equity and real estate, and introducing new product offerings. We are also looking to consolidate our presence in important strategic markets, including opening our offices in Riyadh in April. This new office is an important milestone in furthering our business in the region and will help us capitalize on the opportunities generated by Saudi Vision 2030.

What are the goals of Arcapita’s strategic transformation plan?

Arcapita’s investment strategy focuses on private equity and real estate and with the transformation plan we will increase our activities in both sectors. In terms of real estate, Arcapita intends to diversify its asset base and minimize risk exposure by targeting assets in defensive real estate sectors with strong long-term fundamentals such as the industrial sector and the long-term residential rentals market. In private equity, we look to acquire asset-light technology-enabled companies that have the potential to growth organically and through bolt-on acquisitions.

In addition, Arcapita supports socially responsible investments with select product and service offerings, including deal by deal investments, investment funds and managed accounts. Arcapita also aligns its interests with the interests of its investors by seeking to co-invest a 5% to 10% stake in each investment opportunity.

What are Arcapita’s main investment segments in the private equity sector?

Private equity investments have been a mainstay of Arcapita’s investment strategy over the past two decades. In this space we largely focus on acquisitions in the business services, logistics, and consumer segments, each of which has its own characteristics, growth potential, and return profile.

The outsourced business services sector has considerable growth potential and Arcapita is acquiring companies in areas such as waste management and property valuation. For example, we recently acquired Nationwide, which provides valuation services to large mortgage institutions throughout the United States. Logistics companies and consumer services are also benefiting from the growth of e-commerce, last mile delivery services, and tech-enabled retail; trends which were accelerated by the COVID-19 pandemic.

What about Arcapita’s real estate investments?

Arcapita’s real estate investment strategy focuses on the industrial, multifamily, and student housing sectors.

In the industrial space, we focus on properties that are either leased to a single long-term tenant, or leased to a variety of smaller tenants on shorter term leases. The sector has proven resilient and has historically maintained high occupancy rates during recessionary periods given the vital importance of storage and distribution facilities in supply chains. This was clearly demonstrated during the COVID-19 pandemic as the demand for industrial space was boosted by e-commerce activity. In general, the industrial sector outperformed the office, retail, and hospitality sectors during the pandemic.

Within the multifamily sector, Arcapita strategically invests in markets with strong employment and population growth rates, and concentrates on Class B properties with a selection of Class A properties.

In student housing, we seek properties serving large US public universities with over 10,000 students and located relatively close to campus. Arcapita recently exited the University of Tennessee’s Quarry Trail student housing property after maintaining an occupancy rate of almost 100% despite challenges presented by the pandemic and growing net operating income by approximately 24% over a two year holding period.

Does this expansion in global markets support Sharia compliant products?

As you know, Arcapita has been committed since its inception in 1997 to providing Sharia compliant investment services and products. The key values and ethical standards we have adopted are reflected in all our transactions and activities to date, and that will not change.

We opened our first international office in Atlanta, Georgia in 1998, when Arcapita was the first Sharia compliant private equity investment firm in the United States. Since then, we have witnessed growing global demand for Sharia compliant products, particularly in key international markets where we are now focusing our expansion plans.

Reports show increasing growth in many sectors in the US market. What is the size of Arcapita’s private equity investments in the United States?

Arcapita has invested more than US$17 billion in US private equity and $13 billion in US real estate over the past 25 years, including in some landmark transactions.

For example, one success story was our relationship with Caribou Coffee, the global coffee chain. After acquiring and growing the business, Arcapita took the company public, making it the first Sharia compliant listing on a US exchange. We also partnered with Prologis, a leader in US logistics real estate, and jointly acquired approximately 80 industrial real estate properties across the country and successfully exited that investment in 2006.

We have built a track record of investing in business services companies, and currently have a substantial controlling interest in a number of asset-light US companies. One such example is Nationwide Property and Appraisal Service, the second largest independent appraisal management company in the US, which serves mortgage lending institutions across all 50 states. Nationwide is a market leader with a network of over 15,000 licensed appraisers, with its clients including more than 100 blue-chip lenders and 21 of the top 25 wholesale lenders in the US. This investment is a continuation of Arcapita’s US private equity strategy focused on asset-light, tech-enabled business services companies.



Estonian FM to Asharq Al-Awsat: Tallinn Seeking Long-Term Partnership with Saudi Arabia

Minister Margus Tsahkna welcoming Prince Faisal bin Farhan in the Estonian capital, Tallinn, July 2024 (Saudi Foreign Ministry)
Minister Margus Tsahkna welcoming Prince Faisal bin Farhan in the Estonian capital, Tallinn, July 2024 (Saudi Foreign Ministry)
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Estonian FM to Asharq Al-Awsat: Tallinn Seeking Long-Term Partnership with Saudi Arabia

Minister Margus Tsahkna welcoming Prince Faisal bin Farhan in the Estonian capital, Tallinn, July 2024 (Saudi Foreign Ministry)
Minister Margus Tsahkna welcoming Prince Faisal bin Farhan in the Estonian capital, Tallinn, July 2024 (Saudi Foreign Ministry)

Estonian Foreign Minister Margus Tsahkna said relations between Estonia and Saudi Arabia have entered a new phase, describing his visit to Riyadh with a large business delegation as a turning point that gave fresh momentum to cooperation and set the groundwork for a long-term partnership.

In an interview with Asharq Al-Awsat, Tsahkna stressed that Estonia views Saudi Arabia as a leading regional power and a driver of change whose influence extends well beyond the Middle East.

He further highlighted the connection between his country’s digital expertise and the goals of Saudi Vision 2030, saying that Estonia, recognized as one of the world’s most advanced digital societies, sees the Kingdom’s reform agenda as ambitious and transformative.

With long experience in digital governance, cybersecurity, and green energy, Estonia is seeking to contribute to Saudi Arabia’s modernization, he underlined.

The minister pointed out that the Kingdom has already made strong progress in digitalization. Estonia itself spent over two decades building a fully online government, with 100 percent of public services available digitally, saving the equivalent of 1,400 years of work annually. He said this model could serve as an inspiration as Saudi Arabia advances its own digital transformation under Vision 2030.

Reflecting on his meetings in Riyadh, Tsahkna described the reception and discussions as both warm and highly practical, reinforcing his country’s commitment to deepen ties. He said he would return to Tallinn with a clear message for his government and companies that Saudi Arabia is a long-term partner worth engaging with.

On Saudi Arabia’s global role, he underscored that the Kingdom is not only a leader in markets and business but also a key player in politics and regional stability.

For Estonia, a small northern European state of 1.3 million people, the partnership combines its own innovation and know-how with Saudi Arabia’s political and economic leadership.

Tsahkna also addressed opportunities in cybersecurity, saying Estonia is among the world’s leaders in this sector and is ready to work with Saudi Arabia on comprehensive systems to protect societies as a whole.

He pointed to his country’s use of artificial intelligence in areas such as education, taxation, and the judiciary, which could complement Saudi Arabia’s own ambitious AI strategy.

On renewable energy, he said Estonia is targeting more than 100 percent renewable generation by 2030, a goal aligned with Saudi Arabia’s green energy agenda. Estonian firms are exploring entry into the Saudi market with innovative technologies, while Tallinn welcomes Saudi investment in its own energy sector.

The minister concluded by noting that both countries are preparing to sign a general cooperation agreement that will frame political and economic ties. He stressed that Estonia and Saudi Arabia share core values, including respect for international law and rejection of altering borders by force, making the partnership well-positioned for a promising future.


Italian FM to Asharq Al-Awsat: Rome, Riyadh Share Goal of Middle East Peace

Italian Foreign Minister Antonio Tajani (Italian Foreign Ministry)
Italian Foreign Minister Antonio Tajani (Italian Foreign Ministry)
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Italian FM to Asharq Al-Awsat: Rome, Riyadh Share Goal of Middle East Peace

Italian Foreign Minister Antonio Tajani (Italian Foreign Ministry)
Italian Foreign Minister Antonio Tajani (Italian Foreign Ministry)

Italian Foreign Minister Antonio Tajani said his country and Saudi Arabia share a common goal of building a stable, peaceful and prosperous Middle East, a commitment that took shape with the launch of a Saudi-Italian Strategic Partnership Council earlier this year.

The council, signed in January 2025 by Crown Prince Mohammed bin Salman and Italian Prime Minister Giorgia Meloni, has strengthened political dialogue and coordination through regular consultations aimed at supporting peace, stability and tackling global challenges, Tajani told Asharq Al-Awsat in a phone interview.

He said the conflicts in Gaza and Syria were prime examples of joint engagement, noting that Rome has worked with Riyadh within the framework of the “International Conference for the Two-State Solution” and joined the meeting co-hosted by Saudi Arabia and France in New York last month.

Tajani stressed the urgent need to secure a ceasefire in Gaza, free hostages and ensure full humanitarian access. He said Italy was ready to contribute to any potential Arab-led UN mission and to Gaza’s reconstruction.

His remarks coincided with Saudi Foreign Minister Prince Faisal bin Farhan’s visit to Italy on Thursday.

Support for Syrians

Tajani said Italy and Saudi Arabia back the Syrian government as the “best hope” for Damascus to move toward a more inclusive and democratic system. Both countries, he added, are committed to improving conditions for Syrians through humanitarian aid, early recovery efforts and economic support following the lifting of sanctions – a decision both states endorsed from the start.

On Palestinian statehood, the deputy prime minister said Italy views the establishment of an independent Palestinian state as central to the two-state solution. But he argued recognition should come through a political process under international sponsorship, warning that unilateral moves could do more harm than good.

He said Rome was working to create conditions for political recognition by improving living standards in the West Bank and Gaza, pointing to Italy’s “Food for Gaza” initiative, which has delivered more than 200 tons of food and medical supplies and evacuated over 180 children and their families. In total, about 1,000 Palestinians are now in Italy – making it the first Western country to provide such support, he said.

Strategic partnership with Saudi Arabia

On the economic front, Tajani described Saudi Arabia as Italy’s fastest-growing export market in the Middle East in 2024 and a strategic partner in implementing Vision 2030. He said cooperation extends beyond trade to investments, technology and expertise-sharing, with energy a central pillar.

Major Italian firms including Snam, Edison, Prysmian, GE Vernova, Ansaldo Energia and De Nora have recently signed agreements with Saudi utility developer Acwa Power, Tajani said.

Italian companies are also involved in large-scale projects such as railways, metro systems and landmark architectural works in the kingdom, and are ready to join upcoming mega-projects in both physical and digital infrastructure, he added.

He also voiced Italy’s support for initiatives to connect India and Europe through the Middle East to transport goods, green energy and digital links, calling the project “vital for prosperity and for meeting today’s geopolitical and economic challenges.”

Italian investment in Saudi mega-projects

Tajani said preparations are under way for a business forum in Riyadh, following a high-level roundtable in AlUla during Italian PM Giorgia Meloni’s visit earlier this year, which produced agreements worth nearly $10 billion.

Future cooperation, he said, will focus on areas such as sustainable smart cities, healthcare modernization, advanced digital networks, agricultural innovation and water management. Italy also hopes to contribute to developing Saudi Arabia’s sports industry, drawing on its design and manufacturing expertise.

Role in Ukraine war

Turning to the war in Ukraine, Tajani praised Saudi Arabia’s high-level participation in the Ukraine Recovery Conference 2025, hosted in Rome in July. The event drew more than 110 official delegations and secured pledges of over €10 billion in financial commitments, plus €5 billion in private sector deals.

Saudi involvement, he said, showed growing bilateral cooperation not only in humanitarian support but also in reconstruction and modernization efforts in Ukraine. Italy is keen to expand this partnership to include joint financial aid and company participation in rebuilding critical infrastructure and social services.

Growing Saudi influence

Tajani said Saudi Arabia has emerged as a “major player with growing regional and international influence” and underlined the potential for deeper cooperation between Riyadh and the European Union in energy, digital transition, infrastructure, trade and investment.

He said stronger EU-Saudi ties, bilaterally or through the Gulf Cooperation Council, would benefit both sides. The first EU-GCC summit held in October 2024 laid the groundwork for this cooperation, he added.

Saudi-Italian ties have advanced rapidly, with Crown Prince Mohammed bin Salman and Meloni holding seven political consultations over the past two years – including six phone calls and one official visit.

 


Iran FM to Asharq Al-Awsat: We Do Not Intervene in Lebanon, Oppose Syria Split

Iranian Foreign Minister Abbas Araghchi (Photo Credit: Ali Khamaj)
Iranian Foreign Minister Abbas Araghchi (Photo Credit: Ali Khamaj)
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Iran FM to Asharq Al-Awsat: We Do Not Intervene in Lebanon, Oppose Syria Split

Iranian Foreign Minister Abbas Araghchi (Photo Credit: Ali Khamaj)
Iranian Foreign Minister Abbas Araghchi (Photo Credit: Ali Khamaj)

Iran is prepared to resume nuclear negotiations with the United States if Washington provides assurances against aggression, Foreign Minister Abbas Araghchi said, warning that military strikes on Tehran’s nuclear facilities have failed to achieve their goals and will not succeed through talks either.

In an interview with Asharq Al-Awsat in Jeddah, where he attended an extraordinary meeting of the Organization of Islamic Cooperation (OIC) foreign ministers on Gaza, Araghchi did not rule out the possibility of renewed confrontation with Israel.

“Anything is possible, and Tehran is prepared for all scenarios,” he said.

Araghchi said ties with Saudi Arabia have entered an “unprecedented phase of cooperation,” describing the Kingdom as a “major regional and Islamic power” alongside Iran.

Speaking to Asharq Al-Awsat on the sidelines of the Jeddah meeting, Araghchi stressed that Tehran does not interfere in Lebanon’s internal affairs but voices its opinions like others. He said Hezbollah’s arsenal is an issue for the group and the Lebanese government, adding that “plans to disarm Hezbollah are entirely Israeli.”

Asked about recent comments by Iran’s defense minister on building military infrastructure abroad, Araghchi declined to elaborate, saying, “Any clarification must come from the defense minister himself.”

On threats to close the Strait of Hormuz, the Iranian minister underlined that Tehran’s official policy is “absolutely clear” in seeking peace and stability in the vital Gulf waterway. “Iran is a producer and exporter of oil, and its economy depends heavily on it. That is why it wants free navigation for everyone,” he said.

Araghchi spoke extensively on a wide range of regional issues.

Gaza: Action Over Statements

Araghchi said people in Gaza need food, water and medicine rather than political declarations, urging Muslim countries to take practical steps in support of Palestinians.

Araghchi said the OIC meeting, which convened at the request of Iran, Palestine and Türkiye, produced “good statements and important decisions” but stressed that action on the ground was critical.

“I emphasized in my remarks that Islamic countries must take practical steps. Those that maintain ties with the Zionist entity should cut them and halt trade — that is a concrete move that can be made,” he said.

He added that Muslim states should unite in international forums and courts to condemn Israel. “It is only natural that more than 50 Islamic countries and over a billion Muslims, with their vast resources, can mobilize to support Gaza and Palestine,” Araghchi said.

Nuclear Talks with the US

Iran remains ready to enter “fair and balanced” negotiations over its nuclear program but will only engage in indirect talks with the United States if Washington guarantees it will not carry out military attacks during the process, Araghchi said.

He told Asharq Al-Awsat that Tehran is already holding discussions with the three European signatories to the 2015 nuclear deal, as well as the International Atomic Energy Agency (IAEA), to set out a new framework for negotiations.

“We are prepared for indirect talks with the United States, provided they reassure us there will be no military aggression during the talks,” Araghchi said.

“If they come to the table for fair negotiations built on mutual interests, that serves both sides. But if they believe they can achieve through negotiations what they failed to achieve through military strikes, then such talks will not happen.”

He added that Iran has never walked away from talks. “We were at the heart of negotiations when Israel attacked us and the United States joined in. That is why any future negotiations will not be like those in the past,” Araghchi said, stressing that Tehran’s stance on indirect talks with Washington “has not changed.”

Prepared for Any Scenario with Israel

Iran is prepared for any confrontation with Israel, Araghchi affirmed, warning that the outcome of the last conflict showed the futility of military action against Iran.

“Anything is possible, and we are ready for all circumstances,” Araghchi told Asharq Al-Awsat when asked about rising tensions and the prospect of a new clash with Israel.

“During the 12-day war, the Zionist entity and the United States failed to achieve any of their objectives, while Iran resisted heroically and responded to the aggression. We continued our missile strikes on Israel until the last moment, while they thought they could stop them in 48 hours.”

Araghchi said Israel eventually sought an unconditional ceasefire. “Since their request came without conditions, we accepted it. If they want to repeat the scenario, we are ready. The 12-day war proved that the military option is not a successful one - it is a failed one. That is why I doubt they will try again. But if they do, they will face a similar, even stronger, response,” he said.

Saudi and Regional Relations

Recent conflicts in Gaza, Lebanon and Syria, as well as attacks on Iran, have convinced the region that Israel is the main threat, Araghchi said, adding that Tehran has stepped up efforts to build trust with Arab neighbors.

“I believe everyone now realizes that the entity threatening the whole region and seeking to keep it weak and divided is the Zionist entity,” Araghchi told Asharq Al-Awsat. He said regional states, without exception, stood by Iran and condemned both Israel and the US in the wake of the latest assault.

Araghchi noted that since Iran’s new government took office last year, he has worked to accelerate rapprochement with neighbors. “I personally met Crown Prince Mohammed bin Salman twice last year and also joined a meeting between him and Iran’s first vice president. Three meetings in one year are unprecedented in the history of relations between the two countries,” he said.

He added that Tehran had also revived contacts with other regional states, including Egypt and Jordan. “While diplomatic ties with Egypt are not yet at the highest level, I have had more phone calls and direct meetings with my Egyptian counterpart than with most other ministers in the region,” he said. Araghchi added that his talks showed regional governments now have greater confidence in Iran and share concerns about Israel’s threats.

Ties with Egypt

Araghchi said Tehran is in no hurry to formally raise its diplomatic relations with Cairo, though cooperation is ongoing and contacts are active.

“As with any two normal states, we have relations and cooperation, but formally upgrading diplomatic ties takes the right timing and we are not in a rush,” Araghchi told Asharq Al-Awsat.

He noted that both countries maintain “Interests Sections” in each other’s capitals, staffed by envoys with ambassadorial rank. “Just last night I had dinner with the Egyptian foreign minister, and we spoke for more than two hours,” he added.

Addressing sometimes conflicting messages from Iran, such as threats by some figures to close the Strait of Hormuz versus official calls for Gulf stability, Araghchi said such remarks do not reflect government policy.

“These are not statements by officials of Iran but by ordinary individuals or journalists with no responsibility. Iranian society is open, and you can hear all kinds of views. If you watch Iranian television, you will see nightly debates between someone calling to close Hormuz and another rejecting it,” he said.

Araghchi stressed that Iran’s official position is “absolutely clear.”

“We call for peace and calm in the Gulf. Like Saudi Arabia and other regional states, Iran is a producer and exporter of oil, and our economy depends heavily on it. It is natural that we want peace in the Gulf, free navigation for everyone, and normal shipping,” he said.

Iran: Israel Sought to Ignite ‘Oil War’ in Gulf During 12-Day Conflict

Israel tried to drag the region into an “oil war” by targeting Iran’s energy facilities during the recent 12-day conflict, but Tehran responded by striking Israeli sites while working to prevent the fighting from spilling into the Gulf, Araghchi revealed.

“During the 12-day war, when Israel attacked our oil installations in Asaluyeh, we realized they wanted to pull the war into the Gulf and ignite an ‘oil war,’” Araghchi told Asharq Al-Awsat. “We responded by hitting Israeli facilities and did our utmost to prevent the conflict from spreading to the Gulf.”

He said Gulf Arab states should focus on the risks posed by Israeli policies rather than Iran. “Their concern should be directed at Israel’s actions, which could lead to closing the Strait of Hormuz and dragging the war into the region - not at Iran,” Araghchi said.

Iranian Defense Minister’s Remarks

Araghchi declined to comment on recent statements by Iran’s defense minister about building military infrastructure abroad, saying any clarification should come from the defense minister himself.

When asked to explain the remarks, Araghchi smiled and said: “Do you really expect me to answer such a question?” He added: “If further clarification was necessary, it should have been provided by the defense minister.”

Iran Says it Does Not Intervene in Lebanon

Araghchi said Tehran does not interfere in Lebanon’s internal affairs but expresses its opinions like other states, stressing that any disarmament of Hezbollah is an entirely Israeli initiative.

“We do not intervene in Lebanon’s internal matters, but that does not prevent us from voicing our positions, just as all countries do,” Araghchi told Asharq Al-Awsat.

“Saudi Arabia, for example, expresses its views on Lebanon, which is not considered interference. True interference is occupying Lebanese territory or imposing strange plans to undermine Lebanon.”

Araghchi said Hezbollah itself and the Lebanese government are responsible for decisions regarding the group’s weapons. “Hezbollah has proposed a national dialogue to determine Lebanon’s security strategy with the participation of all components. We are confident of one truth: Israel wants all regional states weak, disarmed, scattered, and in conflict,” he said.

He cited Syria as an example, noting that Israel had seized more territory and destroyed military capabilities under the new government compared with Bashar al-Assad’s regime.

“This is the scenario Israel seeks to implement in Lebanon, and Hezbollah’s resistance thwarted it. While the resistance has suffered attacks and damage recently, they think it has weakened. That is why they want to disarm it. But disarming Hezbollah is 100% an Israeli plan. The decision belongs to Hezbollah, the Lebanese government, and the Lebanese themselves; we only express our opinion,” Araghchi said.

He added that other regional states should recognize this reality and not underestimate the risk of similar scenarios in their countries.

“Enemies tried to target Iran, but it resisted, and they regretted it. How did Iran resist? Not through diplomacy or talks with the US, but with its missiles. It is strength, not concession, that counters Israel. We advise regional states not to make concessions to Israel; the more they give, the more it expands and grows bold. Recent statements by Netanyahu confirm Israel’s ambitions across the region,” he said.

Iran Says Ready to Work with Saudi Arabia on Lebanon

Araghchi said Tehran is willing to cooperate with Riyadh on Lebanon, describing recent talks with his Saudi counterpart as constructive.

“I met with Foreign Minister Prince Faisal bin Farhan in Jeddah, and we had a good discussion on Lebanon,” Araghchi told Asharq Al-Awsat. “Yes, there are differences in viewpoints, but we spoke calmly and in a positive atmosphere. We are ready to continue this dialogue with the Saudi side until we reach a point that can help ease this file.”

“I have no doubt that Saudi Arabia wants to help the Lebanese people, and so do we. The tools and methods may differ, but I have every hope that we can reach common ground,” he said.

Iran Backs Syrian Unity, Opposes Partition

Iran supports the territorial unity of Syria and opposes any attempts to partition the country, Araghchi said, condemning Israeli strikes on Syrian territory as the result of “excessive concessions” to Israel.

“Our position on Syria is very clear: we support Syria’s unity and the preservation of its sovereignty and borders, and we reject any attempts to divide it,” Araghchi told Asharq Al-Awsat.

“We also want stability and calm in Syria. Experience shows that without stability, the country can become a haven for terrorist groups, which is against the interests of any regional state.”

Araghchi said Iran has had no contact so far with Syria’s new government. “We are not in a rush. Whenever the new government in Syria realizes that relations with Iran serve Syria’s interests - both the government’s and the people’s - we will consider it,” he added.

Iran Says Saudi Arabia a Major Regional Power, Stresses Cooperation for Stability

Araghchi described Saudi Arabia as a “major country in the region and the Islamic world,” saying stability and peace can only be achieved through cooperation between Tehran and Riyadh.

“Saudi Arabia and Iran are both key poles in the region. Yes, there are differences and competition, but they should not become hostility,” Araghchi told Asharq Al-Awsat.

“The Saudi people are our religious brothers, and the Iranian people are your brothers and sisters. More than 80,000 Iranian pilgrims perform Hajj annually, and recently Umrah campaigns have started, with around 400,000 expected this year.”

He added that both countries share concerns for Islam, Muslim interests, and regional security.

“Cooperation serves bilateral relations, the region, and the Islamic world. Fortunately, new opportunities have opened in relations over recent years, especially last year. But economic ties have not yet been sufficiently developed, requiring more joint planning,” Araghchi said.

Highlighting people-to-people ties, he said: “We hope to see, in the near future, the same number of Saudi tourists visiting Iran as Iranians visiting Saudi Arabia. Iran’s nature, culture, history, and landmarks will offer them a rewarding experience and provide a firsthand view of Iran, away from the portrayal by Western media. A visitor’s first trip changes that perception entirely.”

Iran Hails ‘Strong, Excellent’ Saudi Stance During Recent Israel Tensions

Araghchi praised Saudi Arabia’s position during the recent confrontation between Iran and Israel, calling it “strong and excellent.”

“The Kingdom of Saudi Arabia took a very strong and excellent stance, whether in condemning Israeli and US attacks against Iran or in supporting Iran and the Iranian people,” Araghchi told Asharq Al-Awsat. “The same position was adopted by the Gulf Cooperation Council, which we consider extremely valuable.”

Iran Sees Economic Opportunities for Saudi Investors, Highlights Trade Potential

Araghchi said boosting trade and investment with Saudi Arabia is a priority, noting that both countries could supply many of each other’s needs more efficiently.

“Many goods currently sourced from distant countries could come from Iran, which is nearby, and similarly, many of our needs can be met by Saudi Arabia,” Araghchi told Asharq Al-Awsat. “Trade between us and one regional country alone reaches around $30 billion, showing that even under sanctions, substantial exchange is possible.”

He highlighted opportunities for Saudi investors in Iran, particularly in oil, gas, and other industries. “Iran has about 100 million people, and its geographic location makes it a key corridor to Central Asia, the Caucasus, and Europe via the Indian Ocean and the Chabahar port,” Araghchi said.

Iranian FM Expresses Optimism About Regional Cooperation

Araghchi expressed cautious optimism about the future of the region, saying diplomacy remains hopeful even amid tensions.

“Diplomats are always optimistic,” Araghchi told Asharq Al-Awsat. “I believe that if cooperation is achieved among regional countries, especially between Iran and Saudi Arabia, we will see a region marked by stability and calm, flourishing with progress and development. I am doing everything I can to guide Iranian diplomacy toward this goal.”