Iran bans pilgrimages, Saudi Arabia loses billions of dollars

The mutual sanctions between Iran and Saudi Arabia are said to have a two-way effect.

Tensions between Iran and Saudi Arabia show no signs of easing (Photo: Reuters)

On January 7, Iran passed a bill banning the import of any goods originating from Saudi Arabia. Tehran also maintained a ban on pilgrimages to Mecca until further notice.

The decisions came after Saudi Arabia severed diplomatic ties with Iran over the controversy following Riyadh's execution of 47 people convicted of various terrorism charges, including Shi'ite Muslim cleric Nimr al-Nimr - a key figure in the wave of protests that broke out in 2011 in eastern Saudi Arabia.

Previously, Riyadh also announced the suspension of all flights to Tehran as well as trade relations with Iran.

According to observers, Iran's ban on importing goods from Saudi Arabia could have negative impacts on both countries.

According to official statistics, in the first eight months of 2015, Iran's import turnover of goods from Saudi Arabia increased to 40 million USD, while Iran's exports to Saudi Arabia reached 132 million USD.

In addition, Saudi Arabia will suffer a revenue deficit of up to billions of dollars from about 600,000 Iranian pilgrims to Mecca each year.

According to VOV.VN