Regional issues linger over Damascus?

DAMASCUS, Syria, Nov. 3 (UPI) -- Economic ties between Syria and Saudi Arabia have improved, though regional issues could undermine any substantial developments, analysts say.

Syrian and Saudi Arabian relations were strained in the wake of a U.N. resolution calling for the disarming of Hezbollah in 2004. Ties were further complicated in 2005 following the Syrian-tinged assassination of former Lebanese Prime Minister Rafik Hariri, an ally of the Saudi royal family.

Syria has sought to repair years of isolationist policies by moving closer to the region. Relations improved with Riyadh following an October visit to Syria by Saudi King Abdullah.

Meanwhile, Damascus balked on a deal with the European Union, saying it needed assurances that its national interests would be preserved.

Mazen Bilal, a Damascus-based political analyst, tells Emirati newspaper The National that regional issues still override the economic ambitions of Syria.

"All sides are waiting to see what is going to happen" in the region, he said of the Syrian-Saudi relations. "The ongoing Iran nuclear crisis is now shifting to a different point, but no one is sure exactly where that is going, or what moves will have to be made in their best interest."