SDE holds the interior minister portfolio, via its chair, Lauri Läänemets.

SDE vice chair and Health Minister Riina Sikkut said that she is skeptical about prioritizing the Saudi.

She said: "Bearing in mind that there are nearer markets in friendly, democratic countries where entry barriers are lower, I think that Estonia could direct its efforts more clearly."

Sikkut said that if the Ministry of Foreign Affairs takes into account observations highlighted by the Ministry of the Interior, them her party, as a coalition partner, may give the green light to the agreement.

At the same time, Sikkut noted that considering the Estonian state's limited resources at present, priorities are needed on where to invest more in business diplomacy.

"My view is that this is a fundamental point of choice," the minister went on.

"Up to now we have indeed engaged with the markets of China and Saudi Arabia. But are these the same as those markets where entry is easier and risks are lower?" she inquired.

"On this, ministries' opinions may indeed diverge; some may focus more on opportunities, others on risks. Plus the opinions of political parties may also differ," the minister added.

Jüri Vlassov, an interior ministry security policy advisor, said that the intergovernmental agreement may aid Estonian business in operating in Saudi Arabia, but at the same time it involves risks to internal security.

Echoing Sikkut's concerns, Vlassov called the proposed plan "not quite balanced," with a focus on boosting revenues " while the mitigation of risks and threats is neglected."

Even the Ministry of Foreign Affairs notes in its explanatory memorandum that Saudi Arabia holds different attitudes towards religion and human rights from norms in Estonia.

On this, Vlassov noted a recent U.S. State Department report on the human rights situation in Saudi Arabia, noting that there has been no significant improvement in this area lately, with extrajudicial executions, enforced disappearances, torture, arbitrary detention, punishment of family members for relatives' alleged offenses, and violence against journalists among the list of concerns.

Vlassov also noted that the text of June's draft agreement in June includes promoting cooperation in education, culture, and youth work, and not solely on economic cooperation.

The draft states: "To this end they will exchange information on their positions at international forums, hold exchange programs for youth work institutions and associations, and support reciprocal visits and the exchange of experience among responsible persons in the field of youth work."

Vlassov said that while it is "certainly good if we can introduce our views there … on the other hand, do we want their views imported to us?"

As a state whose organization is based on the ultra-conservative Islamic branch of Wahhabism, Vlassov said, this could also be a basis for propagating such beliefs.

"It can be a basis for radicalization," he went on.

Also, Saudi Arabia has a long track record of cooperation with Russia, Vlassov noted.

Although Russia is not mentioned in the draft agreement, its explanatory memorandum mentions Saudi Arabia being open to cooperation with that country, and some other states deemed to be unfriendly towards Estonia.

The explanatory memorandum refers to this as a characteristic of the Gulf states, one which does not hinder cooperation in mutual areas of interest from an Estonian perspective.

The Ministry of the Interior has further suggested that the agreement could include a clause ensuring that Saudi Arabia would not be used as a conduit to avoiding Russian sanctions.

Vlassov said: "For example, the regulation of re-exports could be covered within this agreement."

Foreign minister: Agreement needed by Estonian businesses already operating in Saudi Arabia

Foreign Minister Margus Tsahkna (Eesti 200), whose ministry drafted the agreement, has stressed that the intergovernmental agreement is needed most by Estonian businesses and businesspeople already operating in Saudi Arabia.

Tsahnk said: "They want to be sure that their investments are protected. This concerns legal certainty, such as which legal system will be used to resolve disputes," adding the elimination of double taxation is also seen as key.

Tsahkna dismissed the fears over the cultural and youth cooperation aspects of the draft agreement leading to an infiltration of values prevalent in Saudi Arabia, into Estonian society.

"Certainly, none of those things that the Estonian state and people do not want to infiltrate will find their way into Estonia," he said.

"Any such broader cooperation framework is good for ensuring that questions get answered," he added. "If someone wants to cooperate in the field of education or culture, there should be some format to enable that. I support having things set out clearly, rather than not being clear."

The minister also disagreed with SDE's calls for seeking markets in other, closer or more democratic states and regions, adding that it should be left to the entrepreneurs "to decide where the barriers to entry are higher or lower.

"I certainly support the idea that entrepreneurs should focus on their businesses, while it is our job to find ways we can support them in that. At the same time, we must preserve our national interests, which we surely are doing via these agreements," the minister went on.

One the re-export restriction as proposed by the Ministry of the Interior, Minister Tsahkna said the agreement can include only what both parties agree on.

The foreign ministry uploaded the latest draft of the Estonia-Saudi agreement, "General cooperation agreement between the Government of the Republic of Estonia and the Government of the Kingdom of Saudi Arabia," to the ministry's draft legislation information system last Thursday.

The text was published at the start of June and called for cooperation in all economic sectors, including projects related to IT natural resources, agriculture, and healthcare, as well as promoting mutual visits by government, officials, and private sector representatives, plus participation in trade fairs held in both countries.

While it was hoped the agreement would have been finalized by the visit made by Saudi Arabia's Foreign Minister Faisal bin Farhan Al-Saud to Estonia last week, Minister Tsahkna said he had not received the government mandate to conclude the agreement at that point, and still has not received it.

Riina Sikkut told ERR that while most ministries approved the text without comment, the interior ministry provided a series of substantive remarks.

"Since the Ministry of the Interior's comments were not taken into account, the agreement has not been brought to the government session," Sikkut said.

SDE has been in coalition with the Reform Party and Eesti 200 since April 2023. Ongoing coalition talks between the three parties have started, triggered by Kaja Kallas' stepping down as prime minister later this month.

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