Saudi Arabia and Iraq signed on Sunday an agreement to form coordination council. (Xinhua Photo)

RIYADH, Oct. 22 (Xinhua) -- Saudi Arabia and Iraq signed on Sunday an agreement here in Riyadh to form a coordination council, Al Arabiya local news reported.

The council will open an era of new and improved ties between the two countries that shared cold relations for more than two decades.

The council, which was approved by the Saudi cabinet in August, aims to raise the level of strategic, investment and cultural relations between the two countries, opening a new window for Iraq to revive its economy. Saudi Arabia aims with the council and other initiatives to reduce the influence of Iran in Iraq.

Saudi King Salman bin Abdulaziz Al Saud and Iraqi Prime Minister Haider al-Abadi signed the agreement.

"I look forward to the meetings of the Saudi-Iraqi Coordination Council to move towards a broader and more welcoming horizon," King Salman said.

King Salman has repeatedly stressed during the past year the significance of supporting Iraq, its security and stability, prompting the re-opening of the new Arar border crossing after it was closed for more than 27 years. Last week, Iraq and Saudi Arabia also opened air links when Saudi budget carrier Flynas made the first commercial flight from Riyadh to Baghdad since 1990.