Industrial policy making in Saudi Arabia and intensifying competition with the Islamic Republic of Iran

The present study seeks to find the cause of increasing level escalation of tension in relations between Saudi Arabia and the Islamic Republic of Iran. To investigate this issue, the following hypothesis came to mind. The hypothesis of this research is based on the fact that the root and the main cause of the increase in conflict and tension between Saudi and the Iran is more than any other factor in the policy of Saudi Arabia in the industrial field, as an attempt to improve the position of its country in the structure of the international political economy. It is related as the main cause of increasing tension and conflict in the relation between the Iran and Saudi.The analysis framework of this research is Wallersteins theory of the political economy of the world system. Because Wallersteins analysis of the world system makes it possible to propertly analyze the competition between the central, peripheral and semi peripheral countries in the global system. He considers the degree of success of a country in transitioning from a peripheral to a semi-peripheral position possible byadopting one of the development strategies (taking advantage of the opportunity, promotion through invitation or semi-confidence). Saudi Arabia is trying to get out of the peripheral status and upgrade to a semi-peripheral status. Thin country has considered the influence and relations of the Islamic Republic of Iran with countries of the Middle East and the Persian Gulf as a challenge for the industrial development of its country. This in connection with the Americas hegemonic goals, has led to an conflictin the relations between Saudi Arabia and the Iran.