CAIRO: United Arab Emirates foreign minister Sheikh Abdullah bin Zayed welcomed on Saturday an agreement between regional arch-foes Saudi Arabia and Iran to restore diplomatic relations as an "important step towards stability and prosperity" in the region.

Iran and Saudi Arabia agreed on Friday to re-establish relations after years of hostility that had threatened stability and security in the Gulf and helped fuel conflicts in the Middle East from Yemen to Syria.

Iran, Saudi Arabia to restore ties in China-brokered deal