The Saudis have been talking to the WTO for a decade

Pascal Lamy, European trade commissioner, said the deal could pave the way for a network of similar pacts across the Middle East, a region so far under-represented in global trade policy-making.

The EU is Saudi Arabia's main trade partner, the most important of the dozens of parties that Riyadh must convince before WTO membership can be completed.

In addition, the kingdom needs to adopt the entire body of WTO legislation, a process that involves liberalisation of currently restricted sectors.

One step at a time

Saudi Arabian Trade Minister Hashem Yamani said his country hoped to enter the WTO early next year.

Mr Lamy thinks this could start something big

The Saudi Government has starting intensifying its efforts to join the WTO, which it first approached 10 years ago.

WTO membership is seen as crucial to attract foreign investors, something that Saudi Arabia needs to do to stimulate its sluggish economy.

The next step is to forge a similar agreement with the US, which sees Saudi Arabia as key to creating a free-trade zone throughout the Middle East.

Under the terms of the EU deal, Saudi Arabia will reduce import tariffs on EU products to around 12%, and will open up various service sectors, including telecommunications, construction, banking and insurance.