FILE PHOTO: Saudi Arabia's King Salman attends a summit between Arab league and European Union member states, in the Red Sea resort of Sharm el-Sheikh, Egypt, February 24, 2019. REUTERS/Mohamed Abd El Ghany/File Photo

RIYADH (Reuters) - Saudi Arabia’s King Salman is giving Iraq $1 billion to build a sports city, state television said on Wednesday, citing the kingdom’s commerce minister.

Riyadh has been wooing Baghdad as part of an effort to stem the growing regional influence of Iran, while Iraq is seeking economic benefits from closer ties with its southern neighbor.