He was welcomed by Saudi officials, Islamic Development Bank managers, and members of the Iranian Consulate General in the city.
The Iranian finance minister, who is heading a high-ranking economic delegation, is scheduled to take part in bilateral meetings with Saudi officials and deliver speeches at meetings of the Islamic Development Bank, a Jeddah-based multilateral development finance institution focusing on Islamic finance for infrastructure development.
Khandouzi said last month that Tehran aimed to raise its annual trade with Riyadh to $1 billion in the first step of resuming economic ties.
He said the target was set by the Trade Promotion Organization of Iran (TPO) based on the two countries’ capacities.
On March 10, Iran and Saudi Arabia jointly announced in China their decision to restore diplomatic relations, ending seven years of tension between the two nations.
In a statement on Wednesday, Iranian Foreign Minister Hossein Amirabdollahian confirmed that the Islamic Republic will soon dispatch its ambassador to Riyadh.