Makkah — Saudi Arabia and Iraq are setting up a coordination council to upgrade strategic ties, a joint statement said on Tuesday. "The countries agreed to establish a coordination council to upgrade relations to the desired strategic level and open new horizons for cooperation in different fields," said the statement carried by Saudi Press Agency. It said the two countries had achieved a "quantum leap" in bilateral relations and stressed the importance of further official visits. Custodian of the Two Holy Mosques King Salman held talks with Iraqi Prime Minister Haider Al-Abadi on Monday. The talks were attended by Crown Prince Muhammad Bin Naif, deputy premier and minister of interior, and a number of senior officials of the two countries, during which they exchanged views on the prospects and ways of developing bilateral relations and intensifying cooperation in all areas. Deputy Crown Prince Muhammad Bin Salman, second deputy premier and minister of defense, also held talks with Abadi. Saudi Arabia and Iraq agreed to intensify the joint action to confront regional challenges, particularly extremism and terrorism in all forms and manifestations, said the joint statement. The two sides emphasized the importance of drying up the sources of terrorism and its financing and abiding by agreements and commitments that bind states in this regard. The two countries expressed their determination to continue their successful efforts to combat terrorist organizations, especially Daesh. Saudi Arabia reopened its embassy in Baghdad in 2015 following a 25-year break, and in February Foreign Minister Adel Al-Jubeir visited Baghdad.