Saudi Arabia welcomes the US decision to designate Iran's elite Islamic Revolutionary Guard Corps a foreign terrorist organisation, Saudi state media said on Tuesday.

Saudi Arabia, led by a Sunni Muslim royal family, has accused Shia-majority Iran of interfering in its and other Middle Eastern countries' internal affairs. Iran and Saudi Arabia have been fighting proxy wars for years, backing opposing sides in conflicts in Syria and Yemen.

Take a look: Saudi minister calls out Iran for 'accusing others' while being 'world's chief sponsor of terrorism'

"The US decision translates the Kingdom's repeated demands to the international community of the necessity of confronting terrorism supported by Iran," SPA news agency said, citing a foreign ministry source.

Read: Iran will retaliate in kind if US designates Revolutionary Guards as terrorists: lawmakers