The eight teams initially played in two groups of four teams each. There were two points for a win and one point for a draw. The first two in each group qualified for the semi-finals. The tournament winner qualified for the Junior World Championship. The second and third placed had to play relegation games against the first two of the U-20 Oceania Championship .
Iraq became Asian champions for the fourth time and qualified together with Syria and host Saudi Arabia for the 1989 World Junior Championship in Chile. There the Asian champions prevailed in the preliminary round against Argentina , Norway and Spain and made it to the quarter-finals. There he was eliminated from the United States . Syria finished the preliminary round behind the Soviet Union and Colombia in third place and was eliminated. Hosts Saudi Arabia only reached the last place in their preliminary group behind Portugal , Nigeria and Czechoslovakia .