24 billion dollars. This is the value of trade between the United Arab Emirates and Iran established last March over a period of twelve months according to data from the Iranian Islamic Republic. This figure is the sign of a new era in relations between the two countries.
2 mins
from our regional correspondent,
Even though economic relations between the United Arab Emirates and Iran have never really stopped, despite American sanctions, the value of trade has not reached this level since 2012. This recovery is the result of a much more relaxed geopolitical climate in the region.
In 2016, Abu Dhabi recalled its ambassador from Tehran to express its support for its Saudi ally. L’Saudi Arabian embassy in Iran was then attacked by demonstrators protesting Riyadh’s execution of a prominent Shiite religious leader.
We will have to wait until 2019 for trade between the Emirates and Iran to resume at a high level. Three years later, in August 2022, Abu Dhabi returned its ambassador to the Iranian capital, now allowing more cooperation, particularly on the commercial level.
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Important economic ties
Several different actors from the business community are observing the gradual return of Iranian companies, which had chosen to leave the Emirates in the past for the benefit of other countries in the Middle East such as Oman or Turkey. According to these same sources, it is now easier for Iranians to obtain residence visas or open bank accounts in the Emirates, although many obstacles remain.
Despite everything, economic ties between the two countries have been very strong for a long time. About ten years ago, around 800,000 Iranians lived in the United Arab Emirates, a large part of them in Dubai, a city located just opposite the Iranian coast. There are now between 350,000 and 500,000, according to estimates.
A trend that could continue
Iranian officials have already announced that they are aiming for the $30 billion mark in trade with the Emirates in the next two years. To reinforce these ambitions, an official visit from the Iranian president or that of the Emirates has been expected for some time, but the internal context in Iran has not yet permitted this visit. There is no doubt, however, that this should happen at the right time for the two leaders.
The regional context should also facilitate these exchanges. Saudi Arabia also normalized its relations with its rival Iran under the aegis of China last April.
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