Al Awadi said Iran’s trading and financial ties continued with Dubai, even in the face of tighter sanctions by the western countries. “While many expected the measures to spell disaster for thousands of Iranian businesses that deal with Dubai — which has built its reputation on its role as the re-export hub for the Gulf — trade between the two countries has grown, according to the latest figures,” he said.
The value of direct exports between Dubai and Iran is Dh1.8 billion ($ 490m) while re-exports stand at Dh24 billion ($ 6.5b), according to the latest statistics compiled by Dubai Exports. Iran still ranks as the second largest re-export destination for the UAE, topped only by India. But Al Awadi said that in the face of continuing political tension in the region, Dubai was looking at expanding into new markets abroad.
Trade between Iran and Dubai has been strong since the early 20th century, when Iranian traders migrated from towns in southern Iran to the emirate. Today, gold and lubricating oil feature high on the list of exports while rice, textiles and motor parts and accessories have topped the list of re-exports between the two countries.
Al Awadi said all trade between Dubai and Iran was in products which are exempt from the UN sanctions, and include humanitarian assistance, agricultural commodities, food, medicine and other exempted goods.
Recently, for example, there have been complaints about obstacles to doing business with Iran due to banking restrictions. “Dubai’s new $ 10.9 billion (Dh40 billion) Maktoum International Airport, part of Dubai World Central, could cushion the impact of losing Iranian trade,” he said.
