UAE Increases Trade with Iran after Eased Restrictions on Business Activity

Executives said the UAE has in recent months rolled back limits on corporate registrations and the issuance of visas to companies from Iran, which remains subject to tough US sanctions, the Financial Times reported.

Iranian financiers are also exploring how to enhance bilateral trade by creating financial mechanisms to fund legitimate transactions, they added.

Flourishing trade relations between Iran and the UAE, the traditional centre for re-exports into the Islamic republic, forms part of the Persian Gulf state’s pivot towards regional de-escalation and a focus on business.

While China is Iran’s premier trade partner, the UAE is the second largest. Trade between Iran and the UAE has recovered from a pandemic slump of $11bn in 2020/2021 to $24bn in the 12 months ending in March, according to Iranian data. The increase surpasses the $22bn recorded in 2012 before US-led sanctions started to bite. Iranian officials have said they are now targeting a further increase in bilateral trade towards $30bn in the next two years.

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