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Trade between Iran and the United Arab Emirates (UAE) has increased significantly as Abu Dhabi eased restrictions on business activity between the two neighbors, Financial Times reported, quoting business people and officials. As reported, the UAE has eased some limitations on corporate registrations and the issuance of visas to companies from Iran in recent months. Iranian financiers are also exploring how to enhance bilateral trade by creating financial mechanisms to fund legitimate transactions, the report added quoting the sources. The UAE is Iran’s second-largest trade partner. The trade between Iran and the UAE has recovered from a pandemic slump of $11 billion in 2020/2021 to $24 billion in the 12 months ending in March, according to Iranian data. The trade between the two sides has surpassed the $22 billion recorded in 2012 before U.S.-led sanctions were imposed on the Iranian economy. Iranian officials have said they are now targeting a further increase in bilateral trade towards $30 billion in the next two years. “Pressure from the UAE central bank has decreased and some Emirati banks have started opening bank accounts,” said Masoud Daneshmand, a former head of the Iran-UAE Chamber of Commerce. “Currently, some Iranian companies that used to be in the UAE but had become inactive have become active again. Some new companies have also started business.” In diplomatic exchanges, Iranian officials have been asking their Emirati counterparts to find new mechanisms for financing trade, according to people briefed on these conversations. “Our economic relationship with Iran has long been of major importance,” said the UAE’s economy ministry. “The UAE’s trade with Iran is conducted in full compliance with global rules and standards.” For years there have been self-imposed restrictions on business with Iran, but these have been gradually eased in recent years, a UAE-based businessman said. “There’s a sense of more openness.”
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