Iran-UAE Economic Commission
- Iran and the UAE held their first joint economic commission (JEC) in 10 years from April 30 to May 1 in Abu Dhabi.
- The two countries agreed to improve economic cooperation in several sectors, including transportation, tourism, entrepreneurship, investment, agriculture, and renewable energy. A joint task-force was established to implement the JEC’s recommendations.
- The meeting also discussed each country’s role in the North-South Corridor, a strategic trade route that runs through Iran, efforts to support importers and exporters, and the development of small and medium-sized businesses in Iran and the UAE.
- According to Iran’s Mehr News Agency, “a total of 22 documents have been already prepared and following the preliminary meetings to be signed between the two sides.”
- A business forum was held on the sidelines of the event so that Iranian and Emirati entrepreneurs could negotiate in a face-to-face environment.
Iran-UAE Trade
- Economic ties between the two countries increased throughout 2023.
- The UAE eased restrictions on corporate registrations and visas to Iranian companies.
- Yearly trade grew from $11 billion in 2020/21 to $24 billion in 2023/24.
- The UAE is Iran’s second-largest trading partner, following China.
- Iran imported $20.8 billion worth of goods from the UAE in the fiscal year ending in March 2024, making Abu Dhabi Tehran’s largest source of imports.
- With exports at $6.6 billion, Abu Dhabi is Tehran’s third-largest export destination.
- Minister of Roads and Urban Development Mehrdad Barzpash predicted that Iran-UAE bilateral trade would increase to $30 billion next year from the current $27 billion.
- On May 2, Barzpash said the two countries are looking to begin a new chapter in their bilateral economic relations.
Influencing Factors to Economic Cooperation
- Increased economic cooperation between Iran and the UAE occurs amid warming diplomatic ties after previous obstacles.
- In 2016, the UAE and Iran’s relations worsened after the storming of the Saudi Embassy in Tehran.
- Re-engagement efforts, beginning in 2019, led to “restored and upgraded” diplomatic relations last year.
- The UAE’s outreach to Iran has been further strengthened by the China-brokered deal that re-established Saudi-Iran relations in March 2023.
(Image: sina drakhshani)