Up until the past couple of years, the number one export destination from Dubai was Iran.
International sanctions have cut into that trade drastically and the Dubai Chamber of Commerce isn’t happy about it.
It seems that Dubai doesn’t like having to make a choice between trading with the world’s foremost sponsor of Jihadist terrorism and conducting business with the West.
Unfortunately, historically Dubai has been a smuggling point into Iran. There is a great incentive for Dubai traders to do business with Iran surreptitiously.
This is a situation that warrants watching…
Dubai traders call for relief on Iran exports
Exports to Iran by members of the Dubai Chamber of Commerce and Industry have slumped by more than 75 per cent in the past two years and the downward trend is unlikely to change unless global sanctions against Tehran are eased, said a senior Dubai official.
The data is a signal of the dramatic turnaround in the once bustling flow of goods to Iran from Dubai, which for centuries has acted as a gateway for the onward shipment of all manner of goods to the country.
As recently as June 2010, Iran was the top export destination for members of Dubai chamber and at its peak Iran trade accounted for 7 per cent of the UAE’s GDP.
“It’s still too risky for many businesses in Dubai to do trade with Iran. Many who do will only do business in cash and not many people can afford to pay on the other [Iran] side,” said Ali Sowdagar, a marketing representative with Iran Insurance, a Dubai insurer of export credit.