Iran-UAE trade is about $15 billion per annum and both countries are looking to double their transactions to $30 billion by the fiscal 2025-26, according to the head of Iran-UAE Chamber of Commerce.
"As per agreements and forecasts, the volume of trade between the two countries will reach $20 billion by the end of the fiscal 2021-22," Farshid Farzanegan was also quoted as saying by IRNA.
“Iran’s agricultural and food exports to the UAE was the least impacted by sanctions and the spread of coronavirus,” he said.
“The UAE is the biggest exporter to Iran and the third largest destination of Iranian exports, indicating that many Iranian companies have put trade with the UAE on their agenda.”
Latest data on Iran’s foreign trade show total non-oil trade hit 22.2 million tons worth $12.8 billion in the month ending May 21, indicating a 6.6% and 38% growth in weight and value respectively compared with the same period of last year.
“A total of 16.9 million tons of non-oil goods worth $6.3 billion were exported. Gasoline, polyethylene, methanol, steel ingot and other steel products were Iran’s main exports during the one-month period [April 21-May 21],” Mehdi Mirashrafi, the head of the Islamic Republic of Iran Customs Administration, was quoted as saying recently.
“Exports increased by 17% in terms of weight and 48% in terms of value year-on-year. Top export destinations during the month under review were China with 4.6 million tons of non-oil goods worth $2 billion (up 17% in tonnage and 74% in value YOY), Iraq with 3.1 million tons worth $953 million (down 18% in weight and 13% in value), the UAE with 2.4 million tons worth $849 million (up 9% in weight and 25% in value), Turkey with 384,000 tons worth $388 million (up 14% in weight and 172% in value) and Afghanistan with 911,000 tons worth $365 million, indicating a decline of 14% in weight but an 8% increase in value,” he was quoted as saying by ISNA.
“Exports to these five countries amounted to 11.5 million tons of non-oil goods worth $4.6 billion. They accounted for 68% and 73% of Iran’s overall exports in terms of weight and value, respectively.”
The official noted that imports reached 5.3 million tons worth $6.5 billion, indicating a 16.5% decline in weight but a 29.5% growth in value compared with the corresponding period of last year.
“Cellphones, corn, sunflower oil, soybean meal, wheat, soybeans, rice, barley, sugar and unprocessed soybean oil were Iran’s main imports last month. The import of these 10 items totaled 3.7 million tons worth $2.1 billion and accounted for 69.5% and 33% of the country’s overall imports in terms of weight and value,” he added.
Top exporters to Iran were the UAE with 1.4 million tons of goods with $1.8 billion, China with 461,000 tons of goods worth $1.5 billion, Turkey with 581,000 tons of goods worth $642 million, Germany with 156,000 tons of goods worth $285 million and Switzerland with 359,000 tons of goods worth $283 million.
“Imports from the UAE rose by 114% and 181% in weight and value compared with last year’s same month while imports from Turkey decreased by 48% in weight and 42% in value, imports from Germany dropped by 54% and 15% in weight and value, and imports from Switzerland surged by 2,642% in weight and 2,061% in value compared with the same month of last year,” he said.
“These five countries exported an aggregate of 2.96 million tons of goods worth $4.54 billion to Iran during the month under review to account for 55% of the country’s overall imports in weight and 70% of its imports in value.”
Mirashrafi said a total of 1.84 million tons of cargo were transited across the country during the second month of the current year, indicating a 142% increase YOY.
Top Trade Partner
Iran and the UAE traded a total of 20.34 million tons of commodities worth $14.28 billion in the last Iranian year (March 2020-21), registering a 28% and 7% increase in weight and value respectively compared with the year before.
As a result, says the Islamic Republic of Iran Customs Administration’s spokesperson, the Arab country was Iran’s second biggest trade partner during the period.
“Our exports to the neighboring country hit 15.27 million tons worth $4.62 billion, showing a 27% and 6.5% rise in volume and value respectively YOY. The exports account for 13.6% and 13.4% of Iran’s total exports over the period under review. The country was Iran’s third biggest export destination after China and Iraq,” Rouhollah Latifi was also quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mining and Trade (Otaghiranonline.ir).
The official noted that the main exported goods included seafood, flower, fruit and vegetable, nuts, dried fruit, saffron and other spices, chocolate and pastry, fruit juice, vinegar, construction materials, cement, minerals, floorings, carpet, apparel, footwear, handicrafts, steel products, doors and windows, kitchen utensils, industrial machinery, light bulbs, furniture, musical instruments, medical equipment, electric and electronic devices, auto spare parts, packaging machinery and wickerwork.
“We imported close to 5.07 million tons of goods from this southern neighbor, worth $9.65 billion. The figures account for 15% and 25% of Iran’s total imports over the year respectively. The UAE was the second biggest exporter to Iran after China,” he added.
Latifi noted that Iran’s main imports from the UAE over the period were tropical fruit, livestock, pulses, coffee and cocoa, spices, rice, barley, oilseeds, seeds, edible oils, tobacco, minerals, industrial oils and raw materials, different kinds of supplements, medical and dentistry equipment, glue, paper and cardboard, tire production raw materials, fabric and thread, packaging raw materials and machinery, steel products, automatic doors, elevators, bolts and nuts, auto spare parts, road construction and industrial machinery and sports equipment.
Iran’s total non-oil foreign trade in the last Iranian year stood at 145.7 million tons worth $73 billion.
Road Blocks
According to Farzanegan, barriers to expansion of Iran-UAE trade include the Central Bank of the UAE’s strict policy regarding Iranians’ banking accounts, inefficiency of Iran’s road transport, particularly that of refrigerated containers, and lack of infrastructures for cold storage of agricultural products.
“Countless trade rules and regulations are constantly shifting. Iran-UAE trade would improve if there had been stability in terms of introducing laws,” he said.
The head of Iran-UAE Chamber of Commerce also said facilitating visits by economic operatives, improving banking ties, holding permanent exhibitions, employing active economic diplomacy regarding the UAE, Bahrain and Saudi Arabia, which has the import capacity of up to $135 billion, will help improve business.
“As we speak, Iranian products find their way into Saudi Arabia through the UAE and Oman,” he said.
“Opening an economic department in Iran’s Embassy in the UAE and launching industry and trade department and boosting tourism would be helpful.”
He added that the Iran-UAE Chamber of Commerce is set to transfer data and information to these departments.
Noting that Iran needs to approve the laws related to the standards of the Financial Action Task Force, Farzanegan said Iran’s blacklisting by the global watchdog has interrupted trade with the UAE.
