Iran and the UAE traded 20.34 million tons of commodities worth $14.28 billion during 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 emerged as 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. Exports to the UAE account for 13.6% and 13.4% of Iran’s total exports over the period under review. Earlier, the country was Iran’s third biggest export destination after China and Iraq,” Rouhollah Latifi was quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture (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 worth $9.65 billion from this southern neighbor. The figures account for 15% and 25% of Iran’s total imports during the year respectively. The UAE was the second biggest exporter to Iran after China,” the IRICA spokesman said.
Iran’s main imports from the UAE over the period, Latifi added, 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, as well as sports equipment.
Iran’s overall non-oil foreign trade during the last Iranian year stood at 145.7 million tons worth $73 billion.
“Iran had set the goal of increasing exports to the UAE to $6 billion in the year ending March 2020 and $7 billion in the year ending March 2021; none of these goals were achieved. Our actual exports to the neighboring country stood at $4.5 billion in the year ending March 2020. Iran has set its export target at $8 billion for the next year [March 2021-22]; there are multifold barriers in the way of achieving this goal,” Farshid Farzanegan, chairman of Iran-UAE Chamber of Commerce, said before the New Iranian year (started March 21).
According to the official, these barriers include the UAE Central Bank’s strict policy regarding Iranian 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 added.
The official noted that facilitating visits by economic operatives, improving banking ties, holding permanent exhibitions, employing active economic diplomacy regarding the UAE, Bahrain and Saudi Arabia, which has an aggregate 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 added.
Farzanegan noted that the inauguration of an economic department in Iran’s Embassy in the UAE and the launch of an industry and trade department, as well as efforts to boost tourism, would be helpful.
“We at Iran-UAE Chamber of Commerce are all set to transfer our data and information to these departments. Afghanistan is now exporting Iranian handicrafts and saffron to the UAE,” he added.
Noting that Iran needs to approve 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.”
