Iran’s trade with 15 neighboring countries stood at 80.26 million tons worth $40.64 billion in the current fiscal year’s first 10 months (March 21-Jan. 20), according to the latest data released by the Islamic Republic of Iran’s Customs Administration.
The UAE was Iran’s biggest trade partner with 19.22 million tons worth $16.84 billion. It was followed by Turkey with 15.29 million tons worth $8.76 billion and Iraq with 27.03 million tons worth $8.22 billion.
Total exports to neighbors stood at 60.59 million tons worth $20.33 billion.
Iraq with 25.04 million tons worth $7.29 billion was the biggest export destination. It was followed by Turkey with 12.07 million tons worth $4.53 billion, the UAE with 9.03 million tons worth $3.8 billion, Afghanistan with 3.58 million tons worth $1.54 billion and Pakistan with 2.4 million tons worth $1.02 billion.
Total imports from neighboring countries during the period hit 19.66 million tons worth $20.31 billion.
Shipments mainly came from the UAE with 10.19 million tons worth $13.04 billion, Turkey with 3.22 million tons worth $4.23 billion, Russia with 2.99 million tons worth $1.33 billion, Iraq with 1.99 million tons worth $920.47 million and Oman with 856,989 tons worth $452.53 million.
Iran’s 15 neighboring countries are Iraq, Turkey, Afghanistan, Pakistan, Russia, Oman, Azerbaijan, Turkmenistan, Kuwait, Qatar, Kazakhstan, Armenia, the UAE, Bahrain and Saudi Arabia.
Iran’s total foreign trade (excluding crude oil exports) stood at 133 million tons worth $80.23 billion in the first 10 months of the current fiscal year (March 21-Jan. 20).
Exports stood at 100 million tons worth $38.76 billion, registering a 7% and 38% year-on-year growth in weight and value respectively.
China, Iraq, Turkey, the UAE and Afghanistan were the main export destinations, IRIB News reported.
Imports totaled 33 million tons worth $41.47 billion, registering a 17% and 34% YOY increase in weight and value respectively.
The UAE, China, Turkey, Germany and Switzerland were the biggest exporters to Iran during the period.
Fiscal 2021-21 in Review
Iran traded $36.45 billion worth of non-oil goods with neighboring countries in the last Iranian year (ended March 20, 2021) while the preceding year’s figure stood at $40 billion.
Iran’s exports to its neighbors totaled $20.35 billion in the fiscal 2021-22, indicating a $4 billion decrease in value year-on-year.
Imports amounted to $16.09 billion during the period under review, unchanged compared with the same period of last year.
The UAE was Iran’s leading trade partner among neighboring states last year, with $14.4 billion worth of non-oil exchanges.
Following the UAE in the list of Iran’s trade partners among neighboring countries were Iraq with $7.58 billion, followed by Turkey with $6.9 billion, Afghanistan with $2.31 billion and Russia with $1.53 billion.
Pakistan and Oman followed with $1.17 billion and $871 million, respectively.
Iranian goods and commodities worth $7.44 billion were exported to Iraq, making it Iran’s top export destination among neighboring states.
The UAE, Turkey and Afghanistan came next with $4.66 billion, $2.53 billion and $2.3 billion, respectively.
The UAE, with $9.75 billion, accounted for the largest share of Iran’s imports from neighboring countries during the period. Turkey followed with $4.39 billion worth of goods to Iran. Russia with $1.03 billion worth of goods exported to Iran came next.
Iran’s total foreign non-oil trade reached 145.7 million tons worth $73 billion in the last fiscal year (March 2020-21).
Iranian Delegation in UAE
Iran and the UAE are scheduled to hold a joint forum titled “Business and Investment Opportunities” on Feb. 8.
An Iranian delegation of businesses active in trade and marketing arrived in the Arab country for this purpose.
Heading the Iranian mission is Minister of Industries, Mining and Trade Reza Fatemi-Amin, who is accompanied by President of Iran Chamber of Commerce, Industries, Mines and Agriculture Gholamhossein Shafei and the head of the Trade Promotion Organization of Iran, Alireza Peymanpak.
Iran’s first trade center licensed by Trade Promotion Organization of Iran was recently inaugurated in Dubai.
As Iran Chamber of Commerce, Industries, Mines and Agriculture reported, the center is aimed at helping Iranian companies find a foothold in the UAE, Dubai in particular, which happens to be one of the main hubs of Iran’s trade in the region.
It also seeks to use advanced information technology to create a platform that facilitates business activities of Iranian firms in the Emirati market by providing technical advice and consultation services.
The inauguration came after a senior Emirati official recently said the UAE would soon send a delegation to Iran as part of efforts to improve ties with Tehran.
"I hope that it is the sooner the better and all our friends are aware of it," Anwar Gargash, diplomatic adviser to the UAE president, told reporters when asked when a UAE delegation would hold talks in Tehran.
The idea was to "turn over a new page" in relations, he was quoted as saying by Reuters.
Resumption of Trade With Saudi Arabia
After a one-and-a-half-year hiatus in trade, Iran exported $39,000 worth of commodities to its southern neighbor Saudi Arabia since Ebrahim Raisi’s presidential term began in August, the spokesman of the Islamic Republic of Iran Customs Administration said in late 2021.
“Of the overall sum, $33,000 pertained to a specific type of glass used in traffic signs and $6,000 belonged to tiles,” Rouhollah Latifi was also quoted as saying by Mehr News Agency.
“This marks a new beginning in Iran and Saudi Arabia’s economic, political and cultural relations after the two countries began negotiations to solve tensions.”
Sadreddin Niavarani, a member of the board of directors of Fruit and Vegetables Exporters Association, says Saudi Arabia can be a big market for Iranian agricultural products.
“Before tensions emerged between the two countries, Iran used to export around $1 billion worth of agricultural commodities to the Arab country annually. Our main exports were apple, kiwi, apricot, cherries, peach and nectarine,” the official told ILNA.
“The Saudi people have always taken a liking to Iranian products. There are no hard feelings between the businesspeople of the two countries and old trade partners have continued working with each other despite political issues.”
The official noted that the two sides continued trade exchanges even during tense ties, as commodities were traded through intermediaries.
“During the period and before negotiations started, Iranian products first went to countries such as the UAE, where their labels of origin would change and then the consignments were reexported to Saudi Arabia,” he added.
Niavarani believes political tensions can never cause serious and everlasting obstacles to commercial and financial interactions between the two nations.
“Agricultural products, in particular, will eventually find their way to their intended markets. Iran has high-quality agricultural products, which have their own consumers in destination markets. At present, people in Saudi Arabia prefer to purchase Iranian apples instead of Turkish ones for double the price,” he said.
Three Iranian diplomats visited Saudi Arabia last month to represent Tehran in the Organization of Islamic Cooperation, marking the first time Saudi Arabia received diplomats from Iran since 2016, when Saudi Arabia severed relations with the Islamic Republic.
The development reflects the potential for improving ties and a possible exchange of diplomats between Iran and Saudi Arabia, AP reported.
Jeddah is the permanent venue of the 57-member organization.
Saeed Khatibzadeh, the spokesman of Iran’s Foreign Ministry, told reporters that Iran is focusing for now on reopening its offices in OIC with three diplomats.
Iran has long said it’s ready to reopen its embassy in Riyadh.
“The Islamic Republic of Iran is also ready to reopen its embassy in Saudi Arabia,” he also told a news conference in Tehran, but added that this would hinge on “practical efforts” by the kingdom.
