Iran traded 20.86 million tons of goods worth $12.03 billion with the six Persian Gulf littoral states, namely Iraq, Kuwait, Qatar, the UAE, Bahrain and Saudi Arabia, during the first five months of the current fiscal year (March 21-Aug. 22), registering an 11.43% decline in terms of weight, but a 9.47% growth in value compared with the similar period of last year, latest data released by the Islamic Republic of Iran Customs Administration show.
The UAE was Iran’s top trade partner among the countries under review with 9.6 million tons worth $8.85 billion, registering a 0.86% and 19.28% year-on-year growth in weight and value, respectively.
It was followed by Iraq with 8.71 million tons (down 30.91%) worth $3.03 billion (down 11.98%) and Kuwait with 2.17 million tons (up 124.54%) worth $76.8 million (up 30.57%).
Iran’s exports to the six countries hit 16.2 million tons worth $5.86 billion during the period, registering an 11.89% decline in weight, but a 15.01% growth in value YOY.
The main export destination was Iraq with 8.65 million tons (down 28.78%) worth $2.96 billion (down 8.04%), followed by the UAE with 5 million tons (up 3.88%) worth $2.78 billion (up 57.24%) and Kuwait with 2.17 million tons (up 125.16%) worth $72.86 million (up 37.23%).
Imports stood at 4.65 million tons worth $6.16 billion, registering a 9.77% decline in weight, but a 4.68% increase in value compared with the same period of the previous year.
The UAE topped the list of exporters to Iran among Persian Gulf states with 4.6 million tons (down 2.23%) worth $6.07 billion (up 7.41%). It was followed by Iraq with 53,570 tons (down 88.14%) worth $73.91 million (down 67.55%) and Qatar with 1,789 tons (up 34.19%) worth $17.02 million (up 272.43%).
Iran traded 60.87 million tons of goods worth $31.9 billion with Persian Gulf littoral states in the fiscal 2021-22, up from $22.36 billion in the year before. Exports totaled 45.43 million tons worth $14.15 billion while imports stood at 15.43 million tons worth $17.76 billion.
Ties With Persian Gulf States Improving
The UAE recently declared that its ambassador to Iran, Saif Mohamed Al-Zaabi, would return to Tehran “in the coming days” more than six years after the Persian Gulf Arab state downgraded its diplomatic relations with Iran in 2016.
The move was in solidarity with Saudi Arabia after the storming of the Saudi Embassy in Tehran by Iranian demonstrators in protest at the Saudi execution of the prominent Shia cleric Nimr Al-Nimr, reads an article in Al-Ahram. Excerpts follow:
The UAE decision to restore its ambassador to Iran is in line with efforts to strengthen relations with its regional rival “to achieve the common interests of the two countries and the wider region”, the UAE Foreign Ministry said in a statement.
Kuwait has also sent its ambassador to Tehran after six years of absence when it also downgraded diplomatic relations with Tehran in solidarity with Saudi Arabia.
Relations between Riyadh and Tehran are also gradually improving. The two countries have held five rounds of bilateral talks with Iraqi mediation to ease tensions between them over regional crises, including that of Yemen.
UAE diplomatic sources in London told Al-Ahram Weekly that the Persian Gulf states began reevaluating their relations with Tehran in 2019, independent of the US Middle East policy.
“There is a realization that the countries of the region need to protect their security through rapprochement with Iran. This rapprochement is important and beneficial for the entire region … Security equals prosperity; it is as simple as that,” a UAE diplomat told the weekly.
Anwar Gargash, diplomatic adviser to the UAE president, emphasized that his country was “taking steps to deescalate tensions with Iran as part of a policy choice toward diplomacy and away from confrontation”.
A few months ago, the UAE and Iran signed an economic cooperation agreement and last December, Turkey, Iran and the UAE signed a similar agreement under which goods are sent from the UAE to Iran and then to Turkey over land.
UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, brother of UAE ruler Sheikh Mohamed bin Zayed, visited Iran last year to explore ways of developing economic and political relations.
The announcement of the return of the Emirati ambassador to Tehran, therefore, comes within the framework of a steady improvement in relations.
Another factor helping improve relations is the Russian-Ukrainian war. In this crisis, the Persian Gulf seems closer to the stance of China, Russia and Iran than to that of the US and Europe.
