Iran traded 53.46 million tons of goods (excluding crude oil exports) worth $31.75 billion with the Persian Gulf’s six littoral states, namely Iraq, Kuwait, Qatar, the UAE, Bahrain and Saudi Arabia, during the first 11 months of the last Iranian year (March 21, 2022-Feb. 19), registering a 4.24% fall in terms of weight, but an 11.96% rise in value compared with the previous year’s corresponding period, 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 21.99 million tons (up 3.26%) worth $21.75 billion (up 15.71%). It was followed by Iraq with 25.45 million tons (down 16.16%) worth $9.58 billion (up 3.45%) and Kuwait with 5.03 million tons (up 63.9%) worth $195.64 million (up 28.25%).
Iran’s non-oil exports to the six countries hit 41.45 million tons worth $14.96 billion during the period, to register a 1.33% decline in terms of weight, but a 17.64% increase in terms of value year-on-year.
The main export destinations were Iraq with 25.29 million tons (down 9.71%) worth $9.38 billion (up 14.13%), the UAE with 10.16 million tons (up 3.34%) worth $5.25 billion (up 24.3%) and Kuwait with 5.02 million tons (up 63.75%) worth $185.12 million (up 32.93%).
Imports stood at 12 million tons worth $16.78 billion during the 11 months, registering a 13.1% decline in terms of weight, but a 7.33% increase in terms of value YOY.
The UAE topped the list of exporters to Iran among Persian Gulf states with 11.82 million tons (up 3.19%) worth $16.49 billion (up 13.22%). It was followed by Iraq with 155,022 tons (down 93.4%) worth $208.4 million (down 80.15%) and Qatar with 22,153 tons (up 1,043%) worth $69.05 million (up 789.83%).
Iran traded 60.87 million tons of goods worth $31.9 billion with the 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 Ripe for Reset
Historically, India and Iran have been the main trading partners of Persian Gulf Arab states, with the two making up a majority of imports, particularly for food commodities, for decades. They also attracted most of the Persian Gulf visitors, including medical tourism, read an article published by Gulf News.
The states’ relations with India and Iran continued to grow until the end of the 1970s. Since then, this has taken different paths and their importance to the states diverged.
India wisely absorbed the states’ growing economic importance and took constructive steps to develop deeper relations with them. It has placed India alongside China as the top trading partners for these economies.
On the other hand, events in Iran at the end of the 1970s contributed to a significant deterioration in economic and trade relations with the Persian Gulf Arab states. As a result, trade declined as did tourist numbers, which came to a halt at various times, resulting in significant losses for Iran’s businesses while the Arab states easily found alternatives for their imports from Iran.
Arab-Iran relations are now experiencing dramatic and rapid changes, with encouraging intentions on both sides. In fact, there is no better school to learn from than history. No one has benefited from tensions and conflicts over the last 40 years, and no one has been - or will be - able to change geographic borders, demographic or ethnic structures.
If demographic and ethnic structures are balanced, there will be enormous opportunities for the development of bilateral and collective cooperation.
Amid serious global tensions, the Persian Gulf region received the good news of a bilateral agreement reached by Saudi Arabia and Iran, which was brokered by China. This was followed by a visit to the UAE by Ali Shamkhani, secretary of Iran’s Supreme National Security Council, and a meeting between the head of the Iranian parliamentary delegation and high-level officials in Bahrain.
Statements by Persian Gulf Arab states and Iranian officials highlight the importance of economic, trade and investment cooperation in the ongoing rounds of talks between the two sides.
Commenting on the Saudi-Iran agreement, UAE’s National Security Advisor Sheikh Tahnoun bin Zayed Al Nahyan said this agreement plays a constructive role in expanding peace, stability and sustainable security in the region, adding that “developing friendly and brotherly relations between Abu Dhabi and Tehran is among the UAE’s priorities.”
Shamkhani highlighted that “cooperation and rapprochement must replace differences and hostility.”
The composition of the delegations participating in the talks, which included the governor of Iran’s Central Bank, demonstrated that economic and investment issues took center-stage in the talks.
Saudi Finance Minister Mohammed Al Jadaan said, “There are a lot of opportunities for Saudi investments in Iran that could happen very quickly.”
Consequently, both sides have positive intentions to overcome the negatives of the previous period and its ramifications, which missed important investment opportunities and constructive economic cooperation and resulted in cumulative losses over years.
There are genuine opportunities to move to a new phase of cooperation, good neighborliness and respect for each side’s options and domestic policies, which is one of the foundations required to build trust. Finding solutions to pending issues will take time to find the appropriate ground for developing bilateral cooperation in all fields, particularly on the economy.
Developing economic cooperation will have positives for the rest of the Middle East and the Indian subcontinent. This means that for one simple reason, building trust between the parties will precede economic cooperation and investment prospects. Investment and economic development are impossible without a stable environment free of tension and mistrust.
If the new approach is successful, the world will witness a prosperous Persian Gulf on both sides, where peoples are provided with opportunities, optimum living standards and sustainable development.
Iran Appoints 1st UAE Ambassador Since 2016
Iran said recently it had appointed an ambassador to the United Arab Emirates for the first time since 2016, amid a realignment of relations between Persian Gulf states and Iran.
The move comes after the UAE in August moved to upgrade ties and said it was returning its ambassador to Tehran, Reuters reported.
The UAE downgraded relations with Iran after Saudi Arabia severed ties with Iran in January 2016 after Iranian protesters stormed the Saudi Embassy in Tehran following Riyadh's execution of a prominent Shia cleric.
The UAE, which has business and trade ties with Iran stretching back more than a century, started reengaging with Tehran in 2019.
The UAE's Dubai emirate has long been one of Iran's main links to the outside world.
Iran's newly appointed ambassador, Reza Ameri, had served as the director general of the Iranian Expatriates Office in the Foreign Ministry, Iranian state media said.
