Iran traded 58.25 million tons of goods (excluding crude oil exports) worth $35.11 billion with the Persian Gulf’s six littoral states, namely Iraq, Kuwait, Qatar, the UAE, Bahrain and Saudi Arabia, in the fiscal 2022-23, registering a 4.29% fall in terms of weight, but a 10.05% 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 24.35 million tons (up 3.71%) worth $24.16 billion (up 12.57%). It was followed by Iraq with 27.43 million tons (down 15.81%) worth $10.5 billion (up 3.84%) and Kuwait with 5.41 million tons (up 50.28%) worth $210.34 million (up 21.66%).
Iran’s non-oil exports to the six countries hit 44.88 million tons worth $16.35 billion during the period, to register a 1.21% decline in terms of weight, but a 15.59% increase in terms of value year-on-year.
The main export destinations were Iraq with 27.23 million tons (down 8.85%) worth $10.23 billion (up 14.82%), the UAE with 11.2 million tons (up 4.15%) worth $5.76 billion (up 17.01%) and Kuwait with 5.4 million tons (up 50.46%) worth $197.83 million (up 25.15%).
Imports stood at 13.37 million tons worth $18.75 billion in the year under review, registering a 13.34% decline in terms of weight, but a 5.64% increase in terms of value YOY.
The UAE topped the list of exporters to Iran among Persian Gulf states with 13.14 million tons (up 3.35%) worth $18.39 billion (up 11.25%). It was followed by Iraq with 195,427 tons (down 92.76%) worth $263.65 million (down 77.96%) and Qatar with 25,066 tons (up 904.97%) worth $83.97 million (up 778.12%).
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 Reset
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, Gulf News wrote.
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.”
Iran-UAE Business Council Activated
The Iran-UAE Business Council held its inaugural meeting in the Iranian capital Tehran on the sidelines of Iran Expo, which ran from May 7 to 10, the UAE’s Ministry of Foreign Affairs and International Cooperation announced on its website.The UAE delegation was chaired by Abdullah Mohammed Al Mazrouei, chairman of the Federation of UAE Chambers of Commerce and Industry and President of the Abu Dhabi Chamber of Commerce and Industry. The Iranian side was chaired by Iran’s Deputy Foreign Minister for Economic Diplomacy Mehdi Safari with the participation of a number of senior businesspeople from both sides.In opening the meeting, Al Mazrouei commended efforts by the organizing committees of both sides in establishing and activating the council, which will greatly contribute to strengthening cooperation between both countries' business sectors.
He said the establishment of the UAE-Iran Business Council comes at a time when bilateral relations are witnessing economic growth and provides notable opportunities for the private and public sectors of both countries to enhance flourishing trade, investment and economic ties.
"The UAE is confident that the joint business council will serve as a vital platform to further enhance partnerships between the UAE and Iran’s business sectors,"Al Mazrouei said, adding that the launch of the UAE-Iran Business Council "embodies the joint keenness of both sides to enhance and elevate economic and trade cooperation between the two countries to new horizons while widening engagement for the Emirati and Iranian business communities."
He explained that UAE-Iran economic relations have experienced significant development and continued growth in various fields, pointing out that economic cooperation in these sectors has contributed to increasing joint trade and investment exchange. Safari expressed his appreciation over the UAE attendance and coordination in holding the council's inaugural meeting in Tehran, which represents an additional step toward bolstering economic relations between the two countries. He also stressed that the meeting helps foster an environment for consultation, discussion and exchange of views on issues that serve the two countries' business communities.
The UAE economic delegation, which includes representatives of various entities, held a series of meetings with officials from diverse Iranian economic institutions and sectors.
The UAE-Iran Business Council was established in accordance with the memorandum of understanding signed between the Federation of UAE Chambers of Commerce and Industry and the Iran Chamber of Commerce, Industries, Mines and Agriculture in 2014. It aims to explore avenues for mutually beneficial economic opportunities between the two sides in a range of fields, including food, health and tourism. The council also serves as a platform for senior business leaders in both the UAE and Iran to facilitate exchange of delegations and business partnerships.
First Ambassador Since 2016
Iran recently appointed an ambassador to the UAE 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 2022 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 being 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.
Iran’s first trade center licensed by Trade Promotion Organization was inaugurated in Dubai in 2021.
According to the Iran Chamber of Commerce, Industries, Mines and Agriculture, the establishment 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.
