Iran’s trade with Qatar decreased by 14% in terms of weight, but increased by 46% in terms of value in the fiscal 2022-23 (ended March 20) compared with the previous year, statistics released by the Islamic Republic of Iran Customs Administration show.
The value of trade with Qatar grew by 77% in rial terms.
The reason behind this jump in trade is due to the growth in Iran's imports to Qatar. Iran imported products worth $84 million from Qatar in the last fiscal year. In fact, Qatar was the 37th biggest exporter to Iran during the period. This is while Qatar was the 66th exporter to Iran in the fiscal 2021-22 with $9 million worth of exports to Iran, ISNA reported.
Iran’s exports to Qatar stood at $124 million last year, which makes Qatar the 29th biggest export destination of Iran, down three ranks compared with the year before.
Exports to this country declined by 16% in terms of weight and 7% in terms of value in the year under review.
Tomato was the main exported product to Qatar worth $18.19 million, accounting for 14.64% of total exports’ value to this country.
It was followed by watermelon worth $6.24 million (5.03%), saffron in over 30 grams packages worth $6.04 million (4.86%), white Portland cement worth $5.06 million (4.08%) and bitumen worth $3.77 million (3.04%).
Imports from Qatar increased by 909% in weight and 816% in value in the last fiscal year compared with the year before.
The value of imports increased by 5,242% in rial terms.
Chemical wood pulp was the main imported item from Qatar with $37.49 million (accounting for 44.78% of the total value of imports from this country.
Absorbent powder and solid acrylic polymers worth $21.56 million (25.75%), machines and devices for paper or cardboard production worth $16.99 million (20.29%), components and parts of electronic integrated circuits (ICs) worth $1.45 million (1.72%) and components and parts for batteries worth $951,430 (1.14%) came next.
Billion-Dollar Trade Development
Iran and Qatar are planning a billion-dollar trade development between them for which Qatari Businessmen Association (QBA) is keen to strengthen trade exchange between the two countries.
"We are planning a billion-dollar trade development between the two countries, which is achievable," Mohsen Rezaei, vice president of Iran, told the QBA meeting held in October 2022, Gulf Times reported.
Highlighting that Qatar and Iran are working on partnership in the commercial field, he said the Iranian market is huge and includes 84 million consumers and it is also a member of major economic alliances that consists of about 500 million consumers.
"So, there is an Iranian will to open the way for Qatari investors to take advantage of the huge opportunities available in the commercial and industrial fields," he said.
QBA Chairman Sheikh Faisal bin Qassim al-Thani said, “We know the importance of the Iranian market, which is rich in opportunities, and we wish to strengthen economic relations and look forward to more mutual visits of businessmen from both countries.”
Rezaei urged Qatari investors to explore several projects in Iran, including investing in the agricultural sector, especially in wheat and corn, where there are lands that can produce more than 5 million tons of wheat, which will achieve self-sufficiency for Arab and Muslim countries.
He highlighted that it was agreed between the leadership of the two countries to appoint two representatives from both sides as soon as possible to facilitate the flow of trade and investment between the two countries.
The Iranian vice president stressed the positive role that QBA can play to develop trade exchange by promoting cooperation between Qatari and Iranian companies, which contributes to increasing intra-regional trade.
Hussein Alfardan, QBA first deputy, confirmed the interest of both sides to strengthen economic and trade relations and develop trade exchange, as he highlighted opportunities to develop cooperation between the Qatari and Iranian private sectors in various fields such as tourism, industry and trade.
Saud al-Mana, QBA board member and a partner of the Iranian Trade Center, spoke about the Iranian Trade Center established in Doha six months ago in the Qatar Financial Center with the private sector, and is now holding its first exhibition in the country to promote products such as medicines, food, building materials, carpets and other products.
Other QBA members who attended the meeting include Sheikh Faisal bin Fahd al-Thani, Khaled al-Mannai and Maqbool Habib Khalfan. Sarah Abdullah, QBA deputy general manager, was also present.
World’s Biggest Contract for Saffron Trade
The world’s biggest contract for saffron trade was signed between Iran and Qatar on Sept. 18, in the presence of Iran’s Ambassador to Doha Hamidreza Dehqani Poudeh and Qatar’s Minister of Finance Ali bin Ahmed Al Kuwari.
Based on the signed contract, a total of 200 tons of saffron worth around $300 million will be processed and exported from Iran to the neighboring Qatar.
Al Kuwari said in the meeting that Qatar is ready to cooperate with Iran in processing saffron on par with global standards.
Experts believe this contract is one of a kind and can have positive impact on Iran’s domestic saffron market and help export processed instead of raw saffron, creating value added for the precious Iranian spice.
Iran produces over 90% of all saffron produced in the world, 80% of which are exported. However, the share of Iran in the global trade of saffron is disproportionately low, as many customers of the Iranian spice buy it in bulk and reexport after packaging it to third countries.
Iran and Qatar began forging stronger economic ties after a number of Arab states led by Saudi Arabia severed diplomatic relations with Doha in 2017 and imposed a blockade on the Persian Gulf country. Following the development, Iranian exporters vied for the Qatari market in the absence of Doha's traditional Arab partners.
