The return of Iranian traders to the UAE .. Who loses and who benefits?

Jazeera Net-Tehran

Iranian economic circles welcomed the green light of Dubai for the return of Iranian traders to the UAE, while others dealt with pessimism with the UAE-Iran rapprochement, stressing that Abu Dhabi may resume its hostile behavior towards Tehran when it senses a threat to its interests.

The head of the Association of Iranian Merchants in the UAE, Abdul Qader Faqihi, said that "we felt openness in the UAE to resume the atmosphere of trade with Iran," indicating that according to the directives of officials in Dubai will be re-granted Iranian merchants trade visas.

Fakihi said that Iranian banking centers in the UAE will be reopened within days, at the behest of the UAE Central Bank, explaining that Dubai's ruler Mohammed bin Rashid Al Maktoum promised to provide facilities to Iranian investors despite US sanctions, but stipulated approval of the trade of goods not covered by the sanctions. .

Airlines fly 200 flights a week from various Iranian cities to the UAE to transport 100,000 Iranian tourists, as well as another 600,000 Iranian nationals living in their southern neighbor.

Change in UAE behavior
For his part, Chairman of the Iranian-UAE Joint Chamber of Commerce, Farshid Farzankan, considered changing the behavior of the UAE side with Iranian businessmen, an indication of the beginning of the move towards reviving trade activity between Iran and the UAE.

He attributed the UAE's promises to solve the problems of Iranian traders to the importance of the Iranian Republic to the UAE economy, pointing out that the UAE economy has entered a recession, prompting its officials to make a decision to cooperate with Iran, which is a "right choice."

According to Iranian statistics, Tehran imports 10% of all imports from the UAE, while exporting about 15% of all its exports through the latter.

According to Iranian media, the UAE has exercised economic pressure on Iranian traders in Saudi Arabia in recent years, reversing its decision after refraining from Riyadh's policies regarding the war on Yemen.

Retreat in tourists
Iranian media reported that the number of Iranian tourists to Dubai had shrunk to a third over the past year, as did the number of Iranian traders there, which had a negative impact on Dubai's economy.

According to the official Iran newspaper, 8,000 Iranian businessmen are active on the UAE scene through some 6,000 companies registered there.

In the same context, recalled the Iranian businessman Mahmoud, dealt with the authorities of the emirate of Dubai before leaving, saying that a large number of Iranian traders had established companies in the United Arab Emirates with registration of licenses in the name of UAE nationals in order to facilitate legal transactions, but the authorities closed their bank accounts, and began By pursuing companies operating within the law and under transparent financial regulations.

He added that the economic interest will motivate some of them to return to them, but he ruled out the return of others, where he settled in nearby Arab countries such as Qatar or Oman.

For his part, President of the Association of "Iran Economy" Masoud Daneshmand, expected to strengthen trade cooperation between Iran and the UAE in the coming period and the resumption of the activity of Iranian traders "under better conditions than before" there.

"We will soon start importing non-sanctioned goods from Dubai to Iranian ports, after opening LC accounts and exporting our petrochemical products to the UAE," he added.

Numbers and numbers
Speaking of the recent return of Iranian exchange companies to the UAE and activating financial exchanges between the two sides, Daneshmand said that the volume of trade exchange between Iran and the UAE ranges between $ 10-15 billion, while the figures pointed to $ 30 billion even before the imposition of US sanctions on Iran.

He expected the former head of the Iranian-UAE Joint Chamber of Commerce, the volume of trade exchange between his country and its southern neighbor in the next phase 20 to 25 billion dollars.

Iranian capital accounts for 10% of investments in the UAE, Daneshmand said.

Interaction and pessimism
As for the pessimistic view of some of the possibility of change in the UAE's attitude towards trade with Iran, he said that they had held consultation sessions with their friends, neighbors and adults, and they returned to Iran after receiving the green light from the concerned authorities, and without the prior coordination of the UAE-Iranian rapprochement would not have been.

On the other hand, member of the Iranian Chamber of Commerce and Industry Reza Bedidar did not hide his pessimism about the UAE's conduct in trade cooperation with Iran, despite its recent intention to strengthen its relations with Tehran.

Some 80% of Iranian traders are reported to have suspended their activities in the UAE and in recent years to other countries, including Oman, Qatar, Turkey and Georgia.

The UAE has turned its link to Iran after a rupture that lasted for years, where the UAE Coast Guard Commander Brigadier General Mesbah Al-Ahbabi met with the Commander of the Iranian Border Guards Brigadier General Qasem Rezaei a few days ago.The UAE side spoke about the need for continuous coordination between Tehran and Abu Dhabi to ensure the safety of navigation in the region.