UAE Iran embroiled in Trade spat

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Dhows parked in Dubai creek waiting for loading goods to Iran
Goods being loaded on Dhows parked along Dubai creek for Iran

Iran is unhappy with UAE?s ?illogical behavior? thus it has decided against opening letters of credit for importing products from the Arab country.

“Based on the government’s recent decision, opening letters of credit for imports from UAE has been banned,” parliamentarian Gholam-Reza Mesbahi-Moghaddam stated.

UAE has always had a neutral stand when it came to Iran, even though other western countries have imposed rigid sanctions on trade with Iran over its disputed nuclear programme.

“Iran’s neighbouring countries such as UAE should resist the meaningless pressure imposed by arrogant powers so that they can continue their economic relations with the Islamic state,” Mesbahi-Moghaddam said.

International tension over Iran?s disputed nuclear plans has been mounting in recent month, a battle which neither parties seem to be willing to back down. The United States and allies claim that Iran is aiming at making nuclear weapons, whereas Tehran claims that it plans on generating electricity.

Iranian media reported on Tuesday that the Islamic state had suspended all trade with UAE, one of its top trading partners, “until further notice” in reaction to hostile actions of the Arab country. However it was disputed the same day by Iranian authorities.

Re-export trade between Iran and the UAE -goods sent to the UAE for on shipment to Iran and Iranian goods sent to the UAE for on shipment to other countries- totaled AED 19.5bn in the first six months of the year, up from AED 14.3bn a year earlier. spoke to some Iranian businessmen in the UAE, they are worried about the current stand which the UAE has taken as it would affect Iran more than the UAE. ?UAE being an Arab nation should be more sensitive to the issue and not be bullied by the US. United we stand, divided we fall!? Mohammad an Iranian business man who own numerous fashion boutiques in Dubai.

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