The FINANCIAL -- Economic sanctions imposed on Iran have
begun to bite as the value of its currency is collapsing, Iranian
businessmen.
An Iranian official on Tuesday told its national radio that the Islamic Republic imposed a ban on imports from the UAE — which the government later denied. But nonetheless Iranian traders in Dubai have reported a 40 per cent decline in transactions due to the tougher sanctions. The UAE is one of Iran's biggest trading partners and the largest source of commodities that are essential to support its economy.
But Reza said that the increasing isolation has been difficult. However, it has begun cracking down as relations between Iran and the Gulf Arab states grow more strained. Some banks are freezing accounts and blacklisting Iranian companies.Another Iranian businessman said the number of Iranian-owned businesses in Dubai is falling because of the effect of the financial crisis and sanctions. Iran is the UAE's second-largest re-export market, accounting for about 17 per cent of the volume, while the UAE is one of Iran's top sources of imports, accounting for more than 15 per cent.
The value of direct exports between Dubai and Iran is Dh1.8 billion while re-exports stand at Dh24 billion, according to the latest statistics compiled by Dubai Exports.
Gold and lubricating oil feature high on the list of exports while rice, textiles and motor parts and accessories have topped the list of re-exports between the two countries.
Trade between Iran and Dubai has been strong since the early 20th century, when Iranian traders migrated from towns in southern Iran to the emirate.
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