TEHRAN- Head of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Hossein Selahvarzi, and Chairman of the Federation of Chambers of Commerce and Industry of the United Arab Emirates Abdullah Al Mazrui have stressed the need for planning to boost cooperation between the two chambers, the ICCIMA portal reported on Wednesday.

Speaking in a meeting with Al Mazrui, Selahvarzi said: “Identifying the obstacles and problems on the way to the development of the relations between the two countries and the effort and follow-up of the chambers to remove these obstacles is a prerequisite for increasing the level of trade relations between Iran and the UAE.”

He called on the Emirati official to follow up on solving the problems of Iranian companies in his country, saying: “Problems related to the issuance of work visas for Iranian experts based in the UAE, adopting new mechanisms to solve the problem of banking and financial transactions between the businessmen of the two countries, activating a corresponding Joint chamber in the UAE and the lack of an arbitration mechanism to resolve possible disputes between Iranian and Emirati businessmen through a joint institution are among the problems on the way of Iranian companies’ activities in the UAE.”

Iran exports non-oil goods worth $3b to UAE in 6 months

Iran exported non-oil commodities valued at $3 billion to the United Arab Emirates (UAE) during the first six months of the current Iranian calendar year (March 21-September 22), the head of the Islamic Republic of Iran Customs Administration (IRICA) announced.

According to Mohammad Rezvanifar, the UAE was the third top export destination of Iranian non-oil goods in the mentioned six-month period.

On September 10, the Financial Times reported that trade between Iran and the United Arab Emirates has increased significantly as Abu Dhabi eased restrictions on business activity between the two neighbors.

The UAE has eased some limitations on corporate registrations and the issuance of visas to companies from Iran in recent months, Financial Times reported, quoting business people and officials.

Iranian financiers are also exploring how to enhance bilateral trade by creating financial mechanisms to fund legitimate transactions, the report added quoting the sources.

The UAE is Iran’s second-largest trade partner. The trade between Iran and the UAE has recovered from a pandemic slump of $11 billion in 2020/2021 to $24 billion in the 12 months ending in March, according to Iranian data.

The trade between the two sides has surpassed the $22 billion recorded in 2012 before U.S.-led sanctions were imposed on the Iranian economy.

Iranian officials have said they are now targeting a further increase in bilateral trade towards $30 billion in the next two years.

“Pressure from the UAE central bank has decreased and some Emirati banks have started opening bank accounts,” said Masoud Daneshmand, a former head of the Iran-UAE Chamber of Commerce. “Currently, some Iranian companies that used to be in the UAE but had become inactive have become active again. Some new companies have also started business.”

In diplomatic exchanges, Iranian officials have been asking their Emirati counterparts to find new mechanisms for financing trade, according to people briefed on these conversations.

“Our economic relationship with Iran has long been of major importance,” said the UAE’s economy ministry. “The UAE’s trade with Iran is conducted in full compliance with global rules and standards.”

For years there have been self-imposed restrictions on business with Iran, but these have been gradually eased in recent years, a UAE-based businessman said. “There’s a sense of more openness.”

Iran and the United Arab Emirates have agreed to sign new memorandums of understanding (MOUs) on the avoidance of double taxation and facilitation of mutual investment.

The decision was made during a meeting between Iranian Minister of Finance and Economic Affairs Ehsan Khandouzi and UAE Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini on the sidelines of the annual meeting of the Islamic Development Bank (IsDB) Board of Executive Directors in Jeddah in mid-May.

During the meeting, the officials emphasized increasing cooperation in the fields of trade and foreign investment; in this regard, it was decided that appropriate measures should be implemented soon in order to sign agreements on facilitating foreign investment and avoidance of double taxation between the countries.

Pointing to the positive impact of the resumption of relations between the Islamic Republic of Iran and Saudi Arabia in the region, Al-Husseini said that the volume of trade between the two countries has increased about 40 times.

“This volume of trade in various fields indicates a natural and positive growth of relations and interactions between Iran and the UAE, and the role of the governments of the two sides is to encourage trade and facilitate it through agreements to avoid double taxation, and it is necessary to revise the existing agreements between the two countries,” he said.

Khandouzi for his part referred to the previous unfinished negotiations related to the drafting of a foreign investment agreement between the two sides, saying: “The Islamic Republic of Iran is ready to cooperate in joint profitable projects, as well as cooperation for investing in other countries.”

Also on May 9, Chairman of the Federation of Chambers of Commerce and Industry of the United Arab Emirates Abdullah Al Mazrui said his country is seeking to become Iran’s top trading partner in the region.

Al Mazrui, who visited Iran at the head of a business delegation, made the remarks in a meeting with the former Head of Iran Chamber of Commerce, Industries, Mines, and Agriculture Gholam-Hossein Shafeie in Tehran.

During the meeting, the two sides exchanged views on the common fields of cooperation, economic relations, and how to expand commercial relations between the private sectors of Iran and the UAE.

Stating that the UAE is one of the most important neighboring countries of Iran with a deep historical relationship, Shafeie said: “The UAE is Iran's second trading partner in the world after China, and the volume of our annual exchanges has reached about 24 billion dollars. Despite all the restrictions of the past and the heavy shadow of political issues on economic relations, the UAE has always maintained its good position in relation to Iran and the mentioned issues have not been able to have a deep impact on our business relations.”

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Photo: ICCIMA Head Hossein Selahvarzi (2nd L) and Chairman of the Federation of Chambers of Commerce and Industry of UAE Abdullah Al Mazrui (2nd R)