Iran's economic ties to Dubai hard to break despite war
DUBAI: In the markets of old Dubai, saffron, cumin, pistachios and almonds from Iran still fill the stalls, as if the two shores of the Gulf were not separated by war. Last month, the United Arab Emirates announced the suspension of trade and financial exchanges with Tehran, which has responded to American attacks by targeting the US-allied country and tightening its grip on the strategic Strait…
Old Dubai remains a hub for Iranian merchants who believe trade ties forged over decades will not be broken despite the ongoing war. Morteza Asaadi, a grocer whose family has been in business since 1963, notes that traditional Iranian products are still plentiful, though prices have risen. Wholesalers continue to source from Iran via Omani ports, though they cannot export from Dubai anymore.
Dubai houses a large Iranian community, estimated at several hundred thousand, which has contributed to the city's economic growth. The UAE was the primary entry point for goods into Iran, accounting for over 30% of imports in 2024. Despite Washington's sanctions, Dubai remains an important financial center for Iranian businesses, even as the US has sanctioned Iran's trading partners.
While the UAE has suspended relations with Iran to pressure Tehran into negotiations, the informal trade between private actors may persist. Dubai's Emirati businessman and former senior official, Nasser al-Shaikh, acknowledges that Iran's importance to the emirate's economy has diminished over time, but stresses that national security takes precedence in times of war.
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Also reported by 2 other outlets
- Iranian imports to Dubai continue despite UAE’s wartime ban on trade with Tehran timesofisrael.com
- Iran's economic ties to Dubai hard to break despite war al-monitor.com
