The normalisation of relations between the west and Iran, including a lifting of the sanctions imposed on the country since 1979 by the US and by the UN since 2006, would have a beneficial impact on trade with its main partner, the UAE, according to a report in Gulf News.
Negotiations that are ongoing between Iran and the UK, China, France, Russia, the US and Germany are likely to reach a successful conclusion in the next six months, analysts said.
“We might see a huge trade growth between the two countries," said Hussein Asrar Haghighi, vice-executive president of Iranian Business Council in Dubai. "Trade figures would double and business relations would be strengthened. There would be an increase in the number of tourists visiting the UAE. We have to see how sanctions would be eased, whether it would be done in a gradual way or it would be taken up speedily. The outcome would benefit immensely.”
An end to sanctions would equally see the addition of 500,000-600,000 barrels of Iranian oil a day to a global market already suffering from oversupply, according to Francisco Quintana, head of economic research at Asiya Investments.
The net effect was likely to be positive for the UAE, he said, in particular Dubai, which is the traditional gateway for goods to reach Iran, but negative for most other countries in the Gulf.