DUBAI, Dec. 1 (PNA/Xinhua) –The United Arab Emirates (UAE) seeks to revive its trade with Iran after the latter reached a deal with six world powers regarding its nuclear program, which will ease the sanctions Tehran now faces.
The deal between Iran and the P5+1 Group, including the United States, Britain, Russia, China and France, plus Germany on Nov. 24 in Geneva has triggered a diplomatic initiative by the UAE last week.
On Thursday, UAE Foreign Minister Sheikh Abdullah Bin Zayed Al- Nahyan paid a rare visit to Tehran and met with Iranian President Hassan Rouhani. Both sides agreed to spur bilateral trade and investments.
Tensions had been rising between the two states since Rouhani’s predecessor Mahmoud Ahmadinedjad visited Abu Mousa Island in April 2012, which is one of the three disputed islands in the Gulf waters.
Nevertheless, the territorial dispute was not touched upon during the meeting; the two sides mostly discussed regional developments and economic relations, according to UAE news agency WAM.
As the deal will partly lift the sanctions against Iran, both sides hope to revive bilateral trade, which has suffered tremendously in recent years due to the sanctions on Iran’s financial and energy sectors.
On Wednesday, UAE central bank governor Al-Suwaidi said the sanctions had a considerable effect on the UAE’s economy. “Trade between the UAE and Iran dropped from US$ 45 billion to US$ 4 billion after the application of sanctions.”
“We are hopeful,” he said, “that in the future, when the sanctions change, the situation will be better and that the trade will grow again.”
According to the Iranian business council in Dubai, around 400, 000 Iranian nationals live in the emirate, which is only 160 km away from Iran’s coastline, whereas 8,000 Iranian businesses are registered in Dubai.
During his visit in Tehran, the UAE foreign minister also inaugurated the new UAE embassy building in the Iranian capital, raising hopes that relations between the two states will further improve.(PNA/Xinhua)