Iran industry minister to conclude UAE trip

An Iranian trade delegation led by Industry Minister Reza Fetemi-Amin will conclude a trip to the United Arab Emirates today.

Representatives from the private sectors of both countries met to discuss efforts to strengthen business ties and cross-border investment. While the UAE is a crucial economic partner of Iran, bilateral trade has suffered greatly since former US President Donald Trump reimposed sanctions in 2018. As a result, Iran is eager to foment stronger regional economic ties as the likelihood of the US easing sanctions increases.

Relations in the short-term may still be complicated by Iran’s support for the Houthi rebels in Yemen who have been locked in a proxy war against the UAE-aligned internationally recognized government in Sana’a. Recent attacks by Houthi-launched drones and rockets into UAE territory have raised tensions in recent weeks. Nevertheless, the Emirates remain a major trade link to the international community. However, with efforts to reinstate the 2015 Iran Nuclear Deal still facing significant hurdles, expect Iran to shore up its rapprochement with the UAE in the medium-term. Under a foreign policy oriented towards economic priorities, the UAE is also likely to seek better relations insofar as business goals are achieved.