Dubai: US President Donald Trump’s latest executive order to suspend visas and immigration for Iranian citizens is expected to hit businesses from the country with trade ties to the US, though the broader impact on the economy is likely to be minimal.
Analysts said the ban will negatively impact sectors of the economy that include aviation, trade, and energy, among others.
On Friday, Trump suspended all refugee entries to the US for 120 days, and suspended immigration and visas for citizens from seven Muslim-majority countries that include Iran, Iraq, Libya, Sudan, Syria, Yemen, and Somalia.
In response, Iran’s foreign ministry said it will ban Americans from entering the country, calling Trump’s ban “insulting”.
Banning US citizens from entering Iran, in response to the US banning Iranian citizens from entering the US, is going to make it hard for companies such as Boeing to service the airframes that have already been purchased and to be in the running for new orders.
Other US firms and other firms from around the world use skilled US staff as a fundamental part of their business. Aviation relies on very skilled staff for almost all of the work that is done and the talent pool available is not infinite. To ban nationals from any country is not likely to make the talent pool expand,” said Andrew Charlton, managing director of Geneva-based Aviation Advocacy, via email.
Boeing last year signed a deal to sell 80 planes to Iran Air in a deal worth $16.6 billion — the biggest US-Iran deal since the 1979 Islamic revolution.
-with inputs from Shweta Jain, Deputy Business Editor