Mohammad's Iran visit aims to boost economic partnership

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, is set to start his visit to Tehran on Monday to discuss ways of boosting the economic cooperation between Iran and its top trading partner, the UAE.

Officials in Tehran said that they expect some "optimistic developments" regarding boosting trade as the whole region is witnessing a massive boom across a wide spectrum of industries.

The total value of UAE non-oil imports from Iran soared over Dh3.5 billion in 2006, and total non-oil exports from the UAE to Iran was over Dh1.9 billion, according to the Ministry of Economy.

The total non-oil trade between the UAE and Iran in 2006, including re-exports was over Dh22 billion.

In 2006, trade between Iran and Dubai alone generated Dh3.3 billion in imports and over Dh25 billion in exports, according to Dubai Customs. These figures include direct trade between the two and also trade in free zones.

According to Dubai Chamber of Commerce and Industry, there are 27 fully owned Iranian companies in Dubai and 8,100 companies that have a UAE national partner or owner, bringing the total number of firms with Iranian stake to 8,127.

Expanding activities

Iran is currently participating for the first time in the International Property Show, being held in Dubai until February 19.

Mohammad Ali Hosseini, Iran's Foreign Ministry spokesman, said talks will be held on economic relations, investment, transfer of electricity, exportation of gas. "Ways and means will be explored for boosting the volume of trade between the two countries," he said.

Iran has the world's second largest gas reserves but due to sanctions, has been slow in developing its exporting potential. Both the UAE and Iran are major oil producers in the Organisation of Petroleum Exporting Countries (OPEC) and need gas to fuel rising consumption by industries and power plants.

Iran and Crescent Petroleum, a shareholder in UAE energy firm, Dana Gas, are in the middle of negotiating the supply of Iranian gas to the UAE.

Figures from the Iranian Consulate General in Dubai puts bilateral trade in Iran at $11.7 billion (about Dh42.9 billion), with the UAE generating the vast majority, with $9.2 billion. Trade is expected to increase by March 19, the end of the Iranian year, to $14 billion.

Nasser Hashempour, executive deputy president of the Dubai-based Iranian Business Council, said Iranians in the UAE have accumulated assets estimated at more than $300 billion.