UAE and Iran to strengthen economic relations and enhance trade cooperation

The United Arab Emirates (UAE) and Iran have come together to strengthen economic ties and promote cooperation in various sectors, marking a significant step towards enhancing bilateral relations between the two nations.

The first session of the Joint Economic Committee meeting took place in Abu Dhabi, with the UAE’s Minister of Economy, Abdulla bin Touq, and Iran’s Minister of Roads and Urban Development, Mehrdad Bazrpash, leading the discussions. The meeting focused on bolstering economic cooperation in key areas such as tourism, transport, entrepreneurship, and renewable energy.

In a statement released by the UAE’s Ministry of Economy, both countries expressed their intention to expand economic collaboration in sectors like logistics, agriculture, and environment. Minister bin Touq emphasized the importance of solidifying existing economic ties and exploring opportunities for growth in future sectors through the UAE-Iran Joint Economic Committee.

The UAE has been actively pursuing Comprehensive Economic Partnership Agreements (Cepa) with various countries to reduce trade barriers and enhance economic partnerships. Recently, the UAE finalized terms for a new Cepa with Ukraine, adding to the existing agreements with countries like India, Turkey, Israel, and others.

Furthermore, negotiations are underway to establish Cepas with Serbia, Vietnam, the Philippines, New Zealand, and Ecuador, with successful talks already concluded with South Korea. These agreements aim to facilitate trade and investment opportunities for both parties, fostering economic growth and cooperation on a global scale.

During the UAE-Iran JEC session, discussions also revolved around supporting exporters and importers, establishing joint technical task forces to implement recommendations, and promoting the development of small and medium-sized enterprises (SMEs). The focus on enhancing trade and expanding market access for SMEs reflects a commitment to fostering economic growth and sustainability in both countries.

In a meeting between Minister Bazrpash and Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court in Abu Dhabi, the leaders discussed further cooperation between the UAE and Iran, particularly in terms of expanding bilateral trade. Iran’s significant imports from the UAE in the last fiscal year highlight the strong economic ties between the two nations.

Looking ahead, Iran’s economic outlook shows promising growth projections, with the International Monetary Fund forecasting a 3.3% increase in real GDP for 2024. This follows a 4.7% expansion last year, indicating a positive trajectory for Iran’s economic development in the coming years.

The UAE-Iran partnership signifies a strategic alliance aimed at fostering economic prosperity and mutual benefits for both countries. By strengthening ties in key sectors and promoting trade cooperation, the UAE and Iran are paving the way for a more robust and resilient economic relationship in the future.