Sanctions squeeze Dubai’s trade with Iran
It’s bad news for businessmen, as a fourth round of UN sanction seems to mean trade relations between the UAE and Iran are coming to a standstill.
November 25, 2010 1:41 by Reuters
Dubai-based security analyst Theodore Karasik said moves by the UAE to implement sanctions would certainly affect trade.
“A lot of surveillance is done and the authorities are watching very closely, money laundering has been reduced very sharply. There is more supervision in terms of money,” he said.
“Some people have already made a move to Turkey and Malaysia, but not in a considerable number. But I’m sure if the situation continues as such, in the very near future there will be a major shift.”
Dubai shocked global markets when Dubai World, a state-owned conglomerate, said last November it would delay its repayment in $26 billion of debt.
Since then, Dubai has been hammering out deals with creditors and getting its projects back on track.
Dubai’s new $10.9 billion Maktoum International Airport — part of Dubai World Central’s so-called “aerotropolis” complex — could cushion the impact of losing Iranian trade, Butter said.
“India, Saudi Arabia and Iraq are all substantial other destinations, and with the development of Maktoum International Airport, Dubai can develop other alternatives further afield,” he said.
(Editing by Lin Noueihed)