The United Arab Emirates is fully complying with sanctions enforced this month from the USA on Iran although it is going to indicate a further fall in trade with Tehran, a UAE market ministry official informed.
Abu Dhabi, the governmental capital of the UAE federation, has obtained a hawkish stand on Tehran, even though Dubai, the nation’s business hub, has been a significant trading partner with Iran.
Washington declared on Nov. 5 a succession of sanctions targeting Iran’s banks, sending industry, national airline and 200 people after President Donald Trump pulled the USA from a global atomic agreement with Tehran.
“We’re implementing the sanctions,” Abdullah al-Saleh, undersecretary for foreign commerce and business, said in a meeting in Dubai.
The UAE is Implementing the U.S. sanction regime “since it’s released by the United States”, al-Saleh stated, adding that the applicable authorities would guarantee compliance.
Al-Saleh stated the UAE’s commerce with Iran is expected to decrease this year and next year as a result of sanctions, after falling to $17 billion in 2017 by a peak of $20 billion in 2013.
Most trade contains re-exports through Dubai to Iran, which is located across the Gulf.
The sanctions are part of a broader attempt by the Trump government to reduce Iranian influence in the Middle East.
The UAE is one of U.S. allies in the Gulf area that staunchly oppose Iranian foreign policy and quickly endorsed Washington’s decision. It’s likewise a part of a Saudi-led coalition that’s opposing the Iran-aligned Houthi set in Yemen’s civil war.
Compliance will imply UAE businesses don’t face problems in the USA, along with the UAE authorities will look to improve trade with other markets like Africa and Asia to offset the effect of the sanctions on its economy, al-Saleh said, replicating an present government policy to market trade.
Trump’s government has threatened those who continue to perform Iran firm with the possibility of losing access to the U.S. market, though it has granted temporary exemptions to eight importing nations to maintain purchasing Iranian oil.
Even the European Union, France, Germany and Britain, that want to conserve the nuclear bargain, have said they regret that the U.S. choice and will attempt to protect European firms doing legitimate business with Tehran.