Despite ongoing conflict in the region, Iranian merchants in Dubai maintain that economic ties between Iran and the UAE remain strong. According to a report by Gulf Times, traditional Iranian products continue to fill the markets of old Dubai, indicating a resilience in trade that has persisted despite geopolitical tensions.
Last month, the UAE announced a suspension of trade and financial exchanges with Tehran in response to escalating tensions, including Iranian actions in the strategic Strait of Hormuz. However, many Iranian merchants in Dubai believe that the longstanding economic relationships will endure.
Morteza Asaadi, who operates a grocery store established by his father in 1963, noted that while some Iranian products have become harder to find and prices have increased, essential items like nuts and zereshk, a type of berry used in Persian cuisine, are still available. He expressed uncertainty about how these goods continue to arrive but affirmed their presence in the market.
Wholesalers in Dubai, who requested anonymity, confirmed that they are still sourcing goods from Iran, primarily through Omani ports. One wholesaler mentioned that while exports from the UAE to Iran have ceased, they can still import certain products.
Dubai is home to a significant Iranian community, estimated to be several hundred thousand strong, which has played a crucial role in the emirate’s commercial growth. This community has historically navigated various periods of tension with Tehran, advocating for the continuation of trade even during sanctions imposed by the US.
In 2024, the UAE was reported to be the primary entry point for goods into Iran, accounting for over 30% of its imports, valued at approximately $21 billion. Additionally, the UAE was Iran’s third-largest export market, absorbing nearly 12% of its exports, worth more than $7 billion, according to the World Trade Organization.
Dubai serves as a vital financial hub for Iranian businesses, with the US accusing it of being a key location for financial networks that circumvent sanctions. In late August, the US announced new measures targeting Iran’s trading partners and sanctioned the director of the Dubai branch of Iran’s Bank Melli as part of its ongoing economic pressure strategy.
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