UAE-Iran Trade Suspension to Deepen Hardship for Iranians, Analyst Warns
An Emirati analyst says the UAE's suspension of trade with Iran will be 'very painful' for ordinary Iranians, though it will barely dent the UAE's overall economy.
The United Arab Emirates' decision to suspend all trade with Iran will inflict severe economic pain on ordinary Iranians, according to a prominent Emirati political analyst. The move, announced after the UAE said it came under renewed fire from Iran, further isolates the Islamic Republic as it grapples with US sanctions and a blockade.
Abdulkhaleq Abdulla, an expert on UAE foreign policy and Gulf-Iran relations, said the decision would deepen the misery of a population already under immense strain. "It is very difficult to trust Iran and trust whoever is running the show in Iran," he said. "This trade and financial termination of relationship is going to be very painful for Iran as long as it lasts."
Abdulla highlighted the human cost, noting the impact on Iran's 90 million citizens. "The first and the foremost that comes to mind as a result of this decision is the impact on 90 million Iranians who are in a very difficult situation already," he said. "This kind of decision is going to make their life even more miserable."
The analyst downplayed the effect on the UAE's economy, despite Iran having been a significant trading partner. He estimated bilateral trade at $20-25 billion, a figure he described as a "drop" compared to the UAE's total foreign trade of around $1 trillion. "It constitutes something like 3% of the total UAE foreign trade," he noted.
The suspension follows a period of renewed hostilities. Incoming ballistic missile fire triggered nationwide warnings for UAE residents to seek shelter on Tuesday night, the first such alarm in weeks. Early in the conflict, the UAE regularly came under intense fire from Iran, halting most trade between the former partners. Some maritime trade had briefly resumed in late June as tensions eased.
Iran has also continued to target shipping in the Strait of Hormuz, including four tankers owned by Abu Dhabi's state-owned ADNOC company in the past two weeks. Nearly 20 ADNOC vessels have been attacked in the strait since the conflict began, resulting in one death and 20 injuries.