Middle East Focus: Dubai and Iran Smell Trouble, Trade Trouble……….

Arabia Deserta

Dubai and Iran Smell Trouble, Trade Trouble……….

“The Gulf emirate is a vital economic link for the Islamic Republic, but as many as 400 Iranian businesses in Dubai might have closed over the last year or so, said Masoumzadeh, who is also vice president of the local Iranian Business Council. This was partly because of Dubai's property downturn and the global economic slowdown, but the sanctions had also made life more difficult by restricting access to credit. "We can feel it. The sanctions on the financial sector are badly affecting traders in this country dealing with Iran," he said in his 14-storey office in downtown Dubai, with the sea glittering in the distance. "It is obvious that the future is dark," said Masoumzadeh, who moved to Dubai nearly three decades ago to transport rice, timber, home appliances, cars and other items to his native country a short distance away across the Gulf. With Iran facing growing Western pressure, its close economic and other ties with Dubai have drawn scrutiny from the United States, which is pushing for a fourth round of U.N. sanctions on Tehran for refusing to halt its atomic activities…………..”

Restrictions on trade and investment will not only be bad for Iran. They would also be very bad for Dubai, making that emirate more beholden to the rulers of neighboring Abu Dhabi, more under their control. That is something the historically independent al-Maktoums of that old trade center must hate. Oh well, there is always another boom over the horizon: n'est-ce pas?
Cheers
mhg

Mon Email