Lifting Iran trade sanctions could double Dubai’s textile trade
The lifting of international trade sanctions on Iran will lead to a regional trading boom in the textile industry, according to an official with traders’ association Texmas.
An agreement to relieve sanctions was struck in November last year between Iran and six world powers, including the US, China, Russia and Britain, which came into effect on January 20 this year. The accord saw the Islamic Republic curb parts of its nuclear programme in exchange for access to $4.2bn in foreign exchange and some relief from sanctions on gold, petrochemicals and vehicles.
If the sanctions were lifted completely, however, secretary of Texmas, the Dubai-based traders’ association, Ram Bhagchandani, said the textile business could double in the emirate.
“There are a lot of sanctions in Iran and a lot of businesses were affected by that. Once Iran opens up then our trade will almost double. Iran has been a very major buyer for us,” Bhagchandani said.
The UAE and Iran remain major trading partners, despite overall trade between the two, excluding oil, falling from AED12.3bn ($3.35bn) between January and June 2012 to AED10.8bn in the same period last year as sanctions took their toll.
In January this year, Dubai ruler Sheikh Mohammed urged the international community to lift all economic sanctions against Iran.
“Iran is our neighbour and we don’t want any problems,” Sheikh Mohammed said in a televised interview with BBC News.