Date: 30 May 2023
In an effort to improve relations with its Gulf state neighbors, Iran has appointed an ambassador to the United Arab Emirates (UAE), Reza Ameri, for the first time in seven years. Iran is now seeking to thaw tensions with the Persian Gulf states, including the UAE. Relations between Iran and the UAE were strained after protests and ransacking of Saudi Embassy in Tehran and Saudi consulate in Mashhad in 2016, resulting in a downgrading of diplomatic ties between Iran and the UAE.
The appointment of an Iranian ambassador to the UAE after seven years marks a significant step towards the improvement of bilateral relations between the two countries. Despite political tensions and sanctions, the UAE has remained one of Iran's major trading partners in the region. In 2020, Iran's exports to the UAE amounted to around $5.5 billion, while its imports from the UAE were approximately $2.5 billion.
The reestablishment of diplomatic ties between Iran and the UAE is expected to have a positive impact on the economies of both countries, particularly in the areas of trade, tourism, and investment. With the potential easing of sanctions against Iran, the UAE could become an even more important partner for Iran in terms of trade and investment, especially in areas such as transportation, infrastructure, and energy.
The UAE is one of Iran's largest trading partners, particularly in the area of non-oil trade. Iran exports a range of products to the UAE, including petrochemicals, steel, cement, and fruits and vegetables. In return, the UAE exports goods such as food, machinery, and electronic devices to Iran.