UAE and Iran to Hold First Joint Economic Commission Meeting in 10 Years

The United Arab Emirates and Iran are set to convene a joint economic commission meeting in Abu Dhabi from May 2-3, marking the first such meeting between the two countries in a decade. The high-level talks will be attended by Iranian Minister of Roads and Urban Development Mehdi Bazrpash and Emirati Minister of Economy Abdulla Bin Touq Al Marri.

The meeting is part of Iran's efforts under President Ebrahim Raisi to strengthen economic ties with its Persian Gulf neighbors as part of its 'good neighborliness policy'. The UAE downgraded diplomatic ties with Iran in 2016 following the storming of the Saudi embassy in Tehran, but has been re-engaging with Iran since 2019, resulting in upgraded diplomatic relations last year.

During the two-day event, the ministers are expected to discuss cooperation in international trade corridors, particularly the North-South corridor, to facilitate the movement of UAE goods to Central Asia, the Caucasus, Russia, and Europe. Private sector representatives will also engage in face-to-face negotiations to discuss trade and investment opportunities. Experts will provide insights on the business environment and regulations governing investment and trade between the two countries.

Why this matters: The UAE-Iran joint economic commission meeting signals a significant thaw in relations between the two countries and could lead to increased economic cooperation in the region. It also highlights Iran's efforts to bolster ties with its Gulf neighbors amid ongoing tensions with the United States.

The UAE has historically been one of Iran's primary economic partners, with Dubai serving as a crucial link for Iran to the outside world. In the last fiscal year, Iran imported $20.8 billion worth of goods from the UAE, making it Iran's top source of imports, while the UAE was Iran's third-largest export destination, with $6.6 billion worth of goods exported. It is anticipated that two cooperation documents will be signed by the heads of the joint commission on the second day of the meeting, further cementing the economic ties between the two nations.

Key Takeaways

• UAE and Iran to convene joint economic commission meeting in Abu Dhabi on May 2-3.
• First such meeting in 10 years, signaling thaw in relations between the two countries.
• Discussions to focus on trade corridors, particularly the North-South corridor, and investment opportunities.
• UAE is Iran's top source of imports, while Iran is UAE's 3rd-largest export destination.
• Two cooperation documents expected to be signed, further cementing economic ties between the nations.