Iran’s non-oil trade with the United Arab Emirates (UAE) reached $27 billion in the Iranian calendar year ending March 20, 2025, with $7.2 billion in exports and $21.9 billion in imports, according to the Islamic Republic of Iran Customs Administration (IRICA). The UAE ranked as Iran’s third-largest export destination and top source of non-oil imports, highlighting its strategic importance as Iran’s second-biggest trade partner. This robust trade relationship underscores Iran’s push to expand non-oil exports to neighboring countries, reducing reliance on oil revenues.
In May 2024, Iran and the UAE signed a memorandum of understanding (MOU) at the third Joint Economic Committee meeting in Abu Dhabi to deepen economic cooperation. Co-chaired by former Iranian Transport Minister Mehrdad Bazrpash and UAE Economy Minister Abdullah bin Touq Al Marri, the meeting emphasized enhancing trade, transportation, and banking ties. Both sides highlighted the strategic advantage of their positions along the International North-South Transit Corridor (INSTC), which facilitates access to northern and southern markets, fostering opportunities for bilateral collaboration.
The UAE’s supportive policies, including laws for foreign companies and incentives for new energy ventures, have created a favorable environment for Iranian businesses, with many establishing operations in the UAE. The Joint Economic Committee meeting, the first in a decade, addressed banking and monetary challenges to streamline trade. As Iran continues to prioritize non-oil trade with regional partners, the strengthened economic ties with the UAE position both nations to capitalize on emerging opportunities in a dynamic global market.
