Dubai industry leaders upbeat on easing of sanctions on Iran

January 30, 2014

Xinhua, Dubai :
Chief executives of major construction, financial and hospitality firms in Dubai told Xinhua here Tuesday that they expect a further easing of sanctions on Iran to give the already booming economy in the emirate an additional boost.
Speaking on the sidelines of an economy conference organized by Dubai-based research firm MEED, Sami Asad, the chief executive of Arabtec Construction told Xinhua that whilst his company has “no plans at the moment to invest in Iran”, he expected more investments from Iran to come into Dubai’s construction and real estate market.
According to the global banking association International Institute of Finance, the Dubai economy grew by 4.2 percent in 2013 on the backdrop of ample growth in trade, real estate, manufacturing and tourism business. Given the close connection between Iran and Dubai, the business community in the Gulf Arab emirate hopes that future relief of sanctions on Tehran will further stimulate its booming economy.
Last week, at the 44th annual World Economic Forum in Davos, Iranian president Hassan Rohani said that after Iran agreed with six world powers on curtailing its nuclear program in exchange for a partial lift of economic sanctions, his country was “open for business.”
After the UN and the West slapped sanctions on Iran’s oil and banking sector, bilateral trade between Dubai and Iran plummeted by a third in 2012 to 25 billion Dirham or 6.81 billion U.S. dollars, according to figures of the Dubai customs authority.
Jeff H. Singer, the chief executive of the banking free zone Dubai International Financial Center (DIFC), said: “How the DIFC’s regulatory and legal systems will proceed will be right in harmony with the result of the ongoing talks between Iran and the six world powers.”
The DIFC, set up in 2004, with its zero-tax regime and internationally accepted legal framework has attracted 432 banks, insurance firms and investment companies, among them branches of 21 of the 25 biggest banks in the world and six of the 10 largest insurance firms.
“Dubai ruler Sheikh Mohammed Bin Rashid Al-Maktoum has been very clear about his bullishness over sanctions on Iran being lifted, so our procedures will also be in harmony with his requirements,” said Singer.
In an interview for BBC World aired on Jan. 13, Sheikh Mohammed called for an end of sanctions against Iran. “Dubai and the UAE are poised to benefit greatly if there’s an opening of trade and commerce with Iran,” said the emir.