Iran strengthens trade relations with adjacent nations in recent years
Date
12/23/2024 3:02:48 AM
(MENAFN) In recent years, the economic ties between Iran and its neighboring countries have become increasingly important, with trade relationships evolving in both complexity and scope. This integration plays a critical role in diversifying Iran’s economy, especially in light of the challenges posed by geopolitical tensions and international sanctions. Strengthening economic partnerships with its neighbors helps Iran bolster its non-oil sector, which is central to its broader economic strategy.
As of late 2024, Iran’s non-oil trade with neighboring countries has shown significant growth. Over the first 11 months of the year, non-oil trade volumes reached USD55.3 billion. Iranian exports totaled 67 million tons of goods, valued at USD25.8 billion, while imports stood at 21.4 million tons, valued at USD29.4 billion. The growth in trade is largely driven by a rise in the export of petrochemical products, minerals, and agricultural goods, reflecting Iran’s increasing role in regional trade networks.
The UAE and Iraq are Iran’s two largest trading partners in the region, particularly for exports. For instance, in the first seven months of 2024, trade with Iraq was valued at USD7.6 billion. Iran exports petrochemicals, cement, and agricultural products to Iraq, while importing machinery and foodstuffs. Iraq's proximity and large demand for Iranian goods make it a vital part of Iran's trade infrastructure. The UAE also plays a central role in Iran’s regional trade, particularly as a hub for re-exporting Iranian products.
Turkey is another key partner, with bilateral trade amounting to USD9.9 billion in the same period. Iran's exports to Turkey primarily include natural gas and petroleum products, while imports cover a diverse range of goods, including electrical machinery and textiles. These trade exchanges reinforce Turkey's importance as both a consumer of Iranian energy and a source of industrial products. As trade continues to flourish, the relationships between Iran and its neighbors are expected to grow in strategic significance, enhancing Iran’s economic resilience in an increasingly complex geopolitical environment.
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