What Would It Take For UAE-Iran Trade To Resume? Top Diplomat Explains

(MENAFN- Khaleej Times) [ Editor's Note: For the latest updates on US-Iran hostilities since a 14-point MoU expired on August 17, follow the Khaleej Times live blog.]

Trade between the UAE and Iran could resume if Tehran ceases military strikes, restores freedom of navigation and re-establishes calm across shared waters, a senior UAE diplomat has said.

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Dr Mohammed Ibrahim Al Dhaheri, Deputy Director-General of the Anwar Gargash Diplomatic Academy (AGDA), said this remained a“practical and fully achievable” diplomatic route for Iran to restore economic engagement with the UAE despite the suspension of all trade, commercial exchanges and financial transactions.

Taking those steps could allow commercial trade to resume, he added, pointing to its partial restoration earlier in the summer.

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The UAE announced the suspension on August 19 amid a regional escalation that had undermined regional and international peace and security. The move came after UAE air defences dealt with two ballistic missiles on August 18, which the Ministry of Defence later said were targeting maritime navigation. Both fell into the sea, one within UAE territorial waters and the other outside the country.

Al Dhaheri said the UAE“moved beyond words and took the deliberate decision” following“direct threats to our maritime space and commercial shipping”.

“That economic step establishes a clear boundary. Any future engagement must now be earned, step by step, through concrete actions on the ground.”

The decision carries significant economic weight.

As Iran's second-largest global trading partner, handling nearly a third of Iranian imports, we took that decision with full awareness of its economic weight.

Dr Mohammed Ibrahim Al Dhaheri, Deputy Director-General Of The Anwar Gargash Diplomatic Academy

“A step of that magnitude underscores our conviction that economic ties cannot exist in isolation from fundamental national security considerations.”

The UAE was Iran's second-largest trading partner after China, UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi said earlier this year. Food and food products were among the major imports from Iran.

According to Al Dhaheri, direct cargo shipping was suspended in March before partially resuming through Jebel Ali in late June as conditions improved.

He said economic pressure and diplomatic engagement could work together, with commercial ties“conditional and reversible by design”.

Attacks on shipping

Maritime security has become an increasingly prominent source of tension in recent weeks.

In the days immediately preceding the trade suspension, Adnoc vessels were repeatedly attacked while transiting the Strait of Hormuz. Two vessels were targeted on August 13, followed by another attack on August 14. By then, 18 Adnoc vessels had been attacked since the war began, with the incidents leaving one crew member dead and 20 injured.

The UAE strongly condemned the attacks and called on Iran to halt them, reopen the Strait of Hormuz fully and unconditionally, and safeguard freedom of navigation and international maritime routes.

The suspension of trade came days later.

Pressure and diplomacy

Al Dhaheri said the longer-term objective remained regional economic integration.

“Beyond resolving the immediate crisis lies the vital work of regional integration, energy collaboration and shared economic development,” he said.“Pressure in isolation yields limited results, just as engagement without firm conditions created the vulnerabilities we face today. A firm balance between the two offers the only realistic path towards long-term stability.”

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