UAE and Iran agree to bolster economic ties and trade co-operation

The two countries hold first session of the Joint Economic Committee meeting in Abu Dhabi

The first session of the Joint Economic Committee between the UAE and Iran was held in Abu Dhabi. Photo: UAE Ministry of Economy

The UAE and Iran have agreed to bolster economic ties and promote co-operation in sectors including tourism, transport, entrepreneurship and renewable energy.

The two countries held the first session of the Joint Economic Committee meeting in Abu Dhabi, which was chaired by the UAE’s Minister of Economy, Abdulla bin Touq, and Iran’s Minister of Roads and Urban Development Mehrdad Bazrpash.

Both countries also plan to boost economic co-operation in sectors including logistics, agriculture and environment, the UAE’s Ministry of Economy said in a statement on Thursday.

“The convening of the first session of the UAE-Iran JEC reflects our shared aspirations to solidify existing economic ties and expand them to the future sectors,” Mr bin Touq said.

The UAE is continuing to strengthen trade and economic ties with countries across the globe through Comprehensive Economic Partnership Agreements (Cepa) that aim to reduce or remove trade barriers.

This week, it finalised the terms for a new Cepa with Ukraine. So far 11 Cepas have been signed with India, Turkey, Israel, Indonesia, Cambodia, Georgia, Mauritius, Kenya, the Republic of Congo, Colombia and Costa Rica.

The UAE is also holding talks to conclude deals with Serbia, Vietnam, the Philippines, New Zealand and Ecuador, while negotiations with South Korea are complete.

The inaugural UAE-Iran JEC session also discussed new ways to enhance trade and provide support to exporters and importers.

The two countries agreed to establish joint technical task forces to follow up on the implementation of the JEC's recommendations to strengthen economic and trade co-operation.

They also agreed to support the development of small and medium-sized enterprises (SMEs) and export their products to new markets, according to the statement.

On Wednesday, Mr Bazrpash met Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, in Abu Dhabi.

They discussed UAE-Iran co-operation, particularly in terms of expanding bilateral trade, state news agency Wam reported.

Iran imported $20.8 billion of goods from the UAE in its last fiscal year, ending in March 2024, according to the country's customs body.

Iran's real gross domestic growth is projected to grow 3.3 per cent in 2024 after expanding by 4.7 per cent last year, according to the International Monetary Fund's Regional Economic Outlook report for the Middle East and Central Asia, in April. It is forecast to grow 3.1 per cent next year.