Article

International sanctions imposed on Iran, mainly on account of its nuclear ambitions, are now having a very severe impact on Dubai's export and re-export markets. Dubai was one of the last territories to bow to US, UN and EU pressure to refuse letters of credit (L/Cs) and other trade finance services in support of transactions with Iran. Exports to Iran by members of the Dubai Chamber of Commerce and Industry (DCCI) have slumped by more than 75 per cent over the past two years. The average monthly value of exports and re-exports had slid to around 1.8 billion UAE Dirham (AED1.8 billion - US$490 million) from about AED7 billion two years ago. He maintains that the slump is set to continue unless international sanctions imposed on Iran are eased. Many lenders now refuse L/Cs and other forms of trade finance for transactions with Iran, where worsening economic conditions have made it increasingly difficult for Iranian traders to buy imported goods.