Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
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Iranian, UAE Tension Looms Over Trade

Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)
Workers load goods onto a dhow bound for Iran along the creek in old Dubai, United Arab Emirates, March 2, 2020 (Reuters)

Iranian experts and traders are concerned that the tensions between Iran and the UAE could affect the mutual trade relations, at a time when Tehran is facing an economic crisis due to the impact of sanctions and the coronavirus pandemic.

Iran condemned the recent UAE-Israeli peace treaty, and President Hasan Rouhani gave a strongly worded statement denouncing the agreement.

In response, the Emirati foreign ministry summoned Iran's charge d'affaires in Abu Dhabi and gave him a memo saying Rouhani’s speech was “unacceptable,” warning that it could have serious repercussions for the security and stability of the Arabian Gulf region.

However, Iranian economic and foreign experts ruled out the possibility that the UAE would change its relations with Iran after the peace treaty with Israel, according to the Iranian Ilna Agency.

The chairman of Iran-UAE Joint Chamber of Commerce, Farshid Farzanegan, told the agency that despite economic problems and the spread of the coronavirus, the UAE was the only country to which Iran’s exports increased.

Farzanegan announced that Iran’s exports to the UAE increased by 16 percent in the first four months of the Iranian year that starts on March 21.

He noted that economic relations must be separate from political issues, noting that due to sanctions, Tehran does not have many options for trade, and Turkey and the UAE are two countries where Iranian traders have maintained their activities.

“Iran’s exports to the UAE were $4.5 billion and our imports from this country were $8.9 billion, in other words, the volume of trade between the two countries is $13.4 billion.”

He then pointed to the major imported and exported goods between both countries, saying that till last year, petrochemical and mineral materials as well as industrial products and machinery have been the major exports to the UAE.

The chairman also noted that Iranian agro products are highly important exports for traders.

Farzanegan also pointed out that there is currently no problem regarding forex shops in the UAE and money transactions are done much faster than other countries in the Persian Gulf, including Oman.

He noted that the UAE is not the only vital vein for money arriving into the country but the country is definitely a gateway for it. He explained that all re-exports and re-imports are done through the UAE because it is a regional hub for imports and exports.



Saudi Arabia Ranks Second in G20 for ICT Regulatory Progress

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia Ranks Second in G20 for ICT Regulatory Progress

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Saudi Arabia has secured second place among G20 countries in the UN International Telecommunication Union’s 2024 ICT Regulatory Tracker, marking a significant milestone in the Kingdom’s efforts to modernize its digital regulatory environment.

The achievement underscores Saudi Arabia’s progress in developing a robust regulatory framework for the telecommunications and information technology sectors.

It reflects the country’s commitment to fostering innovation, building advanced digital infrastructure, and implementing effective regulatory tools that support investment and fuel the growth of the digital economy.

The Communications, Space and Technology Commission said the index is designed to assist policymakers and regulators in keeping pace with rapid changes in the sector.

The index evaluates 194 countries based on 50 indicators across four key areas: regulatory authority independence, mandate, framework, and market competition.

The Kingdom’s performance in the ICT Regulatory Tracker adds to a string of international successes in the technology sector.

It has maintained its position as the second-highest ranking G20 nation in the ITU’s ICT Development Index for a second consecutive year. Saudi Arabia also ranked second among G20 countries in the UN’s Telecommunication Infrastructure Index.

Separately, the Ministry of Communications and Information Technology announced on Tuesday that Saudi Arabia was named “Country of the Year” and topped the global rankings for the fastest-growing tech startup ecosystem in the 2024 StartupBlink Index.

Riyadh was recognized as the world’s fastest-growing city in this category.

Saudi Arabia ranked first globally in healthtech, and second in both insurtech and investment tech, as well as in logistics and delivery applications. It placed third in digital payments, fifth in gaming, and seventh worldwide in edtech.

Riyadh also posted the highest global growth rate in innovation and entrepreneurship ecosystems. The capital ranked first in nanotechnology and transportation technology, and second in fintech.

As part of its broader strategic vision, the Saudi government is working to maximize the economic impact of the tech sector. The digital economy now contributes more than SAR495 billion ($132 billion) to GDP, representing 15% of the total. The ICT market size exceeded SAR180 billion ($48 billion) in 2024, creating over 381,000 quality jobs.

Women’s empowerment has been a cornerstone of this transformation. Female participation in the tech sector surged from 7% in 2018 to 35% in 2024, the highest in the region and above the G20 and EU averages.

In the realm of digital government, Saudi Arabia ranked fourth globally for digital services, second among G20 nations, and first in the region.