Economic Sanctions on Iran reflecting on Dubai’s Economy
The fourth round of financial restrictions imposed on Iran have had an adverse impact on local traders in Dubai — Tehran’s largest trading partner in the Persian Gulf region, Arabian Moneyreported on Saturday.
Iran’s trade volume with Dubai is estimated to be at USD 10 billion per year.
The International Monetary Fund (IMF) reported late last week that ‘With an estimated USD 31 billion of debt due in 2011-2012, of which at least USD 5 billion is in the real estate sector, Dubai continues to face significant rollover risks in the short term.’
Aside from the sanctions against Iran, Dubai’s local economy has to come up with solutions for ‘large surplus in the property market and a possible downturn in Asia brought on by high oil prices.’
The intergovernmental financial organization has called on Dubai authorities not to return to former free-spending ways, but to keep a wary eye on debt levels at all government-affiliated entities.
Under US pressure, the United Nations Security Council has so far imposed four rounds of sanctions against Iran for the country’s nuclear program.
Tehran says its nuclear program is civilian in nature and that the International Atomic Energy Agency has found no evidence of diversion in the numerous snap inspections of Iran’s nuclear facilities it has conducted.
- Iran ready to export nuclear goods, services (jafrianews.com)