The value of trade between Iran and the United Arab Emirates (UAE) reportedly reached $7.3 billion between March and July of this year, according to figures by Iran’s customs administration (IRICA).

IRICA spokesman Rouhollah Latifi said on 4 September that trade between Tehran and Abu Dhabi increased by 54 percent in value terms and by 24 percent in volume terms during that five month period.

Nonetheless, these trade figures largely benefitted the UAE, as the Gulf state’s exports to Iran reached $5.391 billion, up 157 percent against March–July 2020.

The official also said that the Islamic Republic has always attached great importance to cooperating with neighboring states in political, economic and security affairs, and that as a result, regional trade volume has experienced significant growth in recent years.

The UAE is the main re-exporting hub in the Persian Gulf as it processes large shipments of food, animal feedstock and staples from various parts of the world into Iran.

Meanwhile, Iran’s exports to the UAE have largely comprised agri-food, including dried nuts, fruit and seafood.

The IRICA spokesman also said that exports into the UAE had surged by 23 percent year on year in March–July to $1.912 billion, and that shipments sent to the UAE were responsible for 11 percent of Iran’s total exports over the five-month period.

After the US re-imposed its severe economic sanctions on Iran in 2018, trade activity between Iran and its neighbors increased. Trade between Tehran and Abu Dhabi is expected to further increase to nearly $17.5 billion in the calendar year to March 2022.