Iran Can Replace UAE with Eurasia, Turkey, Pakistan as Partners in $25 Bn Trade: Iranian Expert

Iran may replace its $25 bn trade with the UAE by opening up new markets in Eurasian countries, utilize Turkey’s transit hub and develop road corridors through Pakistan and China's Western Rail Route.

Relations between Tehran and Abu Dhabi are at their lowest ebb following Iran attacking US bases in the UAE in response to the American, Israeli assault on their nuclear and civilian targets including schools.

Alireza Peymanpak, former head of Iran's Trade Promotion Organization, told Fars News Agency, "Our trade balance with the UAE stands at 25 billion dollars-15 billion in imports and $10 billion in exports.

However, only about 10% of the imports originates from the UAE. The remaining 90% come from other countries but are re-exported through the UAE. To change this situation, we can either purchase goods directly or define new corridors."

Referring to Turkey position in the Middle East he said, "Turkey is a logistics hub, and you can import many goods through that route, similar to the UAE. Regarding Eurasia, we can create new markets for our products and also import from them."

Peymanpak said: "Consider that over $10 billion imports of Eurasian countries are in the food industry and agricultural products. Over $30 billion are in pharmaceuticals and medical equipment. Another $50–60 billion are in the clothing supply chain, home appliances, and related sectors. All of these represent excellent opportunities for us to export."

According to Peymanpak, "In the area of corridors, we can also benefit from Oman and Pakistan. Likewise, China's land and rail route is a highly suitable path. Approximately 20,000 train units come from China each year. These trains travel along the East–West corridor, passing through Kazakhstan and Russia, delivering goods to Azerbaijan, the European Union, and the Western region."

If the Iranian government is serious about replacing the UAE as a trading partner, it will push up its import and export cost but may cause a huge dent in the earnings of the UAE which earns huge revenue as a key trading hub in the Middle East.

Countries exporting to Iran may consider alternative transit hub such as Turkey with which Iran shares a land border.