Identifier
Created
Classification
Origin
06DUBAI2342
2006-04-24 11:41:00
CONFIDENTIAL
Consulate Dubai
Cable title:  

IRAN REMAINS DUBAI'S LARGEST EXPORT/RE-EXPORT MARKET

Tags:  ECON ECIN ETRD PREL IR AE 
pdf how-to read a cable
VZCZCXRO2386
RR RUEHBC RUEHHM RUEHKUK RUEHMOS RUEHMR RUEHPB
DE RUEHDE #2342 1141141
ZNY CCCCC ZZH
R 241141Z APR 06
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC 0041
INFO RUCPDOC/USDOC WASHDC 0011
RUEHAD/AMEMBASSY ABU DHABI 1442
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEHDE/AMCONSUL DUBAI 2986
C O N F I D E N T I A L DUBAI 002342 

SIPDIS

SIPDIS

E.O. 12958: DECL: 4/15/2016
TAGS: ECON ECIN ETRD PREL IR AE
SUBJECT: IRAN REMAINS DUBAI'S LARGEST EXPORT/RE-EXPORT MARKET

CLASSIFIED BY: Jason L. Davis, Consul General, Dubai, UAE.
REASON: 1.4 (b),(e)


C O N F I D E N T I A L DUBAI 002342

SIPDIS

SIPDIS

E.O. 12958: DECL: 4/15/2016
TAGS: ECON ECIN ETRD PREL IR AE
SUBJECT: IRAN REMAINS DUBAI'S LARGEST EXPORT/RE-EXPORT MARKET

CLASSIFIED BY: Jason L. Davis, Consul General, Dubai, UAE.
REASON: 1.4 (b),(e)



1.(U) 2005 Statistics released by the Dubai Chamber of Commerce
and Industry (DCCI),based on Certificates of Origin (COs)
issued by DCCI, indicate that Iran remained Dubai's largest
export/re-export market in 2005, with COs worth AED 28.7 billion
(approx. 7.8 billion USD) issued. This represents a seven
percent increase over 2004. Exports to Iran constituted 30
percent of overall CO amounts in 2005, which totaled AED 96.1
billion (approx. 26.2 billion USD). DCCI researchers believe
COs capture roughly 75 percent of total exports/re-exports.
They omit free zone-manufactured exports to GCC countries, which
are handled separately by the Ministry of Economy. DCCI data
does not track the type of cargo, but rather the companies,
destinations and value of the cargo.

2.(C) Dr. Belaid Rettab, Chief Researcher at DCCI, told
PolEconoff the data was not surprising because Iran is a very
important trading partner for Dubai and "will remain the focal
point" of Dubai trade. He said a 33 percent increase from 2004
to 2005 in the value of COs issued for Saudi Arabia -- AED 18.7
billion (approx. 5.1 billion USD) in 2005 -- may be an
aberration, and in any event would not be sustainable in the
long term; thus, trade with Saudi -- the second largest
destination after Iran -- does not threaten to overtake trade
with Iran in the foreseeable future. Although Rettab believes
trade with GCC states will continue to increase, he thought the
60 percent leap recorded in trade with Qatar -- AED 5.8 billion
(approx. 1.6 billion USD) in 2005 -- would likewise not be
sustained over time.

3.(U) Note: At least two news outlets in Iran, Fars News Agency
and Iran Daily, published the DCCI data incorrectly, mistaking
AED for dollars and claiming Iran had imported 28.7 billion
dollars (rather the actual amount of 28.7 billion dirhams or USD
7.8 billion) worth of goods from Dubai in 2005.

Comment
--------------

4.(C) Most observers agree that Dubai has benefited economically
from US sanctions on Iran, with Dubai serving as an intermediary
point for U.S. goods (or goods with US components) that cannot
be exported directly from the U.S. to Iran. (Often it is
Iranians who set up offices in Dubai to conduct trade that could
not, under US sanctions, be conducted from Iran.) Meanwhile
Iranian capital, fleeing Iran's economic woes (themselves
triggered in part by US sanctions, as well as by Iran's own
economic policies),continues to flow to Dubai.

DAVIS