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Iranian-UAE relations 27, October 2009

Posted by thegulfblog.com in Iran, The Emirates.
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The Iran in the Gulf blog highlights an interesting example showing just how interlinked the Iranian and the UAE are. This article nicely encapsulate just how much a decision made in one country can potentially significantly affect, for example, the economy in another.


Trade in basmati has suffered a setback after Iran stopped importing the rice.

Dhows carrying several tonnes of Indian and Pakistani basmati are stranded in Dubai and Sharjah after buyers in Iran backed out of agreements to take delivery.

Some traders in the UAE are now offering huge quantities of the rice at half the price. Traders said the departure of Iranian buyers from the market has impacted demand and brought down the price.

“Boats loaded with Indian and Pakistani basmati have been waiting to leave for Iran for some time now,” said the marketing manager of a food trading company in Dubai.

He said: “Boats filled with basmati have been lying idle in Dubai and at Sharjah Cornice. Iran used to be a good market for UAE re-exporters and the fall in demand there will definitely hurt the UAE market.”

He said prices of many premium basmati rice varieties have fallen by 30 per cent to 40 per cent.