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| Dubai's non-oil trade with Iran shrinks 12% in H1 |
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DUBAI (Reuters) - Dubai's non-oil trade with Iran shrank 12 percent in the first half of 2013 as result of the Western sanctions.
Dubai, across the Persian Gulf from Iran and home to tens of thousands of ethnic Iranians, has long been a major commercial hub for the Iranian economy, re-exporting consumer goods from other countries to the Islamic republic.
This role suffered after U.S. financial sanctions, imposed in late 2011 over Iran caused banks in Dubai and around the world to cut back sharply on Iran-related business.
Two-way trade between Dubai and Iran, excluding oil, fell to 10.8 billion dirhams ($2.9 billion) in January-June from 12.3 billion dirhams in the same period of 2012, the Dubai customs authority said in a written answer to Reuters questions.
Iran now accounts for a mere 1.6 percent of Dubai's total non-oil trade.
Re-exports to Iran dropped 13.5 percent to 9.0 billion dirhams in the first six months of this year, while Dubai's exports were flat at 1.0 billion dirhams, the data showed.
Imports from Iran to Dubai, one of seven United Arab Emirates, fell to 766 million dirhams in January-June from 819 million dirhams a year earlier.
The vast majority of trade between Iran and Persian Gulf Arab states is routed through Dubai. Traditional wooden boats, known as dhows, carry some consumer goods across the Persian Gulf. In addition to its non-oil trade, Dubai has been importing significant amounts of oil from Iran.
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