Dubai will never sever trade ties with Iran: official

December 2, 2010 - 0:0
DUBAI (Reuters) - Dubai will never sever trade ties with neighbor and major trade partner Iran, a senior Dubai economy official said on Wednesday, as pressure on Tehran to curb its uranium enrichment drive keeps mounting. The United Arab Emirates, to which Dubai belongs, has signaled it will rein back its role as a trading and financial lifeline for Iran after the UN Security Council imposed a fourth round of sanctions on Iran in June over its nuclear program. ""It's never an option to end trade with Iran,"" Sami al-Qamzi, director general of Dubai's Department of Economic Development, told reporters on the sidelines of an event. Asked what effect sanctions would have on Dubai's economy, he said: ""There will be a weight, there will be an impact, but we hope that through negotiations we'll come to a solution to reduce the negative impact."" ""This is a federal issue, the UAE will comply with all the resolutions...,"" he said. Separately, Qamzi told reporters that Dubai's economy was expected to grow 3-3.5 percent in 2011, while inflation should remain at or below 4 percent. ""We are forecasting 3 to 3.5 percent growth in 2011,"" he said, adding: ""This year it is around 4 percent and we hope that inflation will stay or be less than 4 percent.""