The UAE has reportedly agreed to release billions to Iran to halt recent attacks that damaged its economy, a major policy shift. Sources cite figures of $10B to $20B, though the UAE's foreign ministry denies the report. The move coincides with broader US-Iran war settlement talks and involves complex questions about Iranian assets frozen in Dubai banks under US sanctions.
UAE-Iran funds release agreement
- ▪Two other sources with knowledge of the arrangement stated the total funds involved are $20 billion, with a first tranche of $3 billion made available
- ▪The United Arab Emirates has reportedly agreed to release billions of dollars in funds to Iran in exchange for a halt to attacks
- ▪Two regional sources reported the UAE agreed to release $10 billion to Iran, with over $3 billion already delivered
- ▪The UAE's foreign ministry categorically denied reports that it has "released, transferred, or moved" frozen funds to Iran
- ▪Talks reportedly accelerated after officials from Iran’s Islamic Revolutionary Guard Corps visited Abu Dhabi to meet with Sheikh Tahnoun bin Zayed al Nahyan
Iranian attacks on UAE
- ▪The last known direct Iranian attack on the UAE was a strike on the Gulf state’s Fujairah port on May 4
- ▪The agreement was reportedly prompted by weeks of Iranian attacks on the UAE that damaged its economy and reputation as a business hub
US-Iran war settlement negotiations
- ▪The broader US-Iran talks could involve releasing tens of billions of dollars in Iranian oil revenues frozen under US sanctions
- ▪The UAE-Iran arrangement coincides with the final stages of broader negotiations between Tehran and Washington to end a war
UAE foreign policy shift rationale
- ▪One source suggested the deal allows Iran to claim compensation, Washington to insist it paid nothing, and Abu Dhabi to secure its safety
- ▪A UAE official said the country's foreign policy aims to promote de-escalation and reduce regional tensions
Iranian assets in Dubai banks
- ▪It is not established whether the funds belong to the UAE or originate from long-blocked Iranian accounts in the UAE banking system
- ▪Dubai's banks hold substantial Iranian-linked deposits, many of which are immobilized by US sanctions
Story comments
Loading comments…