Dubai will never sever trade links with Iran, a senior official said yesterday, as the international community continues to increase pressure on Tehran to curb its uranium enrichment drive. "It's never an option to end trade with Iran," Sami Al Qamzi, director general of Dubai's Department of Economic Development, said on the sidelines of the World Economic Forum Global Agenda gathering in Dubai.
The emirate's vow to keep Iran as a trading partner came as the US Treasury announced it was extending sanctions to an additional ten businesses and five individuals it said were affiliated with Iran's state-owned Bank Mellat and Islamic Republic of Iran Shipping Lines (IRISL).
Similar moves in the past also have effectively cut off international financing to sanctioned entities. Asked what effect the increasing number of international sanctions on Iran would have on Dubai's economy, Al Qamzi conceded it would feel the difference.
"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," he said.
Separately, he told reporters that Dubai's economy was expected to grow 3 to 3.5 per cent in 2011, while inflation should remain at or below four per cent.
"We are forecasting 3 to 3.5 per cent growth in 2011," Al Qamsi said.
"This year it is around 4 per cent and we hope that inflation will stay or be less than 4 per cent."
The latest US sanctions on Iran prohibit US entities from any transactions with the designated firms and individuals, and seek to freeze assets they may have under US jurisdiction.
The US said the sanctions were extended to eight "front company" subsidiaries of IRISL, all located in the Isle of Man, a British territory.
The shipping firms use the - very British - names Ashtead, Byfleet, Cobham, Dorking, Effingham, Farnham, Gomshall and Horsham.
© 7Days 2010
