The United Arab Emirates has agreed to unlock billions of dollars for Iran. What does the negotiated agreement between the two states provide
The United Arab Emirates has agreed to unlock billions of dollars for Iran, four sources told Reuters, in a shift in strategy after weeks of Iranian attacks on the wealthy Gulf state during the war between the US, Israel and the Islamic Republic.
The information comes in the final stage of wider negotiations between Tehran and Washington on ending the conflict. According to diplomats, the talks also include unlocking tens of billions of dollars in Iran's oil revenues, which have been locked up in foreign banks due to US sanctions. Two sources in the region told Reuters that the UAE had agreed to release a total of $10 billion, of which more than $3 billion had already been transferred.
Two other sources familiar with the deal said the total amount reached $20 billion and that the deal was conditional on an end to Iranian attacks on the United Arab Emirates. One of these sources stated that a first tranche of $3 billion has already been made available to Tehran.
Reuters could not determine whether the funds came from the UAE budget or represented Iranian assets long blocked in the country's banking system or in other jurisdictions. An official from the United Arab Emirates, asked to comment on the information, said, however, that the country is trying to reduce tensions and contribute to the establishment of peace.
“The UAE's foreign policy is guided by promoting de-escalation and reducing tensions in the region, as well as supporting lasting peace and stability,” the official said. “The Emirates supports efforts, including those of the United States, to protect the populations of the region from the consequences of the conflict.”
The deal marks a significant change from the hostility between the UAE and Iran during the conflict, when Iranian attacks emptied hotels in Dubai, forced the departure of expatriates and damaged the reputation of safety that underpins the city's status as a major business hub.
One of the sources close to the negotiations said the deal offers a solution by which the US-Iran conflict can be eased without either side crossing red lines: Iran can claim it has obtained compensation for war damages, Washington can claim it has paid nothing, and Abu Dhabi bolsters its security and Dubai's status as a regional business hub, while presenting the initiative as an investment in rebuilding trust in the region.
The other source said that in exchange for the payments, Iran would end missile and drone attacks on the UAE and resume bilateral cooperation, including through intelligence sharing and economic collaboration.
The same source also said that Iran has approached at least two other Gulf Arab states about similar deals.
Iran's last known direct attack on the United Arab Emirates took place on May 4, when the port of Fujairah, located on the Gulf of Oman, was targeted.
