Sanctions against Iran are squeezing the flow of trade from other countries, affecting iron ore, cooking oil and even the aromatic basmati rice that are often routed through the Emirates.
This week, Barack Obama, the US president, ordered new sanctions against Iran, requiring the freezing of property and assets tied to its government, central bank and all financial institutions.
The EU, meanwhile, has agreed to ban oil imports from Iran, starting on July 1, while other countries such as China and Malaysia have reduced or halted purchases of iron ore and palm oil, Reuters reported.
"Iran now faces an unprecedented level of pressure due to intensified sanctions applied by the United States and complementary actions by many others around the world," said the US Treasury department in a statement this week.
The sanctions are making it increasingly difficult for Iranian merchants to pay for supplies, as the value of their currency - the rial - falls.
"It's going to push prices up within Iran," said Brian Barriskill, the supply chain director of Al Dahra Agricultural Company in the UAE. "Smaller amounts will be traded because people will not have the same kind of credit available to them."
Many merchants in Iran used to buy rice from India through middlemen in Dubai who often route supplies through the UAE. But experts say many can no longer afford payment terms, a situation that has already led to a US$144 million (Dh528.9m) default for rice suppliers in India, according to Reuters.
"When Iranians want to make payments to Dubai traders, they are not in a position to," Vijay Setia, the president of the All India Rice Exporters Association, told The National. "Money is not coming from Iran to Dubai, so how will Indian suppliers get money from Dubai?"
About 1.2 million tonnes of basmati rice are exported each year from India to the UAE, according to India's rice association. While about 50,000 to 60,000 tonnes of that is consumed in the Emirates, about 1 million tonnes are sent to Iran, with the remainder delivered to other nearby countries.
To some degree, Pakistani traders in the UAE have been relatively sheltered from defaults, said Mr Setia, because the price of their rice climbed after the flood damage to their country's crops. That made India's stock that much more appealing.
Rice suppliers in India have been warned to push for cash payments and avoid a "direct advance", where buyers in Iran get their goods then provide a post-dated cheque that may need to be cashed 90 or 120 days later.
"I've been advising members 'don't do it'," said Mr Setia, who added that his group's members control about 80 per cent of India's basmati exports.
Mr Setia stressed that he was not trying to punish Iranians.
"Unwillingly, people have landed in this situation," he said. "I think food is something no country should be deprived of. There must be some arrangements."
For now, many goods continue to flow into Iran. "Traders are importing to Iran - especially foodstuff and raw materials for the factories," said Hamid Reza Hamidi, the president of the Iranian Business Council in Dubai.
"But whether that is going to be enough to feed the market fully or not, this is a matter for time to decide."
nparmar@thenational.ae
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Match info
Uefa Nations League Group B:
England v Spain, Saturday, 11.45pm (UAE)
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Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Company%C2%A0profile
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HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5