UAE denies providing financial facilities to Iran after suspending trade

The United Arab Emirates (UAE) on Wednesday denied providing financial facilities to Iran, hours after announcing the suspension of trade and financial exchanges with Tehran until further notice.

UAE presidential diplomatic adviser Anwar Gargash rejected the reports as false, describing claims that Abu Dhabi was providing financial facilities to Iran as part of “desperate media campaigns.”

The UAE is Iran’s second-largest trading partner globally after China and its largest trading partner in the Gulf and Arab world.

The value of non-oil trade between the two countries has recently ranged between $27 billion and $29.1 billion annually, with both sides having previously announced plans to raise the figure to $30 billion.

“Some directed platforms are circulating false information about the UAE,” Gargash said in a post on US social media company X.

He stressed that the UAE “continues to focus its efforts on dealing with developments in the region and preparing for what comes after this phase.”

“As for the rumors being circulated, such as those concerning the cancellation of workers’ residency permits or providing financial facilities to Iran and others, they are false information and part of desperate media campaigns,” he added.

“The UAE’s approach is that the best response to such claims is through action and achievements on the ground,” Gargash said.

The UAE announced Tuesday that it was suspending all commercial activities with Iran until further notice, citing a regional escalation that had “undermined peace and security,” according to the Foreign Ministry’s strategic communications director.

The move came after the UAE Defense Ministry said Tuesday that its air defenses had detected two ballistic missiles launched from Iran toward the country.

On July 12, Iran launched intensive missile and drone attacks targeting several Gulf countries following heavy US airstrikes on targets inside Iran.

Between July 8 and 24, the US carried out attacks on Iran, while Tehran responded by targeting US military facilities and equipment in Arab countries. Iran later resumed talks with Oman on establishing safe passage routes for ships through the Strait of Hormuz.

The developments followed the signing of a memorandum of understanding between Washington and Tehran on June 18 and the start of negotiations aimed at reaching a final agreement.

The talks later stalled over disagreements concerning guarantees for security and freedom of navigation in the Strait of Hormuz, one of the world’s key strategic routes for energy supplies and global trade.