UAE firms to benefit from Iran sanctions removal
The prospects for the removal of sanctions against Iran appear to have already encouraged investors to plan a return to a country that many offers promising returns.
It had been previously reported that a full chain of businesses are looking into Iran investment potentials. Nevertheless, the primary focus is presently on multinationals that are located in nearby countries as well as those that have kept ties with Iran during sanctions.
A Bloomberg report emphasizes that the most immediate beneficiaries – in case anti-Iran sanctions are lifted – will be banks and developers in Dubai.
“Banks and real-estate companies could see a commensurate impact in terms of value of deposits or trade finance and property purchases,” said Hasnain Malik, the head of frontier-markets equity strategy at Exotix Partners LLP in Dubai.
Big names on the same front are Damac Properties, Emaar Properties, Dubai Islamic Bank, Emirates NBD, Mashreqbank.
MTN, the key South African telecom major that operates in Iran’s mobile-phone market through Irancell, has already welcomed the prospects for the removal of sanctions against the country.
“They’ll have the benefit of being able to repatriate cash that’s been stranded there for some time,” David Lerche, an analyst at Avior Research in Johannesburg, has been quoted by Bloomberg as saying. “[The lifting of sanctions] would [also] help consumer spending and therefore MTN’s operations in Iran.”
There will also be MISC Bhd, a Malaysian shipper, that may see orders climb if Iran resumes global oil exports.
Other businesses in the UAE that could see major benefits from the removal of sanctions on Iran include DP World that operate Jebel Port, Air Arabia, and Savola food producer that operates in Iran through a local branch.
Overall, analysts – as surveyed by Bloomberg, believe that Dubai will get a 5 per cent boost to its economy from lifting sanctions on Iran.