The relationship between the UAE and Iran is undergoing a significant transformation, especially following the arrest of several currency exchangers linked to the Iranian Revolutionary Guard within the UAE. This shift in UAE policy reflects a response to the challenges posed by sanctions on Iran and aims to enhance regional security. These developments highlight a radical change in the dynamics between the two countries, moving away from the UAE’s previous role as an economic supporter of Tehran, which was considered “the lung through which Iran breathes” during the years of sanctions.
Unprecedented Arrests and Pressure Tactics
Informed sources reported that UAE authorities have detained dozens of currency exchangers associated with financial firms linked to the Iranian Revolutionary Guard. This move is seen as one of the most significant pressures targeting networks that have long benefited from Dubai‘s financial environment. Many companies affiliated with these exchangers have also been shut down, reflecting a shift in how the UAE is managing these complex networks that were integral to Iran’s economic incentives in the region.
New Features of the Relationship
These measures indicate a notable shift in the approach to dealing with Iran, as companies linked to currency exchangers were key tools in financing the Revolutionary Guard and the Quds Force, enabling Tehran to support its allies in various regions such as Lebanon and Gaza. Mihad Maleki, an expert on American sanctions, confirmed that “the UAE is not just one center among several; it is the most important jurisdiction in facilitating the Iranian regime’s circumvention of sanctions.”
The UAE Expresses Its Discontent
In light of this transformation, Lieutenant General Dhahi Khalfan’s reaction was sharp, attacking the Iranian regime and accusing it of ingratitude, especially after the economic assistance the UAE provided to Tehran during difficult years. Khalfan stated, “We were the lung through which you breathed when you were suffocated by sanctions.” This remark expresses significant discontent from the UAE regarding Iran’s hostile policies in the region, where Abu Dhabi contends that Tehran has used previous support to gain influence through aggressive means.
Escalations from Both Sides
In a related development, Dubai has issued additional decisions, including the closure of historic Iranian institutions such as the “Iranian Hospital” and the “Iranian Club.” In response, Iran announced the cancellation of residency rights for about 1,200 Emirati citizens within its territory, further escalating mutual tensions. These actions come at a time when the UAE and Gulf states have experienced Iranian attacks involving missiles and drones, resulting in casualties and injuries.
The relationship between the UAE and Iran continues to evolve, as breaking the sanctions and dismantling networks linked to the Iranian Revolutionary Guard are considered serious steps toward a radical change in this relationship. It will be interesting to see how developments unfold in the near future.