Aletho News

Iranian business still active in UAE despite US ‘Economic D-Day’: WSJ

Al Mayadeen | August 28, 2026

Iranian commercial and financial activity continues across Dubai despite Washington’s push to sharply restrict Tehran’s access to regional markets and financial networks, The Wall Street Journal reported.

According to the newspaper, Iranian banks, airlines, restaurants, and businesses remain active in the United Arab Emirates even after US Treasury Secretary Scott Bessent announced what he called an “Economic D-Day” campaign aimed at countries and companies maintaining economic links with Iran.

Bessent had specifically demanded the closure of overseas branches of Bank Melli Iran, but the bank’s operations in Dubai appeared unchanged this week.

At one Bank Melli branch in Dubai’s old city, around a dozen tellers were continuing to serve Farsi-speaking customers, according to the report. Employees said they had received no instructions ordering the branch to cease operations.

“We put our trust in God on what happens next,” an Iranian bank employee said.

Bank Melli has operated in the UAE since 1969 and currently maintains two branches in Dubai.

US waves secondary sanctions

The continued activity comes despite the UAE Foreign Ministry announcing last week that the country was suspending trade, commercial exchanges, and financial transactions with Iran amid mounting US pressure.

Washington has warned governments and companies that continued dealings with Tehran could expose them to secondary sanctions.

“It is no longer acceptable to operate in the gray spaces of this conflict,” Bessent said. “These measures broaden secondary sanctions risk for anyone foolish enough to continue conducting business with this regime.”

Iranian economic networks remain embedded in Dubai

According to the WSJ, the gap between the public announcements and conditions on the ground reflects the depth of economic ties connecting Iran and the UAE, particularly Dubai.

Iranian businesses have operated in the emirate for decades, while hundreds of thousands of Iranians are believed to live in the UAE and use Dubai as an important gateway to international finance and trade.

Iranian airlines also continue to operate direct services between Iran and the Emirates. UAE carriers Emirates, Etihad, and FlyDubai are not currently flying directly to Iranian destinations, although some reportedly continue to use Iranian airspace.

The newspaper also found Iranian restaurants and cafes operating normally in Dubai, with Iranian residents interacting openly with Emirati customers.

Earlier restrictions eased

Some restrictions imposed earlier in the year appear to have eased as well.

During a broader crackdown in the spring, UAE authorities closed the Iranian Hospital and Iranian Club, temporarily restricted Iranian passport holders from entering or transiting the country and revoked visas belonging to some Iranian residents.

The hospital and club remain closed, but Iranians interviewed by the newspaper said widespread visa cancellations appear to have stopped and some previously withdrawn visas have since been restored.

Iranian residents are nevertheless preparing for the possibility of tighter financial restrictions. Some told the newspaper they could turn to the traditional hawala transfer system if formal banking links with Iran are eventually disrupted.

Severing Iran-UAE trade seen as difficult

Economic ties between the two countries are extensive.

Around $28 billion in trade passed between Iran and the UAE in 2024, according to World Trade Organization figures cited by the newspaper.

Neil Quilliam, an associate fellow at Chatham House, said the economic relationship cannot easily be dismantled.

“The Gulf Arab state economies are so closely integrated and intertwined with the Iranian economy, you can’t just simply sever economic trade and activity overnight,” Quilliam said. “The U.A.E., and Dubai in particular, have always managed to continue to do trade, even when the maximum pressure is on. Cutting off that trade will be cutting off their nose, basically.”

Dubai has also long been identified by US authorities as a major center for financial activity linked to Iran.

The UAE also hosts the second-largest number of individuals and companies sanctioned by the US Treasury over alleged Iran-related activity after China, according to Levitt.

Washington faces competing interests in UAE

The report noted that pushing Abu Dhabi to fully sever its economic relationship with Tehran could create complications for Washington because of the UAE’s broader strategic importance to the United States.

The Emirates hosts US military facilities, maintains close security relations with Washington, and was the first Gulf Arab state to sign the US-brokered “Abraham Accords” establishing formal diplomatic relations with “Israel”.

The country has also emerged as a major source of investment in US sectors including artificial intelligence.

Those interests give Washington incentives to preserve strong relations with Abu Dhabi even as it demands tougher enforcement against Iranian commercial networks.

For Emirati authorities, maintaining some economic channels with Iran may also be viewed as a means of reducing regional tensions.

“There will be some in the U.A.E. who say, ‘Whatever the price of calm, that is what we need to do,’ ” Levitt said. “Better to do that by allowing them to access banking and supply chains through our country than not,” he said of the Emirates’ thinking on Iran.

Dubai faces an additional economic calculation because, unlike oil-rich Abu Dhabi, its economy relies heavily on trade, finance, tourism, and international capital flows.

The WSJ report therefore suggests that despite Washington’s escalating sanctions threats and the UAE’s public commitment to restrict economic links with Tehran, deeply established Iranian financial and commercial networks in Dubai remain difficult to dismantle.

August 28, 2026 - Posted by aletho | Economics, Wars for Israel | Iran, UAE, United States