Wednesday, December 21, 2005

UAE media has great influence in Iran :: MehrNews
Brain drain, capital flight

TEHRAN, Dec. 20 (MNA) -- The dailies of the United Arab Emirates have increased their endeavors to accelerate capital flight from Iran to Dubai and other cities in the Persian Gulf country by publishing some special reports over the past few days.
I had no idea Iranians were such avid readers of Arab-language newspapers in the UAE.

Actually, I rather doubt it. The UAE newspapers are merely reporting the capital flight from Iran. The UAE has great influence in Iran because of Iran's own policies have made the UAE a comparatively attractive place for Iranians and/or their capital to flee - to live, to learn, and to invest.

Quoting MehrNews:
Unfortunately, none of the Iranian officials’ promises to terminate illegal goods trafficking to Dubai and to return the assets of both the public and private sectors to Iran have been realized.

It has been repeatedly said that if conditions similar to those in Dubai were provided in Iranian free trade zones, Iranians would certainly return their assets to the country. However, it seems that Iranian officials are incapable of providing such conditions, so these slogans will never become reality.

Although discussions on how to return the assets of Iranians to the country have been held in recent months, the level of investment in Dubai by Iranians tells another story.

A UAE television network recently reported that during the first three months of the current year, some $200 billion had been invested in Dubai by 400,000 Iranian nationals while economic experts have predicted that this figure will rise to $300 billion by the end of the year.

Presently, over 6,500 Iranian companies are based in Dubai and 10,000 Iranian students are studying in the UAE. Over 25 percent of Dubai’s population is Iranian.

Commenting on the matter, Abbas Bolur Forushan, the chairman of the Council of Iranian Businessmen Living in Dubai, recently said, “If Iranian ports and banks would provide the necessary facilities for Iranian investors, and if the port cities’ affairs were managed efficiently, Iranian businessmen’s rush to Dubai would be terminated.”

He also expressed concern about Iran’s brain drain and capital flight problems, adding that Iranian officials should initiate expert research studies to determine the causes of the brain drain and capital flight.



Blogger Tim Newman said...

The UAE's probably fortunate in some ways that the Iranian government is as fuckwitted as it is. If Iran was a suitable place to live, work, and invest money in the Middle East, it would be far more attractive than Dubai for several reasons, one being its better climate.

1:09 PM  
Blogger John B. Chilton said...

Tim - On this occasion you are the master of understatement. The UAE is a huge beneficiary of Iran's government policies.

5:08 PM  
Blogger waterboy said...

And it has ever been thus.

Before the 20thC the real trading hub on the strait of Hormuz was Bandar Lingeh, which was ruled by the Qawassim. The Persians took control over the port, and started charging high customs duties.

Sheikh Maktoum bin Hasher of Dubai, sensing an opportunity, persuaded the traders of Bandar Lingeh to relocate. And they did.

9:07 PM  

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