Wednesday, April 02, 2008

UAE's reexport trade with Iran

International Herald Tribune:
Roadside bombings of American troops in Iraq were occurring with bloody regularity when military investigators made a disturbing discovery: American-made computer circuits sold to a trading company in the United Arab Emirates had turned up in the bomb detonators.

That finding set off a clash with Washington last year when the Bush administration cited the diversion of the computer circuits to Iran, and eventually Iraq, as proof that the United Arab Emirates were failing to prevent American technology from slipping into the wrong hands.
Yousef al-Otaiba, an adviser to the crown prince of the United Arab Emirates, said his country was more closely monitoring goods that it re-exported while blocking items that might help Iran build weapons systems. But trade experts, a Commerce Department investigator and Iranian traders in Dubai said evidence was scarce that the new export control law was being broadly enforced.

"It has virtually had no effect, to be honest," said Nasser Hashempour, deputy president of the Iranian Business Council in Dubai. "If someone wants to move something - get it to Iran - it is easy to be done."
Executives at several of the so-called red flag companies, those suspected of violating American export controls, said they had faced no increased scrutiny in Dubai.
It's hard for me to understand the level of reexport in Dubai -- and that's what it built its reputation on -- unless you include the factor that much of the money to be made in reexport is meant to defeat some trade barrier erected for economic or political reasons.



Blogger Acad Ronin said...

Those dhows in the Creek may look traditional, but they have 16-cylinder Sulzer diesels below deck. That helps when dashing in and out of Iranian, Pakistani, or Indian territorial waters at night. Dubai has always been a big smuggling entrepot. It was 31 years ago, and I guess it still is.

6:07 AM  
Blogger nzm said...

Acad: not to mention the fast outboards running under the radar out of Khasab!

The article failed to make the connection between AMD and 8.1% investment that Abi Dhabi's Mubadala made in it late last year.

Wonder how many circuits they get for that? ;-)

1:51 PM  
Blogger nzm said...

Yeesh- that should read:

...the 8.1% investment that Abu Dhabi's Mubadala...

1:53 PM  

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