TEHRAN, Iran, August 1. Improving relations between Iran and UAE can be expected once the ties are elevated to the ambassadorial level, Chairman of the Iranian Business Council – Dubai Abdolghader Fagihi told Trend.
He stressed that the UAE's decision to send an ambassador to Iran will have a positive effect on diplomatic ties, however resuming previous commercial relations requires the revival of the 2015 nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) and Iran's accession into the Financial Action Task Force (FATF).
"Iranian merchants have difficulties working with the UAE banking system, as Iranians are not allowed to have bank accounts in the UAE and the issue will not be resolved until Iran joins the FATF," he said.
The UAE banks refuse to open accounts for Iranians claiming that they would be fined by the US.
Fagihi said that the current financial transactions between Iran and UAE are done via forex offices, leading to a 30-percent price increase for imported goods.
Branches of two Iranian banks, Saderat Bank and Melli Bank, were active in the Emirates previously but now no banks in the UAE would accept their checks, he said.