The United Arab Emirates is reportedly set to release billions of dollars to Iran, in a tactical pivot following weeks of Iranian attacks on the wealthy Gulf Arab state. Four sources indicated the agreement, with two regional sources suggesting a total of $10 billion, and two others with knowledge of the arrangement putting the figure at $20 billion. A first tranche of $3 billion has allegedly already been made available.
This move comes as part of a broader effort to ease tensions and secure the UAE's safety and economic stability. In return for the disbursement, Iran is expected to cease missile and drone attacks on the UAE, and bilateral ties, including intelligence sharing and economic cooperation, are anticipated to improve. The UAE's foreign ministry, however, categorically denied these reports, stating that allegations of transferring or releasing frozen Iranian funds are "entirely false and unfounded."
Despite the denial, reports suggest the arrangement is designed to navigate the US-Iran conflict, allowing Iran to claim compensation for war damages, while Washington can maintain it paid nothing. This also offers Abu Dhabi security and preserves Dubai's status as a business hub. This alleged agreement is unfolding against the backdrop of final-stage negotiations between Tehran and Washington to end the war, which could involve the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks under US sanctions.
