Tehran– The Iranian capital, Tehran, witnessed, yesterday, Wednesday, a meeting between the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, and Iranian President Masoud Zashkian, where the two sides discussed ways to enhance economic cooperation between the two countries, and the Emir stressed the importance of exploring new cooperation opportunities, noting that the recent visit of the Iranian president to Doha contributed to the development of bilateral relationships.
Growing growth
The economic relations between Iran and Qatar have witnessed a remarkable development in recent years. In 2022, the volume of trade exchange between the two countries reached 208 million dollars, up from 143 million dollars in 2021, which is 45% in two years.
In the first months of the current Iranian year (March 20 to May 20, 2024), trade exchange recorded additional growth by 41% compared to the same period in the previous year.
Iranian exports to Qatar include agricultural products, dried fruits, building materials, minerals, carpets and marine products.
Despite this growth, the current trade exchange (estimated at 220 million dollars) remains below the level of common ambitions, so a goal has been set to double this number during the next year, which reflects the strong will of the two countries to enhance economic cooperation and benefit from the available capabilities.
The two countries seek to enhance cooperation in multiple fields, including developing ports and infrastructure for maritime transport, with the aim of facilitating the movement of commodities and increasing the volume of trade exchange.
https://www.youtube.com/watch?v=l4EW3R4T9-C
Reflection of challenges
With the expansion of economic cooperation between Iran and Qatar, the trade exchange between the two countries witnessed remarkable growth in recent years, with a size of 265 million dollars during the first nine months of 2024, recording an increase of 53% compared to the same period from 2023.
In this context, the Vice -President of the Joint Chamber of Commerce between Iran and Qatar Ali Gasabash affirmed that this growth reflects the two countries ’orientation towards strengthening economic partnership and diversifying investments in various fields, most notably agriculture, energy, building materials, and transportation.
He added that Iranian exports to Qatar include agricultural products, saffron, carpets and marine products, while Qatari investments in the energy and logistical infrastructure sector expand.
Despite the available opportunities, Gasabash indicated – in his speech to Al -Jazeera Net – that the economic sanctions imposed on Iran constitute a major challenge, especially with regard to financial transfers and the opening of documentary credits, however, he stressed that the two countries are working to find alternative solutions, such as the use of local currencies, Enhancing banking cooperation through intermediate countries, and developing the infrastructure of marine and land transport.
On the prospects for future cooperation, Gasabash explained that there are projects under study that include expanding maritime transport lines, increasing joint investments in the logistics sector, and enhancing cooperation in the field of tourism and energy.
He pointed out that the development of export infrastructure in Iran will enhance its ability to provide food products and basic commodities for the Qatari market.
Economic obstacles
In an interview with Al -Jazeera Net, economics professor Isaac Saidian said that economic relations between Iran and Qatar have witnessed a significant decline in recent years, and have reached its lowest levels.
Saidian attributed this decline to the international sanctions imposed on Iran, noting that Qatari merchants seek to avoid dealing with Iran for fear of exposure to US sanctions, and that the lack of approval of the laws of the Financial Working Group (FATF) – specialized in combating money laundering, terrorist financing and the spread of arms – inside Iran It is an additional obstacle to economic cooperation, as it leads Qatari investors to take a more conservative position towards the market Iranian.
Saidian explained that the sanctions played a decisive role in isolating the Iranian economy from global markets, which led to restricting opportunities for trade cooperation with other countries, including Qatar.
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Despite the desire of the private sector in both countries to enhance economic cooperation, banking obstacles, the difficulty of transferring money between the two countries, and the legal risks that Qatari merchants may face when dealing with Iran has made cooperation limited and unstable.
On the joint exploitation of gas fields between the two countries, Saidian pointed out that Qatar was able to invest its resources efficiently, and succeeded in developing its infrastructure and attracting huge foreign investments, which led to the strengthening of its energy and tourism sector.
On the other hand, although Iran has larger gas reserves, it has not been able to attract the necessary foreign investments, especially from American oil companies, which have become seeing the Iranian market a banned area due to sanctions and internal policies.
Saidian explained that Qatar, despite its small area compared to Iran, was able to make the most of its gas resources, and attract large foreign investments, which contributed to strengthening its economy, while Iran faces great challenges, most notably its inability to attract foreign investments, and structural imbalances in the energy sector, In addition to the penalties that hindered the development of its infrastructure.
Future expectations
Regarding the prospects for future cooperation, Saidian stressed that there are great opportunities to enhance cooperation between the two countries, especially in the oil and gas sectors, as they share a common gas field, but he stressed that Qatar is dealing with great caution in its economic relations with Iran, aware of the size of the risks that may It follows.
He added that strengthening economic cooperation may contribute to alleviating political tensions between Iran and the Gulf states, but the greatest challenge lies in the crisis Iranian economic situation.
He explained that Iran has not yet been able to achieve sustainable economic growth, as inflation rates exceed 50% and go about 60%, with the continued decline in the value of the national currency.
He pointed out that Iran’s inability to re -link its banking system to the Swift International Financial Transfers Network, and its failure to implement the reforms of the financial work group, which is still listed in the black list, makes establishing stable economic relations with other countries difficult.
He said that the absence of these basic requirements makes Iran unable to use its economic tools effectively to resolve political conflicts or improve its trade relations with neighboring countries.
