Dubai reacts to US pressure on Iran

Mention sanctions to Iranians and their answer is, often, Dubai. As the US has tightened the squeeze on financial dealings with Tehran and other countries have slowly followed, Iranians have sought to do business through neighbouring Dubai, an open, free-wheeling emirate and transhipment hub that has long welcomed them.

But even Dubai, and the federal government in the United Arab Emirates, is now showing signs of unease as US pressure on banks to stop lending to Iran mounts and security concerns over the presence of a large Iranian community intensify.

Following the introduction of new export control laws, the UAE has stepped up the inspection of cargoes heading for Iran, confiscating last month a shipment that contravened United Nations sanctions aiming to hem in Iran’s nuclear and missile programmes.

Some of the 350,000 Iranians in Dubai are also starting to face restrictions. Anecdotal reports suggest some have been unable to renew residence visas. Nasser Hashempour, vice-president of the Iranian Business Council of Dubai, says it is becoming almost impossible for new Iranian businesses to secure permits.

Such is the emerging nervousness about doing business with Iran that Dubai-based and UAE-majority owned firms underwriting Iranian merchants’ transactions are finding that international banks are “more cautious” about extending credit, says Mr Hashempour.

UAE banks, meanwhile, have stopped issuing lines of credit to Iranian banks, making it difficult for Iranian front companies to circumvent sanctions.

The restrictions suggest that politics is finally intruding on business in the emirate, despite long-standing UAE government attempts to keep the two apart.

Alarmed by Iran’s nuclear programme and upset by a territorial dispute over three islands in the Gulf, the government has long shared Washington’s concerns about Tehran. The UAE is a key US ally in the region, the largest Gulf importer of US goods and a party to the multi-billion dollar arms deals announced in July designed in part to combat the perceived Iranian threat.

Despite grumbles among Washington politicians that the UAE has not done enough to curb the financing of terrorism, US officials say co-operation over Iran has been deepening.

Since 2002 the US has built up the intelligence capacity of a “listening post” at its Dubai consulate, where a team of about five Iran specialists monitor events in the Islamic republic, while also making contacts with Iranian expatriates, many of whom hold the current regime in low regard.

However, with the large Iranian community promoting trade flows that make Iran the emirate’s single largest trading partner, the UAE has been keen to also promote business with Iran.
The UAE government dismisses suggestions that the welcome to Iranians has cooled.
Instead, officials cite a combination of factors that could affect the business relationship.

First, the government’s attitude is that it will not follow the US in adopting unilateral sanctions against Iran but will resolutely abide by UN Security Council resolutions, which have targeted three leading Iranian banks and the Quds Force of the Revolutionary Guard.

Second, concern over the UAE’s reputation – particularly following the embarrassing discovery that front companies working for the A Q Khan illegal nuclear procurement network were based in the UAE – has led to tighter controls on re­export trade. “Export controls are not designed against Iran but they protect the reputation of this place,” says an ­official.

Some 40 companies have been shut down over transhipment offences, a few of them allegedly involved in shadowy Iranian-related business.

“This is related to the tension in the region because security and stability are more important than trade,” says Mustafa Alani, analyst at the Dubai-based Gulf Research Centre. “Financial benefit will come second to security.”

Despite the easing of the international frenzy over the threat posed by Iran’s nuclear activities – following US intelligence findings that Tehran stopped its atomic weapons programme in 2003 – the US will continue to press its allies, including the UAE, for more action.
“We want all countries to do whatever they can to help prevent Iran from developing nuclear weapons,” says Tom Casey, a State department spokesman. ”Beyond compliance with UN Security Council resolutions, each nation will have to decide for itself what other steps it can take.” Source

Read More......

Ball remains in the Iranian court

A major UAE daily today hailed the Iranian call at the GCC summit in Doha for Gulf states and Iran to work together towards establishing regional security and economic co-operation as a good step. But the paper opined that Iran has to do more by assuring its neighbours of peaceful intentions and also settle territorial issues in an equitable manner.

In its today's editorial comment, the Sharjah-based Gulf Today said much expectations were attached to the first appearance of an Iranian president at a summit of the Gulf Co-operation Council (GCC) because of the challenges the region faces and the pressing need to work on clearing the atmosphere of all major outstanding issues with a view to building regional co-operation.
"On the surface, Iranian President Mahmoud Ahmadinejad's call at the GCC summit in Doha on Monday for Gulf states and Iran to work together towards establishing regional security and economic co-operation sounded great. In principle, the GCC has always remained committed to regional interaction that would benefit all sides concerned and strengthen regional stability and security under the right conditions and circumstances", said the paper.
But the paper observed that Ahmadinejad spoke at the Doha summit as if everything else was fine, all the elements were in place for regional co-operation, and that it was only a matter of political will on the part of the GCC to build a strategic relationship with Iran.
"The Iranian leader did not refer to any of the key issues of concern to the GCC. He did not refer to Iran's controversial nuclear programme and did not talk about Iran's intentions regarding Iraq. Nor did he refer to the three UAE islands that is under Iranian occupation"., the paper said, adding that the UAE has repeatedly called for bilateral discussions to resolve the outstanding issue or to refer it to international judgment. Tehran has consistently brushed aside the calls.
Citing other issues between GCC states and Iran, the paper said Kuwait has a maritime border dispute with Iran blocking the development of a gas field.
What Ahmadinejad did at the GCC summit, the paper said, was to put the cart before the horse.
"How could there be any talk about security and trade co-operation between the GCC and Iran before Iran assures its neighbours of peaceful intentions and settles territorial issues in an equitable manner?", the paper asked.
The region needs to be assured of Iran's nuclear programme and Tehran's commitment to diplomacy to solve the dispute over the issue. Similarly, the region is anxious that the crisis in Iraq, a member of the Arab League, is addressed in the broader Arab and UN context.
"Tehran also has to move with seriousness to settle outstanding disputes with the GCC members, including the Iranian-occupation of the three UAE islands of Greater and Lesser Tunbs and Abu Musa and Iran's dispute with Kuwait as well as other issues that are sources of regional concern.
Only then there could be any move towards building a better relationship between the GCC and Iran. Ahmadinejad's speech did not move the ball from the Iranian court", the paper said.

Read More......

Gulf Arab states increasingly wary of Iran’s nuclear plans

The six Gulf Arab states whose leaders meet in Qatar on Monday for a two-day summit are increasingly suspicious about Iran’s nuclear ambitions which they fear could spark a new regional conflict.

Teheran’s nuclear programme is expected to be high on the agenda of the Doha summit of the Gulf Cooperation Council, which groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The GCC states “support the peaceful efforts deployed to solve the Iranian nuclear crisis, because any escalation would only complicate the situation,” GCC Secretary General Abdelrahman Al Attiyah told AFP.
“I solemnly invite all parties, including Iran, to use the language of reason and dialogue, away from confrontation and escalation,” he said of the standoff with the international community over Teheran’s programme of uranium enrichment.
Western nations suspect Iran is using its nuclear programme to develop a nuclear bomb covertly. Despite Iranian denials, the United States and its allies are pressing for stronger UN sanctions against Teheran.

Gulf Arab leaders -- staunch US allies -- tend to avoid voicing their concerns about Iranian intentions in public.
But in an interview last month with British newspapers, Bahrain’s Crown Prince, Sheikh Salman bin Hamad Al Khalifa, for the first time accused the Islamic republic of seeking to acquire nuclear arms.
Fearing a new armed conflict after the Iran-Iraq war (1980-88), the first Gulf War in 1991 and the invasion of Iraq in 2003, the GCC has proposed an internationally controlled consortium to supply enriched uranium to Middle Eastern countries.

This suggestion, greeted coldly by Teheran, is “the best guarantee to prevent having atomic arms in the region,” said Riad Kahwaji, director of the Dubai-based Institute for Near East and Gulf Military Analysis.
“When a country like Iran has the liberty to enrich uranium, there is a danger that this country will equip itself with atomic weapons,” he told AFP.
He said that Arab countries, including GCC members, which have announced their intention to start civilian nuclear programmes cannot counterbalance Iran’s nuclear ambitions.
“Iran has a real nuclear programme which is running and developing, while Arab states simply intend to acquire reactors to produce nuclear energy” without mastering the expertise needed to develop an atomic bomb, he added.

The GCC nuclear programme is the subject of a feasibility study which will be discussed at Doha.
It would provide Gulf monarchies with a common central plant which would be “built in a secured area” and operational by 2025, according to recent remarks by the UAE undersecretary for energy, Ali bin Abdullah Al Owais.
“The Gulf monarchies, which have increased the number of their joint military meetings, are seriously worried about the Iranian crisis sliding into an armed conflict,” Kahwaji said.
“These monarchies will be obliged to intervene in such conflict” if their territory close to Iran was hit, he added.

On Friday, Iran’s top atomic negotiator Saeed Jalili said Teheran would not curb its nuclear plans under pressure from a new UN resolution.
“They have adopted three resolutions and haven’t achieved anything, and Iran has in the meantime enjoyed significant technological success,” he said after talks in London with European Union foreign policy chief Javier Solana. Source

Read More......

Ahmadinejad: Ready to act if US attacks

President Mahmoud Ahmadinejad said on Saturday Iran was ready to respond if attacked, but played down the prospect of war with the United States.
Ahmadinejad was speaking during a visit to Bahrain which came amid mounting concerns in the Gulf that the United States could launch military action against Iran, although Washington says it is committed to a diplomatic solution to a crisis over Tehran's nuclear ambitions.
"We never want any war in this region, but from another front, we have made all preparations, and if there is any suspicion on this matter, then we are ready," said Ahmadinejad, speaking through an interpreter.
"I want to confirm again that we don't think there will be a war in the region," he told reporters, without giving reasons.
Ahmadinejad earlier told Al Arabiya television that the United States had no political, economic or military grounds for attack, and dismissed the US military as "shabby".
The West accuses Iran of trying to build a nuclear bomb, but Iran says its nuclear ambitions are to generate electricity.
In a report on Thursday the U.N. nuclear watchdog said Iran had become more open in outlining its nuclear activities, but key questions remained unanswered. Washington says partial disclosure is not enough, and is pushing for sanctions.
Ahmadinejad challenged labelling the standoff a crisis, and said Iran had cooperated fully with the nuclear watchdog.
"We do not feel there is a crisis in this region ... or do countries in the region ... We think the crisis is in Washington," he said.
Ahmadinejad held talks on bilateral, regional and international issues with Bahraini royals and politicians, he said, but no new initiative to dampen tensions was announced. Bahrain's Foreign Minister Sheikh Khaled bin Ahmed al-Khalifa called for more diplomacy.
Saudi Arabia this month proposed to set up a consortium that would provide Iran with enriched uranium for peaceful purposes, but Iran said it would not halt its own enrichment programme.
Gulf Arab countries are among those with the most to lose in the event of a conflict between Iran and the West, and have consistently warned against any slide into war.
The Gulf is the world's top oil exporting region, and its economies are booming on a near five-fold increase in oil prices since 2002.
Ahmadinejad called for greater cooperation with Gulf states to work together against what he said were U.S. plans to foster tension in the region. He later left Bahrain to attend an OPEC heads of state summit in the Saudi capital Riyadh. (Reuters)

Read More......

Gulf on standby for Iran war

Gulf armed forces are ready and prepared for the possibility of a US-Iran war, Saudi Defense Minister said Tuesday, as tension mounts between Tehran and Washington over Iran’s nuclear ambitions.
Abdul Rahman bin Abdul Aziz spoke to reporters after a meeting to discuss escalating rhetoric between the US and Iran, saying, “This subject is under constant study between defense ministers as the countries of the Gulf have to be always ready for any emergency.”

Friction between the two states has been intensifying in recent weeks with US President George W. Bush emphasizing the severity of the situation when he spoke to a press conference on October 17.
“I've told people that if you're interested in avoiding World War III, it seems like you ought to be interested in preventing them (Iran) from having the knowledge necessary to make a nuclear weapon,” he said.
IAEA Director General Mohamed El Baradei later said, “I have not received any information that there is a concrete active nuclear-weapons program going on right now.”
Iran has continuously asserted that its nuclear program is for civilian purposes only. Many, including the US, remain unconvinced.
Pro-US nations in the GCC consist of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Source

Read More......

US slaps sanctions on Iran as tensions mount

Ratcheting up the pressure on Tehran, the US on Thursday designated Iran's Revolutionary Guard a proliferater of weapons of mass destruction and its elite Qods force a supporter of terrorism.
In total, Washington slapped sanctions on more than 20 Iranian companies, major banks and individuals as well as the defense ministry, in a bid to pressure Tehran to halt its nuclear programme and curb its "terrorist" activities.
"Today, Secretary Paulson and I are announcing several new steps to increase the costs to Iran of its irresponsible behavior," said Secretary of State Condoleezza Rice, who made the announcement alongside Treasury Secretary Henry Paulson.

But Rice said the US was committed to a diplomatic solution and urged Tehran to accept an offer made by major powers last year to give up sensitive nuclear work in exchange for incentives, including direct talks with Washington.
"We will be open to the discussion of any issue. But if Iran's rulers choose to continue down a path of confrontation, the United States will act with the international community to resist these threats," Rice said.
Among the Iranian banks affected are Bank Melli, Iran's largest bank, Bank Mellat and Bank Saderat, said another senior US official. The sanction effectively bans international banks from doing business with them.
"Doing business with the Iranian regime is not worth the risk," said a senior US official on a conference call with reporters.
Infighting
The US accuses the elite Qods force of arming and training militants in Iraq who in turn attack US forces. Tehran charges that Washington has destabilized Iraq. It also says the Qods is providing "material support" for Hezbollah in Lebanon, the Taliban in Afghanistan and Hamas in the Palestinian Territories.
The Bush administration had been considering the new measures for months, but there had been bureaucratic infighting over when and how far to go with the sanctions.
It is the first time the US sought to take such punitive measures against another country's military and is opposed by allies like Russia who believe dialogue rather than more punishment or military action is the way forward.
Talk of US military action has been more intense in recent months, particularly from some US conservatives who would like to see US President George W. Bush act against Iran before he leaves office in January 2009.
But Rice, while stressing that the president keeps "all options on the table", has insisted that the impasse can be resolved diplomatically through more financial pressure.
"We are taking this action now because we believe we are at a time when if diplomacy is going to succeed it needs to be stronger. There needs to be greater pressure on the Iranian government," said the senior US official, who spoke on condition of anonymity.
The US is also pushing for a third UN Security Council sanctions resolution against Tehran over its nuclear programme but veto-wielding China and Russia oppose such a move.
The West believes Iran is seeking to build an atomic bomb while Tehran says its nuclear program is for peaceful power purposes.
The Revolutionary Guard has about 125,000 members and is the most important wing of Iran's military. It also has sprawling financial concerns and US officials says it uses these companies to buy nuclear technology. - Reuters

Read More......

Iran defiant on atomic plans

Iran will not abandon its right to nuclear technology despite the threat of more sanctions, it told France in a letter published on Monday, a day before talks to try to defuse its row with the West.
Western nations accuse Iran of seeking to build atomic bombs under cover of a civilian programme, which Tehran denies.
The US has not ruled out military action if diplomacy fails to end the standoff.
But the head of the International Atomic Energy Agency said in an interview that Iran would need three to eight years to make a nuclear bomb, allowing time for negotiations.
Tuesday's meeting in Rome was scheduled to be between European Union foreign policy chief Javier Solana and Ali Larijani, Iran's chief nuclear negotiator whose resignation was announced on Saturday. He will now attend with his replacement.
The new chief negotiator, Saeed Jalili, is a close ally of President Mahmoud Ahmadinejad. Analysts say his appointment signals a shift to a more uncompromising line.
France, which has toughened its line against Tehran since President Nicolas Sarkozy took office in May, insisted before the talks that Iran must heed UN demands.
Tehran's refusal to halt nuclear work that could, if Iran wanted, be used to make material for warheads has already prompted the UN Security Council to impose two sets of sanctions. World powers are considering a third round.
"Iran will not let its right to nuclear technology be suppressed ... Using tools like the Security Council, economic sanctions and other threats cannot deprive our nation and our government for a moment of their decision," Foreign Minister Manouchehr Mottaki wrote to his French counterpart.
France is pushing for stronger European Union sanctions against Tehran, as well as pressing for further UN measures.
French Economy Minister Christine Lagarde said there was a strong meeting of minds between Paris and Washington on Iran, and further economic pressure would be brought to bear.
"French policy in that regard has clearly strengthened and we have given notice to all French companies not to continue further investment," she said at a meeting of the Council on Foreign Relations in New York.
Mottaki wrote to French Foreign Minister Bernard Kouchner saying that France's call for the EU to impose "unilateral sanctions" was illegal and violated the UN charter.
"You cannot talk about dialogue while following the path of pressure and threats," he wrote, according to Iran's ISNA news agency.
A French diplomat in Tehran confirmed the letter had been received a week ago. He did not give details.
Asked about the letter, US State Department spokesman Sean McCormack told reporters in Washington Iran continued to "delay, obfuscate and defy the international community".
"There are consequences for their continuing defiance," he said. "I expect that that will take the form, at least in the Security Council, of additional sanctions."
In an interview with the French newspaper Le Monde, IAEA head Mohamed ElBaradei said there was plenty of time for diplomacy, sanctions, dialogue and incentives to bear fruit.
"I cannot judge their intentions but, supposing that Iran does intend to acquire a nuclear bomb, it would need between another three and eight years to succeed," he said.
Major powers have agreed to hold off on more penalties until at least November to see if Iran cooperates with the IAEA to explain its nuclear aims, and to await a report from Solana, who is representing world powers in talks with Iran.
As well as pressing for more UN measures, Washington has its own sanctions in place to punish firms dealing with Iran.
Russia's LUKOIL said on Monday it had suspended work on an oilfield project in Iran due to US sanctions. Its partner, Norway's StatoilHydro, said it was still studying the project. Source

Read More......

Regional Threat

We have recently been witnessing an escalation in the war rhetoric between the US and Iran. Last week President Bush cautioned that if the international community is unable to prevent Iran from achieving military nuclear capability, it may lead to World War III. Later, Admiral Michael Mullen, the current Chairman of the Joint Chiefs of Staff said that despite efforts in Iraq and Afghanistan, the US has the necessary means to attack Iran.
In response, Gen. Mahmoud Chaharbaghi, a senior member of Iran's Revolutionary Guard said that if Iran is attacked, it would fire 11,000 missiles into enemy positions within a minute.

Iranian counter attack may double oil prices
The threat pertaining to "11,000 rockets per minute" insinuates an intention of using relatively low-range missiles. No country worldwide, besides the US and Russia, has a number of missiles that even comes remotely close to this figure.
It appears that the threat was primarily targeted at the Persian Gulf – Kuwait, Qatar, the United Emirates and Saudi Arabia, and at American targets in Iraq and in the Gulf.
The realization of such threat, even partially, may lead oil prices to double and drag world economy into a severe crisis.
Iran's pursuit of nuclear weapons is aimed at boosting its status and threatening enemies. Despite this, there is no dispute that the world would be better off if Iran does not develop military nuclear power. The crucial question is whether in order to prevent this from happening Iran should be attacked, thus risking Iranian counter measures that may destabilize the Persian Gulf and later the world, or whether diplomatic efforts should be continued at the risk of a nuclear Iran.
It should be hoped that all those involved in this matter are weighing the odds levelheadedly, while neutralizing any short term considerations.

Read More......