The agreement made last November to lift international trade sanctions on Iran could lead to a regional trading boom in the textile industry, Arabian Business reported.
Iran and the United States, France, China, Russian, Britain and Germany made an agreement to relieve sanctions, a deal which came into effect on Jan. 20. Under the six-month accord, the Islamic Republic of Iran will have access to $4.2 billion in foreign exchange. In return, Iran has agreed to end parts of its nuclear program. The accord also brings some relief from sanctions on gold, petrochemicals and vehicles.
However, according to Ram Bhagchandani, secretary of the Dubai-based traders’ association Texmas, Dubai’s textile business could double if the sanctions were lifted completely.
Bhagchandani told Arabian Business, “There are a lot of sanctions in Iran and a lot of businesses were affected by that. Once Iran opens up then our trade will almost double. Iran has been a very major buyer for us.”