Iran’s exports to Kuwait could hit $10m: Senior businessman
By Sadeq Dehqan &
Reza Abesh Ahmadlou
Staff writers
Iran’s commercial ties with Kuwait have significant potential for growth, according to the Vice President of the Iran-Kuwait Chamber of Commerce.
Currently, Iran’s annual exports to Kuwait stand at approximately $300,000, a modest but promising starting point. However, the Chamber’s leader believes that with the removal of barriers and sanctions, Iran’s exports to Kuwait could surge to a staggering $10 million per year. This would not only be a boon for businesses in both countries but also a testament to the strength of their economic partnership.
Arash Nikpey told Iran Daily that due to the problems faced by our merchants in terms of sanctions and money transfer, part of our exports to Kuwait are made indirectly through third countries, and for example, Iranian goods are re-exported to Kuwait from Oman or the UAE. Considering these re-exports, Iran’s total export to Kuwait stands at over $1 million.
Kuwait’s export potential is modest, according to the senior businessman, who notes that the country’s production and natural reserves are not well-suited to meet the demands of Iran. In fact, most of Kuwait’s products are already in surplus in Iran, making it unlikely that the country will be able to meet a considerable part of the needs of its neighboring market.”
“Iran’s industrial and mineral sectors boast products with high added value, generating significant profits from our exports. However, we face challenges in the trade arena, particularly with regards to monetary and banking transactions. By fostering collaboration between the government and private sector, I believe that we can overcome these hurdles and find creative solutions to unlock the potential of our exports,” he noted.
Nikpey went on to say that Iran’s export portfolio is bolstered by a strong presence in the food and construction materials sectors, with cement being a particularly notable standout. Furthermore, Iran’s granite and decorative stones are also in high demand globally, although they are often imported indirectly through other countries.
“Despite the challenges posed by sanctions, Iran has a significant potential for exports to Kuwait. However, the current constraints have hindered our ability to fully capitalize on this opportunity, particularly in light of the complex financial and monetary arrangements that Iranian businessmen must navigate with their Kuwaiti counterparts. These transactions, which involve exchange-based transactions, create additional hurdles that hinder our ability to increase exports to Kuwait.”
“Kuwait, with its significant economic resources, presents a vast opportunity for Iran to establish a strong trade partnership. By addressing the challenges posed by sanctions, we can unlock the full potential of this relationship and meet Kuwait’s diverse needs across various sectors. With the right solutions in place, Iran’s economy can thrive by providing goods and services that cater to Kuwait’s requirements, strengthening the bond between our nations.”
By resolving the outstanding political differences between Iran and Kuwait, we can unlock a new era of cooperation and prosperity between our nations. A harmonious resolution of these issues will pave the way for a stronger and more fruitful partnership, fostering economic growth and development that benefits both countries. As our relations normalize, we can expect to see a surge in trade, investment, and cultural exchange, ultimately cementing a long-term bond between our nations,” he noted.
Nikpey went on to explain that a critical obstacle to strengthened ties between Iran and Kuwait lies in the exploitation rights in the Arash gas field. This dispute has long hindered the potential for mutual benefit and cooperation between the two nations. However, through open and constructive dialogue, we can overcome this hurdle and find a mutually acceptable solution that addresses the concerns of both parties.
In a rich tapestry of cultural exchange, he shed light on the storied history of Iranian settlement in Kuwait. “For centuries, Iranians have made Kuwait their home, with many families having established roots in the country as far back as two or three generations. This enduring presence has woven a vibrant thread of Iranian culture into the very fabric of Kuwaiti society, resulting in a unique blend of traditions and customs that continue to flourish to this day.”
“For many Iranian expatriates living in Kuwait, their cultural heritage is a source of comfort and nostalgia. With their roots firmly planted in Iranian soil, they have a deep appreciation for the authentic flavors and aromas of their homeland. As a result, they enthusiastically welcome Iranian goods, particularly in the culinary sphere. For these Iranians, the familiarity of Iranian food is a tangible connection to their cultural identity, and a taste of the comfort and warmth they left behind.”