Iran eyes $1b exports to Kuwait in case of trade barriers removal: Joint chamber
By Sadeq Dehqan
Staff writer
Iran’s exports to Kuwait have reached $400 million annually and could climb to $1 billion within less than three years if trade barriers are removed, said Abazar Barari, secretary-general of the Iran-Kuwait Joint Chamber of Commerce.
Speaking to Iran Daily, Barari noted that Kuwait currently imports between $350 billion and $400 billion worth of goods annually from around the world and that Iran could significantly expand its share in the market.
“Given the high commercial capacities between Iran and Kuwait, if trade obstacles are lifted, Iran’s exports to Kuwait could reach $1 billion in under three years,” Barari said.
He explained that Kuwait, as a small-population oil-rich nation, relies heavily on imports to meet domestic demand and has virtually no exportable surplus. “Kuwait has a high per capita income, and its population relies on imported goods for daily needs.”
Barari highlighted longstanding trade ties between the two countries, which deepened after Iraq’s 1990 invasion of Kuwait and Iran’s support for the emirate during the crisis. “Since then, bilateral trade has consistently grown,” he said.
Trade balance
Over the three past decades, the trade balance has favored Iran. Exports from Kuwait to Iran have remained minimal — typically under $10 million per year — and have largely consisted of used machinery and second-hand foreign vehicles.
Despite current momentum, Barari cautioned that Iran’s exports to Kuwait are unlikely to surpass the $400 million mark by the end of the current Iranian year (began on March 21) due to ongoing trade restrictions linked to anti-Iran sanctions and logistical challenges.
Iran has been under Western sanctions for decades over its nuclear program, with the oil and energy sectors hit the hardest.
“The volume of trade between the two countries has never matched their actual potential,” he said, adding that Iran’s exports to Kuwait have fallen short of expected levels.
Export obstacles
The primary obstacle, according to Barari, is transportation logistics. Iranian goods bound for Kuwait follow a combined land-sea route as cargo is trucked to the southern ports of Khorramshahr or Bushehr and then shipped via small vessels to Kuwait. This multimodal process increases shipping costs.
Moreover, most vessels traveling from Iran to Kuwait operate on a one-way basis, returning empty due to the lack of Kuwaiti exports to Iran, further driving up transport expenses.
“Land transport is generally cheaper, but direct overland trade routes between Iran and Kuwait have not yet been established,” Barari said. He noted that both countries are however taking steps to establish a land trade route, which, once operational, could increase bilateral trade volumes.
Another barrier, he said, is Kuwait’s strict visa policies for Iranian businesspeople and citizens. “On-the-ground presence of Iranian traders in Kuwait is essential for market development and expanding exports,” he stressed.
Barari emphasized that Kuwait’s market favors high-quality products. “Iranian exporters must pay serious attention to product quality and ensure adequate oversight before shipments are dispatched,” he said.