Abu Dhabi has reportedly agreed to unlock billions of dollars for Iran, according to four sources who spoke with Reuters, marking a significant tactical shift in the region as the wealthy Gulf state seeks to reduce tensions after weeks of Iranian missile and drone attacks.
Two regional sources told Reuters that the UAE agreed to release a total of $10 billion, with more than $3 billion already delivered to Iran. Two other sources with knowledge of the arrangement put the total funds involved at $20 billion, according to Reuters’ exclusive report published June 12.
The reported move comes as the UAE, which was heavily targeted by Iran during the U.S.-Israeli war, has been spared fresh strikes in recent weeks. Iran’s last known direct attack on the UAE occurred on May 4, when it struck the Fujairah port on the Gulf of Oman, according to Reuters. Since then, Iran has redirected its missiles and drones toward Kuwait and Bahrain instead.
Reuters could not establish whether the funds belong to the UAE itself or originate from long-blocked Iranian accounts held within the UAE banking system. One source with knowledge of the arrangement said the move offered a way to help resolve the conflict between the U.S. and Iran without either side crossing its red line: Iran can claim it extracted compensation for war damages, Washington can insist it paid nothing, and Abu Dhabi obtains its own security while framing the move as an investment in rebuilding regional trust, according to Reuters.
UAE Denies the Reports
The UAE Ministry of Foreign Affairs issued a categorical denial on June 13, stating that the allegations are “entirely false and unfounded.” The ministry stressed that “no frozen Iranian funds have been released, transferred or facilitated through the UAE.” The statement did not provide further specifics on the reported arrangement.
When asked by Reuters to comment on the transfer before the denial, a UAE official said the country was trying to ease tension and foster peace. “The UAE’s foreign policy is guided by promoting de-escalation and reducing tensions across the region, while advancing lasting peace and stability,” the official said, according to Reuters.
The reported arrangement signals a striking pivot from the open animosity of UAE-Iran relations through much of the war, when Iranian attacks emptied Dubai’s hotels and drove some expatriates to flee. Reuters reported that talks on the financial arrangement started several weeks ago but quickened pace when officials of Iran’s powerful Revolutionary Guards visited Abu Dhabi last week to meet Sheikh Tahnoun bin Zayed al Nahyan, the UAE’s national security adviser and deputy ruler of Abu Dhabi. That trip was followed by a visit by UAE officials to Tehran to negotiate details of the mechanism, according to Reuters.
The reported move comes amid broader negotiations between Tehran and Washington aimed at ending the war, with frozen Iranian assets becoming a central issue. Iran has sought the release of tens of billions of dollars in frozen oil revenues held in foreign banks under U.S. sanctions, while the U.S. has indicated it will not release funds until a permanent ceasefire agreement is reached. Reuters reported that Iran had approached at least two other Gulf Arab countries to make a similar arrangement to the one reportedly agreed with the UAE.
Sources
- Reuters — Exclusive reporting on the UAE’s agreement to unlock billions for Iran, including the $10 billion and $20 billion figures, the May 4 Fujairah attack date, details of the negotiations, and the UAE’s denial statement
- Al Jazeera — Reporting on the UAE’s agreement to unlock frozen Iranian funds amid U.S. ceasefire push
- i24NEWS — Confirmation that Abu Dhabi approved release of $10 billion with more than $3 billion already transferred
