OIC Accounts for Over One-Third of Iran’s Non-Oil Foreign Trade

EghtesadOnline: Iran’s total non-oil trade with member states of the Organization of Islamic Cooperation in the last Iranian year (ended March 20, 2018) witnessed a 6.84% and 12.46% rise in tonnage and value respectively compared to the year before to stand at 75.35 million tons worth $37.75 billion.

News ID: ۷۸۳۲۴۸

14 July 2018

Financial Tribune’s analysis culled the data from the Islamic Republic of Iran Customs Administration's report.

Iran exchanged $101.23 billion worth of non-oil goods with other countries in the fiscal March 2017-18, up 15.5% compared with the year before, IRICA's website reported.

Exports during the 12-month period hit 132.3 million tons worth $46.93 billion, indicating a 6.56% rise as imports amounted to 38.73 million tons worth $54.3 billion, up 24.31% YOY.

The above figures indicate that Iran's non-oil trade with OIC member states accounted for 37.29% of the country's overall foreign trade last year. Exports to this group of countries accounted for 52.8% of overall exports, as 23.86% of overall imports came from OIC member states.

The Organization of Islamic Cooperation is an international entity founded in 1969 and comprising 57 member states, including Iran, with 47 countries being Muslim majority countries. Some, especially in West Africa, although with large Muslim populations, are not necessarily Muslim majority countries.

The organization states that it is the collective voice of the Muslim world and works to safeguard the interests of the Muslim world in the spirit of promoting international peace and harmony.

Iran exported a total of 68.31 million tons of non-oil goods worth $24.78 billion to OIC states last year, registering an increase of 7.86% and 5.93% in tonnage and value respectively, while imports stood at 7.03 million tons worth $12.96 billion, down by 2.2% in tonnage and up by 27.47% in value year-on-year.

Syria has been suspended from the organization since August 2012, therefore trade with the country is not included in this analysis.

Iran-UAE trade stood at 21.73 million tons worth $14.87 billion, down by 1.52% in tonnage and up by 13.5% in value YOY. As such, the UAE was Iran’s biggest trading partner among OIC member states last year.

Iran exported 18.08 million tons of commodities worth $6.69 billion to the UAE, posting a 4.68% and 9.72% decrease in tonnage and value respectively YOY. The UAE exported 3.64 million tons of goods worth $8.17 billion to Iran, up 17.86% and 43.78% in tonnage and value respectively YOY.

It is noteworthy that a major part of Iran's trade with the UAE pertains to reexports of goods to third countries. These commercial exchanges are mainly made through the ports of Dubai, including Jebel Ali Port.

Following the UAE, Turkey had the highest value of commercial exchanges with Iran, at 16.20 million tons worth $7.17 billion, registering an increase of 29.02% and 20.11% in tonnage and value respectively YOY.

Iran exported 14.36 million tons of commodities worth $3.99 billion to Turkey, up by 31.4% and 22.88% in tonnage and value respectively YOY as it imported 1.83 million tons of Turkish goods worth $3.18 billion to indicate a 13% and 16.82% growth in tonnage and value respectively.

Iran-Iraq non-oil trade amounted to 13.17 million tons worth $6.50 billion to go down by 8.18% in tonnage and up by 4.96% in value YOY.

Iran shipped 13.09 million tons of goods worth $6.42 billion to the neighboring country, registering an 8.4% decline in tonnage and 4.79% growth in value YOY.

Iraq exported 80,429 tons of commodities worth $77.44 million to Iran, growing by 51.97% and 21.52% in tonnage and value respectively YOY.