An Emirati company is negotiating with Iranian firms to set up a mobile phone assembly plant in Iran, officials said on Tuesday.
The contact was reportedly made during the UAE in Iran Trade Exhibition which ended on June 20, they said, quoted by the Gulf News.
The plant will have South Korean technical support, officials said without naming the parties involved in the negotiations, or the value of the project.
Iran has about two million mobile phones in circulation, but the demand is estimated at 15 million.
Tehran's population is about 12 million, and the national population is about 65 million, said the paper.
Meanwhile, the major share of the estimated Dh475 million ($129 million) worth of business believed to have been generated by the show will go to Dubai Islamic Bank and Emaar Properties, said Fahad Al Gergawi, head of exhibitions and conferences at the Dubai Chamber of Commerce and Industry.
The chamber, along with Dubai's Ports, Customs and Free Zone Corp, organized the show.
Other major business deals included the appointment of seven agents and 16 distributors for various products. Additionally, 19 companies signed tourism or travel agreements to market Dubai to Iranian travelers, said the paper.
An immediate impact is expected to be felt during the Dubai Summer Surprises, Al Gergawi said.
Meanwhile, Dubai Islamic Bank said that it was close to signing up to $80 million in financing as well as a memorandum of agreement to finance Iranian firms sponsored by the Export Guarantee Fund of Iran.
DIB was also asked to handle the Islamic tranche of the $2 billion Iran-Kuwait water pipeline project – Albawaba.com
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