The UAE is considering freezing billions of dollars worth of assets belonging to Iran, a move which would cripple the country's connection to the global economy, the Wall Street Journal reported on Thursday.
The potential move comes after the UAE privately warned Iran of the possibility, according to anonymous sources, but it is unknown exactly when the Emirati government will act.
Assets that would be at risk of being frozen belong to Iranian shadow companies based in the UAE, through which billions of dollars are funneled, particularly via oil sales from Iran-linked companies in Dubai.
UAE likely to target IRGC-linked accounts first
According to Andreas Krieg, a senior lecturer at the School of Security Studies at King’s College London, the UAE is likely to first target accounts linked to the IRGC. He noted that an all-encompassing Iranian asset freeze would have a substantial negative impact on the Emirati nation's economy.
The UAE is considering other options, officials said, including a crackdown on local currency exchanges used to illicitly move money, and direct maritime action against Iranian ships.
Iran has targeted several sites in the UAE since the start of Operation Roaring Lion, with over 1,000 drone and missile attacks, including an Amazon data center, Israel's embassy, airports, and residential areas across the country.