The United Arab Emirates has denied reports that it agreed to release billions of dollars to Iran, pushing back against claims that frozen funds had been made available to Tehran as part of an effort to halt attacks on Emirati targets.
The UAE Ministry of Foreign Affairs rejected the allegation after Reuters reported, citing unnamed sources, that Abu Dhabi had allowed funds to be unlocked following months of strikes on Emirati military sites and infrastructure during the U.S.-led war, which began on 28 February.
“The Ministry of Foreign Affairs affirmed that these allegations are entirely false and unfounded, stressing that no frozen Iranian funds have been released, transferred, or facilitated through the UAE,” the government told CNBC in a statement.
According to Reuters, the alleged arrangement emerged after the UAE was spared Iranian projectiles over the past week, while neighbouring Kuwait and Bahrain were hit. Two regional sources cited by the news agency claimed the funds totalled $10 billion, with more than $3 billion already delivered.
Two other sources said the amount involved was closer to $20 billion and claimed the move was linked to Iran halting attacks on the Emirates. Another person familiar with the alleged arrangement reportedly said an initial $3 billion tranche had already been made available.
Reuters said it could not verify whether the money came from UAE-held funds, Iranian accounts that had long been blocked in the Emirati banking system, or assets located elsewhere.
The claims have placed renewed focus on the UAE’s role as a regional financial centre at a time of heightened pressure over sanctions enforcement. Dubai has for years been a key commercial gateway for Iranian traders and companies, particularly as Western restrictions have limited Iran’s access to formal banking channels.
U.S. authorities have previously sanctioned several UAE-based entities accused of helping Iranian oil, petrochemical, shipping, and financing networks operate overseas. Washington has also urged Gulf partners to strengthen oversight of companies and informal money transfer systems suspected of helping Tehran bypass restrictions.
For Abu Dhabi, the allegation comes at a delicate moment. The UAE has sought to preserve economic ties with Iran while maintaining its security partnership with the United States. Its denial appeared aimed at distancing the government from any suggestion that it had made a financial concession to Tehran in exchange for a pause in attacks.