UAE rejects Iran funds transfer claims

The UAE has firmly rejected allegations that money was moved from the country to Iran, including claims involving as much as $3bn, saying no frozen Iranian assets have been released, transferred or facilitated through its territory.

The Ministry of Foreign Affairs said reports carried by unnamed international media outlets were “entirely false and unfounded”. The statement followed accounts suggesting that funds linked to Iran had been unlocked through the UAE at a sensitive point in regional diplomacy and amid speculation over possible financial provisions in wider talks involving Tehran and Washington.

Abu Dhabi’s denial focused on two points: that money had not been transferred from the UAE to the Islamic Republic of Iran, and that frozen Iranian funds had not been moved through the country’s financial system. The ministry also urged media organisations to rely on official sources and avoid circulating unverified allegations, signalling concern that claims about sanctioned funds could carry diplomatic and market consequences.

The dispute comes as negotiations over Iran’s nuclear programme, regional security and access to blocked revenues remain under close scrutiny. Tehran has long pressed for sanctions relief and the release of funds held overseas, while Washington has insisted that any economic benefit must be tied to verifiable commitments. US Vice President JD Vance said Iran would not receive money merely for signing an agreement or attending talks, seeking to push back against reports that financial concessions were already in motion.

The allegations concerning the UAE emerged against that backdrop, with disputed accounts suggesting that billions of dollars could be used as part of an arrangement to reduce tensions and support wider diplomacy. Abu Dhabi’s response leaves no room for ambiguity, framing the claims not as a misunderstanding over technical banking arrangements but as false assertions about the movement of money.

Frozen Iranian assets have been among the most contentious elements of diplomacy with Tehran for years. Funds linked to Iranian oil sales and other revenues have been restricted in various jurisdictions because of US sanctions, banking compliance rules and political negotiations. Even when release mechanisms are discussed, they often involve strict channels, humanitarian carve-outs, escrow accounts or controls intended to prevent money from being used for sanctioned activity.

The UAE’s position is complicated by its role as a financial, logistics and trade hub. Dubai has deep commercial ties with the wider region, including a long-standing Iranian business presence, while Abu Dhabi has sought to balance de-escalation with strict compliance obligations. That balance has become more delicate as the Gulf faces pressure from military flare-ups, energy-market uncertainty and diplomatic manoeuvring around Iran’s nuclear and regional posture.

Abu Dhabi has repeatedly presented de-escalation as a core principle of its foreign policy. The country has maintained dialogue channels across the Gulf while aligning its financial system with international anti-money-laundering and counter-terrorism financing standards. Officials are particularly sensitive to claims that could imply sanctioned transactions, given the UAE’s continuing efforts to strengthen regulatory oversight and protect its standing as a global financial centre.

The timing of the denial also matters for markets. Reports involving Iranian funds, sanctions relief or Gulf-based payment routes can affect oil prices, currency expectations and risk perceptions across the region. Any suggestion that blocked Iranian money is being released outside a formal agreement would invite scrutiny from Washington, European capitals and financial institutions responsible for sanctions compliance.

Iran has continued to demand access to its overseas funds as part of any diplomatic settlement, arguing that sanctions have restricted legitimate revenues. The United States has treated financial access as leverage, linking relief to nuclear, security and maritime assurances. Gulf states, meanwhile, are trying to avoid becoming the venue for an unmanaged financial compromise that could expose them to retaliation, sanctions risk or political criticism.

The UAE statement did not provide operational details beyond the categorical denial, nor did it identify the specific reports it was rejecting. Its wording was nevertheless direct, making clear that the government wanted the matter closed before speculation could harden into an accepted narrative.