UAE Denies Allegations of Transferring Frozen Iranian Funds to Tehran

ABU DHABI (June 12, 2026) — The United Arab Emirates Ministry of Foreign Affairs on Thursday issued a formal denial regarding allegations that the Gulf state transferred frozen assets belonging to Iran.

The ministry stated in an official communique released late Thursday evening that claims suggesting Abu Dhabi facilitated financial transfers for Tehran are false. The statement addressed reports circulating over recent days alleging that UAE-based entities had moved Iranian funds held under international sanctions restrictions.

"These allegations are entirely baseless and have no foundation," the foreign affairs ministry said, without specifying which specific transactions or institutions were referenced in the accusations. "The United Arab Emirates strictly adheres to all applicable international obligations regarding financial regulations and asset freezes."

The denial comes amid heightened scrutiny of regional banking flows following a series of disclosures suggesting that sanctioned Iranian assets may have been accessed through intermediary accounts within Dubai's financial sector.

UAE officials emphasized their commitment to compliance with global sanctions regimes, including those administered by the United Nations Security Council. The ministry noted that all financial institutions operating under UAE jurisdiction are subject to rigorous oversight and must adhere strictly to international legal frameworks governing restricted assets.

The allegations first emerged earlier this week through diplomatic channels and were subsequently amplified in regional media outlets. While specific details regarding the alleged transfer mechanism remain unconfirmed, reports suggested that funds frozen since 2018 may have been accessed through a complex network of shell companies registered within free zones in Dubai.

Iranian officials had previously expressed frustration over restrictions on accessing billions of dollars held abroad but did not immediately comment on Thursday's denial. Tehran has long maintained that the freezing of its assets constitutes an act of economic warfare and has called for their release under various international legal arguments.

The UAE, which maintains diplomatic relations with both Iran and Western powers imposing sanctions, faces delicate balancing acts in regional financial matters. Abu Dhabi serves as a major global hub for trade finance, processing significant volumes of transactions involving countries subject to varying degrees of sanction regimes.

Analysts note that the denial represents an effort by Dubai authorities to protect its reputation as a compliant international financial center. The city has invested heavily in strengthening anti-money laundering protocols following past incidents where local banks faced criticism over alleged sanctions violations.

The ministry did not address whether any internal investigations were launched into the specific allegations or provide details on how such claims originated. It also declined to comment on whether other nations had raised concerns directly with UAE officials regarding potential breaches of financial restrictions.

Questions remain about the origin and scope of the initial accusations, as well as what evidence may have prompted them. Regional observers await further clarification from both Abu Dhabi and Tehran as diplomatic tensions over asset management continue to evolve.