None of the sources cited in this article agreed to be identified due to the sensitivity of the matter.
The arrangement marks a significant turn from the open hostility of UAE-Iran relations during the war, when Iranian attacks emptied Dubai hotels, forcing some expatriates to flee and shaking the reputation of security that is central to the country’s status as a major business hub.
One of the sources with knowledge of the arrangement said the move offered a way to help resolve the conflict between the US and Iran without either side crossing their red lines: Iran could claim it has extracted compensation for war damages, Washington could insist it paid nothing, and Abu Dhabi regains its security and Dubai’s hub status while framing the move as an investment in rebuilding regional trust.
Another source with knowledge of the arrangement said that in exchange for the disbursement, Iran would halt missile and drone attacks on the UAE, and there would be a rebuilding of bilateral ties, including intelligence sharing and economic cooperation.
The source said Iran had approached at least two other Gulf Arab countries about making similar arrangements.
The last known direct attack by Iran on the UAE occurred more than a month ago – a May 4 attack on the Gulf state’s port of Fujairah on the Gulf of Oman.