DUBAI, April 14: The business community in the UAE is hoping for a boom in its trade with Iraq and is expecting to get the lion’s share in $2.5 billion earmarked by the US for immediate commodities procurement.

Dubai has an edge over its regional competitor as a regional business hub that has a good air and sea link with Iraq and because of its ability to quickly source supplies like food stuff, leather goods and paper products from Asian countries for re-export to Iraq.

A leading Dubai businessman told a local newspaper that they had supplied goods worth Dh1.4 billion to different agencies under food for oil programme in Iraq and expected the figure would be doubled after situation comes under control in Baghdad.

According to shipping sources, presently only aid cargo is going to Umm Qasr, the lone gateway open to Iraqi people.

The shipping companies expect the new authorities would soon open the country for export to Iraq.

“Much of the $2.5 billion earmarked for buying commodities is expected to be spent in Dubai in sourcing food stuff and commodities of daily need to be shipped to Iraq and many traders are getting ready to get orders from the interim authority in Iraq as and when it takes shape,” a shipping executive was quoted as saying by the Gulf News.

Some business circles are more optimistic than others and expect a much higher volume of trade with Iraq. Khaleej Times has quoted a leading business as saying: “Iraq is in need of $200 billion of goods in the next five years.”