The ruler of Dubai, a Gulf trade and investment hub with strong links to Iran, said in remarks broadcast on Monday that the international community should ease sanctions on the Islamic Republic.
Under a deal struck in November, Iran is expected to curb its nuclear activity in exchange for a limited easing of the international sanctions. The pact will come into force January 20, Iran and world powers agreed on Sunday.
Asked whether he thought it was time to lift the sanctions, Sheikh Mohammed bin Rashid Al Maktoum, who is also the Prime Minister of the United Arab Emirates, told British broadcaster the BBC:
"I think so and give Iran a space... Iran is our neighbour and we don't want any problem, he said, adding that "everybody will benefit".
Despite a decade of sanctions, Iran has managed to get most of the commodities and goods it needs via Dubai's flourishing re-export market, although new embargoes imposed by the United States and its allies in late 2011 and early 2012 have hit it hard.
The vast majority of trade between Iran and its Gulf Arab neighbors is routed through Dubai, home to tens of thousands of ethnic Iranians and one of seven emirates making up the United Arab Emirates.
Iran says its atomic energy program is aimed purely at electricity generation and other civilian purposes, although past Iranian attempts to hide sensitive nuclear activity from U.N. non-proliferation inspectors raised concerns.