Last week, Canadian officials announced that they had intercepted navigational microchips headed for Iran. More interestingly, in an interview that George Webb, the head of Canada Border Services Agency’s Counter Proliferation Section, gave to Canada’s National Post after the interception, Webb stated that Iran appears to have shifted its transhipment efforts from Dubai to Ras Al-Khaimah.

Unless you are a follower of the America’s Cup, you may not have ever heard of Ras Al-Khaimah, which at least for the moment is scheduled to host the prestigious regatta in February 2010. It is the northernmost emirate in the U.A.E. and borders on the Strait of Hormuz. Once known as Juffar and a former notorious base for pirates in the region, it now is the home of the most important container port in the U.A.E. and is also the closest port in the UAE to Bandar-e-Abbas in Iran. It also appears to be, according to Webb, almost completely under the influence of Iran. And, as scrutiny on exports to Dubai have increased, Webb claims that Iran has begun to shift its transhipment operations from Dubai to Ras Al-Khaimah

Webb’s claim of Iranian influence in Ras Al-Khaimah is apparently supported by this report on the Israeli news website Ynetnews.com.

This is a particularly sensitive report that UAE officials, who are very concerned about Iran, would prefer not be published. According to sources linked to the case, the Iranians have real foothold in the UAE, particularly in Ras al-Khaimah. Iran has cultivated close business relations with [Ras Al-Khaimah’s] Crown Prince Saud bin Saqr al-Qasimi and his close associate, Lebanese Shiite businessman, Massad Khater.

According to these sources, this is not merely an innocent business relationship. Khater is a partner in a ceramics factory called Ras al-Khaimah Ceramics. This factory, the sources claim, directly aids Iran’s weapons and missiles industry. The factory even has a branch in the Iranian city of Natanz, where parts for Iranian warheads are produced.

U.S. exporters should take this new information into account and take special care with any shipments headed to Ras al-Khaimah. And yes, a red flag does fly over the emirate, both literally and, now, figuratively.

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