The Federal Supreme Court ruled that the Pakistani, who worked as a "driver at a sensitive government department," had been recruited by an intelligence officer at a foreign embassy in the United Arab Emirates.
The man had supplied photographs of meetings in the Gulf country between UAE officials and foreign delegates, WAM reported.
The Pakistani had confessed to having received more than USD 8,000 from the officer whom he met several times at the embassy headquarters and at the Iranian hospital in Dubai, said WAM.
The Abu Dhabi court also acquitted a second suspect, an Iranian, on trial for the same offence for lack of evidence, WAM said.
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Iran and the UAE are in dispute over ownership of the islands of Abu Musa, Greater Tunb and Lesser Tunb, which lie in the strategic Strait of Hormuz at the entrance to the oil-rich Gulf.
Iran took control of the islands in 1971 when Britain withdrew from the Gulf, in an annexation still contested by the UAE.