Iran earned a narrow 34-32 victory over the UAE on Saturday in Khalifa Sports City Hall in Isa Town.
Iran had previously lost to Saudi Arabia and Bahrain in Group B and defeated China and Lebanon.
Bahrain and Saudi Arabia advanced to the semi-final as the group’s top two teams, from which the winners will contest the gold medal match and the losers the bronze medal match, both on January 28.
The event also serves as qualifier for the 2017 Men’s Handball World Championship in France.