Two years ago, in the wake of the outbreak of the Russo-Ukrainian war, Dubai emerged as a magnet for wealthy Russians seeking refuge for their businesses or new beginnings. However, the appeal of this once thriving cosmopolitan oasis is losing its luster as the cost of living rises and banking regulations tighten.
While the UAE has not imposed sanctions on Russia unlike the United States and the European Union, local banks are reportedly stepping up scrutiny of Russian entities for compliance with US sanctions. Despite the challenges posed by the exodus of wealthy Russians, the impact on the UAE economy is expected to be relatively modest.