A report

in the American Wall Street Journal considered that the Emirate of Dubai in the United Arab Emirates has become an attraction for Russian money and trade due to low taxes and the absence of sanctions

.

The report pointed out that Dubai has become the preferred destination for Russian companies and wealthy people seeking refuge from Western restrictions, and has quickly become the preferred international center for Russian companies and wealthy people seeking to run their businesses and protect their money while avoiding sanctions due to the war on Ukraine.

He added that these moves are behind the decision of the UAE and its main commercial city not to impose US and European sanctions on Russia, as the country and the city are trying to maintain a neutral position in the war, despite their long security partnership with Washington.

The report provided many details about companies and individuals who moved to Dubai from Europe and elsewhere in the world, noting that they find in Dubai an already thriving community of about 100,000 Russian speakers and other advantages, such as relatively easy immigration laws and no income tax.

He said that Russian tourism doubled this year, with flights continuing between Moscow and the UAE.

Western anxiety

The report pointed out that Western officials had asked the UAE to limit trade with Russia to no avail, and that they were concerned that Dubai would use its global links to money flows to bypass sanctions.

And he conveyed a statement by German Economy Minister Robert Habeck to reporters during his visit to the UAE last March, in which he said that he does not ask the UAE to be part of the sanctions, but rather asks it not to benefit from European and American sanctions.

The report said that the UAE's declared position on Western sanctions is not clear about whether it will impose sanctions imposed by other countries on Russian individuals and companies, referring to a statement by the official spokesman for the UAE Ministry of Foreign Affairs, Abdul Khaleq Abdullah, who said that the country's openness to Russian business reflects The Emiratis' decision to maintain a neutral stance in foreign policy, adding, "When it comes to US and European sanctions, we are so selective that we can say no sometimes."

Many Russian companies move employees to Dubai (the island)

Moving to Dubai حجم

The report cited many examples that illustrate the scale of Russian companies, money, and individuals moving to Dubai after the war in Ukraine, such as Sovcom Float, a Russian state oil company that owns ships that it leases to oil companies around the world, including Total Energy. France and Saudi Aramco, which moved to Dubai after Western sanctions were banned, makes it impossible for them to work with insurance companies, banks and traders in Europe.

Shipping industry officials and sanctions experts were quoted as saying that Sofcom Float's presence in Dubai enables it to obtain services to keep its ships at sea, including obtaining fuel, making repairs, securing teams and banking services.

He added that this arrangement for Sofcom Float and others has given Russia's oil exports a lifeline, as Russian state companies such as "Rosneft" use Sofcom Float tankers to ship crude.

perfect conditions

The report quoted a Russian businesswoman as saying that Dubai enjoys a near-perfect set of conditions that make it attractive to Russians looking for a safe haven for themselves, their families and their assets, saying that many companies move employees to Dubai, mainly because it is easy to move workers from Russia to Dubai.

Financial experts in Dubai said they are receiving requests from Russian businessmen to resettle operations from Western Europe, where banks have closed accounts linked to Russia, and that Dubai banks are helping Russians establish themselves even as they ask more questions about potential clients to avoid sanctioned individuals.

One of the companies focused on transferring wealthy Russians and their assets to the UAE, as it has not registered for any Russian customers since 2016, but since last February it has registered 15, or about a third of its new customers.

The company said that the value of the assets that it helped transfer to Dubai exceeded 4.5 billion dollars, as these customers transferred their residencies from Russia, as well as moved companies and bank accounts from Luxembourg, Cyprus, London and Zurich to Dubai.

Virgozone, a company that helps foreigners set up businesses in the UAE, said its Russian customers have doubled this year compared to last year, and Western companies, including Google and JPMorgan Chase, have moved their Russian employees to Dubai.

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