In times of war, Dubai has the power to transform itself into the refuge of Russian billionaires fleeing the increasingly pressing sanctions of the West. This month they have flocked to Dubai, hoping to be able to “save” their billionaire fortunes from confiscations and blockades in the countries in which they had invested. The oligarchs close to the president with confiscated assets and blocked accounts, the super rich in Moscowin the field of weapons, oil, fertilizers or whatever else, they see their economic empires crumble and therefore look for extra-luxury destinations where they can continue to do business, transfer capital and enjoy money. And here’s plan B: the emirate of Dubai has become their new safe in the sand for storing money. Russian jets, helicopters and yachts ended up in the hands of analysts who built Twitter profiles dedicated to tracking all their movements, discovering that many private jets take off from Moscow and land in Dubai and megayachts have turned their bow towards the Emirates. Dubai, Abu Dhabi and all of the United Arab Emirates have been elected as the “new kingdom” of the oligarchs who have booked, indefinitely, rooms in the most luxurious hotels, making them sold out.
“Nowadays, in every place in the Emirate capital, we hear Russian being spoken. There are areas and shopping centers where you even begin to doubt you are in Dubai – confirms Roberto Manzi International Tax Advisor of SGR Consulting FZCO of Dubai, a company operating in the company set up and in financial and tax consultancy at an international level -. They had invested and brought huge capital to Europe and other parts of the world, they had always taken up residence in different parts of the world, including Europe, and their yachts were docked in the most exclusive ports on the planet. But practically everywhere, confiscations, blockades and seizures have begun, to the detriment of Russian capital and assets ”. Expropriated of their properties in London, New York, Saint Tropez, Paris and Porto Cervo, and expelled from the English, Swiss and Luxembourg banks, the only safe haven has become Dubai where they still find a welcoming tax and banking haven and where their money they are very welcome. Like this, cryptocurrency firms in Dubai are besieged by the countless requests for billionaire liquidations from Russians seeking a financial refuge for their assets. But why Dubai? Because the UAE has taken a neutral stance towards the conflict and Dubai is the best place to bring capital and transfer yachts and other luxury goods. The war in Ukraine, however, did nothing but accelerate the process of moving Russian capital to Dubai, which had actually already begun several years ago. But why Dubai? Because the UAE has taken a neutral stance towards the conflict and Dubai is the best place to bring capital and transfer yachts and other luxury goods. The war in Ukraine, however, did nothing but accelerate the process of moving Russian capital to Dubai, which had actually already begun several years ago. But why Dubai? Because the UAE has taken a neutral stance towards the conflict and Dubai is the best place to bring capital and transfer yachts and other luxury goods. The war in Ukraine, however, did nothing but accelerate the process of moving Russian capital to Dubai, which had actually already begun several years ago.
“If until a few months ago, the main reason for the outflow of capital from the former Soviet Union was almost zero taxation – continues Manzi -, the ever-increasing quality of life and unparalleled business and investment opportunities in the world, as well as a relative proximity to the former Soviet Union, today all this seems to take a back seat and the only reason is to bring together in a single safe place the capital that the Russians had “dispersed” in different parts of the world. Here in Dubai, goods and capital, in fact, enter a real untouchable safe. For these reasons we expect this river of money that seems to have no end to continue to arrive in massive numbers. Soviet billionaires are taking up residence en masse in the UAE capital, so much so as to cause congestion of the state offices in charge of issuing visas and identity cards “. Just think that before the war in Ukraine, it took 20-25 days to get residency in the emirates: now, however, you go beyond the month for the first appointment, and then be able to complete the paperwork in no less than two months. “And the more the war goes on, the more Dubai and all of us who work in the field of finance and company set up will benefit from it – explains Manzi -. By now, as well as a necessity, for the Russians it has become practically a fashion, and having a residence in Dubai becomes more and more an elitist status. And therefore, while the hunt for Russian capital continues in the rest of the world and inflation and prices are skyrocketing, Dubai is enjoying a decidedly prosperous period.
This is also confirmed by Daniele Pescara, CEO of Falcon Advice, a company that for years has supported new entrepreneurs wishing to set up or transfer their companies to Dubai, especially in this period of economic instability, first with the pandemic and now with the war: “The compactness of ‘West may not be enough. The strength of European sanctions is unprecedented and there are areas of the world where the overcharged easily find asylum. Like Dubai, in fact. Dubai once again shows itself to be “neutral” and stable. International pressures do not cause the country to lose its focus, which is aimed at economic growth and the protection of the privacy of individuals. In the Gulf, Russia is well regarded and respected for its military role in this part of the world and is seen as a reassuring partner. For this reason, the role of the Middle East in the war in Ukraine is decisive. The game is played above all on the field of oil, which has allowed the billionaire growth of Middle Eastern countries. As long as the cost of crude oil remains above $ 110 a barrel, Putin will still have enough income to be able to finance the war. All thanks to the excellent relations that Russia has been able to build over the years with OPEC (the Organization of Countries that extract, work and export oil) ”. The Emirates and Saudi Arabia could therefore create great difficulties in Moscow, if only they increased the production of crude oil, thus decreeing a lowering of prices. They are, in fact, the only two nations with a large production capacity still partially unused. And this could be a serious blow to Russia.