Why are wealthy Russian exiles fleeing to Dubai
Escaping turmoil back home, Russians are pouring into the emirate which offers a lax regulatory environment to secure their wealth.
The glitzy emirate of Dubai has emerged as a haven for rich Russians looking to move their wealth from Europe to escape the impact of crippling Western sanctions.
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| Russian exiles fleeing to Dubai |
A host of western nations led by the US slapped a raft of economic embargoes on Moscow in the aftermath of its attack on Ukraine on February 24.
The Persian Gulf’s financial and business hub, Dubai has long been an alighting point for high-net-worth individuals, and its lure has only increased with Abu Dhabi’s refusal to take sides between the West and Moscow, giving wealthy Russians moving to the country confidence that their money will be safe there.
In late February, the UAE abstained on a US-led resolution to condemn Russia’s military aggression in Ukraine at the UN Security Council, deciding not to back western sanctions to maintain its long-standing ties with Moscow.
Russia’s Central Bank is blocked from accessing its $630 billion chest of foreign reserves, and some of the country’s banks have been removed from the SWIFT financial messaging system. To safeguard its reserves, Russia has enacted capital controls and banned citizens from exiting the country with more than $10,000 in foreign currency.
It’s believed that over 200,000 Russians have fled the country since the conflict began. As Russian assets are seized across Europe, direct flights continue to operate from Moscow to Dubai.
The latest influx of Russians into Dubai has brought with it a spike in demand for property, sports cars and mooring space at marinas.
A Russian realtor who has operated in Dubai for over a decade tells TRT World that the past month has been a “crazy time” and that he’s been inundated with calls from Russians desperately looking to buy and rent property as the rouble plummets.
The most popular purchases are in the $250,000-$500,000 bracket, and investors are especially interested in bagging apartments at Dubai Marina, an affluent residential neighbourhood, the agent said. Some are even paying a year’s rent in advance, he adds.
Other agents have reported selling luxury properties valued at up to $20 million to Russian investors in recent weeks. “A lot of the new investors are very hush-hush,” Alan Pinto, a leasing consultant at Espace Real Estate in Dubai Marina, was quoted by The Guardian. “They will never purchase directly, they get companies to do it for them.”
Source: TRT Wpporld