Dubai, the new home for Rich Russians to avoid sanctions

Dubai emerged as a haven for wealthy Russians. Russians fled because of the impact of Western sanctions on the war in Ukraine. As a result, Russian billionaires and entrepreneurs arrived in the United Arab Emirates (UAE) in large numbers.

Property purchases in Dubai by Russians surged by 67% in the first three months. The UAE did not put sanctions on Russia. UAE was even criticized because it invaded Ukraine. It also provided visas to non sanctioned Russians. Many Western Countries restricted them.

It has got estimated that hundreds of thousands of people left Russia. This is the data for the last two months, although exact figures are not available.

Russian Economist stated that 200,000 Russians had left in the first 10 days after the war began. Virtuzone, which helps companies to set up operations in Dubai, saw a huge surge of Russian clients.

Chief executive George Hojeige said that we are receiving five times more inquiries from Russians since the war began. He added that they worried about an economic meltdown that was on its way. The influx of Russian nationals enhanced the demand for luxury villas and apartments across the city. Real estate agents are reporting a surge in property prices. This is because Russians arriving in Dubai are looking to purchase homes.

Dubai-based real estate agency Betterhomes found property purchases by Russians surged by two-thirds in the first three months of 2022.

Another real estate agency, Modern Living, told BBC that it hired many Russian-speaking agents to meet their rising demands. Chief executive Thiago Caldas stated that they were receiving numerous calls from Russian nationals. They all were looking forward to relocating to Dubai immediately.

He stated that Russians were not buying just for investment. They were also looking at Dubai as a second home.

Russia’s central bank now tapped with billions of foreign reserves. Many multinational companies and Russian start-ups are also relocating their employees to the UAE.

Credits: BBC