United Arab Emirates has emerged as a haven for Russians fleeing the impact of western sanctions - but how long will it last?

Since the beginning of the war in Ukraine and the subsequent massive Western sanctions against the Kremlin, there are not many places left on Earth for Russians and sanctioned Russian companies to go that would allow them to escape or ease the burden of the restrictive measures put in place. The United Arab Emirates is one such “safe haven”, writes Louis Auge.

This state, while being critical of the Kremlin, maintains a warm relationship with it and does not openly support the Western world in its efforts to restrict the Russian economy and thus weaken Moscow's ability to continue its military campaign. The Emirates is also quite loyal to the inflow of Russian money. The good relations between Moscow and Abu Dhabi are evidenced by the fact that at the summit of the Eurasian Economic Union (an organization that unites Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan in a common economic area) held in Bishkek, Russian leader Vladimir Putin named the UAE as one of Russia’s new key economic partners.

Moreover, he said that Russia is looking at the possibility of signing an economic integration agreement with the United Arab Emirates. Dubai, along with Istanbul, has already become one of the main world centers to which wealthy Russians are flocking and where they are willing to spend millions of euros for expensive real estate. These countries were also chosen as a refuge because they are among the few that maintain direct flights with Russia, as well as provide the opportunity to obtain a residence permit for those who are willing to invest at least 250 thousand euros in real estate. According to real estate market analysts in Dubai, in the first quarter of this year, the share of Russian buyers of real estate in Dubai has grown by 67%.

This change is attributed to Western sanctions, which have deprived wealthy Russians of doing business in many other countries. According to Betterhomes CEO Ryan Mahoney, clients from Russia choose to buy property in elite residential complexes located in the most prestigious areas of Dubai, typically overlooking the Persian Gulf. Sources in Dubai say that among those who have made recent acquisitions, there are a number of well-known Russian names.

Share this article: