Since the war in Ukraine, many Russians have emigrated to Dubai
While he believed that events gave him “every day more reason” to make this choice, Denis made his decision days after the invasion of Ukraine on 24 February. “I saw in Moscow many cars marked with the letter Z (military symbol of the Russian troops, Editors note) but also people who were arrested for raising the flag of peace, he continued. I also can’t imagine myself paying taxes so the government is going to kill Ukrainians with that money. And then the Russian regime, which far surpasses Vladimir Putin, is completely inconsistent with my values, I can’t take it anymore.”
Monthly salary 5000 euros
A graduate of a Moscow business school and graduate of British American Tobacco, the nearly thirty year old decided at the end of February to leave the communications agency he had worked for in Moscow. In early March, weighed down with two suitcases, he landed in Dubai with a friend who had arrived a few days earlier. “Since then, five other childhood friends have joined us and are working in cryptocurrency, IT, or design,” says Denis, who was hired by a fast-delivery company, then by a company specializing in metaverse (virtual world) real estate. The amount of his monthly salary: 5,000 euros.
This departure is far from isolated. Since February 24, the first city in the United Arab Emirates (its capital is Abu Dhabi) has established itself as a new El Dorado for Russian citizens, like Turkey or Georgia. But it welcomes a more affluent profile that is seduced by the business-friendly side of this expat city inhabited by 90% foreigners. Dubai, for example, in October 2020 introduced special visas for remote workers, as well as favorable conditions for great wealth, in particular the possibility of obtaining an Emirati passport and the introduction of “golden visas”. Local taxes are also very advantageous because the state has no income tax. Considered a tax haven, the United Arab Emirates retains a 9% corporate tax that will become effective in June 2023.
In recent months, the bling-bling emirate has seen a huge influx of investment bankers from Rothschild & Co, Goldman Sachs and JPMorgan Chase whose Moscow offices closed after the start of hostilities in Ukraine. “Dubai is a favorite destination for bankers leaving Moscow” headlined local Al-Khaleej website on March 11. Sitting in a restaurant with an ultramodern design in DIFC, Dubai’s financial district, Ilya, 29, is another financial whiz to have left the country. Ekaterina, 29, a colleague at Rothschild & Co, who also works for Russian petrochemical giant Sibur, shares why they decided to leave and live more than 5,000 kilometers from Moscow. “My employer offered us to come here, it was very good news,” said the investment banker, explaining that he was not summoned by the Russian army. We are against this war, which is only about one man and whose economic and humanitarian consequences will only get worse .”
DIFC is Dubai’s financial district where major international banks are headquartered. (c) DIFC
“My parents and sister don’t think like us”
Living in a hotel, does the self-confessed pair of Russian rival Alexei Navalny, who was jailed after being poisoned in the summer of 2020, plan to return to Russia one day? “We will not return as long as Putin is president,” replied Ekaterina, also 29, a former financial analyst turned to music. This was a difficult choice because our family remains in Russia. But my parents and sister don’t think like us. For them, what happened is not a tragedy, they respect Putin.” Ilya insisted on a gradual hardening of the regime. Editors note). The siloviki (members of the security apparatus) and people like Ramzan Kadyrov (Chechen leader) are gaining more and more power.”
The field of culture and arts has also seen the arrival of some active young Russians such as Marina, 35, a curator who decided to leave her country in July to join a contemporary art gallery. “Since February 24, in Russia it is no longer possible to work with international artists and institutions, he said. All my projects were canceled and because of this I had to leave. This is a professional choice but I must also say that for me, this is a terrible war and it must end immediately. This is a human and economic tragedy and I know unfortunately not all of my fellow citizens share these observations.
Also readWar in Ukraine: can it end in 2023?
While between 40,000 and 60,000 Russians currently live in the country according to some media, the many palaces in Dubai reflect this exodus well. This is especially the case for the Mandarin Oriental, a grand luxury hotel overlooking the Persian Gulf. This lofty establishment, which includes a caviar bar, is for example popular in each of its frequent trips by Anatoly Braverman, number two of Russia’s sovereign wealth fund (RDIF). The Russian businessman also benefits from the various air links between the two countries. Despite calls for a boycott, three Emirates companies (Emirates, Etihad Airways and Flydubai) still serve Moscow and Saint Petersburg airports. And get a great bargain: pre-war Moscow-Dubai return flights on Flydubai (low cost) traded for about 200 dollars against 1200 in March and 700 today.
real estate is booming
One of the most eloquent indicators of this arrival is also the spectacular rise in the real estate market. Last year, home sales in Dubai broke the previous record which was set in 2009. House rental contracts also increased by 11% compared to the previous year. And the average annual rent for a villa jumps by almost 25%. This increase, which contrasts with the downward trend observed almost all over the world, is mainly due to this Russian emigration according to experts. “When you go to developers you see Russians everywhere, prices are exploding, supporting Maxence Loose, a French real estate agency in Dubai. Few Russian investors are buying per floor, we’ve never seen that.” French business lawyer Arnaud Depierrefeu, who has lived in the region for a long time, confirmed this development. “Russian and Ukrainian presence has always been strong in Dubai, but it is true that it has increased since the start of the war,” he stressed.
As the Organized Crime Reporting and Corruption Project (OCCRP) investigative consortium revealed in May 2022, the emirate, one of the most opaque financial centers on the planet, is popular with many Russian oligarchs and supporters of Vladimir Putin. This is particularly the case for those under international sanctions. The OCCRP cited for example Rouslan Baïsarov, a businessman close to Ramzan Kadyrov or Duma (Russian parliament) deputy Alexandre Borodaï, both real estate owners in Dubai. It is also worth noting the tensions around the Russian oligarch Andrei Skoch (“Mrs Gu”, estimated at $ 150 million), moored in Dubai and which Washington plans to seize within the framework of international sanctions related to the invasion. from Ukraine.
The cruise ship “Madame Gu” belongs to the oligarchy Andrei Skoch anchored at Port Rashid terminal in Dubai, 7 December 2022. (c) Antoine Izambard
*Like others met during this report, he did not want us to publish his name.
