Under US pressure, banks in the UAE are tightening requirements and closing accounts, and the cost of living in Dubai has risen sharply. Incoming Russians reduce their investments and return to the Russian Federation.
Dubai is losing its appeal for wealthy Russians and UAE banks say they are stepping up efforts to meet US demands. Bloomberg reports this.
The flow of Russian money into the United Arab Emirates, of which Dubai is a part, is showing signs of slowing down, bankers, executives and investment experts said. Neither foresees a large-scale cash outflow to the UAE, but executives say they have exhausted most of the benefits of the Russian currency and are unlikely to see further cash flows. The cost of living in the glittering emirate is rising sharply and its banks are becoming stricter in enforcing US sanctions.
Important
Some newly arrived Russians are considering moving to other countries or even returning home as an increasing number of expats arrive in Dubai, driving up rents and daily expenses. Unlike the USA and the EU, the Gulf country does not impose sanctions on Russia. Russian entities opening bank accounts are now checking local banks more frequently as the UAE comes under increasing US pressure to evade potential sanctions.
UAE-based banks, including Emirates NBD Bank PJSC, Mashreqbank PSC and First Abu Dhabi Bank PJSC, have stepped up surveillance of Russian entities in recent months and sought greater compliance with US sanctions. Dubai bankers said ordinary middle-class Russians who were not sanctioned generally did not face serious problems opening accounts, but some sanctioned Russians were turned away by their banks. Some with political supporters or connections to sanctioned individuals also had bank account problems.
Let’s remember, on March 21, TheMoscow Times reported that major Chinese banks stopped accepting payments in yuan from Russia and began to refund such transactions to customers. Not accepting payments in yuan will complicate solutions for Russian companies forced to open accounts in “friendly” countries not subject to Western sanctions.
Source: Focus
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