As sanctions bite, Russians seek to the UAE to get out of the economic turmoil

Published on June 1, 2022

After the invasion of Ukraine, which has left Moscow’s financial system on the verge of collapse, a growing number of wealthy Russians are flocking to the UAE

In response to Russia’s invasion of Ukraine, the United States and its European allies have slapped unprecedented sanctions on the country.

The Central Bank of Russia is unable to access its $630 billion in foreign reserves, and some of the country’s banks have been banned from using the SWIFT financial messaging system.

Russian Businessmen are hurrying to withdraw their funds from banks and convert their roubles into foreign currency as a result of the restrictions, which have virtually cut Moscow off from the world economy.

Russia has introduced capital controls to protect its reserves, prohibiting citizens from leaving the country with more than $10,000 in foreign cash.

Dubai has traditionally marketed itself as a safe refuge in times of unrest, with foreign nationals accounting for 90 percent of the population. It has drawn wealthy families and business owners escaping regional conflicts in Syria, Iraq, and Lebanon in the past.

Here are the top 5 business sectors in UAE:

  1. Retail & E-Commerce – in 2022, the forecasted value of e-commerce sale in the United Arab Emirate (UAE) was around 22 billion Dollars. E-Commerce sales in the UAE are estimated to grow by around 25% by the end of 2022.
  2. Medical & Healthcare – The UAE health insurance market reached a value of US 6.6 billion Dollars in 2020. Looking forward, IMARC group expects the market to grow at a CAGR of 8% by 2026.
  3. Construction & Real Estate – The UAE construction market was valued at USD 101.45 Billion in 2020, and is expected to reach a value of USD 133.5 Billion by the end of 2026, registering a CAGR of 4.69%
  4. Travel & Tourism – It has been projected that the travel and tourism industry will contribute about 280.6 billion United Arab Emirati Dirham to the UAE’s GDP by 2028.
  5. Logistics – The freight and logistics market in the UAE is valued at USD 19.65 billion in 2020 and is expected to reach US 31.41 billion Dollars in 2026 growing a CAGR of 8.41%

How can Exsus help you setup your business in UAE?

Our Vision is to be the region’s most trusted corporate advisory service provider by bringing excellent customer service and the highest level of trust to our clients. Our team at Exsus is attuned to the market and has been facilitating individuals, SMEs, and multinationals with bespoke services to cater to all their setup and operational needs. Assistance with selecting the best and most cost-effective location, simplifying the application process, and removing any hurdles, let our team guide you all the way.

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