2023-12-14 01:11:59
In two years, the number of Swiss companies registered in a free zone in Dubai has increased by 30%. At the heart of this transfer of activity, the Russian oil trade. This is what the Swiss NGO Public Eye demonstrates, which carried out a vast investigation into “the big game” led by the Emirate to seduce the largest black gold traders.
Dubai’s first asset is not to apply sanctions against Moscow, Dubai companies are therefore not required to buy Russian oil while respecting the “price cap”, the ceiling price set by the West – 60 dollars for the barrel of crude, 100 dollars for diesel and kerosene.
The second asset of the Emirate is its tax policy. The small state remains unbeatable in this area, according to a report from the NGO Public Eye. Companies which set up in a free zone and which do not carry out direct activity in the country are exempt from taxes for fifty years. The stronghold of Dubai trading, the Dubai Multi Commodities Center (DMCC) guarantees the registration of a company in two weeks and the residence permits of new arrivals are also issued in record time.
Best free zone in the world
All these facilities offered by an Emirate which is also regularly accused of not fighting enough against money laundering – in 2022 the Financial Action Task Force (FATF) has included the United Arab Emirates on its “grey list” due to failures observed in the field, have undoubtedly contributed to the reputation of the DMCC elected in 2023, for the ninth consecutive year, the best free zone in the world, according to the FDI magazine prize of the Financial Times, like the Public Eye report.
Dubai’s third asset is its port capacities. Certainly, the majority of Russian barrels purchased by companies registered in Dubai do not touch Emirati soil, but the country’s port infrastructures are increasingly in demand: imports of Russian petroleum products now represent 10% of the main activities. commercial port of the Emirates, while they were almost non-existent a little over a year ago, according to the specialist magazine MEES cited by Public Eye. To meet demand, a new oil storage terminal must also see the light of day.
Dubai dethroned Geneva
All conditions were therefore met for the entry into force of sanctions against Russia to attract more and more traders registered in Switzerland to Dubai free zones. Especially since legally independent subsidiaries of Swiss companies established abroad or Swiss nationals domiciled abroad are in theory not subject to Swiss legislation. A law firm cited by Public Eye says it receives around a dozen files per month for installation requests from companies registered in Switzerland which trade oil, but also minerals and even cereals.
In a few months, Dubai has become the epicenter of Russian oil trading, alongside Hong Kong, whereas before the war, between 50 and 60% of Russian oil was traded from Switzerland, according to estimates by the NGO which ensures that six of the ten largest private buyers of Russian crude, by sea, are today based in the United Arab Emirates.
The historical partners of Russian oil companies such as Rosneft have disappeared from the top 10 buyers of Russian oil. Instead, companies with a “totally opaque” profile have emerged, to use the words of Public Eye.
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