Dubai uncovered is the alleged leak of Dubai Land Department ownership data which was obtained by the Center for Advanced Defence Studies (C4ADS) in Washington before being shared with the Norwegian financial outlet „E24“ and other media.
Based on the leak, numerous tendencious media reports are telling the tale of Putin initimates allegedly hiding their fortune from Western sanctions by investing into Dubai property, along with money launderers, tax evaders and other criminals.
However, there are a few important facts typically omitted in the mainstream media reports:
- The leaked Dubai Land Department files date back to 2020 while the Ukraine conflict started in 2022, raising the question of a missing link between the data and the allegations.
- The UAE are actively participating in the OECD`s CRS data exchange system since January 2017 while FATCA has been implemented in July 2014.
- In 2019, the UAE have adopted and are since enforcing the OECD Economic Substance framework for low-tax jurisdictions.
- In 2021, the UAE have adopted a comprehensive Anti-Money-Laundering and Terrorism Financing Combat regulation, issuing fines for non-compliance on a regular basis.
Storytelling vs. Reality
Because of the comprehensive data exchanges applied by the UAE since many years, the conclusion of any UAE banking transactions of European citizens will be known to their respective tax authorities as well as – potentially – law enforcement agencies within months only.
It was early 2021 when Germany`s then finance minister Scholz used more than two million Euros of taxpayer`s money to purchase illegally aquired banking and other data from Dubai, promising to uncover dozens, if not hundreds of German tax evaders.
Scholz`s hope in 2021: While making an example of the culprits, their legal prosecution and the resulting recovered taxes and imposed fines would exceed the investment by multiples.
After analysing the data, German tax authorities are now reporting „one-digit“ numbers of preliminary tax investigations initiated, clearly contradicting the tax evasion story and unmasking a blown-up narrative.
Dubai – An Increasingly Attractive Proposition
There is no doubt that Dubai continues its rapid development to become a stable, yet dynamic tax efficient trading hub while Europe struggles under the growing burdens of spiraling public debt, excessive bureaucracy, the erosion of the rule of law and – as of late – the threat of a greater military conflict.
Therefore, it comes as no surprise that Dubai – with its low entry barriers, high quality of life and attractively priced Dubai property market appeals especially to European citizens, increasingly attracting investment capital and highly-qualified manpower.
A Prelude to New Restrictions?
First and foremost, „Dubai uncovered“ can be regarded as the latest propaganda operation with the quite obvious goal to coerce the UAE into taking sides in the ongoing East-West conflict.
While we see the „Dubai uncovered“ narrative primarily in the context of the Ukraine war, the flight of capital and people leading to the erosion of the European tax base is becoming an issue as well. As of late we see German and French citizens leaving Europe in rising numbers, looking for a safe haven for their families and capital.
Although clearly a speculation as of now, „Dubai uncovered“ could be the beginning of a public campaign leading into EU-initiated political measures like capital controls, effectively preventing European citizens from shifting their assets and main residence.
Synopsis – A Gleam of Hope
It has been several years that – based on my political observations – I have predicted the economic and political downturn of the EU, advocating clients to internationally diversify their assets and places of residence. As of today, matters are becoming more pressing if one is only at the outset of such an undertaking.
At the same time, the recent geopolitical developments and diplomatic events lead us to believe that the gulf states including the UAE are shifting their centre of economic and political focus towards India, Russia and China, leaning further towards the Eastern side of the evolving bi-lateral world order.
In doing so, I predict that the UAE will reclaim the neutrality that was thought to be lost, emancipating itself from occidental orders and constraints.
Be it tax rules, imposing sanctions against other countries or financial disclosure requirements: It is now time for Dubai and the UAE to take political decisions focusing on their own interests. And the defamatory „Dubai uncovered“ campaign could be yet another catalyst in this development.