Dubai's property market is experiencing a surge in interest from Russia, despite sanctions.

• In 2021, the Dubai property market recorded $35 billion worth of transactions, the highest since the global financial crisis, according to Savills.
• Hussain Sajwani, an Emirati property magnate, stated that while many Russians are likely attempting to resolve their problems and difficulties, Dubai will ultimately profit from any crisis, according to CNBC.

Dubai's property market has begun the year on a strong note, with Emirati property magnate Hussain Sajwani experiencing great success.

"The veteran real estate developer stated on CNBC on Wednesday that Dubai is currently thriving, and the key to its success is the way it managed the Covid pandemic."

In 2021, Dubai recorded the highest property market transactions worth $35 billion since the global financial crisis, according to Savills. Meanwhile, CBRE reported that total transaction volumes are currently tracking at the highest level ever recorded for the first two months of this year.

The UAE, a long-standing popular destination for Russian wealth and tourism, would benefit from the influx of Russians seeking refuge and a safe haven for their fortunes amid the ongoing war in Ukraine and unprecedented Western sanctions, as stated by Sajwani.

"I'm confident that many Russians are working to resolve their problems and challenges, but Dubai will gain from any crisis," he stated. This statement was made after the UAE, which has strengthened its ties with Russia, opted not to impose sanctions on Russia for its invasion of Ukraine, as Western nations have done.

"Sajwani stated that the sanctions caused a lot of anxiety among people. He added that as long as individuals bring money through the legal and professional banking system, they will be considered for business."

According to a recent Reuters report, Russians were among the top purchasers of real estate before the war and sanctions, and they were also buying property in Dubai and using crypto as a way of getting their money into the Gulf state.

Experts have claimed that the country's property market is often used for money laundering, allowing individuals to avoid sanctions or conceal illicitly obtained wealth.

The Financial Action Task Force, established by the Group of 7 economies, placed the UAE on a monitoring list due to concerns about money laundering and illicit financial flows.

The UAE stated that it takes its responsibility to safeguard financial integrity very seriously and will collaborate closely with the FATF to promptly address the areas requiring improvement.

Covid response key

"If the Iranian-American peace treaty, nuclear treaty, is successful, it will bring stability and peace to the region, benefiting Dubai greatly," Sajwani stated.

Last year, Dubai's property market experienced a reversal of its multi-year decline in prices, thanks to the city's decision to avoid lockdowns, increase vaccinations, and implement new policies to attract tourists and residents. Despite the pandemic shutting down the world, Dubai was able to recover.

The Dubai Expo 2020, postponed for a year due to the pandemic, attracted interest as a multi-billion dollar project aimed to become a new residential and commercial complex after the event ends in April. Despite the plans of its developers, the success of Expo as a thriving city within a city remains uncertain.

"Dubai's residential market was the standout performer in the global real estate market in 2021, according to Savills."