"Russian Sanctions Divert Trade to Dubai"
July 03, 24
(IDEX Online) - Sanctions on Russia are ineffective and simply divert business elsewhere, say trade bosses in Dubai.
"Trade continues flowing, it just flows in a different way," Hamad Buamim, chair of the Dubai Multi Commodities Centre (DMCC) told the Financial Times.
He said Dubai was seen as a beneficiary of US and European attempts to isolate Russia's economy.
The DMCC is a free trade zone with over 24,000 businesses. It is home to the Dubai Diamond Exchange (DDE), now the world's top trading hub for rough diamonds.
There are over 1,150 diamond companies at DDE, which last year reported a 17 per cent increase in rough and polished trade to $37.4bn.
The UAE has faced increased pressure in recent months from the US, EU and UK to act against companies trading with Russia.
But Buamim said: "The fact that the economy is not purely controlled by one side of the world makes these sanctions less effective."
Pic courtesy DMCC.