Russian Business Flees to the UAE: Assets Worth $12.6 Billion and Sharp Revenue Decline

Economy 27.11.2025 - 12:35 614 viewed

27.11.2025 - 12:35 614 viewed

Бізнес з Росії переїжджає до Об'єднаних Арабських Еміратів: капітал на $12,6 млрд і різке зниження доходів.

Capital Relocation to the UAE

According to ХВИЛЯ: Russian businesses are actively transferring their capital to the United Arab Emirates (UAE), resulting in the assets of Russian companies in this jurisdiction exceeding 1 trillion rubles, equivalent to approximately $12.6 billion. This phenomenon occurs against the backdrop of a sharp decline in revenue for Russian companies, which fell to $82.5 billion in October 2025. The revenue drop was 21.3% compared to the previous month, reflecting serious problems in the economy.

Financial Losses and New Tax Initiatives

It is noted that legal entities have suffered losses amounting to about $17.2 billion in revenue, while individual entrepreneurs lost $4.8 billion. Additionally, the number of cash receipts decreased by 22.4%, indicating a reduction in business activity. One of the reasons for this development is new tax initiatives coming into effect on January 1, 2026. The income threshold for the simplified taxation system will decrease from $738,600 to $123,100.

Amid these changes, the share of the shadow economy in Russia could increase by 10-15% by mid-2026. This underscores the trend towards higher business shadowing in the face of new tax challenges.

Daniil Yegorov, an expert in the field of economics, noted that 'the UAE has become the most popular foreign jurisdiction for Russian business'.

Thus, the transfer of assets by Russian companies to the UAE is taking place against the backdrop of significant financial losses and new tax conditions, compelling businesses to seek alternative opportunities for capital preservation.

This situation may indicate serious structural changes in the Russian economy, caused by both internal and external factors. The relocation of capital to the UAE may have far-reaching consequences for financial stability and the development of the business environment in Russia, as well as pose new challenges for state policy in the areas of taxation and business control.