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Report describes Dubai real estate as money-laundering haven

AP  |  Dubai 

War profiteers, terror financiers and drug traffickers sanctioned by the US in recent years have used Dubai's real-estate market as a haven for their assets, a new report released today alleges.

The report by the Washington-based Center for Advanced Defense Studies, relying on leaked property data from the city-state, offers evidence to support the long-whispered rumours about Dubai's real-estate boom. It identifies some USD 100 million in suspicious purchases of apartments and villas across the city of skyscrapers in the United Arab Emirates, where foreign ownership fuels construction that now outpaces local demand.

The government-run Media Office said it could not comment on the report. For its part, the centre known by the acronym C4ADS said has a "high-end luxury market and lax regulatory environment prizing secrecy and anonymity above all else." That comes as the US already warns that Dubai's economic free zones and trade in gold and diamonds poses a risk.

Dubai, an entrepot, long has been a favourite port of call for those skirting the law. Gold smuggling into served as one of the emirate's most lucrative trades for the decades after the pearling industry collapsed. Guns, drugs and other illicit cargo also moved through the city-state.

"The permissive nature of this environment has global security implications far beyond the sands of the UAE," the center said in its report. "In an interconnected global with low barriers impeding the movement of funds, a single point of weakness in the regulatory system can empower and enable a range of global illicit actors."

The properties in question include million-dollar villas on the fronds of the man-made to an apartment in the Burj Khalifa, the world's tallest building. Others appear to be one-bedroom apartments in more-affordable neighborhoods in Dubai, the UAE's biggest city.

Among the highest-profile individuals named in the report is Rami Makhlouf, a cousin of embattled Syrian and one of that country's wealthiest The US has sanctioned Makhlouf, who owns the largest Syriatel, for using "intimidation and his close ties to the Assad regime to obtain improper financial advantages at the expense of ordinary Syrians."


Makhlouf and his brother, also sanctioned by the US, own on the Palm Jumeirah, according to the report. They also have ties to two UAE-based free-zone companies. The UAE, a federation of seven sheikhdoms led from oil-rich Abu Dhabi, has opposed Assad in his country's yearslong war.

The UAE also opposes Hezbollah, the Lebanese political party and militia group backed by However, C4ADS' report identified at least one property directly linked to Lebanese Kamel and Issam Amhaz, who the US sanctioned in 2014 for helping Hezbollah "covertly purchase sophisticated electronics" for military drones. The report identified another nearly USD 70 million in properties owned by two other shareholders in Amhaz's sanctioned firms.

Separately, the report identified some USD 21 million in still held by individuals associated with the Altaf Khanani money laundering organization, a Pakistani ring that aided drug traffickers and Islamic extremists like al-Qaida through its currency exchange houses.

The report identified owned by Hassein Eduardo Figueroa Gomez, a Mexican national indicted in the US for importing mass quantities of needed to make methamphetamine. It also identified properties owned by two Iranians previously sanctioned for their work on Iran's missile program.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 12 2018. 18:55 IST
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