An investigation, led by Organised Crime and Corruption Reporting Project (OCCRP) and Norwegian outlet E24, has uncovered scores of convicted criminals, fugitives, political figures, and sanctioned individuals who have recently owned real estate in Dubai.
The OCCRP report titled “Dubai Unlocked” shows 398 Bangladeshi nationals owning 641 properties in Dubai with the total value of their real estate exceeding $225 million. OCCRP, however, did not provide any further details regarding their identities. The EU Tax Observatory analysed the data collected by the US-based Center for Advanced Defense Studies in last January. According to the EU Tax Observatory, as of 2020, a total of 459 Bangladeshis bought 972 properties worth US$ 315 million in Dubai concealing their information.
According to another EU Tax Observatory report, the number of Bangladeshis who bought land properties in Dubai in 2022 was 532.
ACC probe report on 459 Bangladeshis owning property in Dubai
Earlier on 16 January, 2023, the High Court ordered the authorities concerned to launch an investigation into the allegation that 459 Bangladeshi nationals bought properties in Dubai illegally.
The HC had ordered the Anti-Corruption Commission, the Bangladesh Financial Intelligence Unit and the Criminal Investigation Department (CID) of Bangladesh Police to submit a report within 30 days.
The ACC had also formed a four-member committee comprising a director and three deputy directors to look into the allegation.
In May 2020, the US-based non-profit organization— Center for Advanced Defense Studies (C4ADC) — published a research paper, highlighting that Bangladeshis bought housing assets with money that was laundered mainly in Gulf countries.
According to the report, 459 Bangladeshis owned a total of 972 residential properties in Dubai at a cost of $315 million. Of these assets, 64 are located in the elite Dubai Marina area, and 19 in Palm Jumeirah. At least 100 villas and five buildings are said to be owned by Bangladeshis in these locations.
Besides, four or five Bangladeshis own properties worth about $44 million there. The report, however, did not mention any names.
Bangladeshis own 11,000 companies in Dubai
According to another report published on September 27, 2023 in a leading Bangla daily, the number of Bangladeshi-owned companies registered in the United Arab Emirates (UAE) was on the rise.
Besides, the number of memberships at the Dubai Chamber of Commerce held by Bangladeshi businesses rose by 47 per cent (1,044 companies) to a total of 10,975 companies in January-June this year.
Established in 1965, the Dubai Chamber of Commerce released the data on its members on its website in April last year.
The data shows that more than 350,000 member companies exported and re-exported goods worth US$ 27.29 billion or 137 billion UAE dirhams in the first half of 2023.
Nobody from Bangladesh, however, runs businesses in the UAE with permission to invest in the Gulf country.
According to the Bangladesh Bank, 17 companies have received government clearance so far to open foreign offices or factories on a small scale, and Singapore, Kenya, Malaysia, India, Sri Lanka, Saudi Arabia, the United Kingdom, the United States and Hong Kong are the most favourite destinations for Bangladeshi entrepreneurs investing in foreign lands.
Bangladeshis themselves or in other names are investing in various sectors, including villas, apartments, restaurants and star hotels across various UAE emirates including Dubai, Sharjah, Abu Dhabi and Ajman. Many of them, however, hid their identity and used the citizenship of various countries, including Albania and Cyprus.
Transparency International Bangladesh (TIB) on 26 September said the wealth and businesses of Bangladeshis were apparently being built with laundered money, and the data of Dubai Chambers on the membership of the 11,000 Bangladeshi-owned companies showed that money laundering increased to this gulf country.
However, many also went legally to UAE as workers and then invested there, TIB said, adding that why it is necessary to scrutinise the entire list of Dubai Chamber to find out who invests legally and illegally.
TIB Executive Director Dr Iftekharuzzaman said most of the money is laundered through mis-invoicing in the guise of import and export as well as through hundi.
Who are the members of Dubai Chamber?
According to Dubai Chamber, a total of 30,146 companies received their membership in the first half of 2023, and 22 per cent of those companies were Indian. The membership at Dubai Chamber held by Indian businesses rose by 37 per cent (6,717 companies) to 90,118 companies in January-June in 2023.
Indian businesses were followed by the Emiratis (4,445 companies) and Pakistanis (3,395 companies). The membership held by Pakistani-owned companies rose by 59 per cent to 40,315 companies. As many as 2,154 Egyptian-owned companies received the membership in January-June raising the total number to 18,000 while 1,184 Syrian-owned companies obtained membership, taking the total number of Syrian-owned companies to 10,678.
However, UK and Chinese citizens fell behind Bangladeshis at Dubai Chamber. As many as 963 British firms joined Dubai Chamber in the first half of 2023, yet the total number of British firms did not cross 10,000 while 8,265 Chinese firms hold membership at Dubai Chamber.
How do Bangladeshis make wealth?
The UAE introduced a golden visa scheme to attract foreign rich people. A person who owns wealth worth US$ 2 million can apply for this visa. Rules on buying houses were also relaxed for foreigners, allowing 70 per cent of transactions in cash. Since then, foreigners, including Bangladeshis, have increasingly bought properties in Dubai.
It costs about 300,000-400,000 dirhams or approximately Tk 12 million to buy a three or four-room apartment in Dubai, which is cheaper than the properties in the upscale area of Dhaka.
