Corruption has been long-hollowing Dubai, a city in the United Arab Emirates (UAE). The Emirate, at present, is suffering from a deep economic crisis attributable to is tolerance to corruption and profligacy.

The Organised Crime and Corruption Reporting Project (OCCRP) and the Centre for Advanced Defence Studies (C4ADS) conducted an investigation that exposed corruption in Dubai’s real estate sector, which has become an easy source of money laundering and tax evasions.

The report, published after an investigation spanning over a year, includes case history of seven individuals, who are sanctioned by the United States, and in some cases also by the European Union. One thing common among all the seven is that they have maintained an extensive portfolio of properties in Dubai, worth millions earned from corruption in Dubai and overseas.

The investigative bodies found out the manipulation of Dubai’s real estate market for money laundering and offshoring of unlawful assets, enabling the owners in the UAE to further undertake illegitimate investments and corporate activities abroad.

Case studies of Dubai corruption:

Smuggling of Syrian fuel

Sanctioned by the US, Wael Abdulkarim and Ahmad Barqawi own three properties with an estimated worth of $867,067 in the UAE. The investigators used phone numbers, addresses, and emails, through which these properties were listed, to establish connections with alleged corruption in Dubai.

The records matched with those included on the US sanctions designation and public commercial listings for Pangates International and Morgan Additives Manufacturing Co. Surprisingly, both the companies were sanctioned for being active in the fuel smuggling network.

According to the report, Abdulkarim and Barqawi invested heavily in Dubai real estate sector, spending $700,000 earned from illegal profits derived out of fuel smuggling operations to Syria. Despite being sanctioned by the US, these men are comfortably living in Dubai and carrying out illegal commercial shipping operations till date.

Narcotics trafficking in Mexico

Narcotics kingpin Hassein Eduardo Figueroa Gomez was placed under the US sanctions for smuggling precursor chemicals to Mexican cartels for the production of narcotics. He was also accused of laundering money in the US.

Gomez had been operating three commercial trading companies based in Dubai, alongside investing over $4.34 million in the Emirate’s real estate sector. One of his companies was still listed as active in the UAE, as of May 2018.

Iran’s ballistic missiles program

The US sanctioned Kambiz Mahmoud Rostamian for acquiring prohibited material for Iran’s ballistic missiles program. Rostamian and MKS International were apparently regional corporate representatives for manufacturers of material with dual-use applications in ballistic missile development.

The investigative records showed Rostamian bought properties costing almost $1 million in Dubai, in the last few years.

Money laundering channeled from Pakistan

Altaf Khanani’s Money Laundering Organization (MLO) was targeted by the US for laundering almost $16 billion, every year, to fund terrorist organizations, organized crime groups and narco-traffickers. The money derived from the corrupt company was then used for buying real estate holdings in the UAE.

The sanctioned individuals of the organization have 27 properties in the UAE, worth $15 million in their names. Moreover, they have an extended network of 32 properties worth $6.66 million outside the country.

Iranian nuclear proliferation

In January 2016, an Iran national Hossein Pournaghshband was sanctioned by the US for offering material aid to Iran’s nuclear program. His UAE-based company, Mabrooka Trading tried to source a carbon-fiber production line from Asia, which was intended for an Iranian company. He has connections with $3.11 million worth of property in Dubai.

Syrian-conflict corruption

Rami Makhlouf and Ihab Makhlouf were subjected to sanctions for being identified as the main facilitators of the Syrian conflict and supporters of war-related corruption. They own at least four realty holdings in the UAE with a market value of $3.17 million.

Hezbollah Terror Financing

Lebanese brothers Kamel Mohamed Amhaz and Issam Mohamed Amhaz were sanctioned by the US for sourcing electronic equipment that landed in the hands of Hezbollah terror group. Apart from Issam’s sole property worth $815,102, the brothers individually own $70 million worth of property and five electronics firms in the UAE.

Dubai has started succumbing to a corruption web it unknowingly prepared for its own economy. The Emirate’s poorly managed real estate sector has become a haven for illegal investments, thereby fostering organized crimes and terrorism across the world.

Source — https://c4reports.squarespace.com/sandcastles https://www.transparency.org/news/pressrelease/dirty_money_hub_dubai_must_clean_up_its_real_estate_sector