Why Iraqi Money Ends Up in Dubai
Mohammed looked at Ali and continued explaining, “All it took was the Supreme Leader’s support. Within a few years, many talented, specialized, and educated people left the country and migrated to Western countries. For most of them, it was getting difficult to continue in their own country, and for some it was more lucrative to be out of Iraq. Along with them, lots of money left the country and made big opportunities for the United Arab Emirates. Iraq’s loss has been the UAE’s gain.”
Kelly rolled her eyes. “Oh, you mean Dubai? I’ve heard of it; a small but very wealthy place full of gold and oil.”
Mohammed smiled and continued. “Yes, it’s the closest city in another country that has a place for Iraqi people to go to and get a home easily. It is only two hours away but it is another country, another government.”
Ali spoke. “Yes, and they made that small city one of the richest ever, with foreign money. Iraqi money! My country’s money!”
“Why and how did so much money end up there?” asked Kelly.
Mohammed smiled. “Well, most products are not taken into Iraq directly; they first go to Dubai and are then re-exported to Iraq. So thousands of Iraqi companies are established in Dubai with Iraqi money.”
Kelly had understood everything that Mohammed had been trying to explain until now. It was a lesson on world politics, economy, and human psychology. She thought for a few seconds and then said, “It’s like with Cuba. US companies can’t deal with it directly, so they have to go through a third party.”
“Exactly! Actually, there are two reasons for this situation. First, there are lots of rules and problems in dealing with Iraqi customs, so people prefer to first drop their products in Dubai and then slip them under the table to bring them into Iraq.”
“Just like so many other countries. I guess things are the same the world over.”
“Yes,” replied Mohammed. “The second reason is like you said— sanctions. There are a lot of sanctions by the UN and US against