#Dubai's Efforts to Attract Commodities Companies Got Boost From Ukraine Invasion - Bloomberg

Dubai's Efforts to Attract Commodities Companies Got Boost From Ukraine Invasion - Bloomberg

London’s commodities merchants are following some of their Swiss peers to Dubai, as the emirate moves from being an outpost focused on crude to a major energy trading hub.

Dubai has long tried to attract more commodities companies, investing in banking infrastructure and developing exchange-traded futures. Those efforts have helped drive a transformation after the Kremlin’s invasion of Ukraine, with many traders of Russian raw materials rushing to set up businesses in the city as European Union and Swiss sanctions made it harder for them to deal with Moscow.

While London has a much bigger commodities presence, more energy traders are now moving or expanding from the UK capital to Dubai. They’re being enticed by the growing pool of merchant counterparts and low taxes at a time when traders themselves are raking in unprecedented bonuses. Dubai also offers other lifestyle perks, something that’s becoming increasing important to attract top talent.

In the past year, Hartree Partners LP and Freepoint Commodities LLC are among those to move energy traders and senior executives to Dubai, according to people familiar with the matter who asked not to be identified. It shows how historic trading centers like London are starting to lose out to the emirate’s growing appeal.