Halliburton’s New HQ - Dubai
Halliburton, the Texas oil services company is moving its headquarters and CEO to Dubai. As its chief executive David Lesar said, “Dubai is a great business center.”
What he may mean is that the company will save on taxes. One energy analyst estimates that if the company incorporates in the United Arab Emirates, the tax savings could be several hundred million dollars. The company has denied any intent to incorporate there, but it does plan to list on the Dubai stock exchange.
Also, the company will also be in a better position to gain contracts in the Middle East. Halliburton generated more than 38% of its $13 billion in revenue in the Eastern Hemisphere last year.
The move leaves members of Congress up in arms. “This is an insult to the U.S. soldiers and taxpayers who paid the tab for their no-bid contracts and endured their overcharges for all these years,” said judiciary committee chairman Sen. Patrick Leahy, a Vermont Democrat.
Halliburton is already being investigated by government agencies for allegations of improper business dealings. At a House Oversight and Government Reform Committee hearing last month, chairman Henry Waxman, Democrat from California, noted that a government audit had indicated that Halliburton was responsible for “$2.7 billion in suspect billings.”
The politically-connected firm is the largest military contractor in Iraq. Halliburton’s chief from 1995 to 2000 was vice president Dick Cheney. In the 1990s Cheney fought sanctions against Iran so Halliburton could pursue oil and gas exploration there. When the sanctions held, the company proceeded to business in Iran anyway through a subsidiary in the Cayman Islands.
Dubai is one of seven emirates in the U.A.E. confederation, which seeks to become a regional commercial center much like Singapore and Hong Kong. It is currently home to the world’s largest building boom (the world’s tallest building is under construction here) and has become one of the fastest growing luxury real estate markets on the world. It’s worth noting, too, that expatriate employees are not subject to strict Islamic rules here as they are in Saudi Arabia. They do not live in compounds, and western dress is acceptable for women.