In 2024, the UK saw a striking trend, on average, one millionaire left the country every 45 minutes.
That added up to more than 10,000 individuals in a single year. What’s even more concerning is that many of those leaving was under the age of 35, people who could have been the country’s future wealth creators and top taxpayers.
Instead, these ambitious young professionals are choosing the UAE, drawn by a safer environment, zero personal income tax, and access to affordable, high-quality healthcare. For entrepreneurs, shifting business from the UK to the UAE isn’t just about reducing tax burdens. It’s about embracing a lifestyle that offers stability, business growth opportunities, and entry into one of the world’s most dynamic global hubs.
In case, you are a UK entrepreneur thinking about making this move. Here, we will present a guide to help you navigate the transition with confidence.
Key Takeaways & Insights
- By 2030, the UAE aims to attract $150 billion in foreign direct investment (FDI), strengthening its appeal for UK business relocations.
- Around 95% of UAE businesses are SMEs, contributing nearly 60% of GDP, making the region especially favorable for UK startups.
- Dubai Chamber predicts UAE-UK bilateral trade will exceed $25 billion by 2030, driven by post-Brexit partnerships and new free trade agreements.
- UAE ranked first globally in business environment reforms in 2023, reducing administrative hurdles by 30% compared to five years earlier.
- The digital economy is projected to contribute 20% of UAE’s GDP by 2031, creating lucrative opportunities for UK tech-based companies.
- UAE’s logistics sector is forecast to grow at 7.4% annually until 2029, fueled by trade flows between Asia, Africa, and Europe.
- A recent HSBC survey found 73% of UK firms relocating to the UAE cited global talent availability as a major relocation advantage.
- The UAE’s Green Economy 2030 strategy is projected to generate 300,000+ new jobs, attracting eco-conscious UK businesses seeking sustainability markets.
- By 2026, over 85% of UAE banking services will be AI-driven, enhancing faster compliance and onboarding for foreign entrepreneurs.
- UAE’s population is expected to grow by 1 million residents by 2035, boosting consumer markets and demand for diverse UK business sectors.
5 Benefits of business relocation from the UK to the UAE
The trend of UK business relocation to the UAE has been rising steadily, and for good reason. Dubai offers a growing environment that makes it easier for companies to grow, scale, and connect with global opportunities. Let’s explore the advantages that make so many UK business owners are taking the relocation move to the UAE.
Access to Global Markets
Dubai is strategically positioned between Asia, Europe, and Africa, making it a true global hub. With first-class logistics, airports, and ports, businesses can easily reach emerging markets in the Middle East, India, and Africa. By contrast, UK businesses face added complexities after Brexit, with more barriers to trading freely across Europe.
The UAE’s non-oil foreign trade reached AED 2.6 trillion (USD 707 billion) in 2023, marking a 12% year-on-year increase. This makes it one of the fastest-growing trade hubs worldwide.
Strong Government Support
Dubai’s government actively supports industries such as technology, finance, and healthcare. Through grants, accelerators, and business incubators, startups and established firms alike benefit from growth opportunities. In free zones, companies also enjoy 100% repatriation of profits, making reinvestment or expansion far simpler.
The Dubai Future Accelerators program has already supported 200+ international startups, showing how government-backed initiatives help English investors in the UAE scale more efficiently.
Mainland vs Free Zone: Whatever fits your business
When planning an English business relocation to the UAE, the first decision is whether to choose a mainland company or a free zone company.
- Mainland companies allow you to operate freely across the UAE but often require a local sponsor or partner.
- Free zone companies, on the other hand, give you 100% foreign ownership, full repatriation of profits, and, under certain conditions, zero corporate tax. The only limitation is that you cannot directly trade in the UAE mainland without using a distributor or local agent.
If your primary market is within the UAE, a mainland license makes sense. But if your focus is on international trade, e-commerce, or consulting services, free zones are often the preferred choice. In fact, according to the UAE Ministry of Economy, over 80% of new foreign-owned businesses are set up in free zones, largely due to their flexible packages designed for startups and SMEs.
Low and Competitive Taxes
One of the strongest attractions for entrepreneurs is Dubai’s tax regime. There is 0% personal income tax and 0% capital gains tax, while corporate tax rates remain comparatively low. Certain businesses in designated free zones are even exempt from corporate tax.
On the other hand, the UK recently increased its corporate tax to 25% for profits above £250,000, with high individual income tax brackets of 40% and 45%. This difference can significantly boost overall profitability for companies and individuals.
According to the UAE Ministry of Finance, tax-friendly policies have encouraged more than 700,000 active business licenses to be issued in the country, showing just how attractive the market has become for international founders.
Manageable Operational Costs
Setting up and running a business in Dubai often comes with reduced operational expenses. Office rentals, especially outside of the luxury districts, are far more affordable than prime locations in London. Utility bills, transportation, and other overheads are also comparatively lower, helping businesses retain more of their earnings.
Real estate research suggests that Dubai’s commercial property market is expected to grow steadily at 6–8% annually due to increasing foreign business interest, giving entrepreneurs in the UAE an edge in managing their budgets effectively.
Process of relocating a Business from UK to the UAE
This is the step-by-step procedure of moving a business from the UK to the UAE.
Defining Your Trade Activities
Unlike the UK, where licenses may be broad, the UAE requires companies to specify their exact business activities when applying for a license. This impacts the license type and determines what you’re legally permitted to do.
If you’re unsure which category suits your company, consulting with experts is highly recommended. This step is crucial for English corporate relocation to the UAE, as compliance with licensing rules ensures long-term stability and avoids penalties.
The Application & Approval Timeline
Once you’ve chosen between mainland and free zone and defined your activities, you’ll move on to submitting your application. Approval times vary depending on your business category and the authority handling your case. Some free zones issue licenses in just a few days, while mainland approvals can take a few weeks.
Accuracy in documentation is essential, as errors can delay the process significantly. The UAE government has simplified digital applications in recent years, and forecasts suggest that by 2026, over 90% of business registrations will be processed entirely online, making the process faster and more transparent.
Visa Opportunities for Entrepreneurs and Families
One of the most attractive aspects of relocating a UK company to the UAE is access to residence visas. Entrepreneurs can sponsor visas for themselves, their families, and employees, creating a stable foundation for life in Dubai.
The UAE is consistently ranked among the top destinations for expatriates, due to its world-class healthcare, safety, and education system. According to the Expat Insider 2023 Survey, over 70% of UK professionals who relocated to the UAE cited lifestyle and family benefits as major factors in their decision.
Setting Up Your Bank Account
Finally, no business can operate without a proper corporate bank account. UAE banks maintain strict compliance requirements, especially for foreign-owned companies, so having the right guidance is essential.
Banks will typically ask for a detailed business plan, proof of residency, and company documents. While it may seem daunting, professional advisors can help simplify the process. With banking reforms and increased foreign investment, the UAE Central Bank projects a 12% growth in SME banking services by 2027, making it easier for foreign businesses to integrate into the system.
Conclusion: Go Solo or Hire Business Formation Experts
When moving a UK business to the UAE, you have two routes: handling the setup yourself or hiring a business formation consultant. While it’s possible to manage the paperwork alone, the process can be overwhelming if you’re not familiar with UAE regulations.
Experienced consultants guide you through licensing, visa applications, and compliance issues. This not only saves time but also helps you avoid costly mistakes. Research shows that companies that use local business advisors are 40% more likely to secure approvals faster, ensuring a smoother launch.
Make your business relocation journey to the UAE easier by connecting with professional consultants of KWS Middle East right now.
