UK Companies Doing Business In The UNITED ARAB EMIRATES (UAE)

This article was updated on June 8th, 2023

For several years, the UAE and the United Kingdom (UK) have established and maintained an excellent trade relationship. The UAE economy is diversifying its economy away from its reliance on oil and gas. Non-oil sectors contribute circa 70% of Gross Domestic Product (GDP). After Saudi Arabia, the UAE is the second largest economy in the Middle East region.

Currently, there are five thousand plus British companies operating in the UAE. Some of the household UK company names you may recognise in the UAE market are:

• BP
• Shell
• Rolls Royce
• HSBC
• Fortum and Mason
• SERCO
• Standard Chartered and much more.

At present, the UAE has one of the largest expats to citizen ratios in the world. The UAE’s population is circa 90% expatriates. The UAE manages to attract British high net worth individuals and British investors due to its sunny climate, lifestyle appeal, business opportunities, investment, and tax incentives. Over the years, Dubai has evolved from a local business community into one of the most attractive, innovative, and successful business hubs in the world.

So, what makes the UAE so appealing to UK companies wanting to setup shop? In this article, we explore the key finds on why UK companies want to setup a business in Dubai and the UAE.

REASONS FOR UK BUSINESSES TO OPERATE IN DUBAI & THE UAE INCLUDE:

• Diverse strong economy that is continually growing. The shift to diversify away from the country’s reliance on non-oil sectors is at an all-time high. We are seeing other industries booming especially tourism, hospitality, and entertainment etc.
• Proximity to other Gulf markets – UAE acts as an easy entry route to other GCC countries. It is well positioned and has accessible entryways to Africa, Asia, and Europe.
• Important market for re-export into other countries.
• English language is widely spoken and is the language of doing business in the UAE.

BENEFITS OF DUBAI & THE UAE MARKET:

• Strategic location – Dubai is known as the regional hub and commercial capital for Middle East / North Africa (MENA).
• UAE is the UK’s largest export market in the region.
• Large British expatriate population and community.
• One of the most liberal trade regimes in the Gulf attracting capital from across the region.

PULL FACTORS THAT ATTRACT UK COMPANIES TO SETUP A BUSINESS IN THE UAE:

• Well-established infrastructure.
• Strong banking system.
• Stable political system.
• Free zones and mainland business registration that enable 100% foreign company ownership.

WHAT ARE THE TOP INDUSTRIES IN THE UAE THAT APPEAL TO A UK BUSINESS LOOKING TO EXPAND TO THE REGION?

Apart from the oil and gas sector, the UAE has seen a steady increase in the following sectors: 

• Construction and Real Estate – Dubai Skyline keeps popping up the most sophisticated architectural design of buildings and skyscrapers. The supply for commercial and residential properties continues to rise to meet demand. This sector is not slowing down anytime soon, and UK firms could have the opportunity to work on major projects in the UAE as previously seen at Dubai Expo 2020.
• Trade – The UAE has state of the art logistics infrastructure, making it the hub for global trading and relations.
• Banking and Finance – UAE is a financial hub to several of the biggest investment and banking firms. Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are the top financial centres in the country that are under a common law jurisdiction which is appealing to UK firms.
• Hospitality and Tourism – From hotels chains to the biggest shopping malls with travel attractions such as Dubai Fountain, Burj Al Arab and Burj Khalifa, food, sport, and lifestyle etc. this sector continues to grow. It would be unwise for UK firms in this space to not tap into the UAE market.
• Health care – UAE is focusing on growing this sector. As a result, we expect the UAE government to continue to invest heavily and offer incentives. UK firms ought to explore the opportunities in UAE’s healthcare and pharmaceutical space.

Are you starting to explore the option to setup or expand your UK business to Dubai and the UAE? Is it a suitable time to expand your UK company to Dubai? How prepared are you to take your UK business to Dubai and the UAE market? Is there a demand for your product and service offerings outside of the UK in Dubai and the UAE?

Creation Business Consultants expertise includes sponsorship and company formation services for both UK start-ups, SME’s and multinational companies looking to expand to the UAE. We offer tax advisory and corporate structuring services to UK firm that are in the process for business planning, growth strategies, routes to market, business process modelling and regulatory environment compliance.

Contact us today for your free consultation. Our expert corporate structuring team will explore the right options for your UK business move to the UAE. Email [email protected] or call +971 4 878 6240.

Carolyn Cairns,
Commercial Director