The UK vs. UAE: Is It Time to Consider New Business Horizons?

Recently, the UK narrowly dodged a triple-dip recession. Great news, right? Well, for most people, the reaction is likely a bit more muted—maybe a quick shrug, followed by something like, “So… what does that mean?” Understandable, given how sluggish the economic recovery has been in recent years. Despite optimistic political messaging, the UK economy has remained stubbornly flat, leaving many business owners and aspiring entrepreneurs feeling a bit stuck.

In contrast, places like the United Arab Emirates (UAE) seem to be telling a completely different story. Despite the global economic slump, the UAE’s economy has shown resilience, maintaining steady growth and attracting businesses from around the world. According to Sultan Bin Saeed Al Mansouri, the UAE’s Minister of Economy, the country’s GDP is set to grow by over 4% by year-end—a figure that the UK could only dream of at the moment. This continued growth is driven by key sectors like trade, logistics and services, bolstered by substantial investments in infrastructure and renewable energy.

With UK GDP limping along at a modest 0.3% in early 2023, it might be time to ask a bold question: could relocating a business to the UAE be a profitable alternative? A growing number of foreign businesses certainly think so, attracted by the UAE’s unique advantages for investors.

Why Thousands of Businesses Are Moving to the UAE

One of the UAE’s long-standing strategies has been to diversify beyond oil and gas, which has helped it weather global economic downturns better than many Western economies. This forward-thinking approach, combined with an impressive array of benefits for foreign investors, makes the UAE an attractive place for businesses looking to grow.

Free zones across the UAE offer foreign businesses significant perks, such as:

• Zero corporate and personal tax: A huge incentive, allowing companies to keep more of their profits.
• 100% foreign ownership and full profit repatriation: Business owners can retain full control of their companies and take profits home without restrictions.
• Minimal regulation: Setting up a business in the UAE takes days, not weeks, thanks to streamlined regulations and limited bureaucracy.
• Customizable infrastructure: Businesses can choose tailor-made options for warehousing, offices, and logistics to suit their needs perfectly.
• Hiring freedom: Companies enjoy full control over their staffing decisions, giving them flexibility and autonomy.

The UAE: Positioned for Global Reach

Geographically, the UAE is ideally positioned, connecting businesses with emerging and established markets alike. From this strategic hub, companies can reach hundreds of millions of potential customers in Europe, Asia, and Africa. For businesses looking to expand internationally, this advantage is hard to ignore.

Plus, the UAE offers all this under the sun—literally. Year-round warm weather is an attractive bonus for Brits and others coming from cooler climates. Setting up a business with an ideal location, tax advantages, and rapid growth potential sounds appealing enough, but add the constant sunshine, and it’s an even easier decision for many.

Is the UAE a Profitable Alternative for Your Business?

In times of low economic growth in the UK, considering options abroad can offer new opportunities. With the UAE’s strong infrastructure, minimal tax burden, and pro-business environment, it’s no wonder more and more entrepreneurs are exploring the possibilities there.

So, whether you’re just curious or actively weighing your options, the UAE’s doors are open. A business credit card with HSBC could be a handy asset no matter where you choose to settle. And, who knows? The UAE might just be the fresh start your business needs.