Pali Banwait at Strive Consultants explains how Dubai’s business culture is drawing entrepreneurs away from the UK
The UK has long held its reputation as one of Europe’s prime hubs for new businesses and startups. However, the country’s heavy taxation regime and regulatory red tape are now leading entrepreneurs, small and medium enterprises (SMEs), and larger corporations, especially in the highly mobile service sectors, to explore opportunities abroad.
The focus across social media and the press is often about the tax advantages of relocating to regions like the UAE, especially in light of recent changes to the UK’s non-dom tax regime (affecting UK residents with permanent homes abroad) and an exodus of high-net-worth individuals. But, for many entrepreneurs, tax is just one motivation.
A real draw lies in the extensive support available to businesses in the UAE. With a clear, consistent policy environment and a strong focus on innovation, the UAE is increasingly seen as a place where entrepreneurs can plan for long-term growth with confidence.
Not just a millionaire refuge
Research conducted by Henley & Partners found that 16,500 millionaires are set to leave the UK in 2025 because of the country’s heavier tax laws. Dubai alone is expected to see an estimated 9,800 millionaires relocate this year. However, while some ultra-high-net-worth individuals are leaving the UK for tax benefits, a growing number of business owners are also relocating.
Businesses of all shapes and sizes are looking to Dubai as a base. Service sector companies, in particular, are leading this shift, thanks to the ease of relocating their operations. In fact, at Strive, we have experienced a 300% increase in year-on-year enquiries from individuals and businesses interested in setting up in Dubai, showing that interest in relocating has skyrocketed over the past few years.
Tax rates are just the beginning
In the UAE, businesses pay 0% on profits up to AED 375,000 ($102,000), then just 9% above that threshold, a stark contrast to the UK’s 25%. By relocating to an environment designed to expedite long-term scalability, where SME owners can retain profits and reinvest in their growth, the tax difference is potentially transformational.
With benefits ranging from high living standards to streamlined regulation and the prospect of full foreign ownership, the distinction between the UK and the UAE’s tax regimes is just the beginning for entrepreneurs seeking a better environment for growth.
When combined with the city’s innovative business ecosystem and active government investment, Dubai’s tax rules give entrepreneurs not just a better place to do business but a place to live, grow and get excited about the future.
An environment tailored for growth
While the idea of a truly supportive business culture might seem abstract, in Dubai it is backed by government policy and investment. In 2021, the UAE removed the requirement for companies to have a local sponsor, allowing foreign investors and entrepreneurs the freedom to fully own onshore companies in most sectors.
Of the 45 existing Free Zones, 30 are in Dubai, and the city is home to 90% of the UAE’s scale-ups. The Dubai Economic Agenda 2033 also has plans to double the Emirate’s economy with a view to attracting even more talent and investment over the next decade.
In contrast, the environment in the UK leaves many business owners feeling their development plans are stifled by complications and convoluted regulatory changes. For instance, the government recently announced new Companies House rules requiring small businesses to disclose profit and loss statements as of Spring 2027, a move which faced immediate backlash from businesses worried about the negative impact on competitive positioning. Just two days later, government ministers announced that the plans were to be shelved. Where Dubai’s system is optimised for long-term planning, UK business owners are faced with U-turns and potentially even more red tape.
Dubai continues to deliver on its promise to entrepreneurs, offering a stable, transparent environment where long-term growth is not only possible but actively supported. With pro-business policies, strategic investment, and a clear vision for the future, the city is a global hub for ambitious founders.
For many UK businesses, Dubai doesn’t just offer an escape from red tape; it represents a genuine opportunity to scale with confidence.
Pali Banwait is Founder and CEO at Strive Consultants. Their corporation tax calculator to help entrepreneurs understand the savings they could make by moving to Dubai is available here
Main image courtesy of iStockPhoto.com and dblight