The UAE is witnessing a surge in market entry of new British business, according to GCC-based corporate services provider CBD Corporate Services, stating a 23% increase in British setups year on year.
The most recent economic forecast from the British Chambers of Commerce (BCC) predicts that the economy will plunge into recession before the end of 2022, with inflation spiking to a staggering 14%. This sharp downturn will be driven by a combination of factors including weakening consumer demand and currency, rise in costs and slowing growth in global trade.
With the UAE’s stability, low taxes, and booming economy, British investors are increasingly looking to the UAE to incorporate their business to hedge their risk.
Wayne Merrick, Managing Director of CBD Corporate Services commented that British investors are attracted to the UAE’s business-friendly environment and its pro-business policies.
“The UAE government has been making several progressive and strategic changes in this past year. This includes the introduction long term visa categories, full foreign ownership, changes to the legislation and openness to foreign investment.
As a result, investors are moving their business to the UAE in an effort to recession-proof their business expansion.”
Tom Smith, Managing Director of British-based digital services agency Complete Online and CBD client credits his UAE business expansion on the state of the British economy as well as the opportunity in his respective sector in Dubai.
“We chose to expand to the UAE after seeing a gap in the market for a British, full-service marketing agency that offers the complete package. After already partnering with other agencies over in Dubai to deliver projects, we thought it was the right time to get everything setup properly over here.
Given the current economy in the UK, it has only become more apparent that we need to diversify the markets in which we are working in,” explained Tom.
CBD also noted an increase in interest in the financial zone of Abu Dhabi Global Market (ADGM).
“We’re seeing a number of ADGM incorporations that are focused on ringfencing assets, protecting wealth and legacy continuation, given the ease of setting up, stringent compliance policies and the fact that it is a common law jurisdiction,” Wayne commented.