Why More UK Entrepreneurs Are Choosing Dubai in 2025

In this in-depth conversation, Pali and Dipesh break down the latest tax updates in the UK , compare tax environments, and highlight why setting up a business in Dubai is fast becoming the obvious choice for ambitious entrepreneurs.

Dubai’s Economic Trajectory: A Market Outpacing the UK

While the UK’s revised growth forecast sits at 1%, Dubai is charging ahead with a projected growth of 5.1%—five times that of the UK. For business owners, this isn’t just about numbers. It’s about opportunity. Entrepreneurs are increasingly recognizing that the UAE offers a faster-growing market, better infrastructure, and more supportive business conditions. If your business has international ambitions, Dubai offers a launchpad that the UK no longer does.

Welfare Cuts and Budget Reductions: A Bleak Outlook for UK Entrepreneurs

The UK is undergoing deep public sector cuts—£4.8 billion from welfare budgets, and £3.6 billion from government department budgets, including education, healthcare, and local councils. This isn’t just a social issue; it’s a business issue. Social housing developers can’t get paid. Local councils are going bankrupt. Schools have one textbook for every three children. As public services weaken, business owners shoulder more risk and responsibility.

The Millionaire Exodus: Why Wealth is Leaving the UK

Last year, over 10,000 millionaires left the UK—one every 45 minutes. While not all were entrepreneurs, many were. And they didn’t just leave with their wealth—they took their businesses and jobs with them. This exodus reflects a broader sentiment: high tax environments with diminishing public value aren’t sustainable for high performers. In contrast, Dubai offers freedom, safety, and the flexibility to reinvest profits where they matter most—into people, growth, and innovation.

The National Living Wage Rise: A Misleading Win

The UK government has positioned the national living wage increase as a win for workers, claiming an average annual benefit of £1,400. But that’s before tax. Without an increase in the personal allowance threshold, workers don’t see the real gain. In Dubai, the contrast is stark: no income tax means what you earn is what you keep. For both business owners and employees, the UAE’s model feels genuinely rewarding.

Dubai’s Fair Tax Environment: Designed for Growth

Dubai’s 9% corporate tax rate only kicks in on profits above AED 375,000 (£80,000). For businesses with less than AED 3 million (£630,000) in revenue, corporate tax is zero under the UAE’s small business relief scheme. This creates a fair and scalable tax model that supports startups and encourages reinvestment. Compare that with the UK’s sliding corporate tax rate, which punishes profitability—rising from 19% up to 25% as profits increase.

UK vs Dubai Education: A Critical Factor for Relocating Families

For families considering the move, education is a top concern. In the UK, budget cuts have left classrooms overcrowded and under-resourced. In contrast, Dubai’s private education system—though paid—is tightly regulated, well-resourced, and inclusive. Children with special educational needs receive tailored support, and smaller class sizes ensure better student-teacher interaction. For many families, it’s not just a better education system—it’s a better way of life.

How Strive Is Helping UK Entrepreneurs Succeed in Dubai

At Strive, growth isn’t just a talking point—it’s happening. Since the start of the year, we’ve onboarded a record number of clients, expanded our team by 40%, and launched new services to support every step of the business journey. From partnerships with legal firms to digital presence packages that help with bank profiling, we’re building the ecosystem entrepreneurs need to thrive.

Crypto in Dubai: A Booming, Regulated Opportunity

Dubai has established itself as a global crypto hub with the formation of VARA (Virtual Assets Regulatory Authority), providing regulatory clarity that empowers innovation. Whether you’re running a crypto project or simply trading personally, Dubai offers both the legal framework and tax structure to do so confidently—with no income or capital gains tax on personal crypto gains.

Understanding Place of Effective Management—and Why It Matters

A common pitfall UK entrepreneurs face when setting up in Dubai is misunderstanding where their business is truly managed. If you run your UAE business from the UK—even with a UAE company—you could still be liable for UK corporation tax. A nominee director is not enough. What matters is where key decisions are made.

How Strive Helps You Avoid Tax Mistakes with Local Leadership

To solve this, Strive offers regional management solutions. We don’t just appoint a name on paper—we facilitate board meetings in the UAE, record minutes, prepare board packs, and ensure effective management is genuinely carried out from Dubai. It’s not just about compliance—it’s about protecting your profits and operating without risk.

Breaking Down Corporation Tax: UK vs UAE

In the UK, if your company earns over £250,000 in profit, your corporation tax rate climbs to 25%. In Dubai, the first £80,000 is tax-free. Beyond that, a flat 9% applies. And if your total revenue is under ~£630,000, that 9% disappears entirely. This is where service-based businesses—like agencies and consultancies—stand to benefit most, often keeping 80–90% of their revenue as net profit. You can try our UK vs Dubai corporate tax calculator here and compare the numbers yourself.

Why ADGM is a Game-Changer for Startups

Abu Dhabi’s ADGM (Abu Dhabi Global Market) is quickly becoming the jurisdiction of choice for startups, especially those seeking investment. Unlike other UAE jurisdictions, ADGM allows for multiple shareholder classes, employee stock option plans (ESOPs), and convertible notes—tools that are standard in the UK and US but rare elsewhere in the region.

Building a Legacy: Foundations for Asset Protection in the UAE

ADGM also supports the creation of foundations, a powerful tool for asset protection and legacy planning. Foundations allow you to transfer ownership of businesses or real estate to a legal structure that survives you, without triggering capital gains tax. It’s a game-changing option for entrepreneurs thinking about long-term wealth transfer across borders.

What It Takes to Set Up in ADGM

Setting up in ADGM is straightforward but comes with an important requirement: UAE residency. You can secure this through employment, property investment, or—most affordably—company formation. At Strive, we guide clients through this setup seamlessly, often combining ADGM foundations with Dubai operational entities for full coverage.

Why Strive Charges a Service Fee—And Why It’s Worth It

Strive isn’t a formation agent. We’re a full-stack business consultancy. Our service fee covers far more than just incorporation. We act as your sounding board, connect you with vetted professionals, advise on your structure, help with growth strategy, and even support with day-to-day questions—like where to rent a car. Our fee is a one-time investment in peace of mind, and our clients repeatedly tell us it’s the best money they spent. Don’t take our word for it, check what our clients have to say about us and our services.

Beware of Low-Cost CSPs and Misguided Advice

The UAE market is flooded with company service providers offering incomplete or inaccurate advice. Some push free zone licenses to businesses that require mainland access. Others misguide clients on tax residency and management. At Strive, every consultant has experience running businesses in both the UK and Dubai. That difference matters when your business and compliance are on the line.

Considering setting up a business in Dubai? Talk to us first. Even if you don’t work with Strive, we’re happy to give you the insights and direction you need to make the right call. This is more than just company setup—it’s about building your future on the right foundation.