The U.K. government is trying to turn geopolitical upheaval into an opportunity, encouraging thousands of Britons to reconsider life in Dubai, as war in the region threatens the city’s reputation as an attractive haven.
Around 240,000 British nationals live in the UAE. For years, they have been drawn by zero income tax, security, international schools, and a glamorous lifestyle. Now, with missiles intercepted over Gulf capitals and air travel repeatedly disrupted, the long-standing stability of Dubai expat life is being questioned.
Last week, Rachel Reeves, the U.K. finance minister, touted the country’s “competitive tax system” in a conversation with CNBC’s Sara Eisen at its “Invest in America” forum.
“We have the lowest rate of corporation tax in the G7,” she said, mentioning tax and investment incentives, encouraging firms to list in London, where they won’t have to pay stamp duty on shares for the first three years.
Reeves hopes to pitch Britain as a “safe harbour economy” for wealthy expats, and has said that the Treasury will revisit tax rules, Reuters reported, citing an anonymous official. The U.K. Treasury did not respond to a CNBC request for comment on this.
