Dubai is becoming an attractive destination for entrepreneurs from India and the UK, as many are considering relocating their operations and assets to the UAE. A recent report by HSBC reveals that 5% of business owners from overseas are contemplating this shift, with those from India and the UK showing a particular interest.

The report also highlights that entrepreneurs have adapted to the UAE’s 9% corporate tax rate. Businesses with operations in multiple markets and revenues of 750 million euros face a higher tax rate in line with Pillar 2 obligations. According to HSBC’s findings, “With a positive business landscape, entrepreneurs in the UAE are less concerned about tax compared to the global average,” with only 15% expressing tax implications as a concern for their business continuity after exiting.

Furthermore, 95% of entrepreneurs based in the UAE expect growth in their business wealth, citing favourable geopolitical factors as a key reason for their optimism. In the wake of the pandemic, an increasing number of wealthy individuals and business founders are making the UAE their permanent residence, with family offices and hedge funds following suit. This trend is reflected in the surge of high-value transactions in the Dubai and Abu Dhabi property markets.

However, there are concerns regarding wealth transfer among entrepreneurs. The HSBC survey indicates an acute lack of preparation for passing on wealth to future generations. It found that 61% of entrepreneurs have not transferred any wealth, while 22% plan to do so only after their death, a figure significantly higher than the global average. This trend could lead to complications, as many family-owned businesses in the Gulf Cooperation Council (GCC) have experienced. Gemma Wild, Head of Global Collaboration – MENA at HSBC’s Global Private Banking operations, emphasized that being prepared for business succession and clearly communicating wealth transitions are crucial for long-term success.