Super rich heading to Dubai at expense of London

It isn’t only super rich soccer stars who are heading East – so too is some of Britain’s best entrepreneurial talent.

That is according to new research which reveals the full extent of the “brain drain” from the UK.

This time, though, it is not sporting talent that is heading to the Middle East but, rather, some of the country’s best business brains.

Record numbers of businessmen - and women – are waving goodbye to Blighty and heading to Dubai.

A combination of soaring inflation and the growing real tax burden, mounting to its highest since WWII, with a higher proportion of adults paying significant income tax rates due to the government's decision to freeze tax thresholds, is thought to be behind the exodus.

Some fear a looming prospect of further taxes as the Labour party is expected to win the next general election in 2024 enacting new tax policies targeted at the affluent.

On the other hand the UAE, particularly Dubai, has seen a spike in British expatriates.

The combination of the rise of remote work, no income tax, low crime rate, and a better value-for-money in terms of cost of living has made cities like Dubai an attractive alternative. 

New research has been  carried out by the leading online property hub Housearch.com which compared the cost of rent, groceries, transportation, and entertainment to find out whether the cost of living in Dubai is lower than in London.

During the period from 2017 to 2022 the UK has lost approximately 12,500 more high-net-worth individuals than it has gained through migration, and it is expected to lose another 3,200 millionaires to migration in 2023.

Housearch.com said Dubai and London are both cities with high living standards. Both are among the top 10 in the 2022 Top 100 City Destinations Index. A high ranking on the list shows a city’s investment and business potential, as well as its economic prosperity and appeal to tourists.

For expats, however, the key factor in choosing a place to live is the cost of living, it noted.

In its research it found that the difference is “significant” when it comes to buying property. The price per square metre is more expensive in central London than in Dubai, $16,800 and $3900 respectively, and $9800 and $2300 on the outskirts.

Rent in central London districts (such as Westminster, Chelsea and Kensington) starts at $3,000 per month. In central Dubai in areas like Dubai Marina, Downtown or Business Bay, rent for studio apartments starts at $1,900 per month.

According to the research, groceries in Dubai are 17% cheaper than in London while eating out is cheaper in the UAE. Dinner at a budget-friendly place costs around $11, while it will set you back around $25 in London.

The UAE is the eighth-largest country in the world in terms of oil reserves, and the seventh in yearly extractions of oil. Petrol is cheap. Prices start at $0.88 per litre versus $2 in London.

As part of its extensive research between the two cities - it found that public transportation in Dubai is also cheaper.

The total cost of a trip depends on the number of zones you have crossed. The most expensive transport ticket is $2.50. In London, ticket prices can get more expensive depending on the distance and the time of day. If you pay by credit card or Oyster transportation card, you can spend up to $6.67 per day.

Commenting, Andrew Horbury, Cavenwell Group Managing Director, told Business Matters magazine: “Dubai has historically attracted high-net-worth individuals but heavy investment in infrastructure and connectivity, and very favourable business and tax rules mean that’s all changing.

“We’ve seen a significant increase in the number of start-up founders, small business owners, and even freelancers who are looking to relocate.”

Share this article: