A communications consultancy company, Pagefield, conducted a survey involving over 200 senior figures from the finance, technology, and manufacturing sectors.
The results revealed that 36% of UK business leaders now view the Middle East as a key investment hub.
This growing interest of UK businesses in the Middle East is attributed to the region’s strategic appeal and economic transformation. As such, the data shows a clear shift in UK businesses’ global outlook.
Survey Result Regarding UK Businesses Eyeing Middle East
About 36% of UK businesses view the Middle East as a key investment hub for the next five years. In addition, Asia is also emerging as a hotspot, with interest rising from 22% to 32%.
Europe remains the leading region, with 55% of UK businesses identifying it as their primary overseas investment destination. The UK’s investment in the United States remains steady (42% current vs. 45% prospective investors).
About 83% of UK businesses stated that the UK government must do more to support international expansion,
Also, UK businesses identified key factors pushing to invest in the Middle East. Tax incentives are a key factor. 19% of UK businesses emphasizing the role of enterprise zones and tax carve-outs in driving investment.
Over 31% identified Free Trade Agreements as the single most important mechanism. Unsurprisingly, economic stability (34%) and workforce quality (29%) rank high on the list of investment priorities.
Despite global economic and political headwinds, UK firms remain overwhelmingly bullish on foreign direct investment. Thus, 91% of UK firms expressed confidence in cross-border expansion.
UK Businesses Investment in the Middle East
Several leading UK firms, including IHG Hotels and Resorts, PwC, and Deloitte, have already established regional headquarters in the Middle East, positioning themselves to capitalize on the country’s rapid economic transformation.
Why UK Businesses are Eyeing Increased Investments in the Middle East
The Middle East, especially the Gulf economies, are shifting away from oil dependence and investing heavily in technology, finance, logistics, tourism, and renewable energy sectors. For instance, the UAE & Saudi Arabia have launched multi-billion dollar infrastructure and smart city projects like NEOM in Saudi Arabia and Expo City Dubai. These projects are attracting foreign direct investment (FDI) and global businesses. The region’s GDP growth has remained strong, with the GCC economies projected to grow at 3-4% yearly over the next decade.
The Middle East has one of the fastest-growing high-net-worth individual populations. The number of millionaires in the UAE and Saudi Arabia is increasing, boosting demand for wealth management and financial services. The UAE is home to over 15 billionaires and more than 200 centi-millionaires, making it a prime market for private wealth management services. As such, UK financial firms like Goldman Sachs, Canaccord Wealth, and North of South Capital are expanding to capture this market.
The Middle East is undergoing a major infrastructure boom, attracting UK businesses in construction, engineering, and financial services. Mega-projects like NEOM (a $500 billion smart city in Saudi Arabia) and Etihad Rail (the UAE’s national railway project) are driving demand for foreign expertise and investment. Consequently, UK businesses specializing in green technology, digital transformation, and fintech are expanding into the Middle East to capitalize on smart city developments.
Gulf economies like the UAE, Saudi Arabia, and Qatar offer tax-free or low-tax environments for businesses. For instance, free zones like Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) provide full foreign ownership, no corporate tax, and streamlined business setups. Saudi Arabia’s new business laws allow 100% foreign ownership in several sectors. UAE’s annulled the 51% local sponsorship rule allowed complete foreign control of mainland companies.
The Middle East is a gateway between Europe, Asia, and Africa, making it a global trade and investment hub. As such, UK businesses see the region as a stepping stone for expansion into Africa and South Asia. Consequently, UK logistics and shipping companies use Dubai and Abu Dhabi as regional headquarters for their African and Asian operations.
Strong UK-Middle East Trade Relations also exist also exist. For instance, UK-Gulf Cooperation Council member states (GCC) trade is hit $65 billion in 2024. The Gulf as a bloc is the UK’s fourth-largest trade partner. UK consulting, legal, and financial firms are partnering with Middle Eastern sovereign wealth funds for joint investment projects. Also, the UK is negotiating a Free Trade Agreement (FTA) with the GCC, which would boost trade and investment flows. Initiatives like the UK-Saudi Arabia Strategic Partnership Council, the UK-UAE Partnership for the Future, the UK-Qatar Strategic Dialogue, and joint working groups with Oman, Kuwait, and Bahrain laid the groundwork for trade and investment cooperation.
