In recent years, the British have become the second largest group of foreign investors in the
UAE, particularly favoring the city of Dubai as their top investment destination. In 2024, the
British ranked just behind Indians in terms of residential property acquisitions in the city,
surpassing other Western nationalities in preference for the UAE. The British tradition of
investing globally—ranging from Latin America to Southeast Asia—has long been established.
While a significant portion of these investments is in real estate, there are also trillion-dollar
volumes in other sectors. However, investments flowing into Dubai represent a new generation
of British investments. This rising trend is also a reflection of increased interest in the Gulf
region overall. As shown in Table 1, the British have become the second-largest group of
residential investors in Dubai.
Several key reasons explain why British investors are drawn to Dubai:
• No income or property tax in the city
• Streamlined and less bureaucratic transaction processes
• Challenging economic conditions in the UK
• High profitability and rental yields in Dubai’s property market
• Heavy taxation on property investment and rental income in the UK
These factors, particularly the tax burden in the UK, are driving many British investors to look
abroad. The UAE’s lack of income tax allows investors to make use of their profits more freely.
Notably, in recent years, British investors have accounted for approximately 16-17% of Dubai’s
total real estate transaction volume, which has surpassed $200 billion.
Although French, Italian, and Turkish investors are also active in the market, the British tend
to invest in larger volumes.Another defining characteristic of British investment behavior is a
long-term strategic perspective. Unlike investors from some other countries who may be motivated
by visa or residency options, British investors typically view Dubai as a global investment hub
rather than a means for relocation. Moreover, the expensive and highly taxed housing market in the UK is
pushing British investors to seek alternative real estate opportunities abroad. As a result, the
British have become the second-largest foreign buyers of property in Dubai. This trend also
reflects Dubai’s rising global appeal, and the British serve as a prime example of how the city
is attracting strategic and long-term international capital.
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