Middle-class Britons join wealth exodus to UAE amid UK economic uncertainty

A growing number of middle-class British families are relocating to the United Arab Emirates (UAE), joining an unprecedented exodus of wealthy individuals from the United Kingdom, as concerns mount over Britain’s economic outlook and changes to tax policies.

The trend marks a significant shift from historical migration patterns that typically saw only high-net-worth individuals and senior executives moving to the Gulf state, according to property experts and wealth managers interviewed by Arabian Business.

“In the past, people that were moving to Dubai were high earners, professionals, or people with a lot of family wealth,” said Asad Khan, CEO of Invest Dubai Real Estate (IDRE). “But now, we see many middle-class families moving over from all walks of life – different backgrounds and different professions.”

While middle-class British households typically earn between £35,000 and £70,000 annually (AED158,000 – 315,700), their UAE counterparts earn between AED180,000–500,000 per year (£39,900–£110,900), though the cost of living varies significantly between the two countries.

The migration wave comes as Britain grapples with multiple challenges, including the planned abolition of non-dom tax status and broader economic uncertainty. More than 10,000 millionaires left the UK in 2024, marking a 157 per cent increase from the previous year, according to a recent report by New World Wealth and Henley & Partners.

Property preferences The influx of British expatriates is reshaping property market dynamics across the UAE’s two largest emirates, Dubai and Abu Dhabi, with many middle-class families increasingly opting for the latter due to affordability concerns.

“Abu Dhabi is now up and coming with huge investments in tourism, construction, and business. Currently, Abu Dhabi is more affordable compared to Dubai,” Khan said, though he noted that Dubai remains the most popular destination for British relocators.

Emmanuel Aymes, Private Clients Consultant at Sotheby’s International Realty, believes Abu Dhabi offers “great growth for the next 10 years” due to its relatively underdeveloped market and significant state investment in financial infrastructure.

“I’m a perfect example,” said Aymes, who recently relocated from London. “I’m a middle-class family. I’m doing well for myself, and I’ve decided to move my family here. Why? Because the opportunity is here.”

Economic drivers Industry experts point to several factors driving the middle-class exodus, including the UK government’s recent introduction of VAT on private school fees, remote working opportunities, and Dubai’s growing status as a hub for technology and financial services.

The education sector, real estate industry, healthcare, and technology sectors are seeing particularly strong representation among middle-class relocators, according to IDRE’s Khan.

“Dubai is more appealing, as there is no income tax and there is a growing market for tech start-ups, finance, tourism, hospitality and digital industries,” he said.

According to the Dubai Statistics Centre, the emirate welcomed 220,000 new residents in 2024. Prathyusha Gurrapu, Head of Research and Consultancy at Cushman and Wakefield Core, said this growth is due to “a thriving job market, tax advantages, safety, global connectivity, retail and F&B offerings, the sunny weather, and a world-class healthcare and education system.”

Market dynamics British investors are increasingly seeking value beyond traditional prime areas, according to property experts.

“In terms of growth for business, we are also opening a new office in Abu Dhabi at the end of the year. The UAE is the hub for me,” Aymes said, noting a significant shift in investment patterns.

This expansion reflects broader market trends, with Gurrapu pointing to changing demographics in different emirates.

“Inflationary pressures and rising affordability concerns, particularly in the rental market, are driving migration to suburban locations,” she said.

Khan emphasised that careful planning is essential for new arrivals. “For anyone looking to move here, an excellent broker is an absolute necessity to ensure they have a safe and smooth experience when relocating to Dubai,” he said.

Looking ahead, property prices in the affordable and mid-market segment are expected to moderate, with overall prices projected to increase by 6 per cent to 8 per cent in 2025, according to Cushman and Wakefield Core.

This market stability comes as the UAE continues to strengthen its position as a global destination for expatriates. From GSB’s perspective, the UAE has positioned itself strategically to attract British expatriates.

“While Switzerland and Singapore have long been favoured for their established financial services and privacy laws, the UAE has rapidly adapted by strengthening its regulatory frameworks and embracing financial innovation,” McAuley told Arabian Business last month.

The emirates’ appeal extends beyond just financial considerations. In a recent interview, Passport Legacy CEO Jeffrey Hensler attributed the UAE’s growing appeal to its unique combination of advantages. “Find another place that is this safe, where [corporate] tax is now 9 per cent. That’s a very fair price to pay to live in such a country,” he told Arabian Business.

This growing attraction to the UAE comes as Britain faces mounting challenges to its global standing. Philippe Amarante, Head of Middle East at Henley & Partners, said that “the identity of the great United Kingdom is suffering,” noting that recent developments in international relations have further complicated Britain’s position on the global stage.

The shift in global influence is particularly evident in international mobility rankings. The UK has witnessed its passport holders’ visa-free access drop to 190 destinations in 2025 from first place in 2015, while the UAE achieved a historic milestone as the first Arab nation to enter the top 10 most powerful passports globally.

Source

Middle-class Britons join wealth exodus to UAE amid UK economic uncertainty (image)

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