- Investing
- Retirement
The United Arab Emirates (UAE) is fast becoming one of the top destinations abroad for British entrepreneurs to run their business. Whether you're considering a new business setup in Dubai or looking to move your business to the UAE, the trend is clear. According to the Dubai Chamber of Commerce, more than 2,500 UK companies registered in Dubai in 2024, with the total number of British firms operating in the UAE expected to increase over the next few years1.
While the UAE offers a world-class business environment and infrastructure, British business owners need to be aware of the unique personal financial challenges that come with living and running a business abroad. It’s important to consider how to protect your personal wealth, manage financial risks, and plan for long-term goals like retirement and succession.
Why personal financial planning matters for UK business owners in the UAE
Business owners can sometimes end up having blurred lines between business and personal wealth. When business assets double as personal savings, the performance of the business can have a huge impact on your family’s financial security.
It gets even more complicated when you are based in the UAE. Unlike in the UK, where you have the NHS and state pension, there are no such safety nets in the UAE. This makes entrepreneurs solely responsible for their healthcare and retirement planning.
There is also the matter of tax planning. While you might be exempt from personal income tax if you have a business setup in Dubai, you are still subject to UK taxes on your worldwide income.
A strong personal financial plan helps you address these challenges and create a clear separation between business and personal finances, safeguarding your long-term goals for retirement, family, and succession, regardless of what the future holds for your company.
Step 1: Start by building a financial safety net
Building a solid financial safety net to protect your personal financial situation is a must for expat retirement planning in the UAE. Make sure you have these key areas covered:
Emergency fund: Aim to set aside at least 3 - 6 months of living expenses. This is crucial given the variable nature of entrepreneurial income.
Personal insurance: The UAE does not have a publicly funded healthcare system like the NHS. Private health insurance is essential and often a requirement for your visa. Your wealth management plan should include comprehensive health coverage.
Key person insurance: This type of insurance policy is vital if your business relies heavily on you, a key employee, or a business partner. It provides funds to the company in the event that the key person becomes seriously ill or passes away, ensuring business continuity.
Step 2: Lay the foundation for your family’s financial future
Beyond growing your business, the right wealth management plan makes sure your family’s financial security is protected. These are some of the features that will be included:
Life insurance: British expats with a UK business in the UAE can either opt for a UK-based or an international life insurance policy. Typically, UK policies may require you to maintain a UK address and bank account, while international policies are designed to be portable if you relocate again.
Education planning: Private school fees are a large financial commitment for UK families living in the UAE. A dedicated savings plan can ensure you have the funds needed for everything from international schools to university fees back in the UK or elsewhere.
Your Will: Local inheritance laws in the UAE can differ from those in the UK. When you pass away without a Will in the UAE, the local law determines who inherits your assets and in what proportions.
Step 3: Start managing your investments and savings
Once you’ve put a safety net in place to protect your family’s financial security, the next step in your expat financial planning journey is to grow your personal wealth. As a UK expat working in the UAE, where there is no income tax, you’ll have more disposable income to diversify your investment portfolio beyond business profits.
Efficient tax planning is also a key part of wealth management for expats. UK business owners in the UAE are not subject to personal income tax, but still have UK tax obligations on worldwide income.
Step 4: Plan for your retirement and potential exit
The lack of a state pension in the UAE means that expat retirement planning is entirely your responsibility. You need to have a thorough understanding of your options when deciding whether to retire in the UAE or in the UK.
If you’re planning to sell or close your business, you will also have to start planning for business succession or a future sale whilst still maintaining a clear separation between business and personal assets to protect your wealth.
Speak with a financial adviser who understands expat needs
Navigating your personal finances as a British expat with a UK business in the UAE requires specialist knowledge.
At St. James's Place, we understand the unique complexities of managing wealth across both the UK and the UAE. We provide financial advice for UK expats living in the UAE to help you optimise your personal wealth management, educating you on key areas like cross-border tax implications, and offshore pension planning.
Your time is valuable and best spent on running your business. By working with an experienced financial adviser, you can confidently delegate the intricacies of your personal wealth to an expert.
Ready to secure your personal financial future? Speak to a financial planner in the UAE today to create a plan that supports your ambitions, both in business and in life.
1 Dubai Chambers, 20 February 2025
This article is a general communication that is provided for informational purposes only. It should not be relied upon as financial advice, and it does not constitute a recommendation, an offer or solicitation. No responsibility can be accepted for any loss arising from action taken or refrained from based on this publication. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.
Please note that past performance is not an indicative of future performance, and the value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances. You are advised to seek independent tax advice from suitably qualified professionals before making any decision as to the tax implications of any investment.
Recommendation relating to a Will involves referral to a service that is separate and distinct from those offered by St. James’s Place.
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