The recent UK Budget, announced by Chancellor Rachel Reeves, aims to raise £40 billion in taxes, affecting entrepreneurs significantly. As a result, a growing number are setting their sights on Dubai – a city that promises not just sun and sand, but a more favourable business environment.

The UK government’s decision to increase capital gains tax (CGT) on the sale of business shares has been a major blow. From April 2025, entrepreneurs will pay 14% on their first £1 million of exit cash, rising to 18% in April 2026. This is a significant jump from the previous 10% under the Business Asset Disposal Relief (BADR). Plus, the rate of tax paid on the sale of shares will rise from 20% to 24%.

“It’s obvious the direction of travel in the West,” said Peter Watson, Co-Founder of the Featured Group and a serial entrepreneur who moved to Dubai 16 months ago. He told the Millennial Masters podcast that the changes “are going to be squeezing the people who create wealth in the country, and it’s a disastrous problem.”

Peter added: “The level of compound over a five-year period, do the maths, it’s truly insane. If all you did as an entrepreneur was pick up your business, move to Dubai for five years, and then come back to the UK, you would be in a distinctly, hugely different position, more than double.”

Dubai: a haven for ambitious entrepreneurs with a global mindset and unparalleled networking opportunities

Dubai has emerged as a compelling alternative for UK entrepreneurs seeking a more favourable tax regime and a dynamic business environment. The United Arab Emirates does not levy income tax on individuals, and corporate taxes are minimal. This allows entrepreneurs to reinvest more of their earnings back into their businesses.

“People underestimate the benefit of being British,” Peter notes. “You can pretty much go to any global destination… and you get a fair shot. English is our first language, so I think people underestimate the benefit.”

He said British entrepreneurs can easily integrate into Dubai’s business landscape: “If you think you’re good, if you back yourself, go and compete on a global stage. Dubai is a global stage because anyone from the world can live in Dubai.”

Beyond the tax advantages, Dubai offers a vibrant ecosystem filled with global talent and networking opportunities. “I’ve never found so many people that have been like-minded in Dubai,” Peter shared.

“You go to a bar, and everyone’s building the world’s first something. It makes your whole brain just explode to a whole new level because you are, unfortunately, constrained by your environment.”

He also highlighted the collaborative spirit in the city: “In Dubai, pretty much every single night, you’ll get a message saying, ‘Do you want to go get some chicken? Do you want to get some shisha?’ And you’ll have an actual compelling conversation about whatever’s happening in the world.”

Peter explained that the move isn’t just about financial gain. It’s also about personal development and experiencing a richer quality of life. “I’ve travelled more in the last 12 months than I have in my whole entire life,” he said. “I’ve seen more of the world, met more people, understood more about life.”

He believes that the environment in Dubai encourages both personal and professional growth: “You’re constantly seeing people from India or people from China or Russia, Ukraine. Everyone’s friends over here. It’s kind of crazy.”

While the allure of Dubai is strong, it’s important to consider potential challenges. Cultural differences, adjusting to a new legal system, and being away from family and friends are factors that require thoughtful planning.

However, for Peter and many others, the benefits outweigh the drawbacks. “The worst that can happen is you just go and start again,” he reflects. “Have fun. People take entrepreneurship too seriously. Understand what you’re doing. You’re literally creating something from nothing, and you’re in control of your whole destiny.”

A new chapter awaits UK entrepreneurs

The shifting economic landscape in the UK is prompting entrepreneurs to think globally. Peter believes that taking calculated risks is essential, especially before personal commitments like marriage or children make such moves more complicated.

“People are waking up to the reality that they can become a freelancer, work in the UK but live in Bangkok,” he suggests. “If you’re making a bet on yourself, do you sit in a nation that is dwindling to failure, knowing it’s failing? I mean, let’s be real. Everyone in the UK knows it’s failing.”

Peter doesn’t mince words when discussing the UK’s current state. “The UK is falling dramatically. It is a failed nation if I’m going to get a bit political. In my opinion, the empire is in complete decline. I see no way back, genuinely speaking.”

He points out the challenges entrepreneurs face in the UK, including high taxes and a lack of support for innovation. “The level of freedom and the ability to be able to move at the great opportunity far outweighs the benefit of having a house that’s going to halve in house prices soon,” he says.

For UK entrepreneurs contemplating their next move, Dubai presents a compelling case. Whether it’s the favourable tax environment, the vibrant networking scene, or the promise of personal growth, the city offers a unique blend of opportunities. Peter believes “you can pretty much do anything you want, and I think you need to have trust in that.”

As Peter’s experience shows, making the leap could be a transformative step for those willing to embrace change. “All I ever want to do is chase happiness,” Peter concluded. “And all I want to do is be the person that sets up my future generation. I just love the sport. I love getting up one day and being able to do anything that I want that I think is right for our group.”

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