British business booming in UAE as more entrepreneurs head for the sun

Special relationship set to strengthen as companies look beyond Brexit and the pandemic

Helen Barrett, left, partner at CBD Corporate Services, and Chris Leighton, AirZones' co-founder, at the RAW Coffee Company in Al Quoz, in Dubai. Pawan Singh / The National

The UAE’s special relationship with the UK continues to strengthen as more British entrepreneurs look to start new businesses in the Emirates.

According to the UK's Department for International Trade, more than 6,000 British companies are already registered in the UAE, with bilateral trade set to reach £25 billion (Dh127.1bn).

Economists predict the number of British-backed start-ups will grow as businesses explore new trading opportunities post-Brexit and the world continues to reopen quarantine-free travel routes.

One of the businesses to dive into a new UAE market is AirZones, a British air monitoring company set up by Chris Leighton who moved to Dubai with his young family from Cambridge in November 2020.

So many progressive changes in the last two years will naturally lead to a sense of belonging in a large expat community. The relationship is only strengthening with huge potential yet to be achieved

John Martin St. Valery,
British Business Group, Dubai and the Northern Emirates

“It was quite a rush as we were trying to beat the UK lockdown and head to the UAE,” he said.

“Setting up here was not as complex as the UK, but there was more administration to complete.

“We were running around looking at all options with different free zones and sponsors, but it was very straightforward in the end.”

Using special monitoring systems, AirZones analyses the quality of air in a workplace, hospitality venue or home.

Based on the outcome of analysing more than two million data points gathered over a month, it tells the consumer exactly what the air quality is and recommends what improvements can be made.

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces meets with The Rt Hon Anne-Marie Trevelyan, Secretary of State for International Trade. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed meets with Alok Sharma, COP26 President. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed with UK Prime Minister Boris Johnson, at 10 Downing Street. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed and Prime Minister Boris Johnson held wide-ranging talks in London. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed and Prime Minister Boris Johnson announced the launch of a Partnership for the Future between the UAE and the UK. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed at a military guard of honour before attending a UK-UAE business reception. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed and Prime Minister Boris Johnson wear EXPO 2020 wristbands during a reception at 10 Downing Street. Ministry of Presidential Affairs

Boris Johnson and Sheikh Mohamed bin Zayed in front of an audience of businessmen, bankers and senior politicians at Downing Street. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed and Prime Minister Boris Johnson witness the signing of key agreements between the UAE and the UK. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed arrives to a reception hosted by Prime Minister Boris Johnson at 10 Downing Street. Ministry of Presidential Affairs

Boris Johnson thanked the UAE for its role in facilitating evacuations from Afghanistan after the Taliban took control of the country. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed reviews a military guard of honour at Horse Guards Parade shortly after his arrival in London. Ministry of Presidential Affairs

Sheikh Mohamed bin Zayed was given a guard of honour shortly after his arrival in London on an official visit to the UK. Ministry of Presidential Affairs

“Like most people here, we are not in the UAE forever and we know that,” said Mr Leighton, whose UK firm used nanotechnology in a breakthrough paint that purifies the air.

“When we couldn’t go home because of travel restrictions it was frustrating, but we know we need the relationship between the UK and UAE to remain strong as it is good for business.

“We want to employ more people locally, but also bring in expertise from the UK here to work with us as we expand. Keeping strong ties is really important.”

Changes to foreign ownership rules and innovations surrounding long-stay visas have contributed to growing UK investment in the UAE.

Commercial companies law in the UAE previously required 51 per cent of share capital of onshore companies to be Emirati-owned.

That has now changed, allowing 100 per cent foreign business ownership.

AirZones was offered support launching in the UAE by CBD Corporate Services, a British-run company that helps start-ups navigate regulations to get established and provides corporate nominee services for local partners.

“The UAE is very much open for business,” said Helen Barrett, a partner in CBD and board member of the British Business Group in Dubai and the Northern Emirates.

“While it was quiet for a six-month period during the pandemic, British businesses have continued to export services and products to the UAE.

“The ties between the two countries are long-standing, so that makes it an attractive investment proposition.

“It is a safe option for many families and it is much easier to set up a business here than 20 years ago.”

A new “green” visa aimed at business owners, investors and entrepreneurs in the UAE will offer expanded benefits for sponsoring family members and is expected to offer a further boost to British investment.

The visa will cater to people who have their own businesses and are not working for, or sponsored by, an employer.

It is expected to attract a high level of talented entrepreneurs and investors and is just one of many initiatives that focuses on human capital to strengthen the UAE economy.

New visa opportunities are seen as integral to support national aspirations for growth, particularly for sectors such as artificial intelligence, healthcare, sustainability and cyber security.

Flexi-desk workspace to reduce office overheads for start-ups and government incentives to cut annual fees have also encouraged businesses to prosper and withstand the pressures of the pandemic.

In March, a long-term investment agreement was signed between the Department for International Trade and Abu Dhabi's Mubadala Investment Company.

The UAE-UK Sovereign Investment Partnership (SIP) will serve as a co-ordinated investment framework to grow a future-focused relationship between the two nations, driving economic recovery, jobs and growth.

An initial £800 million commitment from Mubadala to invest in UK life sciences over five years was the initial focus for SIP, and is expected to develop stronger links in life sciences research, education and closer ties between the UAE and UK.

The British Business Group Dubai and the Northern Emirates is based near the British Embassy at Dubai Creek and supports new start-ups with networking events, workshops and advice for newly-arrived expatriates.

The non-profit group is open to companies or people from the UK with business interests in the region, and hosts around 60 events every year.

“The UAE is one of the UK’s most important trading partners in the region and we really feel that energy and activity within our membership,” said group chairman John Martin St. Valery.

“So many progressive changes in the last two years will naturally lead to a sense of belonging in a large expat community.

“The relationship is only strengthening with huge potential yet to be achieved.”

Photographs at Etihad Museum documents UK-UAE ties — in pictures

Photographs in Dialogue at the Etihad Museum documents the diplomatic relationship between the UK and the UAE, from the 1960s and '70s to the foundation of the country in 1971. One section features pictures of Sheikh Zayed and Sheikh Rashid with British Prime Minster Harold Wilson in 1969. Chris Whiteoak / The National

UAE and UK leaders surrounded by other rulers and the media as they sign the Treaty of Friendship. National Portrait Gallery via Dubai Media Office

Shot by Rex Coleman for the official photograph studio of the British royal family, this image was taken during Sheikh Rashid's visit to London in 1961. Courtesy Etihad Museum

British colonial administrator Sir Geoffrey Archer, pictured with Sheikh Zayed, signs the Treaty of Friendship with the UAE, recognising the Emirates as 'a sovereign and independent state'. National Portrait Gallery via Dubai Media Office

Queen Elizabeth II sits with Sheikh Zayed and Sheikh Rashid, as well as rulers of the other emirates. During this visit, she toured various cultural sites across the country, including Al Ain, Dubai Creek and the World Trade Centre. Chris Whiteoak / The National

In one section of the exhibition, a number of portraits detail the political representatives from the UK who lived in the UAE throughout the 1950s and '60s, working as explorers, oil tycoons and mediators between local rulers and the British government. Chris Whiteoak / The National

A photograph album containing photographs of the UAE taken by Colonel Edward Wilson, on view at Etihad Museum. Chris Whiteoak / The National

The exhibition features portraits of Sheikh Zayed, Sheikh Rashid and Queen Elizabeth II presented as a comparative study of portraiture styles and depictions of power. Chris Whiteoak / The National

A rare set of images of Sheikh Rashid bin Saeed Al Maktoum, photographed by Rex Coleman in 1961. Chris Whiteoak / The National

A section of the exhibition shows photographs of the UAE’s development presented through an interactive screen display. Chris Whiteoak / The National