Hosting the largest number of regional headquarters (HQ) in the Middle East, the United Arab Emirates (UAE) is becoming a destination of choice to do business and access key markets in South Asia and Africa.
Dubai, in particular, has attracted 70% of Fortune 500 companies to establish their regional HQ in the city. For companies in the United Kingdom (UK) eyeing UAE expansion, this article will examine the advantages of setting up a regional HQ in Dubai.
Why Dubai for regional HQ?
Dubai benefits from being part of an environment built on strong stability and global competitiveness. The UAE is moving towards a more diversified and sustainable economy, guided by the ‘We the UAE 2031’ vision and other initiatives. It is recognised as the most economically stable country, first among 89 nations by the US News & World Report.
Further, the UAE ranks seventh in the 2024 World Competitiveness Ranking by the International Institute for Management Development (IMD). It has maintained its leading position in the Middle East and North Africa for the eighth consecutive year.
Among the Gulf Cooperation Council (GCC) countries, the UAE is also a leading economic partner to the African continent. This strong performance can give businesses confidence in the region's long-term prospects.
For UK companies considering expansion, Dubai can be a suitable starting point for managing and scaling regional operations. From well-developed infrastructure to extensive free zone support, here are four key reasons why businesses may choose Dubai for regional HQ operations:
1. Strategic location and global connectivity
The city has a well-developed infrastructure that supports its global business and travel operations. World-class ports play a key role in cementing the city's position as a global trade and logistics hub. The Jebel Ali Port, for example, remains one of the most advanced and well-connected ports in the world, linking the Middle East with Europe, Asia, and Africa.
In 2024, the port handled 15.5 million TEUs (Twenty-foot Equivalent Units) of cargo, marking an increase of one million TEUs compared to 2023. Its highest throughput since 2015, this level of operational efficiency may not only lower shipping costs but also enhance the overall competitiveness of businesses operating out of Dubai.
Aviation is another advantage for Dubai. Currently, over two-thirds of the world’s population can be reached within an eight-hour flight from the UAE, making it suitable for regional operations. Building on this, Dubai is future-proofing and looking ahead with plans to enhance its capabilities further. One major project is the upgrade of Al Maktoum International Airport, which is set to expand significantly.
This includes the addition of five parallel runways, 400 aircraft gates, and the integration of modern aviation technology, increasing its capacity to serve up to 260 million passengers per year. For perspective, Dubai International Airport (DXB) welcomed 86.9 million passengers last year.
As Dubai continues to invest in and expand its logistical capabilities, it delivers increasing global connectivity and a stable, future-ready environment which companies can tap into.
2. Tax benefits and incentives
Dubai offers a competitive tax environment, with a 9% corporate tax rate on the net profit of the business exceeding AED375,000, one of the lowest globally. Below is how Dubai compares with other regional hubs from a taxation standpoint:
Bear in mind for multinational enterprises (MNEs) with annual global revenues of €750 million or more, a domestic minimum top-up tax (DMTT) of 15% recently came into effect on 1 January 2025.
To support the larger entities operating in Dubai, there are targeted incentives such as a refundable tax credit currently available for qualifying salary costs. This is a measure that supports the recruitment and retention of C-suite executives and other high-impact roles. Eligible companies performing research and development (R&D) in Dubai may be entitled to a refundable tax credit ranging from 30-50%, beginning 1 January 2026.
The UAE has also partnered with other countries and signed over 140 double taxation agreements (DTAs), including the UK, ensuring that companies are not taxed twice on the same income. For UK businesses setting up a regional HQ in Dubai, this means not only favourable tax conditions but also having a reliable gateway to a range of markets.
3. A world-class business environment
Dubai's world-class business environment is a result of its strategic initiatives, supportive regulations, and state-of-the-art infrastructure, making it well-positioned for regional HQ operations. One key factor driving this success is the presence of designated free zones, such as the Dubai International Financial Centre (DIFC), which strengthens the city’s position as a leading financial hub.
The DIFC now have 6,920 active companies, with over 1,800 new registrations in 2024. This growth highlights the increasing confidence international investors, particularly hedge funds, have in Dubai’s market. Businesses, including holding and management companies, also choose the DIFC for its independent legal framework that is based on international standards of justice and English common law.
With benefits such as 100% foreign ownership and full repatriation of profits, Dubai has over 20 free zones catering to different industry needs. UK companies may consider setting up in popular free zones in Dubai like the:
- Jebel Ali Free Zone (JAFZA): Among the world’s largest, focusing on trade, manufacturing, and logistics.
- Dubai Internet City (DIC): Tailored for technology firms, providing a hub for innovation and digital business.
- Dubai Multi Commodities Centre (DMCC): Offering a platform for businesses in sectors like Artificial Intelligence (AI), energy, gaming, gold, diamonds, and agricultural commodities.
- Dubai Media City (DMC): Designed for media, advertising, and creative industries, fostering collaboration among related enterprises.
Further, Dubai has firmly established itself as an international destination for business and networking. UK’s Circle Networks chose Dubai as the venue to hold its inaugural international conference, describing it as “the perfect stage.”
In fact, the city has secured over 400 events in 2024, ranging from conferences to corporate meetings. This milestone represents a 20% year-on-year increase in successful bids and demonstrates its status as a destination for high-profile gatherings. With more than 200,000 delegates expected to attend these events, Dubai continues to attract global talent and expertise.
4. Access to talent and expertise
Drawn by the high quality of life, there is an expanding pool of qualified talent in Dubai. Various work visas support entrepreneurs, investors, and other professionals to relocate here, with residency ranging from two to ten years.
Dubai is also strengthening its position to nurture talent with the upcoming Dubai National University, an institution backed by an AED4.5 billion investment. The university aims to rank among the top 200 global universities over the next two decades.
Additionally, up to 15 new branch campuses may be set up in the coming years to cater to the increasing demand for higher education in Dubai. The emirate currently has over 50 international institutions, many of which are branch campuses.
These include branch campuses from leading UK universities, including the University of Birmingham, Heriot-Watt University, and the University of Stirling. The range of work visas with a strong educational landscape can ensure that businesses remain competitive and have consistent access to a diverse, highly skilled workforce.
Setting up your regional office in Dubai from the UK
For UK companies considering opening a regional HQ, Dubai is a land of opportunity with the infrastructure that can directly benefit businesses in the long run. However, businesses must be prepared for the process of forming and maintaining an entity here. For example, while English is widely used in business, Arabic remains the official language for important legal documents and government communications.
Each emirate has its own set of regulatory rules and free zones may have their own specific laws. Regardless of where you plan to take your business, Hawksford can help you manage these challenges and fulfil the requirements of setting up your regional HQ entity.
From our office in Dubai, our expert team can deliver strategic guidance to ensure compliance and support your market expansion efforts in the UAE or internationally. For more information on our entity formation and administration services, please get in touch with us.
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