UK hopes to lure expats back from UAE as war challenges Dubai’s appeal
City workers in the Business Bay financial district of Dubai, United Arab Emirates, on Wednesday, March 4, 2026.
Walaa Alshaer| Bloomberg | Getty Images
The U.K. government is trying to turn geopolitical upheaval into an opportunity, encouraging thousands of Britons to reconsider life in Dubai, as war in the region threatens the city’s reputation as an attractive haven.
Around 240,000 British nationals live in the UAE. For years, they have been drawn by zero income tax, security, international schools, and a glamorous lifestyle. Now, with missiles intercepted over Gulf capitals and air travel repeatedly disrupted, the long-standing stability of Dubai expat life is being questioned.
Last week, Rachel Reeves, the U.K. finance minister, touted the country’s “competitive tax system” in a conversation with CNBC’s Sara Eisen at its “Invest in America” forum.
“We have the lowest rate of corporation tax in the G7,” she said, mentioning tax and investment incentives, encouraging firms to list in London, where they won’t have to pay stamp duty on shares for the first three years.
Reeves hopes to pitch Britain as a “safe harbour economy” for wealthy expats, and has said that the Treasury will revisit tax rules, Reuters reported, citing an anonymous official. The U.K. Treasury did not respond to a CNBC request for comment on this.
Is the U.K. seizing the moment?
Early signs suggest the war has already triggered movement among British citizens living in the UAE, though not necessarily back to the U.K.
According to data cited by the Financial Times, roughly one in eight Britons living in the UAE, about 30,000 people, have left since fighting broke out on Feb. 28. CNBC reached out to the British Embassy and the Dubai Media Office, which could not confirm the numbers.
While many departures could be precautionary rather than permanent, the figures point to a rupture in what had been a steady migration from Britain to the Gulf.
Some families have returned temporarily to Europe, gravitating toward wealth hubs like Switzerland or sunnier, lower‑cost destinations such as Spain and Portugal to wait out the conflict. Whether Britain benefits from that reassessment may depend on how long the war lasts and whether the U.K.’s economic offer has genuinely improved.
Dubai’s safe-haven status
Those exiting the UAE include families worried about security, professionals facing repeated flight suspensions, and entrepreneurs reassessing long‑term plans in a region that suddenly feels volatile.
An Emirates Boeing 777 aircraft prepares for landing as a smoke plume rises from an ongoing fire near Dubai International Airport in Dubai on March 16, 2026.
– | Afp | Getty Images
Pressure has mounted for households with children. Schools across the Emirates were shuttered for weeks after the war began, shifting students to remote learning, prompting some parents, who CNBC has spoken with since the war began, to send children back to their home countries to complete the academic term at schools…
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