While London investors continue to move into Dubai, Gulf developers and UAE-based family offices are increasingly eyeing opportunities back in London and closer to home in Saudi Arabia.
Regulatory reforms and emerging property markets across the region are driving a polycentric shift, creating multiple axes of investment: London-Dubai, Dubai-London, and Dubai-Riyadh in the latest shake-up of regional capital flows.
UK Capital Outflows, UAE Inflows
The UK’s recent macroeconomic pressure – elevated inflation, higher borrowing costs, and slow growth – have changed investor sentiment. While inflation has moderated since peaking 2022-2023, the cost of capital and taxation under the Labour government remain sensitive issues for UHNWIs.
According to the Henley & Partners Private Wealth Migration Report, approximately 7,500 millionaires left the UK in 2024. That number accelerated sharply in 2025, with 16,500 departures, representing a net 9% contraction in millionaire growth.
Henley recognised the UAE as the leading millionaire inflow hub for 2025.
The cost of borrowing and cost of living are still high,” according to Henry Faun, Partner and Head at Knight Frank’s Middle East Office. “From an individual level, many people are looking at the UAE – Dubai, Abu Dhabi, even Ras Al Khaimah – for business opportunity and exposure to growth markets.”
Non-Dom Status Gone
The trend is pronounced among internationally mobile entrepreneurs and family offices.
“For UHNWIs, recent tax changes in the UK have pulled certain levers,” Faun says. “Some long-term residents who previously benefitted from non-domicile status are reassessing their position. They feel that a move elsewhere may now make sense.”
Switzerland and Italy are also attracting attention from UHNW Brits, yet Faun is clear about the hierarchy of relocation.
“Number one has been the UAE. And we are not just talking about Dubai – Abu Dhabi is firmly in that category.”
Dubai Vs Abu Dhabi: A Maturing Split
For years, Dubai has dominated the relocation narrative. Today, Abu Dhabi is increasingly competing on equal footing.
“I wouldn’t call it a shift away from Dubai… Abu Dhabi has strong appeal. ADGM has created an ecosystem that works very well for family offices and regulated structures.”
The distinction is less about competition and more about segmentation.
“Dubai offers pace, scale and energy. Abu Dhabi offers maturity and a quieter environment. You may find larger villas, beachfront living, golf communities and often capital values that haven’t risen as aggressively as parts of Dubai.”
For relocating UK families, practical considerations matter just as much as returns.
“The UAE now has a very strong selection of schools, many following the British curriculum,” Faun notes. “That makes relocation easier. Parents know their children can transition with minimal disruption and if they return to the UK, that continuity remains.”
Structurally, investors tend to cluster around financial hubs such as Dubai International Financial Centre and ADGM before diversifying regionally.
“If they set up in DIFC or ADGM, their residential and investment property often follows within that ecosystem initially,” he explains. “As they become more comfortable in the region, they diversify further.”
Saudi Arabia: Interest Amongst UAE-Based Family Offices
Saudi Arabia’s property liberalisation has generated significant headlines. But Faun cautions against overstating immediate UK demand.
“As of today, I haven’t seen too many British buyers purchasing flats in Saudi,” he says. “The laws are still fresh. It may attract investors looking for opportunity, but it’s early.”
Where movement is occurring is within the region itself. “I do have UAE-based family offices, not Emiratis, but expatriate capital already in the region – asking whether they should reallocate some of our investment portfolio. That’s quite an interesting trend.”
”It’s not fresh money from the UK. It’s regional reallocation,” he says.
Oman: Lower Capital Base
In Oman, interest appears more European than British.
“I’m a big supporter of Oman,” Faun says. “But I haven’t seen British buyers in large numbers yet. I am aware of Europeans purchasing off-plan villas in some attractive beachfront schemes. Starting from a lower capital base, they perceive strong growth potential.”
Gulf Capital Turns Bullish on London
While UK investors look east, GCC developers are increasingly looking west: particularly at London because of supply.
“Several GCC funds have either bought or are looking to acquire land in the UK,” Faun says. “They’re being very bullish.” At ADFW, Saudi real estate giants – namely HRH Prince Khaled bin Talal Al-Saud, CEO of Arada, outlined the attraction to London despite the soft market: there is “over-regulation, there are high interest rates… but at the end of the day, when everyone is leaving, this is an opportunity.”
“In 2015, new build starts in central London were around 33,000 units. Last year they were closer to 5,000,” he notes. “That’s a dramatic contraction.”
For seasoned Gulf developers accustomed to scaling large projects, such a supply gap presents opportunity. “Some UAE developers have bought UK firms. Others are setting up organically, hiring local teams. They’re looking at the numbers and asking: can we make a significant impact here?”
Spreading Risk Outwards
Diversification also plays a strategic role.
“If a UAE developer has 20 projects in the pipeline across the GCC, expanding into London becomes a logical hedge. It spreads geographic exposure.”
Cultural familiarity lowers barriers to entry. “They understand the legal framework. Many of the principals were educated in the UK or own second homes there. There’s comfort with the market.”
Existing client networks provide further advantage. “They may already have a list of buyers among their GCC client base who would consider purchasing in London.”
Regulatory Standards and Market Maturity
Cross-border capital inevitably raises compliance considerations. Faun emphasises that UK-origin investors typically operate within established regulatory frameworks.
“In the UK we come from one of the highest compliance markets in the world,” he says. “Both buyer and seller pass through multiple layers — advisors, lawyers, banks. It can be a detailed process, particularly for ultra-high-net-worth individuals.”
He notes that UK clients relocating to the UAE generally transition smoothly from a regulatory standpoint, reflecting the maturity of both markets.
Two-Way Corridor Strengthens
The emerging picture is not unidirectional. Instead, it is cyclical and strategic.
UK private capital seeks growth, tax efficiency and lifestyle alignment in the UAE. “It would be considered unusual today for a large international firm not to have a Middle East presence,” Faun says. “Dubai is often the headquarters. Abu Dhabi increasingly as well.”
For London, the capital remains the “obvious first port of call for GCC developers looking outward,” he adds. “Short flight time, legal familiarity, global brand: those fundamentals haven’t changed.”
As capital reallocates across cycles, the UK–GCC corridor appears less like a temporary trend and more like a structural rebalancing.
What has shifted is not the relationship, but the timing of opportunity on either side. For investors operating across both regions, that divergence may be precisely where value lies.
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