UK Businesses Embrace Middle East as Key Investment Hub
A new survey has revealed that interest among UK business leaders in the Middle East as a key investment hub has doubled to 36 percent, driven by the region’s economic transformation and strategic appeal. The study, conducted by communications consultancy Pagefield, surveyed over 200 senior figures across the finance, technology, and manufacturing sectors.
The findings of the survey indicate that while Europe remains the leading region for UK businesses, with 55 percent of respondents naming it their primary international investment market, there is a growing interest in the Middle East. This shift reflects regional efforts to diversify economies and attract foreign direct investment. Mega projects such as Saudi Arabia’s NEOM and large-scale developments in the UAE are reshaping the landscape, promising to draw more global capital.
NEOM’s luxury destinations on the Gulf of Aqaba coast are designed to deliver the highest standards of future living and quality of life. The project aims to create a hub for innovation, entrepreneurship, and economic growth, making it an attractive destination for international businesses.
The data shows a clear shift in UK businesses’ global outlook. While Europe remains a top priority, the sharp rise in interest in the Middle East and Asia signals a growing appetite for new, high-potential markets. Businesses are looking beyond traditional hubs and seeking opportunities in regions that offer both economic dynamism and strategic advantages.
Saudi Arabia’s regional headquarters program has emerged as a major pull for international firms, including UK companies. The program offers incentives such as a 30-year exemption from corporate income tax and withholding tax on headquarters activities, alongside other benefits like discounts and support services. Several leading UK firms, including IHG Hotels and Resorts, PwC, and Deloitte, have already set up their regional headquarters in the Kingdom, positioning themselves to capitalize on the country’s rapid economic transformation.
The survey also highlighted rising UK business interest in Asia, with investment focus climbing from 22 percent to 32 percent. Participants in the survey emphasized the need for greater government support as UK firms pursue international expansion. International companies looking for investment opportunities have established regional headquarters in the Kingdom.
Government Support Crucial for UK Businesses
According to the study, 83 percent of UK companies said that the government must do more to support international growth, with nearly 31 percent identifying Free Trade Agreements as the most crucial mechanism. Other key factors influencing investment decisions among UK business leaders include economic stability, workforce quality, and a strong commitment to equality, diversity, and inclusion.
The report also noted that UK firms remain overwhelmingly optimistic about foreign direct investment, with 91 percent expressing confidence in cross-border expansion despite global economic and political challenges. "UK businesses are ready to invest overseas, but they need the right conditions to do so," said John Alty, senior adviser at Pagefield and former permanent secretary for the Department for International Trade.
"The government should stand ready to support outward as well as inward investment, as it will strengthen UK businesses and the UK economy. Businesses are looking to the government to facilitate supply chains through free trade agreements and provide in-country support to boost business confidence," Alty added.
A New Era of Investment
The survey’s findings indicate that UK businesses are embracing a new era of investment, driven by the Middle East’s economic transformation and strategic appeal. As the region continues to attract international attention, it is clear that UK businesses are eager to capitalize on opportunities in the region.
With mega projects like NEOM and large-scale developments in the UAE promising to draw more global capital, it is essential for governments to provide support and incentives for international firms. By doing so, they can create a favorable business environment that encourages investment, innovation, and economic growth.
As the UK continues to navigate its post-Brexit landscape, it is crucial for policymakers to recognize the growing interest in the Middle East among UK businesses. By providing the necessary support and infrastructure, governments can help unlock new opportunities for international expansion and drive economic growth.
Conclusion
The survey’s findings provide a clear indication of the shifting global outlook among UK businesses. As they look beyond traditional hubs and seek opportunities in emerging markets, it is essential for governments to adapt and respond to their needs.
By providing support and incentives for international firms, governments can create a favorable business environment that encourages investment, innovation, and economic growth. The Middle East’s economic transformation and strategic appeal make it an attractive destination for UK businesses, but policymakers must ensure they provide the necessary support to capitalize on these opportunities.
As the region continues to evolve and attract international attention, one thing is clear: the Middle East has emerged as a key investment hub, and UK businesses are eager to explore its potential. With careful planning and strategic support, governments can help unlock new opportunities for international expansion and drive economic growth in this exciting new era of investment.