Annual bilateral trade between the UK and UAE at over GBP12 billion

How do you introduce the BBG and its members to newcomers?

The British Business Group Dubai & Northern Emirates is proud to celebrate 30 years since its establishment. We were originally set up by a handful of business leaders from the UK who were either involved in their own businesses or had come to Dubai to represent British business in the Gulf. As one of the oldest business councils in the UAE, its purpose is to foster trade between British businesses, as well as the bilateral trade relationship between the UK and Dubai and the Northern Emirates. We are a not-for-profit membership group run by its members on a voluntary basis. The BBG helps its members to build a network of relationships that establish or advance their business in Dubai, such as lawyers, accountants, local service partners, government connections, and potential clients. This is in line with the UK government’s aim to bolster and increase the trade relationship between the UK and the UAE. Therefore, we are aligned with the government, though we are a private organization that exists solely for our members.

What makes many larger companies, as well as SMEs, choose Dubai as their regional headquarters?

Since the inception of the UAE, Dubai’s focus has been on maintaining an open and transparent market for international trade. HH Sheikh Mohammed al Maktoum has created a hub from where we can reach two-thirds of the world’s population within a few hours due to Dubai’s connectivity in terms of transportation and communication. Dubai can be seen as the commercial and business capital of the UAE. In Abu Dhabi there are businesses coming in for defense, oil and gas, and infrastructure-related activities. The main reason Dubai is a popular business destination is the logistics sector, its ability to attract and retain quality talent from around the world, and the infrastructure being built in areas such as healthcare, communications, and transport. All these make Dubai an attractive base, particularly for international businesses, as well as start-ups.

Many start-ups and new disruptive technology companies are moving to Dubai. Is BBG attracting new members from these sectors?

BBG works hard to attract these innovators because we see their sectors as a main focus of the Dubai government. For us, it is not just about doing business on the ground now; it is about the future, legacy, and sustainability of business. The BBG is keen to encourage British companies in tech sectors to come here. The traditional British-Dubai link based on trade, construction, and design expertise has been strong. However, now the focus for British businesses here, which is in line with both the UK and Dubai governments’ strategies, is on new service-oriented, sustainable businesses such as fintech. Post-Brexit, the focus for British businesses will shift. Only 11% of British businesses export compared to about 48% of German companies. There is an enormous potential for the UK to look beyond the European market and approach new opportunities worldwide. Asia and the Middle East will be the main focus. Both the UK and UAE governments are open to renegotiating free trade agreements. The demand for British business and expertise will continue to be strong.

How will the UK readdress its relationship with the UAE post-Brexit?

The UK and the UAE have had strong political ties right from the beginning of the union and there is no reason to suggest that this cannot be even stronger as we move forward. We see a great deal of excitement both here on the ground and in the UK about new trade opportunities post-Brexit. It is a matter of focusing minds on doing things in a slightly different way and being flexible and fast in some of these trade discussions and decisions. There is a visible hunger on both sides for increased trade between the UK and the UAE. Our target by 2020 is to double the current bilateral trade between the UK and UAE from the current GBP12 billion plus per annum. We aim to align our strategies with the Dubai government’s key areas of focus. Green technology, Islamic finance, tech, and the medical and education sectors are set to grow enormously. Some 8.6 million people visited Dubai for tourism or business in the first half of 2017 and Dubai will exceed its 20 million visitors target by 2020.

What challenges does Dubai present for people setting up businesses here?

A number of our BBG members are smart, young, and entrepreneurial people with great ideas. Dubai is still an expensive market to enter. To start a business, companies have to do their licensing, have a local partner unless they are in a free zone, and acquire real estate. There are various incubator solutions available for local Emiratis and expatriates, though a cohesive strategy is continuing to emerge. There is still work to be done in this area and the BBG works closely with Dubai FDI on this subject. We want to see even more innovation to help those start-ups and foster the idea of Dubai as a place of opportunity. There is no other city with infrastructure like it in the wider region and it continues to improve. An important challenge will be the introduction of the VAT. Foreign companies are used to the concept from their home countries; however, it will not be a simple transition because there are still a great deal of unknowns. The VAT system is coming into force on January 1, 2018; however, even now it is still not clear exactly how that plan will work. The imposition of a tax regime in some form or another is inevitable at this stage in Dubai’s development. People will have to think more about how they establish their business and where the audience for their product or service actually is. However, VAT is not a retarding factor for business.

How are you preparing your members for Expo 2020?

The BBG has a membership of about 1,200 with a clear member-for-member mandate. It may seem a little insular; however, it means our members receive reciprocal trade within the membership, as well as our wider UK-UAE reciprocal trade focus. The committee is just in the process of putting a three-year strategic plan in place to take us through to Expo 2020 delivery. It became clear from our member-to-member engagement program that it is not just about the Expo and the opportunities leading up to it; it is also about the legacy and sustainability for our business members. The idea is to use Expo 2020 as the catalyst to Dubai being a regional center of excellence in various sectors. It is an exciting time for us.