British businesses are increasingly eyeing the Middle East as a top investment hotspot, with interest in the region multiplying in recent years, new research has revealed.
A study by Pagefield found that more than a third (36 per cent) of UK business leaders now view the region as a key investment hub for the next five years — a huge leap from just 18 per cent who had previously put money into Middle Eastern markets.
Meanwhile, Asia is also emerging as a top contender, with interest jumping from 22 per cent to 32 per cent, as UK firms seek to expand their global footprint.
UAE is a Prime Destination
Among the Gulf nations, the UAE has become a prime destination for high-networth individuals (HNIs) and ultra-high-net-worth individuals (UHNWIs) looking for better economic opportunities, a higher quality of life, and secure wealth management. This trend is especially evident in the growing number of wealthy individuals leaving the UK for the UAE, drawn by its tax-friendly policies and luxury lifestyle.
Europe Still Leads as US Faces Uncertainty
Despite the rising interest in new markets, Europe remains the UK’s top overseas investment priority, with 55 per cent of businesses still focused on the continent.
Investment in the United States, however, remains steady, with 42 per cent of firms currently investing there compared to 45 per cent looking to do so in the future. But looming uncertainty over new trade tariffs under President Donald Trump’s administration could put future deals at risk.
Experts Weigh In
Christopher Clark, Partner at Pagefield, said: “The data shows a clear shift in UK businesses’ global outlook. While Europe remains crucial, the soaring interest in the Middle East and Asia highlights a growing appetite for fresh, high-potential markets.”
Businesses are now looking beyond traditional hubs, seeking opportunities in regions with booming economies and strategic advantages.
Calls for Government Action
The report also reveals growing frustration among business leaders, with 83 per cent of UK firms urging the government to do more to support international expansion.
Among their top demands? Nearly a third (31 per cent) believe that Free Trade Agreements (FTAs) are the single most important tool to help British companies thrive abroad.
Despite economic and political challenges, UK businesses remain optimistic about investing abroad. Around 91 per cent of firms support Foreign Direct Investment (FDI), putting them ahead of US companies with bigger international investments over the past year. This shows strong confidence in global growth despite uncertain times.
(Source: Zawya, Forbes)
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