Why Dubai Isn't the Only Option for Global Founders

Dubai has become one of the most common bases for international founders, and UK founders in particular love moving there. It's easy to see why. The infrastructure works, flights go everywhere and setting up a company is a well-trodden process.

But Dubai is changing, and we're seeing more and more founders look at alternatives. The problem isn't Dubai. It's treating any single jurisdiction as the whole answer.

Why Dubai became the default

Dubai's big appeal is that it's a two-in-one. You set up your company there, you get your residency and Emirates ID there, and everything flows through one place. Both are relatively easy to get, and taxes have been low.

For a founder who wants one simple base for both their business and their life, that's hard to beat.

Dubai is becoming more mainstream

Dubai is moving towards being a more mainstream jurisdiction. The UAE was removed from the FATF grey list in 2024 and introduced a 9% corporate tax in 2023. Major financial institutions have been setting up there, which gives it a really solid base.

That's good for its reputation. But it also means Dubai is no longer the low-tax, low-cost option it once was.

Why some founders are now leaving

In recent times we've personally seen more and more founders who moved to Dubai start looking at leaving. Taxes are going up, and there is more geopolitical tension in the region after a long period of calm. For some, the Dubai golden era may be starting to end.

There's also more detail under the headline than people expect. The UAE has more than forty free zones, each with its own authority, its own list of permitted activities and its own rules on premises. Two companies that both say "Dubai" on paper can be set up under quite different rules.

Banking is another pressure point. Opening a corporate account in the UAE can be slow and the review is thorough. And if your only bank is in one country, you have no fallback if that bank changes its appetite.

Where founders are going instead

Which alternative makes sense depends on where your customers are, where the money comes from and where you want to live. These are the options we see most often.

Cyprus

Cyprus offers a similar package to Dubai. You can set up a company, and residency for entrepreneurs is relatively easy to get. Taxes are relatively low, it has a wide network of double tax treaties and the banking is good. As an EU member state, it suits businesses selling into Europe.

The company does need real presence on the island. Cypriot banks treat companies with nothing beyond a mailing address as shell entities, so a registered office alone won't be enough.

Hong Kong, with residency elsewhere

Another common setup is a Hong Kong company, with the founder living somewhere like Paraguay or Uruguay. These countries have largely territorial tax systems and accessible residency programmes.

A Hong Kong director can live anywhere, but the company needs a Hong Kong company secretary and a local registered office. It remains a practical base for trade with Asia, but banks look closely at new companies with no visible activity in Hong Kong.

Panama

Panama is one we're seeing more and more people move to. It's interesting because it offers the same two-in-one setup as Dubai: you go there, you set up a business and you get a residence permit. Banking is good, and you have everything you need in one place.

Panama is also introducing new legislation to improve its reputation and get off the non-cooperative lists it still appears on. Overall, we're seeing it move in a positive direction.

Singapore

Singapore is highly respected by banks and counterparties, and strict from day one. Every company needs at least one director who lives in Singapore and a locally resident company secretary. That makes it more expensive to run from abroad, but it's also why a Singapore company reads well when it reaches a bank.

The world keeps changing. Your structure should keep up.

Countries change. Some improve, some raise taxes, some tighten their rules. What works today won't necessarily work in the future, and Dubai is a good example of that.

That's why it's important to know what's going on and to stay ahead. And it's important to talk to people who understand all the options at the same time, not just one country. Only then can you get a real comparison.

Sometimes the right answer is to split things up, with your company in one place, your residency in another and your banking somewhere else. Sometimes everything can sit in one place. It depends on your business and your personal preference.

Thinking about an international structure?

At Redomiciled, we work across 48 countries with a network of independent lawyers, accountants and advisers, so we know how the options compare right now.

Read more of our articles and follow our pages to stay up to date. When you're ready to talk about your own situation, follow the steps to apply to become a client:

1. Complete the short client application.
2. Our team reviews your business and where you want to live.
3. We come back to you with a recommended structure.

This article is general information, not legal, tax or accounting advice. Redomiciled coordinates formation through licensed local providers; we are not a bank, we do not hold client funds and we cannot guarantee any outcome. Acceptance always rests with the institution concerned and remains subject to its own due diligence.