Posted by Bob Brunskill
The new super tax on bank bonuses introduced in the UK last week could see high earners move to Dubai for its better tax benefits.
Cliff Single, commercial manager at BAC Middle East, told Emirates Business that discontent among executives in the City of London, may encourage them take up roles in the UAE where confidence in business prospects is high, as reflected in property investment in Dubai.
"Talent is highly mobile and these changes are sure to make those in the industry consider their options very carefully. If a high tax policy becomes entrenched then it is very likely that there will be a movement to financial centres with more benign tax regimes, including those within the Gulf Cooperation Council," Mr Single told the news provider.
However, Emirates Business also reported the view of Panos Manolopoulos, vice president at Stanton Chase Middle East, who said that he did not expect the UK's new 50 per cent bonus tax to have a large impact on migration, as Dubai was already a hugely attractive prospect for high earners.
The findings have been supported by a survey by international law firm Eversheds which found that 69 per cent of business leaders in the UAE are confident in their economic prospects over the coming year compared to only 22 per cent in London.