* Brexit may be triggered by UK PM May before end-March
* Many UK businesses looking to emerging markets to expand
* 36 per cent of firms say UK is no longer an attractive option
The world is talking about the repercussions of the UK’s exit from the European Union – popularly called Brexit. Dubai, like many other emerging markets, has reasons to rejoice when Article 50 of the Treaty of Lisbon is finally triggered by the UK.
British Prime Minister Theresa May is most likely to invoke Article 50 by the end of March, paving the way for the country’s departure from the grouping of 28 European nations before April 2019.
Following this, many businesses in the UK will look overseas to expand and a new report suggests emerging markets will have an edge as they are becoming increasingly attractive to 63 per cent of UK businesses.
The study by Dubai Multi Commodities Centre (DMCC) shows that just under half (42 per cent) of UK businesses have more appetite for overseas expansion in the post-Brexit and Trump administration era.
More interestingly, a staggering 75 per cent of them are eyeing Dubai as a possible overseas location to expand into, according to the figures from DMCC. Meanwhile, another 40 per cent of companies who are still undecided would consider having a presence in the Middle East if they choose to expand overseas.
The top reasons for UK businesses eyeing overseas expansion include:
- Emerging markets are becoming increasingly attractive (63 per cent)
- There is a growing business need for a global presence (47 per cent)
- The availability and wealth of overseas talent (44 per cent)
- Too much uncertainty in the markets with the UK no longer being an attractive option (36 per cent).