If you’re thinking about setting up a business abroad, you’re probably looking at some of the worlds’ biggest business hubs.
Within that list, Hong Kong and the UAE often sit towards the top.
But how do you decide which is better? And what do you need to compare when making that decision?
Luckily, we take all the guess work out for you and lay the facts out side by side.
Visas
Before you think about setting up a business in one of these countries, it’s probably best to start with residency. If you’re a UK citizen, your visa options are slightly different in each of these places:
Hong Kong: You can visit Hong Kong for up to 6 months without a visa, but if you want to work there, you’ll need to apply for one.
Hong Kong does have an entrepreneurs visa, which allows UK business leaders to set up companies there. The visa is relatively easy to get, making it a good option.
UAE: The UAE has a number of options for business leaders, but their Golden Visa is probably the best option. This just requires applicants to pledge a set amount of money (500,000 AED) in order to get visa access.
Political Stability
Not just for business, but for living too, if you’re looking at moving abroad, you probably want to know that the country is politically stable.
Hong Kong: Hong Kong is generally politically stable, however there are tensions between the territory and mainland China that flare up every so often.
UAE: The UAE is one of the most politically stable countries in the Middle East – making it very attractive to entrepreneurs.
Location
Hong Kong: Hong Kong is right in the centre of Asia, giving it direct access to economies in the region.
UAE: The UAE is positioned in the Middle East, an area that sits in the centre of North Africa, Europe and Asia. This makes it a good option for anyone looking to trade in these areas.
Taxes
Hong Kong: Hong Kong has one of the most business-friendly tax systems in the world, including:
- Corporate tax: 8.25% on profits up to HKD 2 million, and 16.5% on the remainder.
- No VAT or capital gains tax.
- Income earned outside Hong Kong is not taxed.
UAE: Until 2023, the UAE didn’t have any corporate tax. However now, its taxes include:
- 9% corporate tax
- No personal income tax or capital gains tax
- 5% VAT on goods and services
Language
If you’re planning to set up a business somewhere, speaking the official language helps.
Hong Kong: An easy option for English speakers, Hong Kong’s official languages are Cantonese and English, which are both used in work and socialising.
UAE: In the UAE, Arabic is the official language, but English is also widely used – especially in business and expat communities.
Culture
Hong Kong: Not for the faint hearted, Hong Kong is known for having a fast-paced business culture. It’s a hub with tons of restaurants and entertainment options, but also has a high cost of living.
UAE: The UAE has a strong root in traditional Arabic culture – which does affect how people live and work. However, it blends this with modern values, making it an easy country to live in for those used to Western living.
Cost of Living
Hong Kong: Hong Kong is one of the most expensive places to live in globally, regularly being featured on lists of most expensive cities. Whilst it does come with a good quality of life, it certainly comes with a price tag. However, salaries are also high, which balances it out.
UAE: The UAE has an amazing quality of life, but isn’t actually that expensive to live in. According to Property Finder, it’s about 27% cheaper than the US. A good monthly salary is between £4000 – £7000 per month – which is relatively achievable for those living tax free.
Hong Kong vs The UAE: Which Is Better?
When it comes to choosing which of these two countries is better, the answer is: it depends what you’re looking for!
If you want a fast-paced business environment with English speakers, then Hong Kong might be a better option. However, if you want a great quality of live in a strategic location, the UAE might be for you.
Either way, neither option is a bad one!
