Will a no deal Brexit affect expats in the Gulf States?

If you’re about to embark on a new career in the UAE, how will Brexit affect your experience?

Expats planning a new life in the emirates may not realise that, in the present-day global economy, the enormity of what’s going down as regards a no-deal Brexit will reverberate across the globe. International trade is exactly that – international, and with trade wars now a political tool in the USA, further destabilisation of the global pattern will affect the majority of first-world countries in one way or another.

Newly-arrived British expats in the Gulf States may not realise the home country and the UAE are major, long-time partners, trading imports and exports on demand. The majority of imports and exports are food-related, with total trade reaching as much as £11 billion in UK exports and £6 billion in imports. British food staples and fresh produce are expected to increase in price following a no-deal Brexit, but the cost of British exports to the UAE may be slightly mitigated by yet another fall in sterling.

EU expats needing to travel to the UK as part of their jobs may well have problems post October 31, although those heading for Ireland should find entry requirements the same as usual. For expat investors, a no-deal Brexit will affect oil prices, with the effects ongoing due to continuing political uncertainty and a lack of effective UK leadership. According to some analysts, the expat real estate sector should experience a boom due to the ability to grab discounted deals paid for in dollar-pegged currencies.

At the present time, both sellers and buyers are sitting on their hands due to the current instability and uncertainty, but prospective buyers and investors may be able to snatch opportunity from the present-day chaos. As regards the investment market as a whole, volatility is the name of the game, with the UK understandably no longer a favourite with the markets. The impact on the Gulf States is expected to be minimal in the short term, but long-term trends are harder to predict.