Should London be more like Dubai?

22 July 2008

2 minute read

OK, the City will never have beaches, weeks of uninterrupted sunshine or temperatures in excess of 40 degrees, but it could probably muster up lenient tax regulations for overseas bankers. Is this what's needed to make sure London is still a global financial centre in 10 years' time?

According to the Telegraph, some people think so.

The Treasury's new Financial Services Global Competitiveness Group has engaged McKinsey & Co. to produce a report looking at what can be done to see off the threat from nascent financial centres.

Dubai appears to be considered the most threatening. In the words of the article, it has gone from being "bleak" and having "Arab-style buildings in one area" and "not much in the way of entertainment", to (in our words) a fully fledged expat pleasure palace.

The Telegraph quotes an "insider", who says the McKinsey report should result in "radical change": "One idea is to build a London Financial District with special property and tax regulations, along the lines of Dubai. Perhaps better tax rules should be introduced for foreign companies and workers."

Do you agree? Should overseas bankers pay lower taxes than born and bred British ones? And is Dubai really that much of a threat anyway? Your opinions please...

AUTHOReFinancialCareers UK

Insider Comment

Tr
Trefor
4 August 2008
Total rubbish that if you're unemployable you'll have to leave the UK! There are those who have become very wealthy by making the move. Having an office job in London isn't the be-all and end-all of life. If you are a failure at home then it's highly unlikely you'll be a success in a foreign land.
There are some 50,000 Brits and Americans in Saudi alone. Losers all? Don't think so. When they return home, they will have some serious money.
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AS
A Siddiqui
3 August 2008
Dubai, as many have mentioned, is indeed populated by losers who have, in most cases, fled bad situations back home, or are otherwise unemployable in their country of orgin (and judging by their ever increasing numbers applies mainly to Brits - FILTH comes to mind). Hats off to though to the PR firm that has marketed Dubai, a great example of style over substance. Banks that have rushed to staff offices here will most likely find that there are not nearly the number of deals to be had as the headlines might indicate. They will also find that the (obligatory) Arabic speaking "door opener" that they paid gazillions to for "access" was in fact little more than a fraud (and will quietly release said huckster after 2 yr contract rolls off)...look for many to be packing their bags and getting back on the plane by 2010/11...London/NY have nothing to worry about, Dubai is flavour of the month
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Lo
London rules
30 July 2008
Just look at dubai. overpopulated with people from subcontinent like india and other arab nations. how can it be like london? dubai has massive human rights abuses ? how can it be like london? legal contracts have no standing? how can it be like london? the goverment is interfering with the supply of real estate to create artificial price hike? how can it be like london? UK is a democracy. dubai is not? Dubai does not offer passports, so how is it like London?
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Jo
John
29 July 2008
As mentioned, it helps to make friends with locals. God forbid that some of the superior London types to mingle with those swarthy characters, eh?
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AN
ANANDSHARMA
28 July 2008
London was evolved. Dubai is Genetically Modified.
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