UK businesses are increasingly turning to the Middle East as a prime investment destination, with interest in the region doubling in recent years, according to new research published today by Pagefield.
More than a third (36%) of UK business leaders now see the Middle East as a key investment hub for the next five years—up from just 18% who have previously invested there.
Asia is also emerging as a hotspot, with interest rising from 22% to 32%, as UK firms look to strengthen their global market presence.
However, Europe remains the top priority, with 55% of UK firms identifying it as their primary overseas investment destination.
Investment in the US remains steady (42% current vs. 45% prospective investors), but new trade tariffs under President Trump’s administration pose uncertainty, potentially deterring future deals.
Partner at Pagefield, Christopher Clark, said, “The data shows a clear shift in UK businesses’ global outlook. While Europe remains a top priority, the sharp rise in interest in the Middle East and Asia signals a growing appetite for new, high-potential markets. Businesses are looking beyond traditional hubs and seeking opportunities in regions that offer both economic dynamism and strategic advantages.”
Pagefield’s research—conducted among senior UK and US business leaders—highlights the growing demand for government action to boost British investment overseas. A striking 83% of UK firms say the Government must do more to support international expansion, with nearly a third (31%) identifying Free Trade Agreements (FTAs) as the single most important mechanism.
Tax incentives are another key factor, with 19% of UK businesses emphasising the role of enterprise zones and tax carve-outs in driving investment. Unsurprisingly, economic stability (34%), workforce quality (29%), and a strong commitment to equality, diversity, and inclusion (EDI) (28%) also rank high on the list of investment priorities.
Pagefield Senior Advisor and former Permanent Secretary for the Department for International Trade (DIT), John Alty, added, “UK businesses are ready to invest overseas, but they need the right conditions to do so. The Government should stand ready to support outward as well as inward investment, as it will strengthen UK businesses and the UK economy. Businesses are looking to the Government to facilitate supply chains through free trade agreements and provide in-country support to boost business confidence.”
Despite global economic and political headwinds, UK firms remain overwhelmingly bullish on Foreign Direct Investment (FDI), with 91% expressing confidence in cross-border expansion. This places UK businesses ahead of their US counterparts, having committed to larger investments abroad in the past 12 months.
