By Joe David, CEO of Nephos Group

“Move to Dubai for tax.”

I hear this constantly. From founders, investors, crypto-native operators – people building real businesses who reduce one of the biggest decisions of their professional lives to a single line on a spreadsheet.

And honestly, it is the wrong way to think about it.

Tax should rarely be the sole reason to relocate. When it is, it is usually where things go wrong. The corporate structure is not set up correctly. The banking relationships are not in place. The founder leaves within 18 months because the deeper rationale was never really there. I have seen this pattern play out dozens of times over the past decade, and it almost always traces back to the same root cause: a decision built on a tax rate rather than a strategy.

The tax-first trap

Dubai’s zero per cent personal income tax rate is real, and it is significant. But leading with tax creates a narrow frame that obscures the fuller picture. Founders who relocate purely for a rate often fail to consider the operational realities of building in a new jurisdiction. They underestimate the compliance infrastructure required to make the move defensible. They overlook the substance requirements that tax authorities in their home countries will scrutinise. When the expected savings do not materialise cleanly, because the structure was an afterthought, disillusionment sets in fast.

This does Dubai a disservice. It reduces a genuinely world-class business environment to a line in a tax planning brochure. The city deserves better than that, and so do the founders making life-altering decisions based on incomplete thinking.

What the successful ones actually optimise for

The founders and investors who get the most out of Dubai are not chasing a tax rate. They are making a broader strategic move.

Jurisdictional access is a major factor. Dubai sits at the crossroads of Europe, Africa and Asia, offering time zone coverage and travel connectivity that few cities can match. For businesses operating across multiple markets, particularly in digital assets, fintech and professional services, that geographic positioning is a genuine competitive edge.

Then there is the capital environment. Dubai has become a magnet for institutional and private capital, with fund structures, family offices and venture vehicles establishing a permanent presence. The banking infrastructure, while still maturing in certain areas, has improved significantly. For crypto-native businesses in particular, the regulatory clarity offered by frameworks like the Virtual Assets Regulatory Authority (VARA) provides something that many Western jurisdictions still cannot: a clear, codified path to operating legally with digital assets.

The business ecosystem itself is another draw. The speed at which you can incorporate, hire, open accounts and begin operating is remarkable compared to legacy jurisdictions. Free zones offer tailored licensing, and the government’s responsiveness to emerging sectors – AI, blockchain, tokenised finance – signals a jurisdiction that is building forward rather than regulating backward.

And then, yes, there is the lifestyle. Climate, safety, connectivity, quality of infrastructure. These are not trivial considerations when you are asking a founding team to commit to a base for the next five to ten years.

Tax is often the outcome of all of this. It is not the strategy itself.

The compliance landscape is shifting

There is another reason the tax-first mindset is increasingly risky. The global compliance environment is tightening rapidly. The Crypto-Asset Reporting Framework (CARF), developed by the OECD, will require automatic exchange of information on crypto transactions between jurisdictions. The EU’s DAC8 directive introduces similar obligations across member states. The days of relocating and assuming your home country’s tax authority will not follow are numbered.

This means that substance, genuine economic activity, real operational presence, defensible corporate structures, matters more than ever. A Dubai relocation that is purely cosmetic will not survive scrutiny. One that is built on genuine strategic foundations, with proper advisory support and compliant structures, will.

The conversation worth having

None of this is an argument against moving to Dubai. Quite the opposite. For the right founder, with the right business, at the right stage, it can be a transformative decision. But that decision needs to be grounded in strategy, not arithmetic.

Before you start calculating your tax savings, ask the harder questions. Does your business model benefit from being in this jurisdiction? Can you build genuine substance here? Are your corporate structures defensible under international reporting frameworks? Do you have the advisory infrastructure to get this right from day one?

That distinction – between tax as a tactic and strategy as a foundation – matters more than most people realise. And it is a conversation worth having before you make any decisions.

By: Avi Pardo, Co-Founder & CBO, LeapXpert

Financial firms globally have similar playbooks for off-channel communications: ban the channel, run a training, and send attestations for signing. Yet, the conversations are still happening on personal phones. Calling that playbook ‘good enough’ only hides how little has changed.

More than 100 organisations have faced charges under the US Securities and Exchange Commission’s off-channel communications initiative, while other regulators have pursued similar failures. Yet the response is still another rule, another warning, another ban.

The missing piece is the psychology behind banning. Until firms understand what drives employees towards off-channel apps, even banned ones, the next record-keeping failure is already on its way.

Why employees find workarounds

These channels are already part of the client relationship. A banker may be chasing a decision, dealing with a concern or replying to a question that has come through on Signal, WeChat or WhatsApp. In that moment, getting back to the client takes priority.

If replying through the approved channel takes too long, creates operational friction, or disrupts the conversation flow, the employee is likely to answer somewhere else. The message gets sent, but the firm may never see the full exchange.

Psychologists have studied this response to bans for decades. Jack Brehm’s work on psychological reactance shows people can push back when they feel their freedom of choice has been restricted. Research into imposed workplace change points to the same response: people who feel pushed into a new way of working may quietly find another route. Someone reads the policy, completes the training and then uses a personal phone when a client needs an answer.

Daniel Wegner’s work on ironic rebound also helps explain why bans can misfire. Tell people often enough to avoid something and it can make it more appealing. The channel remains on the phone, the client is waiting and the approved route takes longer.

Once the conversation moves to a personal phone, the firm may never recover the full exchange. Employers also face legal limits on how far they can inspect a private device.

Governance beats the workaround

Governance should redirect behaviour instead of trying to suppress it. Employees need an approved route that works while the client conversation is happening, or the workaround will keep winning.

Financial firms still need clear rules and a complete record of business conversations. Regulators expect those messages to be kept, whether they were sent by email, text, WhatsApp or another service.

The problem usually shows up during an ordinary working day: between meetings, on a journey or while a client is waiting for an answer. If the approved channel holds things up, few people will pause the conversation to sort out the process. They will reply another way.

Businesses are losing valuable conversation data

Regulatory risk is obvious when messages go missing: a firm cannot supervise what it cannot see or produce records that were never captured.

Client conversations carry information a business would want to know: a concern raised weeks before a relationship starts to slip, pricing pushback that never reaches the CRM or a salesperson handling a difficult exchange in a way others could learn from. Repeated questions may also point to problems with onboarding, service or product design.

Governed communication creates a record the organisation can learn from. Applied responsibly, conversation data can support supervision, client service, dispute resolution, coaching and a clearer view of relationship risk.
That information is already being generated every day. The difference is whether it remains scattered across personal devices or becomes something the organisation can understand and act on.

Bring the conversation back into view

Plenty of companies have the basics in place: a policy, training and an approved tool. What is often missing is a setup that matches how people work and talk to clients.

The existence of a policy says very little about whether it works. ‘Good enough’ governance can leave a business with all the right paperwork while the same behaviour carries on underneath it.

A quick exchange can soon include a shared document, a follow-up question and another colleague joining the conversation. Messages, files, participants and timing all form part of the record, which needs to stay within the firm without someone rebuilding the exchange later.

If senior leaders use the same channels they have banned for everyone else, the policy is a sham. Employees follow what leaders do, rather than what the compliance manual says. Training can help, particularly when people understand the reason behind it. But explanations only go so far if the approved route slows down a live client conversation. Technology can capture the record, but leadership decides whether people take the rules seriously. No system can rescue a policy that senior figures ignore.

Keeping those exchanges within view gives the business more than a record for compliance. It can also pick up concerns, repeated questions and early signs that a client relationship is beginning to change.

More rules have not stopped the conversations. They have pushed them onto personal phones and out of sight. Calling that ‘good enough’ is no longer credible.

Al Ansari Exchange, the UAE’s leading remittance and foreign exchange company and a subsidiary of Al Ansari Financial Services PJSC (DFM: ALANSARI), and Dubai Municipality are celebrating a decade-long partnership that has enhanced access to government payment services, with annual collections rising by approximately 710% over the course of 10 years.

Established in 2016, the partnership enables individual and corporate customers to pay for Dubai Municipality services through Al Ansari’s extensive branch network across the UAE, expanding the availability of government services.

This growth reflects strong customer adoption, the service’s operational reliability, and rising demand for convenient payment channels. The collaboration also supports Dubai’s vision for customer-centric, digitally enabled government services by connecting public services with trusted private-sector payment infrastructure.

Marking the tenth anniversary of the partnership, Sayed Ismail Al Hashemi, Acting CEO of the Corporate Support Services Sector at Dubai Municipality, said: “We highly value our decade-long partnership with Al Ansari Exchange. This collaboration has contributed to enhancing service delivery efficiency and simplifying the customer journey for the payment of Dubai Municipality fees.”

Al Hashemi added: “The partnership has had a tangible impact by improving payment collection efficiency and expanding the range of available payment channels, making our services more accessible and enhancing customer satisfaction. At Dubai Municipality, we remain committed to leveraging digital transformation to deliver smart and efficient services that enhance the quality of life and wellbeing of our customers.”

Rashed A. Al Ansari, Group Chief Executive Officer of Al Ansari Financial Services, added: “Our ten-year partnership with Dubai Municipality reflects a shared commitment to making essential services more convenient and accessible. Over the past decade, we have combined Dubai Municipality’s service excellence with our extensive network and payment capabilities to provide customers with a reliable and efficient channel for completing their transactions. We look forward to building on this strong foundation and continuing to support Dubai’s evolving smart service ecosystem.”

Building on these foundations, both organisations will explore new opportunities to strengthen the partnership and support the continued evolution of Dubai’s smart service ecosystem.