Norwegian shipping magnate John Fredriksen, who ranks as the ninth richest person in the UK, has announced the relocation of his business operations from London to the United Arab Emirates.
According to reports, Fredriksen is now spending the majority of his time managing his vast business empire from the UAE.
He revealed that his decision to move some of his enterprises to the UAE was significantly influenced by Britain’s new tax policies, although this was not the sole factor. Late last year, he closed the headquarters of “Seatrade”, one of his private shipping firms, which was based in London.
Fredriksen’s departure comes amid changes in the UK following the abolition of the tax system for non-residents, a framework that previously attracted wealthy individuals to London. Recently, he closed the office of “Seatrade Management” in Sloan Square, a move viewed as a practical step to sever ties with the UK.
The UAE: A Sanctuary for Billionaires
A report titled “Wealth Migration 2025” from Henley & Partners and New World Wealth highlights a substantial influx of millionaires from the UK, India, Russia, Southeast Asia, and Africa. This trend, supported by golden residency schemes, has established the UAE as a premier global destination for the affluent.
The same report identifies several favored locations worldwide known for tax advantages, naming the UAE, Monaco, and Malta among them, as well as luxurious residential areas in Italy, Greece, Portugal, Switzerland, and other regions. It notes that many high-income executives are choosing to settle in thriving wealth hubs like Dubai, Florida, Milan, St. Julian’s, Lisbon, the Athenian Riviera, Zug, and Lugano.
A Humble Beginning
Fredriksen was born in Oslo to a modest family and began his oil trading venture in Beirut during the 1960s. He amassed his substantial fortune during the Iran-Iraq War in the 1980s and is now recognized as one of the world’s leading oil tanker owners, possessing over 70 vessels, along with significant investments in oil and salmon farming.
The residence he occupies, known as “The Old Rectory,” dates back to 1725 and was once home to the parish priest of Chelsea. Surrounded by two acres of gardens, it is among the largest in London, and some accounts suggest that the Duke of Wellington planned the Battle of Waterloo in those gardens.
Wave of Departures
Fredriksen’s move is not an isolated case, as London is experiencing a trend of wealthy expatriates leaving the city. Reports indicate that Norwegian billionaire Helen Oddvijel has moved to Switzerland, while shipping tycoon Peter Smidvig has departed London after more than 30 years of residence.
It is estimated that approximately 16,500 high-net-worth individuals may leave the UK this year, according to Henley & Partners, marking the highest number of millionaires departing from any country during this period.
The end of the “non-resident” tax system on April 6th, which had been in place for centuries, allowed wealthy individuals living in Britain but born abroad to shield their income and assets from UK taxes, including inheritance tax. The abolition of this system is considered a key reason for the outflow of capital from the country, raising concerns over potential declines in foreign investments.