How UK student loans work when you move to Dubai or the wider UAE: SLC rules, overseas thresholds, zero tax interaction, enforcement reality, and practical planning for Gulf expats
Moving to Dubai or elsewhere in the UAE does not wipe out a UK student loan. The debt remains with the Student Loans Company (SLC); the only change is how collection happens. Instead of PAYE deductions via HMRC, you move onto direct payments after an Overseas Income Assessment.
The UAE is treated as a high-income jurisdiction in SLC’s overseas repayment framework. SLC assumes many UK graduates in Dubai will have relatively high earnings, so overseas thresholds are set on that basis. If you cooperate and provide evidence, your payments still track your income, not your location. If you ignore SLC, they assume the worst and push you onto a high fixed repayment.
This guide focuses on the mechanics for UK borrowers in Dubai and the wider UAE: notification rules, income assessment, the impact of a zero income-tax environment, common myths about Sharia and UK loans, the real enforcement tools SLC has, and a practical checklist to stay in control rather than drifting into arrears.
SLC requires borrowers to inform them if they will be outside the UK for more than 3 months. Dubai, Abu Dhabi, and every other emirate are covered by the same rule. Once classed as an overseas borrower, you must provide income evidence and pay SLC directly.
Many graduates arrive first, then sort paperwork. Once you are in the UAE:
If you vanish from SLC’s view once PAYE stops, they do not assume “no income”. They assume you are earning above the relevant overseas threshold and may set you on the highest fixed repayment band available to them.
SLC cannot see UAE payroll data. The Overseas Income Assessment is their substitute: you submit income evidence, they convert it into GBP, apply the UAE-specific threshold for your loan plan, and calculate a monthly amount payable for the next 12 months.
Your obligation is to respond and be accurate. If you overestimate and then earn less, you can request reassessment. If you underestimate or refuse to provide evidence, expect SLC to default to a higher assumed income and higher fixed payments.
Geography does not change the core rule: for undergraduate loans, you pay 9% of income above the threshold; for postgraduate loans, 6% above the postgraduate threshold. For overseas borrowers, SLC publishes country-specific thresholds, and the UAE has its own values reflecting local earning power.
Example is illustrative only; real thresholds and FX rates are updated periodically.
Mechanics overview:
High Gulf salaries with no income tax can accelerate repayment, sometimes dramatically. If that bothers you, the answer is not to vanish from SLC, it is to understand the write-off rules for your plan and decide rationally whether fast payoff or minimal payment until write-off is the better outcome.
Dubai and most of the UAE operate with no personal income tax. That fact is irrelevant to your UK student loan obligation. SLC is not a tax authority, and student loan repayments are not a tax. You do not get a discount because the UAE is “tax-free”.
The rational conclusion: treat UK student loan payments as a separate outgoing, just like rent or school fees. The absence of UAE income tax gives you more room in your budget; it does not give you permission to pretend the loan contract no longer exists.
The main risk in Dubai is not a dawn raid from UK authorities. It is quiet drift into arrears while you enjoy tax-free salary and ignore SLC emails. Once you are classified as non-compliant, SLC works on the assumption that you can afford more than you claim.
SLC and its agents do not have the same powers as HMRC inside the UAE:
One form a year and predictable payments are cheaper than a decade of arrears, letters, and threats. Do the boring admin; avoid the expensive drama.
Use this as a working list when planning a move and during your early years in the UAE.
In Dubai and the wider UAE, the rules stay income-contingent and predictable. Treat the loan as a defined contract with known endpoints, not as a vague threat to be ignored until it explodes.
UK Education Policy Specialist
With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.