The International Cricket Council will make annual savings of around $2 million when its headquarters move from Lord's to Dubai at the start of August.
"We do stand to gain a lot by way of taxation since the tax structure of Dubai is very competitive," Ehsan Mani, president of the ICC, told Reuters after performing the ground-breaking ceremony for the governing body's base at the Dubai Sports City on Wednesday.
"The additional saving by the ICC would mean each Test country will get an extra $150,000 each year in grants and the funds of the associate members will shoot up another $500,000. This will help further globalise the game."
Mani was joined at the ceremony by ICC chief executive Malcolm Speed and Board members Teddy Griffiths of the West Indies and Bob Marriman of Australia.
The Dubai Sports City is still no more than a vast stretch of desert. The ICC will be based at temporary offices until the headquarters are completed in 2007.
Mani said other factors for the switch from Lord's included "the enthusiastic response and commitment of the Dubai government", the city's location (all Test-playing nations except for West Indies and Zimbabwe have direct air links) and the advantage of bringing all of the ICC staff under one roof.
"Though we are not getting any subsidy, 50 per cent of relocation cost will be covered Dubai authorities," Mani added.
Abdul Rahman Bukhatir, a partner in Dubai Sports City and the man behind running international cricket at Sharjah, said: "The ICC has already chosen to locate its first Global Cricket Academy in the city and today is further confirmation of their endorsement."