Market Trends of United Arab Emirates Co-working Space Industry
Increase in the Millennial Population
Millennials are changing the work culture and demanding new ways of working. The UAE real estate sector focuses on the changing demands of working and workspaces and reacting to future needs. In recent times, a new way of working has been using co-working spaces, a shared environment where people doing different jobs can work together and separately within the same space. The spaces are often very urban, stylish, and far removed from some of the more severe 'cubicle farms' of recent times. These new-age offices allow for freedom, flexibility, and a wide range of work environments.
More millennials are joining the workforce, and their presence requires a transformational shift in the workplace perspective. There are 14,000 operational co-working spaces globally, and by the end of this year, some 1.7 million people, mostly millennials, will have taken advantage of the new working conditions offered by co-working spaces. According to industry sources, as of 2021, nearly 65% of the population of the United Arab Emirates was aged between 25 and 54, which is around 6.5 million people, representing the new workforce with its bold new ideas.
Rising Number of SMEs and Start-ups
Small and Medium-sized Enterprises (SMEs) are considered the backbone of Dubai's economy. As of January 2021, according to the Ministry of Economy, the SME sector represented more than 94% of the total number of companies operating in the country and provided jobs for more than 86% of the private sector's workforce.
In Dubai, SMEs make up nearly 95% of all companies, employing 42% of the workforce and contributing around 40% to Dubai's GDP. Even though Dubai's SME sector is growing at a moderate rate, the rising cost of business operations, which includes the high rental cost of commercial properties, has started to influence many upcoming small businesses to look for cost-effective alternatives.
This trend has created fresh opportunities for co-working service providers to accommodate small business owners. As a result, Dubai is now witnessing a massive boom in co-working culture, with co-working spaces mushrooming all over the Emirates.
