Abu Dhabi office market surges as economic growth boosts business confidence
MAYS IBRAHIM (ABU DHABI)Abu Dhabi's office market continued its upward trajectory in Q2 2025, as demand for Grade A spaces outpaced supply, according to Savills' latest market report released on Wednesday.The research ties this growth to the UAE's capital's sustained economic momentum, particularly in the non-oil sector which expanded by 6.1% year- on-year in Q1 2025, now accounting for over 56% of the emirate's total GDP.'This positive economic trajectory is boosting business confidence, fuelling strong leasing activity, and increasing demand for high-quality office space,' the report stated.Abu Dhabi Global Market (ADGM), one of the most desired locations due to its free zone status, experienced a 30% year-on-year rise in rental values, now ranging from Dh2,800 to Dh3,500 per square metre per annum.In Q1 2025, ADGM completed its jurisdictional expansion to Al Reem Island, adding approximately 500,000 sq.m of office space.According to the report, ADMG saw the total number of operational firms reach 2,781 - a 43% increase compared to Q1 2024. Notably, financial services entities alone grew by 26% year on year, totalling 367.The report said this expansion has heightened occupier activity in both Al Reem and Al Maryah islands. The workforce on Al Maryah Island, for example, has increased by 17% year on year, now exceeding 29,000.'Demand in H1 2025 was largely driven by banking, financial services, and insurance (BFSI) institutions, hedge funds, consulting firms, and technology companies,' the report stated.'This growth is fuelled by both new market entrants and expansion of existing players, with a notable increase in requirements for units between 10,000 and 20,000 square feet (930 and 1,860 sq.m).'Prime districts such as Capital Centre, Masdar City, and Al Maryah Island continue to witness strong demand due to their high-quality construction, accessibility, and well-developed infrastructure and amenities.Grade B properties in areas like Corniche and Downtown Abu Dhabi are seeing increased interest as tenants seek alternatives amid limited availability, according to the report.To help meet the growing demand, over 100,000 sq.m of office space is slated for completion in 2025. Projects such as Masdar City Square and Yas Place have already achieved healthy pre-commitment levels.In Q2 2025, the completion of SAAS Business Tower on Reem Island added over 12,000 sq.m of Grade A office space to the market.The report also pointed out that 100,000 sq.m of space from developments such as One Maryah Place and Saadiyat Business Park are scheduled for completion by 2027.Looking ahead, Savills anticipates that Abu Dhabi will continue to attract high-net-worth individuals, family offices, and corporates, underpinned by its robust business environment, transparent regulatory framework, and sustained investment from sovereign wealth funds.
'The city's improving infrastructure and quality of life further enhance its attractiveness. With strong pre-commitment levels reported by leading developers such as Aldar and Mubadala, the outlook for the office sector is poised for sustained expansion,' the report stated.
Source: Aletihad - Abu Dhabi
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
3 hours ago
- Khaleej Times
Rapid advances in AI pose opportunity and risk for startups
Rapid advances in artificial intelligence and blockchain technology are forcing policymakers around the world to catch up. From debates over AI ethics and data privacy to new frameworks for crypto assets, the rules of the game are being written in real time. For startups, this creates both enormous opportunity and significant risk. Get it right, and you might set the global standard. Get it wrong, and you could face costly pivots or worse, regulatory dead ends. 'Sometimes compliance is a moat. Other times, it's just good hygiene. My advice: Assess your risk honestly,' Saksham Kukreja, co-founder of Bitgrit, told Khaleej Times. With years of experience building at the intersection of AI and blockchain, Kukreja has guided his company through complex global regulations and recently led Bitgrit to establish the first licensed entity for tokenizing AI assets under ADGM. Excerpts from an interview: Why has regulatory engagement been a key part of your strategy? Is it required for all startups in emerging tech? For us, regulatory engagement was never optional. Building at the intersection of AI and Web3 means facing questions about data privacy, model ownership, and public trust from day one. Customers want to know their information is safe, developers care about their IP, and token holders want real governance not just promises. That's why at Bitgrit, we chose a path that was slower but more sustainable: we set up a regulated DLT Foundation instead of launching as an unregistered protocol. It was never just about ticking boxes but about proving that there are real standards and accountability behind what we're building. That approach helped us win clients like NASA and SoftBank and attracted over 40,000 AI developers. People want to participate in ecosystems that feel legitimate and durable. But this isn't the only way. If you're building a low-risk SaaS tool or an internal product, you might not need deep regulatory engagement. But the closer your tech comes to people's data, money, or infrastructure, the more essential that engagement becomes. Sometimes compliance is a moat. Other times, it's just good hygiene. My advice: Assess your risk honestly. If the future of your company could hinge on a single policy change, build relationships with regulators early. For us, it was the difference between being a flash in the pan and building something that lasts. With technology evolving so quickly, do you think policymakers can realistically keep up with the pace of innovation in AI and Web3? Honestly, keeping up is nearly impossible. Startups move at sprint speed - we build, ship, and iterate in weeks. Policymakers are marathoners. Their job is to protect the public and keep the rules clear, so they have to pace themselves. The danger is that this inertia can sometimes push entire industries to pack up and leave for friendlier ground. I saw this up close in Bitgrit's early days, when friends in crypto moved their projects to other jurisdictions with clearer rules, sometimes overnight. But not all regulators operate the same. The best don't try to outpace innovation; instead, they set broad, flexible frameworks and invite builders into the conversation. I've had candid discussions with policymakers in several countries, and the ones making real progress are those who bring founders, engineers, even sceptics into the room and ask the tough questions early. As an example, last year Bitgrit was invited to the DLT foundation roundtable at Abu Dhabi Finance Week, where the agenda was less about defending the status quo and more about finding practical ground. That's when regulation works: when it's co-created, not imposed. The fastest path forward isn't expecting policymakers to outpace innovation, but to build open channels so industry and regulators can adapt together. That's how rules get written that actually work on both sides of the table. What has been the biggest regulatory hurdle you've faced as an AI and Web3 founder? How did you overcome it? In 2021, we launched a token out of Japan after months of legal prep, thinking we were finally ready to go global. That confidence vanished almost overnight. The tax rules were so unclear that, if we were to raise $5 million, our liability could have been calculated on the total market cap, which for us meant a tax bill approaching $500 million, on money we didn't even have. It made no practical sense. I remember one meeting where I had to use Monopoly money just to explain to a regulator the difference between 'circulating supply' and 'total supply.' But the guidance didn't change, and we realized we could lose the entire company to a rule that had nothing to do with reality. That's when I knew we had to look elsewhere. The turning point came when we joined Hub71 in Abu Dhabi. Beyond incentives to expand in the middle east, it gave us direct access to ADGM that was much more open to listen to our situation. That partnership ultimately led to Bitgrit becoming the first company in the world to get a license for tokenizing AI assets under a DLT Foundation at ADGM. We're now collaborating with ADGM and Japan's FSA, on a policy research paper to help others avoid the chaos we faced. My advice: If the rules don't make sense, don't wait around hoping they'll change for you. Cut your losses early, learn fast, and find the place where you can actually build. For founders just starting out, what are the most common misconceptions about regulation, and what advice do you wish you had received early on? One big misconception is that regulators are just there to say 'no.' In my experience, engaging early, well before launch, can actually speed things up. We started informal conversations with ADGM months before we shipped anything, and that helped us get feedback, solve issues in advance, and build trust. Good regulators aren't roadblocks; they want innovative companies, as long as you play by the rules. The other trap is underestimating how long compliance really takes. Our legal review for Bitgrit took six months, which was longer than our engineering sprint. Translating AI governance into legal language felt like explaining quantum physics in court, but it paid off. If you're doing something new, plan for it, and don't expect shortcuts. Most importantly, don't treat compliance as a chore. The requirements to add things like audit trails or stronger privacy features ended up making our platform stronger and more appealing to big clients. And never forget where you're regulated matters as much as what you're building. We moved to Abu Dhabi because the rules were clear and the ecosystem was supportive and that choice changed our trajectory. Looking ahead, what policy trends or regulatory shifts do you think will most impact the next generation of AI and Web3 founders? For AI, formal governance is arriving quickly. New laws like the EU's AI Act will require startups to prioritize risk assessments, transparency, and accountability from day one. Standards around data use, explainability, and model audits are about to become the norm. On the Web3 front, regulations are moving toward clearer definitions for digital assets and more unified rules across regions. Legislation such as Europe's MiCA is shaping global standards, and more countries are experimenting with frameworks for DAOs and tokenized assets. Another important shift is increased international cooperation, with regulators now sharing best practices and sometimes collaborating on cross-border pilot projects. For founders, this means higher expectations for transparency and ethics, but also more clarity and consistency. The next generation of startups will need to adapt quickly, stay informed, and be proactive in engaging with policymakers. Those who lean into the policy conversation will be best positioned to shape and succeed in the future landscape.
Al Etihad
6 hours ago
- Al Etihad
UAE stock markets continue bullish run in July
3 Aug 2025 13:27 A. SREENIVASA REDDY (ABU DHABI)UAE stock markets continued their bullish run in July, with both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) registering gains for the fourth consecutive month, according to the latest monthly report by Kamco report highlighted broad-based investor optimism, sectoral strength, and robust trading activity as key drivers of performance in both Abu Dhabi, the FTSE ADX General Index advanced 4.1% in July to close at 10,370.66 points, building on a 2.8% rise in June. The index has now gained 10.1% since the beginning of the year.'Sectoral trends on the exchange favoured gainers, with seven out of ten sector indices recording gains, while the remaining three posted declines,' the Kamco Invest report Health Care sector led the rally with an 11% gain, buoyed by strong performances across all its constituents, particularly PureHealth, which saw its share price climb 11.9%.The Financial and Real Estate sectors also posted solid gains of 4.4% and 7%, the Real Estate sector, all five constituent companies ended the month higher, with Al Khaleej Investment Co. surging by 20.2%.Among individual stocks, Bank of Sharjah was the standout performer, with its share price soaring 75.5% in July following a 57% year-on-year increase in first-half profits. The bank credited the improvement to enhanced business activity and operational notable gainers included Commercial Bank International and ADC Acquisition Corporation, which posted monthly increases of 47.6% and 37.5%, the downside, Methaq Takaful Insurance Co. plunged 67.9%, making it the worst performer of the month on ADX, followed by Insurance House and Sharjah Insurance Co., which fell 10.2% and 9.7%, activity on the ADX strengthened considerably. The total volume of shares traded rose from 6.64 billion in June to 8.68 billion in July, while the total value traded increased from Dh26.3 billion to Dh28.2 Gas was the most traded stock by volume, followed closely by Multiply Group and Phoenix Abu Dhabi Bank led in terms of traded value at Dh3.3 billion, followed by IHC and ADNOC Gas at Dh3 billion and Dh2.3 billion, the Dubai Financial Market saw its General Index jump 7.9% in July—the highest monthly gain among GCC exchanges—closing at 6,159.2 points. The index's year-to-date return now stands at 19.4%, also the strongest in the region.'Sectoral performance was broadly positive, with five out of eight sector indices posting gains during the month, while the remaining three indices recorded declines,' Kamco Invest Financials sector led the pack with a 12.1% increase, lifted by a 20.1% jump in Commercial Bank of Dubai shares and a 17.3% rise in Emirates NBD. The Real Estate and Industrial sectors followed with gains of 11.7% and 6.9%, the trading front, DFM witnessed a 7.4% increase in traded volumes to 7.54 billion shares, while the value of traded shares rose by 10.7% to Dh16.7 billion in Properties dominated volume charts with 1.2 billion shares changing hands. In terms of traded value, Emaar Properties led with Dh3.6 billion, followed by Dubai Islamic Bank and Emirates NBD. According to Bloomberg's monthly stock performance data, Ekttitab Holding Company led the list of top gainers in July, posting a notable 43.2% increase in its share price. It was followed by United Foods Co and Commercial Bank of Dubai, which recorded gains of 21.5% and 20.1%, the monthly decliners' side, International Financial Advisors registered the steepest drop, with a 9.2% decline, followed by National General Insurance and Dubai Refreshments Company, which reported decreases of 8.1% and 7.6%, respectively, during the month. Regionally, the MSCI GCC Index rose 2.2% in July, extending its rally for a second consecutive month, supported by earnings optimism and widespread market gains. Dubai was the best-performing market in the GCC, followed by Oman, which rose 6.2%, and Qatar with a 4.8% increase. Saudi Arabia was the only market to record a decline, down 2.2% amid concerns over the outlook for its projects sector and fluctuating oil prices. Source: Aletihad - Abu Dhabi
Gulf Today
20 hours ago
- Gulf Today
UAE court orders firm to pay nearly Dhs75,000 to ex-staffer after 10-year service
Al Ain Court for Civil, Commercial, and Administrative Cases upheld a ruling obligating a company to pay a former employee Dhs74,898 as end-of-service benefits and other entitlements. The employee had worked for the company for nearly 10 years, after which the company refused to settle his dues. The case began when the employee resorted to the Ministry of Human Resources to amicably resolve a dispute with the company but a settlement could not be reached, so the Labor Relations Department referred the dispute to the court. The employee then filed a lawsuit before Al Ain Court for Civil, Commercial, and Administrative Cases demanding the company pay Dhs25,000 in overdue wages, Dhs43,267 as an end-of-service gratuity, Dhs7,500 for unused annual leave, Dhs5,000 as compensation for lack of notice, and Dhs15,000 as compensation for arbitrary dismissal. He clarified that he had worked for the company for nearly 10 years and provided a copy of the employment contract as evidence. The court of first instance looked into the case, and the company's representative submitted a memorandum requesting the dismissal of the lawsuit. The court appointed an expert, and based on his report, the court ordered the company to pay the employee Dhs74,898.93. The company appealed the ruling to the Court of Appeal, requesting its cancellation and the dismissal of the lawsuit. It also requested that the employee be directed to take a decisive oath so the appeal was referred to the competent court, which approved the request for the decisive oath and the employee took the oath in the form approved by the court. Then the court noted that the decisive oath resolved the dispute and upheld the ruling.
