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Khaleej Times
05-07-2025
- Business
- Khaleej Times
Abu Dhabi housing faces affordability test as population rises; could legal partitions help?
Soaring demand for affordable homes in Abu Dhabi is set to intensify as the capital's population climbs towards 5.4 million by 2040, with industry insiders warning that current supply chains could leave lower‑ and middle‑income residents scrambling for unregulated options. An Abu Dhabi housing expert says regulators should rethink the focus on new luxury developments and instead tap into the city's existing building stock. 'More sensible options would be to renovate older stock and make [it] friendly to those in multiple occupations,' said Ben Crompton, managing partner at Crompton Partners. He added that authorities ought to 'permit the legal and approved partition of villas and apartments to allow those with lower incomes to live safely and within regulations.' Crompton highlighted a mismatch between what's being built and what most people can afford. 'Currently most launches are upper mid‑market to super‑luxury and the other price points aren't being serviced,' he explained. 'There seems to be a very large gap between supply and demand at a lower level, but we aren't seeing it pushing prices just yet. It seems there was some slack in the system at the lower price points, but a broad‑based increase in population will stress this sector.' Projects launched since 2020 have predominantly been priced above Dh10,000 per square metre, forcing incoming residents to turn to older, cheaper properties and — potentially — to shared or partitioned units. Legalise shared housing? With Dubai's recent crackdown on illegally partitioned villas fresh in mind, the risk of a similar scenario unfolding in Abu Dhabi is real. 'Yes, I think this will happen,' Crompton warned. 'Sections of the new population coming in will need to look elsewhere, in older stock and into partition units.' Rather than rely solely on enforcement, he argues, the capital should formalise and regulate shared living arrangements. Renovation over new builds Given today's construction costs, Crompton believes that repurposing existing buildings is the quickest path to impact. 'Developers face a big issue; most of the profit is in the more expensive projects. Given the price of construction — even with cheap land — it is hard to develop affordable housing. More sensible options would be to renovate older stock and make [it] friendly to those in multiple occupations.' This approach addresses urgent affordability concerns while supporting sustainable urban renewal. Nonetheless, not all new arrivals will strain the affordable segment. 'Given that one of the major population drivers in Abu Dhabi is the ADGM on Maryah Island and the huge number of hedge funds and asset managers relocating there, we expect to see a larger emphasis on luxury real estate than might otherwise be the case." Furthermore, limited new delivery will push up rents and prices. According to most reports only about 3,000 units were delivered in 2024; 'couple that with an increase in population of 300,000 — that is 100 new entrants per unit. Pressure on prices is inevitable.' On whether new mega‑projects drive population growth, Crompton said their role is more about attraction than generation. 'I don't believe that building real estate has much of an effect on population by itself, outside of the people hired in to work for developers and construction companies.' However, assets like the Guggenheim and the Disney theme park make Abu Dhabi more attractive to people who can choose where they want to live. 'Most new arrivals will be coming to work in the thriving economy, but a small number have independent means or can work remotely and they are drawn by these signature developments.' Suburban and satellite communities being on the rise will push development further afield. 'There needs to be more development outside the current corridors across Reem and the Northern Islands,' he said. 'Broad‑based demand will mean people looking for more affordable options and these will necessarily be further out.' Crompton noted that growing populations underpin market confidence: 'Population growth means increases in rents which by itself drives investor sentiment. If you are buying property as an asset you need returns, and rents bring those,' he explained. 'Also, the more people coming into the emirate means more potential buyers, and demand improves prices.' He cautioned that matching supply to demand is inherently difficult. 'Being a developer is a very tricky occupation. Launch to handover is at best two and a half years and that doesn't include the planning phase. It will be very hard for developers to accurately gauge demand three years into the future, and the difficulty in doing this is one of the reasons why countries generally often over‑ and under‑build for their populations.' Finally, Crompton noted little current policy emphasis on budget‑friendly segments; 'there doesn't seem to be this focus currently. Most developer launches are in the upper mid‑market range to super‑luxury. Launches in the Dh10,000 per square metre and below ranges are very rare.'
The National
02-07-2025
- Business
- The National
Emiratisation and the future of work in the UAE
For decades, most Emiratis have worked in government roles. But now, thousands are joining private companies as part of a nationwide plan to balance the workforce. Early iterations of Emiratisation began in the 1990s, with programmes formalised in the early 2000s. About three years ago, the UAE gradually implemented quotas for hiring Emiratis and gave private-sector companies deadlines to meet them. Now, those deadlines continue to come up. In this episode of Business Extra, host Salim hears from our own Ali Al Shouk and Ben Crompton of Crompton Partners on Emiratisation, how it's affecting companies, and what it means for the future of work in the UAE.
The National
02-07-2025
- Business
- The National
What to know about Emiratisation
For decades, most Emiratis have worked in government roles. But now, thousands are joining private companies as part of a nationwide plan to balance the workforce. Early iterations of Emiratisation began in the 1990s, with programmes formalised in the early 2000s. About three years ago, the UAE gradually implemented quotas for hiring Emiratis and gave private-sector companies deadlines to meet them. Now, those deadlines continue to come up. In this episode of Business Extra, host Salim hears from our own Ali Al Shouk and Ben Crompton of Crompton Partners on Emiratisation, how it's affecting companies, and what it means for the future of work in the UAE.
The National
29-06-2025
- Business
- The National
Private sector companies tell of benefits recruiting Emirati talent as latest deadline nears
UAE business leaders making an investment in local talent are helping to change the face of an evolving private sector landscape as the government's Emiratisation strategy takes shape. Companies told The National of the importance of integrating citizens into their workplace culture and said it was crucial to think outside of the box when launching recruitment drives. Private sector firms with 50 or more employees must ensure 7 per cent of skilled roles are filled by Emiratis by June 30, with substantial fines levied from the following month for those caught flouting the rules. The latest six-monthly target is part of the country's mission to have 10 per cent of private sector jobs taken up by Emiratis by the end of 2026. More than 141,000 Emiratis were employed in private companies by the end of May, the Ministry of Human Resources and Emiratisation said. While businesses are eager to avoid financial penalties, they have been urged to adopt a big picture view of the benefits of unlocking the potential of thousands of new recruits. Learning curve Ben Crompton, managing partner of Crompton Partners estate agents in Abu Dhabi, said that starting early is essential as 'it's a learning curve for everyone involved'. 'First, we needed to know where to advertise to attract Emirati talent. Then, we needed to explain the nature of real estate pay structures [commission-based pay] in comparison to typical salaried jobs. 'We also wanted to ensure our Emirati team members were comfortably settled into a multicultural team, where English is the primary language. And finally, we needed to overcome assumptions about some Emiratis only preferring government jobs. This last challenge is merely an assumption,' said Mr Crompton. Mr Crompton said that the company has benefitted greatly from adding Emiratis to the workforce. 'Some of our clients who are local investors benefit from our Emirati team members' ability to connect with them both linguistically and culturally, and we now have even more success stories with Emirati team members working on highly successful projects that involve selling Emirati-specific properties.' Broadening scope Bader Alawadhi, executive director of Leader Group, which has an extensive portfolio of interests spanning from retail and real estate and shopping malls, said encouraging Emiratis to switch from the public sector remained a challenge. 'There is a limited pool of Emirati talent actively seeking roles in the private sector, especially outside government entities,' he said. 'Many qualified nationals are already in public sector roles that offer more attractive salaries and shorter working hours,' said Mr Alawadhi. Mr Alawadhi advised companies to broaden their scope when searching for Emirati hires and not to solely rely on recruitment portals established by the government. 'There are other talent providers and consultancies that can help access Emirati CVs. Unfortunately, many HR teams focus only on the usual platforms, which narrows the search. The Ministry of Human Resources and Emiratisation might also consider accrediting more sourcing partners to broaden the pool and help companies meet targets more efficiently.' Mr Alawadhi said that they've avoided fines on a compliance level 'but the real win has been seeing committed young Emiratis thrive within our teams'. Carving a niche Mohammed Al Gaith, a senior level worker in real estate, said that finding jobs in the private sector at the senior level proved much harder than junior level jobs. 'When I graduated around 2017, I secured a civil engineering role even before finishing university. At that time, the entry-level landscape was more open. But as you rise through the ranks, the dynamics change − networking, demographics and relationships begin to matter more than merit alone. 'I'm at the senior manager level. But even with that experience, I still face structural barriers. Emiratisation strategies in many organisations focus on entry-level or admin roles to tick the KPI [key performance indicator] box. There's far less emphasis on integrating Emiratis into strategic, decision-making positions. 'This misses a huge opportunity. Emirati professionals at the senior level can offer not just technical skill but cultural intelligence, stakeholder access and a long-term commitment to the national vision.' Mr Al Gaith advised young jobseekers to find a niche and build their career around it. He used the example that where 'there might be hundreds of civil engineers competing for the same role, there are far fewer project controls specialists or planners with deep expertise'. He added that carving a niche sets you apart and increases your value in a highly competitive market. Wealth of talent 'The work experience and knowledge gained in the private sector are extensive, given its dynamic and fast-paced environment,' said Maryam AlNuaimi, Emiratisation and early careers specialist at Marsh McLennan, a professional services company with a focus on risk and strategy. 'If companies take advantage of this initiative by implementing long-term strategies for Emirati employees, the benefits will be significant for everyone involved − the Emiratis, the companies, and the nation as a whole. 'I strongly encourage all companies to adopt this initiative, as there is a wealth of talented Emiratis with great potential,' 'Meeting deadlines is manageable if the company has a strategic recruitment plan in place for hiring Emiratis and has made an effort to maintain a solid pool of candidates to replace on time those who resign,' she added.
