The first market research by Alliance Business Centers

 Alliance Business Centers (ABC) has commissioned GCG Consulting to issue the first market research on the Dubai Business Centers market, offering an in-depth analysis of supply and demand.

The results of the research showed there are 50 business centers operating in Dubai today, supplying the market with a total of 3,500 office units divided into five categories: serviced, virtual, meeting rooms, single day-stay offices and concierge-serviced spaces.

The typical size of an office space ranges from 15 to 20 square metres with a capacity of up to 10 people per room. Services available to tenants include building maintenance, office administration, photocopy and fax machines, as well as utilities.

Business centers in the emirate are managed by specialised operators, including prominent international networks such as Alliance Business Center, in addition to local and regional operators with different levels of service quality and standards.

Dubai business centers recorded a 75 percent occupancy rate during the first five months of 2012, reflecting a growth of 25 percent compared with the same period last year, the research showed. Start-ups and small to medium-size companies comprised up to 80 percent of the overall client base, while foreign companies occupied around 40 percent of available space.

Serviced offices offered by business centers save businesses 35 % when compared to traditional offices, which entail extra fitting, operating and furnishing costs, the research revealed.

Additionally, organisations view business centers as a great value proposition with several advantages, including instant availability of serviced offices, short-term agreements ranging from one day to a week or even month that can be extended to years; user friendly contracts compared with typical lease agreements; the outsourcing office management allowing tenants to focus on their core businesses; and a higher degree of affordability since there is a distinct advantage for tenants to share top-quality infrastructure for an affordable price. Those centres also offer an advantage of strategic locations as they are generally available in prestigious central business districts.

“The growth of business centers occupancy rate reflects the recovery of Dubai’s economy and buoyant SMEs activities, along with continuing influx of FDI driven by improving local and international investor confidence. As the emirate has proven its status as a safe haven amidst the regional turmoil in addition to its business-friendly regulatory environment and world-class infrastructure, all these factors make Dubai a global center of service excellence,” said Osama Salman, Chairman of Alliance Business Centers, UAE, “Business Centers offer more cost effective and flexible office space, and during the global financial crisis many companies had to downsize their workforce and searched for smaller and less costly offices to boost productivity, making business centers such as ABC the best option to achieve that target”.

Demand for business centers so far this year has been driven by consulting and HR companies, each sector representing 15 percent of overall tenants, in addition to companies working in IT, logistics, media, tourism, representation offices and events management.

“Dubai has the highest number of business centers the region. The emirate is also witnessing one of the highest demand levels globally on business centers services, driving a significant increase in the number of centers working in Dubai, from 14 in 2007 to almost 50 by the end of 2012. These facts translate the advantage of Dubai as an international business hub and a preferred market for multinational companies,” said Sherif Kamal, President of Alliance Business Centers, MENA.

“Alliance Business Center operates two locations in Dubai, one at Dubai Silicon Oasis headquarters, offering 300 office units with a size of 33 square foot, making it the largest business center in the MENA region, while the second branch is situated at Dubai Business Village with 200 office units”.

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