UAE-based fintech Spades, has raised $2.5 million in investment from European angel investors, including Thibaud Elzière, Eduardo Ronzano and Yan Hascoet, Othmane Bouhlal and Omar Benmoussa.
Founded in 2021 by Mehdi Chraibi, Adnan Haque and Sameer Poonja, Spades is a dine-in payment service for restaurants where customers can pay their bills at the table with no need for app downloads, registrations or setup fees.
The new investment will fuel Spades’ expansion in the UAE and other GCC countries.
Press release:
There’s no denying that the Middle East is growing fast and its restaurant scene is growing even faster. Dining in the UAE means exploring one of the most diverse, vibrant, and delicious food destinations on the planet. Restaurants are increasingly turning to Spades to keep up with dynamic demand while providing a seamless checkout experience for dine-in customers to pay their bills.
Spades was founded by Mehdi Chraibi, Adnan Haque, and Sameer Poonja after successful careers building digital products used by millions of users at VISA, Emirates Airline, Oracle, Millicom, and Rocket Internet. The team is backed by executives with leadership roles at global Payment Service Providers (Adyen, VISA & MasterCard), Cloud Kitchens, and multiple Hospitality Houses in the Middle East.
Their oversubscribed angel round of $2.5M also included prominent European business angels, such as Thibaud Elzière (Founder, Fotolia & eFounders), Eduardo Ronzano (Founder, KelDoc & Managing Partner, Secret Fund), and Yan Hascoet, Othmane Bouhlal, Omar Benmoussa - the Founders of Chauffeur Privé - Kapten (acquired by Free Now), which was closed with early investments from global & regional VCs such as Nordstar and Impact46.
The fintech payment startup has already signed over 150 restaurants in its first 12 weeks and launched with major brands in UAE such as NOLA, Couqley, Alaca, and The Sum of Us. The company is growing fast and recruiting multiple roles across the board this year to cope with its expansion in the GCC and beyond.
How it works:
Spades allows guests to easily pay their bill by scanning a code or tapping to pay, without any downloads or registration, translating into shorter wait times. Trustworthy, and reliable, the platform provides the fastest and most secure payment solution that integrates seamlessly into all major POS systems, making refunds and reconciliation just a click away.
Partner restaurants have already reported doubling their staff tips, turning tables faster, saving trees, and improving guest service. With a solution that caters to both restaurants and customers, Spades is set to revolutionize F&B in the region with just a quick scan and a couple of taps!
Customer journey:
A simple tap to pay or QR code scan allows diners to conveniently and securely clear bills at partner restaurants. The solution also allows diners to split the total bill with friends and add their own tip individually for staff, while paying using their method of choice.
Customers can receive a digital receipt for their records and also review their experience. Through its partnerships, the platform integrates seamlessly with all major POS systems making transactions, refunds, and reconciliation just a click away.
Human-centric approach:
While other like-minded rival technologies create a disconnect between customers and restaurants, Spades has a human-centric approach to challenge the status quo by increasing engagement throughout. The actual order is still placed in person with the wait staff which has been designed to ensure customers continue to get a chance to interact with their server and seek the right dine-in experience, an issue widely encountered by other online ordering platforms.
The automated end-to-end payment integration with any Point of Sale removes all manual errors and simplifies daily reconciliation. By bringing payment to the table, customers can now choose traditional forms of payment or use Spades directly from their phone.
Co-founder of Spades, Adnan Haque said, “With Spades, we have created a seamless payment portal that is fast, secure, and convenient. Our goal is to give back time to customers and restaurants, and create a perfect "phy-gital" harmony that helps achieve an exceptional dine-in experience.”
Investment Associate at Impact46, Saud Alsahaf said, "F&B is an important industry in the local market, and Spades is offering a powerful digital solution to improve the experience for all stakeholders in the value chain. We look forward to making Spades the standard for restaurant payment."
Co-founder and Managing Director of NOLA Social House & Eatery, Alex Economides said, “Since starting with Spades we’ve noticed our staff having more time to engage with guests at the end of their dine-in visit.
Rather than running around at peak hours printing bills and collecting payments. Exceptional service has always been one of the WOW factors at Nola, so with Spades’ efficient and convenient payment method we see a perfect fit.”
source: Wamda
Dubai's main share index followed suit, advancing 0.74% to 3541.6 points following 5,251 transactions worth $141.68mln
Abu Dhabi and Dubai twin bourses rallied for the second consecutive session, as investor sentiments continued to improve, driven by optimistic economic outlook.
The two markets gained a combined AED22bn during the first week of Ramadan, with Abu Dhabi Securities Exchange (ADX) breaking the 10,000 pts barrier for the first time amidst increased demand for IHC's Apex National Investment, which drew AED10.1 bn in transactions.
Dubai's main share index followed suit, advancing 0.74 pct to 3541.6 pts following 5,251 transactions worth AED520.5 million.
Retail sales are all set to pick up during the Holy Month of Ramadan, as resident across the UAE increasingly turn to online channels to stock up on essentials as well as gifts for their family and friends ahead of the Eid break.
Experts have identified several retail trends that will accelerate during the period leading up to the holiday such as shopping online for groceries, trying out new brands, and shopping for gift items.
Richard Nicoll, chief strategy and capability officer at Liquid Retail, noted that with 60 per cent of online shoppers planning to increase their spending across all sectors this Ramadan, it is essential for retailers to understand that consumers don’t just spend more during Ramadan; they spend differently.
“The holy month brings with it flexible working hours and the chance to get together with friends and family, leaving consumers with increased time and the need to shop,” he said. “This season is a unique time for brands to innovate and tap into this opportunity by offering shoppers cost effective and convenient deals such as buy-one get one free offers, discounted prices on bulk items and shopping vouchers which will not only drive sales and engagement this month, but encourage greater brand loyalty in the long-term.”
According to a recent survey by YouGov, 53 per cent of shoppers said they spend more, 40 per cent search for offers, and 49 per cent of consumers prefer discounts during Ramadan. YouGov's latest survey on UAE respondents’ Ramadan behaviour also revealed that 30 per cent are planning to shop online more this Ramadan, while 61 per cent are planning to shop for groceries in-store this Ramadan.
Nicoll added that grocery e-commerce is now well established, and in many cases, the preferred way to buy. “The new-found convenience and experience of grocery e-commerce aligned to the deals being offered on much-loved Ramadan favorite brands is likely to mean this is the most successful Ramadan for e-commerce platforms who are pouring marketing dollars into persuading shoppers to shop online – Noon Ramadan delivered being one example.”
“We’d expect to see marketers going with the power of shopper behavior and continuing to chase an uplift in Ramadan sales online,” he added. “To satisfy the needs of today’s customers and attract more this Ramadan, brands need to create to a holistic omni-channel retail strategy which covers all offline and online touch points and ensures a seamless shopping experience, anywhere, any time.”
Facebook IQ, Meta’s insights and research division, in partnership with YouGov, also unveiled the findings of a study conducted during Ramadan 2021, which showed that around 64 per cent of shoppers across the UAE get excited about trying new brands and products from abroad. In addition, 55 per cent of shoppers are more likely to purchase from abroad during Ramadan and Eid if adverts are about these key moments.
Fares Akkad, regional director for the Mena region at Meta, said: “Gifting and shopping is a big part of the Ramadan moment. The change in everyday habits leaves shoppers more open than usual to discovering new brands and products. This creates a unique opportunity for businesses to reach cross-border shoppers looking to discover products they’ll love – and Meta technologies can help build those connections.”
The research showed that people shop across borders for a variety of reasons, including to find a higher quality product, a product with a better price point, or a product that is unavailable locally. Roughly a third of people shop from overseas retailers as well, while more than 70 per cent make “unexpected discoveries” during Ramadan.
Buying from overseas during Ramadan, 62 per cent of UAE shoppers feel it is important to see content in their local language, while 27 per cent of shoppers agree that they find content creators most influential during Ramadan and Eid al-Fitr as they help them discover new content and accounts that they might like.
Research conducted by AdColony, together with GlobalWebIndex, also offered several insights on user behavior during Ramadan. While the time spent on smartphones is increasing day by day, 44 per cent of respondents spend 1-3 hours online on their smartphones. The most preferred time to play mobile games and to shop online is during fasting through the day between 12pm to 6pm at 33 per cent and 30 per cent respectively.
The research found that 77 per cent of participants will use their smartphones while shopping for Ramadan, while 67 per cent of them say that they will shop within the application. In addition, 47 per cent of respondents state that they will do shopping after Iftar time. When analysing industry-specific data, 45 per cent of users in the UAE will visit stores for their Ramadan grocery shopping, while 46 per cent of them will shop online and use home delivery.
The undeniable access to mobile advertising continues to stand out as the most important factor in consumers’ buying tendencies, with 66 per cent of the respondents stating that they had previously made Ramadan shopping with their smartphones directly via mobile ads; and 84 per cent stating that they would consider purchasing a product or service if the product served with the advertisement appeals to them.
“One of the most important things a brand must champion to succeed is relevance – and that goes for Ramadan too,” said Nicoll. “Brands should prioritise getting to know their target audience and which items hold cultural value to them so that they can streamline their efforts to provide impactful retail experiences and cut through the promotional noise.”
The United Nations Economic and Social Commission for Western Asia (ESCWA) launched today the eCommerce Acceleration Programme (eCAP), with the support of the ICC-ESCWA Centre of Entrepreneurship (CoE) and the International Trade Centre, to empower Arab small and medium enterprises (SMEs) through their transition journey into online selling.
The eCAP programme will build the capacity of up to 100 SMEs from the Arab region to transition into online selling, either by developing their transactional eCommerce websites or by selling on existing online marketplaces. Participating SMEs will benefit from business and technical expertise, one-year support and critical setup fees to build/optimize the online platform or sell on existing marketplaces, one-on-one coaching, in addition to exposure and access to networking opportunities.
Eligible SMEs must be registered and operational in one of the Arab countries and should have a working product or service that can be sold online. Moreover, SMEs must have an online presence through social media or through an existing website not fully optimized, and should be willing to dedicate 1-2 team members for the project.
SMEs can sign up to the programme here by filling in the online application form, which is available in English, Arabic, and French. The deadline for submitting the online application form is 20 April 2022 at 23.00 Beirut time (GMT+3).
source: UNESCWA
UAE-based digital authentication startup Nice to Meet You (NTMY), has raised a $1 million Seed round to hire new talent and improve its customer experience.
Founded in 2018 by Mohamad Baydoun, NTMY provides its clients with a set of tools to use when authenticating employees, customers, and members.
Across the Middle East, startups working to ease companies' transition to the digital realm are rapidly gathering pace. UAE-based digital authentication startup Nice to Meet You (NTMY), has raised a $1 million Seed round, according to a statement issued today on the company's website.
Founded in 2018 by Mohamad Baydoun, the startup aims to help business owners minimise physical contact within premises. The company initially started off as a business card exchange process. Now, NTMY provides its clients with a set of tools to use when authenticating employees, customers, and members.
These include organisational IDs, access cards, membership cards, and insurance cards.
According to the statement, the new round will enable NTMY to hire new talent, enhance its tech stack as well as its customer experience.
A month earlier, FACEKI, a UAE-based facial recognition and identity verification platform also raised a pre-Seed round.
Source: Wamda
Top Startup Deals in Middle East and North Africa in October 2021
30 Nov 2021 Written by Admin AdminTranslation By: Fairouz Alnajem
According to the available data, the funding deals for startups in the Middle East and North Africa in October were lower compared to last September, which recorded a great number of the total volume of funding deals for startups, with an estimated amount of $ 338 million.
But what is worth noting in October is the quality of funding deals in which two relatively large deals in the agricultural and medical technology sectors emerged, along with two deals for two female-led companies, with a total funding for both of them amounting to $3.8 million, equivalent to about 46% of the total funding raised by female-led startups in the Middle East and North Africa in the first half of 2021
Here we review the top 5 funding deals raised by startups in the Middle East and North Africa during October:
Pure Harvest
Sector: Agricultural technology
Country: UAE
Establishment Date: 2016
Founders: Sky Kurtz, Mahmoud Adi and Robert Kupstas.
In October, Pure Harvest raised $ 64.5 million in funding, topping the list of startups that received funding for the same period. The total investments received by the company after its latest funding round amounted to about $ 271.6 million, which is the largest amount raised by a startup in the agricultural technology sector in the Middle East and North Africa, according to Wamda Inst.
According to the company's press release, it will use the new funding to develop its technology and accelerate its business expansion in the Middle East and North Africa region. Noting that the company's latest funding round was led by the Korean IMM Investment company, along with a number of investors and the company's current management.
Cura
Sector: medical technology
Country: Saudi Arabia
Establishment Date: 2016
Founders: Wael Kabli and Muhammad Zikrullah.
Cura Saudi Arabia, the leading online telemedicine consultancy, succeeded in raising its first funding round of $ 4 million, led by Wa’ed, the entrepreneurial arm of Saudi Aramco, and ELM.
According to Cura’s press release, it will invest the funds of the funding round in improving the patient’s journey and providing more services to both individual users, customers, and partners, such as collecting blood samples from home and providing health benefits to employees that can be integrated with insurance companies, in addition to Cura’s pursuit of expansion outside KSA. Despite the medical company’s leadership in the field of health technology, about 95% of its current customers are users of the application in Saudi Arabia.
ILLA
Sector: Logistics
Country: Egypt
Establishment Date: 2019
Founders: Mahmoud Al-Zumar, Alaa Jarkas, Ahmed Saqr and Hussam Saraya.
The Egyptian ILLA Logistics Services Company has raised more than two million US dollars in a funding round led by "Watheeq Financial Services" and "Golden Pam" Investments, with a number of other investors participated in the round.
ILLA is developing the supply chain activities of the post-production operations of consumer goods brands. The company will use the round funds to accelerate its expansion in the Egyptian market and enhance users' experience.
Fintech Galaxy
Sector: Fintech
Country: UAE
Establishment Date: 2018
Founder: Mirna Suleiman
In October, the Fintech Galaxy platform raised $ 2 million in an initial funding round, led by Jordanian AHLI Bank along with other investors.
Fintech Galaxy enables integration between financial technology startups and financial institutions by providing access to customer data from partner banks through open banking APIs, allowing developers to create new applications and services.
According to the company's press release, the new funding will help it promote the development and spread of the open funding platform, as well as expand its activity in key Middle Eastern markets.
Getbee
Getbee raised about $1.8 million in a pre-Series A round led by Altitude Capital, B&Y Venture Partners, VC+, and strategic Angel Investors.
Getbee is active in connecting brands with their customers online through live video call consultations.
According to the company's press release, the latter will benefit from the funding round to accelerate its credibility with the leading retail brands market
Translation by: Fairouz Alnajem
The UAE-based company iWire, specialized in Internet of Things technologies (IoT), has raised a series (A) $34-million funding round led by the UAE Company Noor Capital, with the participation from the French public investment bank Bpifrance.
Accelerating growth and developing products
The new investment is aimed at helping the company develop its products more rapidly to expand geographically and reach 12 new countries over the coming years, developing its infrastructure to cover these countries and moving towards IoT technologies.
In the company's press release, Ahmed Fasih Akhter, CEO, iWire, said: "At iWire, we provide our customers an alternative to legacy connectivity solutions, which enables a successful digital transformation at a lower cost. Our solutions contribute to our customers’ business efficiencies as well as their satisfaction with our services. This investment is just the beginning of our journey and a great demonstration that we are following the right approach. We are proud to have the trust of such an investor and will continue expanding our network and products to transform the digital infrastructure in the region. "
Jeremy Prince, CEO of Sigfox, added: "Companies and organizations around the world are embracing IoT and 0G (a practical complement to broadband networks to operate simple Internet applications for functions such as asset tracking) to change the way they operate. We're delighted to have a great company like iWire amongst our significant community of Sigfox clients.
Our unique international network already allows customers to benefit from 0G seamlessly in more than 72 countries. iWire offers new markets with huge potential and we look forward to a very successful collaboration."
About iWire
Founded in 2018 by Vyomesh Thakkar, Ahmed Fasih Akhter, and Firoz Karumannil, iWire focuses on building public communications infrastructure that supports the IoT in UAE, to enable digital transformation at a lower cost.
iWire builds communication networks to power massive IoT solutions, providing wide-scale services to companies, smart cities, smart facilities, and logistics service providers with high elasticity
Tarabut Gateway raises $12 million pre-Series A led by Tiger Global
06 Nov 2021 Written by Admin AdminUAE-based open banking platform Tarabut Gateway has raised $12 million in a pre-Series A round led by Tiger Global, alongside new investor Dubai International Fintech Fund, the investment vehicle of Dubai’s International Financial Centre (DIFC). This latest investment adds to fintech’s $13 million Seed round raised in February this year.
Founded in Bahrain in 2019 by Abdulla Almoayed, Tarabut Gateway connects a regional network of banks and fintechs via a universal application programming interface (API).
It was the first startup to graduate from Bahrain Central Bank’s regulatory sandbox and now has offices in Dubai, Abu Dhabi, London and Manama.
The investment will be used to grow the Tarabut Gateway’s tech and leadership teams.
Press release:
Tarabut Gateway, the Dubai-headquartered Open Banking platform, has concluded a seed round of $13 million and pre-series-A funding round of $12 million led by Tiger Global in the last eight months.
Tarabut Gateway’s solutions allow financial institutions and fintechs to leverage Open Banking to scale their businesses across the region. Tarabut Gateway welcomes new investors including the Dubai International Fintech Fund, the Investment Vehicle of Dubai’s International Financial Center (DIFC).
The investment follows Tiger Global’s most recent investment in other Open Banking Players across the globe including Truelayer in the UK and Mono in Africa. Since its inception in 2001, Tiger Global has made investments into 30 countries around the globe in key startup regions such as India, Asia and further afield.
As the first licensed Account Information Service Provider (AISP) and Payment Initiation Service Provider (PISP) in the Middle East & North Africa (MENA) region, Tarabut Gateway is fulfilling its mission to facilitate the creation and distribution of personalised financial services for banks and fintechs, as well as their end-users.
John Curtius, Partner at Tiger Global Management said; “People are increasingly sophisticated in how they utilise their money, and in a marketplace rife with such exciting growth such as the MENA region, we worked hard to find a company on the ground that shared our vision. With its understanding of the different markets in the region and a proven track record of innovation, we are delighted to have had the opportunity to invest in Tarabut Gateway.
We have followed Abdulla and his team for some time and are excited about the opportunity and potential that Open Banking presents in the MENA region.”
Abdulla Almoayed, Tarabut Gateway’s founder and CEO highlighted; “The MENA region is a complex web of countries and regulations. This makes it a challenging area to serve with any single overarching financial product whilst remaining compliant in a highly developed landscape with many differing markets.
I’m glad to say this round is living proof that Tarabut Gateway is successfully pioneering in developing a cutting-edge solution for banks and fintechs in the region.”
In February 2021, Tarabut Gateway raised $13 million in seed investment, the largest seed round in the MENA region for a fintech company. This pre–Series A doubles down on the company's credentials, spurring it forward to serve millions more potential customers in this diverse region.
حققت الشركات الناشئة في الشرق الأوسط وشمال إفريقيا نمواً كبيراً في عدد صفقات وحجم التمويل في شهر سبتمبر مقارنةً بشهر أغسطس، فوصلت نسبة النمو في عدد صفقات الشركات الناشئة لأكثر من 111% أما في حجم التمويل فتجاوزت نسبة النمو 106% بعد أن وصل إجمالي حجم التمويل إلى نحو 338 مليون دولار.
نستعرض فيما يأتي حالة الشركات الناشئة في الشرق الأوسط وشمال إفريقيا خلال شهر سبتمبر 2021 من حيث عدد الصفقات وحجمها ومراحل الاستثمار وتوزعها قطاعياً وجغرافياً.
التوزع الجغرافي لعدد وحجم صفقات الشركات الناشئة
احتلت الشركات الناشئة المصرية للمرة الأولى مركز الصدارة من حيث حجم التمويل الذي بلغ أكثر من 161 مليون دولار فيما جاءت السعودية بالمركز الثاني بحجم تمويل بلغ نحو 132 مليون دولار، بينما احتلت الإمارات للمرة الأولى المرتبة الثالثة لجهة حجم التمويل فحصلت الشركات الناشئة الإماراتية على تمويل بقيمة 40 مليون دولار وهو ما يمثل انخفاضاً بنسبة 51% مقارنةً بشهر أغسطس من العام الجاري.
أما من حيث عدد الصفقات فقد حافظت الإمارات على مركز الأول بعدد صفقات بلغ 11 صفقة، تلاها السعودية ومصر بـ9 صفقات لكل منهما.
تجد الإشارة إلى متوسط حجم الصفقات للشركات الناشئة في الإمارات بلغ نحو 3.6 مليون دولار بانخفاض نسبي عن شهر أغسطس يقدر بنحو 63% فيما ارتفع متوسط حجم الصفقات للشركات الناشئة المصرية والسعودية إلى نحو 630% و285% على التوالي، لكن هذا النمو الكبير في متوسط حجم الصفقات لكل من السعودية ومصر تأثر بصفقتين كبيرتين هما: تمويل تطبيق MNT-Halan المصري الذي حصل على 120 مليون دولار، والتمويل الذي حصلت عليه منصة Unifonic السعودية الذي بلغ نحو 125 مليون دولار.
التوزع القطاعي لعدد وحجم صفقات الشركات الناشئة
بسبب استحواذ صفقتين على نحو 50% من إجمالي حجم التمويل الذي حصلت عليه الشركات الناشئة في الشرق الأوسط وشمال إفريقيا فإن التوزع القطاعي للاستثمارات من حيث الحجم شهداً تغيراً ملحوظاً في شهر سبتمبر إذ تصدر قطاع البرمجيات كخدمة في المركز الأول بقيمة تمويل بلغت 126 مليون دولار، فيما حل قطاع التكنولوجيا المالية في المركز الثامن بنحو 3.5 مليون دولار من 3 صفقات، كذلك تراجع حجم الصفقات في قطاع التجارة الإلكترونية ليبلغ 6.5 مليون دولار بانخفاض نسبي عن شهر أغسطس يقدر بنحو 8.5 مليون دولار.
مراحل الاستثمار في الشركات الناشئة
لم يختلف تركز صفقات التمويل من حيث مراحل الاستثمار عن شهر أغسطس إذ بقيت معظم صفقات تمويل الشركات الناشئة متركزة في مرحلة التمويل الأولي حيث بلغت عدد الصفقات التي حصلت عليها الشركات الناشئة في مرحلة التمويل الأولي لشهر سبتمبر 17 صفقة بنسبة 46% من إجمالي عدد الصفقات، وهو ما يشير إلى إمكانية تحقق صفقات بحجوم كبيرة خلال الربع الأخير من عام 2021.
التوزع الجندري
فيما يخص التوزع الجندري استمرت الشركات التي أسسها الذكور في الاستحواذ على القيمة الأكبر من صفقات تمويل الشركات الناشئة بل إن شهر سبتمبر شهد انخفاضاً كبيراً في حجم التمويل الذي حصلت عليه الشركات الناشئة التي أسستها سيدات إذ اقتصر على مبلغ 100 ألف دولار فقط، انخفاض وصفته مؤسسة ومضة "بالمثير للقلق".
Dubai property sales reach 8-year high as demand continues to surge
24 Aug 2021 Written by Admin AdminBut rents and prices for apartments have remained subdued: CBRE
Property purchases in Dubai over the past few months have reached levels not seen since almost a decade ago, underpinned by growing demand for bigger private space in the age of remote working and social distancing.
Transaction volumes in the first half of 2021 were at the highest level since the second half of 2013 and increased by 69.2 percent and 46.4 percent compared to the same period in 2020 and 2019, respectively, said CBRE in its latest UAE Market Review.
However, apartment prices and rents have remained subdued.
Sales transactions involving secondary homes from January to June 2021 registered a bigger increase, at 148.4 percent. Off-plan sales were muted, with increases averaging only 13.4 percent over the same period.
In terms of prices, the apartment segment of the market did not do well, with rates dropping by 1.8 percent compared to a year earlier. However, villa prices went up by 12.7 percent.
Dubai rents
Average rental rates in Dubai also fell by 5.9 percent, underpinned by the softening of apartment rental rates, which fell by 8.1 percent.
While overall residential rents have declined, other analysts said that some landlords in Dubai have indeed asked for higher rents this year, but the increases have been limited to properties in premium locations.
“While we have seen a few rental rises in new leases in the range of 5 to 15 percent year-on-year, particularly for prime apartments and villa properties in established locations, the same is not the case for existing tenants looking for lease renewals,” Edward Macura, partner at CORE, told Zawya.
The property sector has been among those least affected by the COVID-19 lockdowns and mobility restrictions. Last year, shortly after restrictions eased in the UAE, buying activity resumed, with investors snapping up villas and flats in many of Dubai’s sought-after locations.
According to a Deloitte report, the robust demand in the housing sector has been due to “high-wage remote workers’ continued strong economic positions, low mortgage rates, and millennials entering the prime homebuying age”.
Office space
Within the commercial segment, CBRE said Dubai’s offices continued to see subdued demand, with rental rates for average Prime, Grade A, Grade B and Grade C spaces falling by 4.5 percent, 6.5 percent, 6.9 percent and 7 percent in the year to June 2021, respectively.
“With new institutional market entrants remaining limited in number, the vast majority of activity continues to stem from existing occupiers,” CBRE said.
There will be limited new supply of office space coming in this year, estimated to be around 1.13 million square feet. “With the majority of this upcoming supply being in non-core locations, going forward, we may begin to see moderation in the rate of declines seen in Prime and Grade A rental rates and uplift in the average occupancy rate,” the report said.
Abu Dhabi
In Abu Dhabi, residential prices went up by 2.4 percent in the year to June this year. Over this period, average apartment prices increased only by 1.5 percent.
Rental rates, on the other hand, remained under pressure, with average rental rates decreasing by 5.3 percent.
Prime and Grade A office rents in the UAE capital, however, went up by 7.5 percent and 2.5 percent, respectively. Grade B rents dropped by 9.7 percent.
Overall, the office space market in Abu Dhabi remains “tenant favourable”, with landlords offering incentives, such as rent-free periods.
source: zawya
