A. SREENIVASA REDDY (ABU DHABI)
The UAE has the region’s most advanced flexible workspace market, with Dubai operating as its largest and most mature hub and growing demand from international companies supporting the sector’s expansion in Abu Dhabi, according to a report by JLL.
The flexible workspace market refers to ready-to-use offices that businesses can occupy on flexible terms instead of signing a conventional long-term lease and paying to fit out the premises themselves.
These workspaces include private offices, dedicated desks and “hot desks”, which can be used by different customers at different times. Rental charges generally include services and facilities needed to operate the office.
Dubai had 1.2 million square feet of flexible workspace, according to the report, compared with 366,000 square feet in Abu Dhabi. JLL classified Dubai as a mature and diversified market with more than 20 years of development, while Abu Dhabi was described as an established but concentrated market with a history of more than 10 years.
Abu Dhabi’s flexible workspace supply is concentrated mainly in premium financial and commercial districts. ADGM and the Corniche accounted for 87% of supply and 86% of operator locations, while Al Raha Beach and Musaffah represented the main secondary hubs.
ADGM alone accounted for 57% of operator presence, reflecting Abu Dhabi’s focus on developing a financial centre serving financial-services companies, government-linked entities and international businesses requiring a specialised regulatory environment.
The Corniche serves established companies, government-related entities and professional-services firms seeking central waterfront locations, JLL said.
Major operators in the Abu Dhabi market include Regus, The Executive Centre and WeWork. Significant additions during 2024 and 2025 helped the market expand beyond its earlier focus on government-linked entities and financial-services companies.
Between 60% and 70% of demand in Abu Dhabi came from newly established companies, the highest proportion among the three Middle Eastern markets analysed by JLL.
International companies represented between 45% and 55% of occupiers, while the principal sources of demand were financial services, government and semi-government entities, and technology companies.
Government-linked organisations also use flexible offices for project teams, temporary assignments and additional space without committing to long leases, the report said.
Technology-sector demand has increased as Abu Dhabi diversifies its economy. JLL said companies emerging from the Hub71 technology ecosystem were generating additional demand as they moved beyond incubation programmes.
Flexible-workspace tenancies in Abu Dhabi averaged between 18 and 36 months. Private offices represented between 80% and 90% of the available workspace, while fixed desks accounted for 10% to 15% and hot desks for between 1% and 10%.
About two-thirds of the emirate’s private-office inventory was concentrated in ADGM. JLL said the dominance of enclosed offices reflected requirements for regulatory compliance, confidential discussions and business continuity among financial and professional-services firms.
Occupancy across Abu Dhabi ranged from 70% to 85%. Al Raha Beach, the Corniche and Musaffah recorded occupancy above 80%, while ADGM’s occupancy was in the high-70% range despite recent supply additions.
International companies now account for about half of Abu Dhabi’s flexible-workspace tenants, indicating increasing integration of the capital into the international business market, JLL said.
Premium offices in ADGM and the Corniche recorded the highest rents in the markets covered by the report. Larger offices were offered for between $16,800 and $23,300 a month.
Smaller offices in peripheral locations such as KEZAD and Musaffah averaged about $2,400 a month. JLL said this created a divided market in which companies requiring an ADGM or central Corniche address paid substantially higher rates, while cost-conscious businesses could choose less central locations.
Dubai, meanwhile, had a more geographically diverse and competitive market. Downtown Dubai and the Trade Centre areas accounted for about 35% of flexible workspace supply and 31% of operator locations. Jumeirah Lakes Towers served as a major secondary hub with lower rents, while Dubai Media City and Dubai Internet City catered particularly to technology and creative-sector companies.
Recent geopolitical tensions temporarily slowed the absorption of new space as companies adopted a wait-and-see approach. Operators responded by offering additional incentives and more flexible agreements instead of making substantial reductions in rental rates, the report said.