Dubai is one of the world’s most popular business hubs with more than half of the biggest global conglomerates operating offices in the city, CB Richard Ellis (CBRE) said Wednesday.
In a new report, the real estate consultancy found Dubai ranked among the world’s top 15 business centres, beating out established hubs such as Milan and Bangkok.
The rankings compared global cities by the number of international firms operating offices there, using 280 companies as a benchmark.
The survey polled 232 cities in 101 countries.
“Dubai has a relatively balanced tenant mix. Over the past 10 years the city has been designed and constructed with the specific intention of attracting major international firms from a broad range of sectors,” said Nick Maclean, managing director of CB Richard Ellis Middle East.
Though government schemes and tax breaks have helped attract foreign investors, Dubai’s integrated infrastructure is the driving factor in its popularity, he said.
“[Without this] internationalisation would have been impossible.”
CBRE said in March the UAE had become more affordable and attractive to international firms as rents declined and landlords offered cheaper deals to lure tenants.
In Dubai especially, the decline in rents has triggered more transactions both in the size and number of deals, according to Matt Green, head of research & consultancy, CBRE Middle East.
Elongated terms of between 5-10 years are now becoming more prevalent as both landlords and tenants seek to reduce their risk exposure, Green said.
"Demand is being led by the financial and professional services sector and continues to focus on single landlord-owned buildings," he said in a statement.
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