Co-working spaces are expanding rapidly in Dubai and Abu Dhabi, almost five years after the idea was suggested as the next big thing in the real estate sector in the United Arab Emirates. Nowadays, co-working spaces come in all shapes and sizes, with the most luxurious ones costing more than Dh150,000 a year to rent.
The surge in coworking spaces in the UAE is not primarily being driven by freelancers or gig workers who only need a “hot desk” to complete their work. Among the clients are startups, larger companies that may be waiting on a permanent address or have decided to operate with the absolute minimum of staff for the time being.
Co-working spaces, where members share a larger space and have access to other amenities but also have their own workstations, are in such high demand that Dubai is adding a large number of new locations.
Spaces CommerCity was introduced earlier this year by Dubai CommerCity, a free zone dedicated to digital commerce, in collaboration with flexible workspace provider IWG. Amna Lootah, board member at Dubai CommerCity, had said: “The introduction aims to foster a culture of flexible work and support digital commerce growth in the UAE.”
Letswork is a homegrown co-working space marketplace that began with zero members in 2018 and currently boasts over 55,000 users across the UAE, Saudi Arabia, Bahrain, Spain, and Portugal. Omar Almheiri and Hamza Khan, the company’s founders, have bigger aspirations in mind.
Lettingswork has worked with 400 outlets to build co-working spaces, including at hotels, cafes, business centers, and studios, in response to the growing need for “work from anywhere” trends. Roughly 300 of the 400 are located in the UAE.
Unprecedented demand
With the introduction of global brands into the market, co-working began to attract the serious attention of investors in 2018–19. Industry insiders claim that Covid stepped in before that momentum could gather, causing demand to stagnate for about two years. The work-from-home possibilities at the time did not assist matters; instead, client meetings were moving to Zoom, Teams, or any other virtual platform that was available.
Cost-effective ‘credits’
These days, co-working facilities are thought to dramatically lower the capital costs related to office rent. For instance, Letswork uses a credit-based business model that enables people and organizations to buy refundable “credits” according to their preferences for working and the degree of support and extras they need in the workspace. Using credits to work from coffee shops, motels, and co-working locations throughout town is convenient and reasonably priced.
A day admission costs Dh25, and businesses can purchase 1,000 “team credits” for up to Dh3,850. Depending on the packages chosen, employees are granted a specific amount of monthly check-ins at a cost of Dh4.8 per credit.
For instance, Letswork charges Dh425 for 100 team credits (for a group of 2–10) and Dh120 for an individual 25-day pass. This gives customers access to Letswork partner spaces based on consumption, and lease terms can be adjusted to meet the needs of the user. (Among other benefits, subscribers receive unlimited tea and coffee.)
In addition, packages can be bought directly from space providers by individuals and businesses, bypassing the marketplace.
It’s all driven by payment flexibility
Similar fees apply to The Bureau, a co-working location that is only open to women. A day admission costs Dh120, membership costs Dh950, and private office rents cost Dh3,000. The co-working spaces offered by Nasab by Koa start at Dh140, while Nomad provides flexible alternatives for independent contractors. Options include a resident plan with unlimited access for Dh1,500 per month, a hot desk package for Dh1,000 for ten days per month, or private suites for groups of two to twelve people starting at Dh2,000 per month.
Co-working memberships at Modern Working in Business Bay start at Dhs 2,400 per month, while private office memberships cost Dhs 5,000. Abu Dhabi’s Cloud offers day permits for Dh120 per person.
Commercial leases
Additionally, businesses are now offering their customers the option of long-term leasing. “New entrepreneurs and companies have begun to question why they should commit to lengthy leases for traditional offices in prime locations like Sheikh Zayed Road,” said Hamza Khan, Letswork’s Chief Executive.
Rather than renting out space outright, businesses are opting for fully equipped, adaptable, plug-and-play solutions.
Popular options
“Approximately two-thirds of our revenue is generated from subscriptions (Letswork credits), while the remaining is bookings,” said Khan. “This encompasses both short-term and long-term rentals, including meeting rooms and offices.
