Six business groups specifically focused on the real estate sector have been established, according to the Dubai Chamber of Commerce, one of the three chambers operating under Dubai Chambers.
The new groups concentrate on businesses involved in the real estate industry, such as developers, evaluators, renters, facility managers, interior decorators and interior designers, and engineering consultants. The Business Groups serve as forums for a productive discussion between stakeholders in the public and private sectors, assisting businesses in the real estate sector in taking advantage of new opportunities, overcoming challenges at the industry level, and addressing policy issues that have an impact on this burgeoning market.
Commenting on the launch of the new real estate business groups, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said, “The real estate sector continues to be one of the vital levers for Dubai’s economy and a major contributor to Dubai’s GDP, with a share of more than 9 percent in the first nine months of 2022 and a year-on-year growth rate of 2.5 percent in the same period.”
“With the emirate’s positive economic outlook for 2023, we know the real estate sector will remain strong due to substantial end-user demand and investor confidence in Dubai’s property market. In addition, by leveraging Dubai’s Economic Agenda (D33), we anticipate enormous opportunities for residential and infrastructure construction to continue to support the emirate’s economy while investment and spending for office, industrial, tourism, and retail properties will grow even more; especially that Dubai’s population is expected to reach 5.8 million by 2040. Our new Business Groups representing six important real estate sectors are created to maximize growth and diversification in this vital market,” he added.
The Dubai Land Department assisted in the formation of the new business groups and identify their economic activities in collaboration with the Dubai Chamber of Commerce. “We welcome the formation of real estate business groups that will work under the governance framework of Dubai Chamber of Commerce. The launch of the business groups is aligned with our role of spreading real estate knowledge and promoting the culture of conducting sound business to the highest internationally recognized standards. Real estate business groups will provide new avenues for constructive debate as well as educational and networking forums for members to engage with key stakeholders, including the Land Department, to influence policymaking and ensure a bright real estate future,” said Sultan Butti Bin Mejren, Director General of the Dubai Land Department.
For real estate sectors like hospitality, residential, retail, office space for businesses, and industrial space, both the rent and sales rates rose significantly in 2022. As of Q4 2022, 88 percent of Dubai’s office buildings were occupied, up 10% over the same period last year, according to CBRE.
Lootah affirmed that the Dubai Chamber of Commerce is committed to promoting the interests of its members and advocating on their behalf to maintain and enhance Dubai’s favorable business environment as well as the competitiveness of the emirate’s economy. “With this in mind, the launch of the six new real estate business groups is a significant initiative that will provide an open space for meaningful discussions amongst our member companies working in real estate, other industry leaders, and key government stakeholders to achieve optimum results for a thriving real estate ecosystem,” he added.
The establishment of the six real estate business groups is a part of the Dubai Chamber of Commerce’s strategy to create 100 sector-specific business groups by March 2023 in order to strengthen the business community’s competitiveness both inside Dubai’s economy and internationally.