Dubai real estate prices fell by 0.57 per cent in Jan 2025, marking the first decline since mid-2022 and signalling a potential market stabilisation, according to leading real estate intelligence firm Property Monitor.

Despite the dip in prices, January recorded the highest-ever sales volume for the month, with 14,413 transactions. However, sales volumes were down 4.6 per cent compared to December 2024, and average prices declined to Dhs1,484 per square foot, the firm’s monthly market report revealed.

The off-plan segment continued to expand, with 53 project launches from 37 developers introducing 12,400 new units.

Mortgage transactions also saw a 6.8 per cent month-on-month increase, with 4,134 loans secured, while loan-to-value (LTV) ratios remained steady despite stricter enforcement of UAE Central Bank regulations.

Market shift towards stability

“After four years of continuous growth, Dubai’s real estate market is starting to show signs of stabilisation,” said Zhann Jochinke, COO at Property Monitor.

“While transaction volumes remain strong, affordability constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai’s property sector could be transitioning from rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the market’s future in 2025 and beyond.”

The report highlighted that the median price for apartments stood at Dhs1.35m, townhouses at Dhs2.61m, and villas at Dhs6.92m.

Dubai off-plan market sees slowdown

Off-plan transactions accounted for 52 per cent of total sales in January, with 7,555 deals recorded.

However, this segment saw a 17.7 per cent decline compared to December 2024. Meanwhile, title deed sales surged by 15.7 per cent month-on-month, making up 47.6 per cent of transactions.

Emaar Properties led the off-plan market with a 16.5 per cent share, followed by DAMAC Properties at 15.8 per cent and Danube Properties at 5.3 per cent.

Among the most notable transactions, a villa in Emirates Hills secured the highest recorded sale at Dhs425m, while the lowest transaction was a studio apartment in Dubai Production City for Dhs175,000.

Dubai’s real estate sector witnessed record-breaking performance in 2024, with a 30 per cent year-on-year growth in prices, launches, transactions, and mortgages.

Real estate trends in 2025: Dubai developers share insights

Merger and acquisition (M&A) activity in the MENA region surged in 2024, recording 701 deals valued at $92.3bn, according to the latest EY MENA M&A Insights 2024 report. The figures mark a 3 per cent rise in deal volume and a 7 per cent increase in total value compared to 2023.

The Gulf Cooperation Council (GCC) accounted for 580 deals worth $90bn, underscoring the region’s dominant role in M&A transactions. The increase was fueled by capital market reforms, strategic policy shifts, and enhanced efforts to attract foreign investment.

Cross-border deals drove M&A activity, representing 52 per cent of transaction volume and 74 per cent of total deal value.

Outbound transactions accounted for the largest share, with 199 deals totalling $56.6bn — 61 per cent of the region’s total deal value.

Inbound deals also rose sharply, with 163 transactions worth $11.4bn, reflecting an 18 per cent rise in volume and a 42 per cent increase in value year-on-year.

Key Sectors and Players

“The MENA region witnessed strong M&A momentum in 2024, with deal activity and values rising year-on-year. Cross-border transactions were a major driver, with companies looking to expand and diversify,” said Brad Watson, EY MENA Strategy and Transactions leader.

“The top five subsectors — insurance, asset management, real estate and hospitality, power and utilities, and technology — highlight the region’s appeal as a hub for innovation and investment,” he added.

Sovereign wealth funds (SWFs) remained key players, with the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, and Saudi Arabia’s Public Investment Fund (PIF) leading major transactions.

The UAE recorded the region’s largest deal, with Clayton Dubilier & Rice, Stone Point Capital, and Mubadala acquiring Truist Insurance for $12.4bn.

Other high-profile transactions included Saudi Aramco’s $8.9bn purchase of a 22.5 per cent stake in Rabigh Refining and Petrochemical Company from Sumitomo Chemical and the $8.3bn acquisition of a 60 per cent stake in China’s Zhuhai Wanda Commercial Management Group by PAG, Mubadala, and ADIA.

UAE and Saudi Arabia lead M&A landscape

The UAE emerged as the preferred investment destination, securing 96 inbound deals worth $7.6bn, which accounted for 67 per cent of total inbound deal value.

The technology sector led the charge, with 35 deals reflecting the country’s focus on AI, cybersecurity, and digital transformation.

Microsoft’s $1.5bn investment in Abu Dhabi’s G42 was a key transaction, highlighting growing US-UAE business ties. The US-UAE Business Council has been instrumental in fostering cross-border innovation and collaboration.

Saudi Arabia also remained a prime investment hub, contributing to a combined 318 deals with the UAE, valued at $29.6bn. The US was the largest foreign acquirer in MENA, executing 48 transactions worth $4.6bn. Meanwhile, MENA investors favoured US assets, with 41 deals totalling $19.9bn.

Morocco emerged among the top five bidder and target markets, while Qatar, Bahrain, Egypt, and Kuwait also saw significant M&A activity.

Domestic M&A and energy sector growth

Domestic deals accounted for 48 per cent of the region’s total M&A activity, with 339 transactions valued at $24.4bn.

Technology and consumer products led domestic M&A, contributing 35 per cent of total deal volume.

The oil and gas sector maintained its momentum, ranking as the top industry by disclosed deal value at $9bn, accounting for 37 per cent of total domestic deal value. Saudi Aramco’s $8.9bn acquisition of Rabigh Refining and Petrochemical Company was the year’s largest energy transaction.

MENA’s M&A outlook remains strong

“In 2024, technology remained the most attractive sector for investors, comprising 23 per cent of total inbound and domestic deal volume,” said Anil Menon, EY MENA head of M&A and Equity Capital Markets leader. “We’re amid a productivity renaissance fuelled by AI and digital transformation, which will drive capital allocation and M&A.”

“The deal book for FY2025 remains robust across sectors, and we expect continued portfolio momentum and growing interest in MENA-based assets.”

With ongoing economic diversification efforts and a strong push for technological advancements, the MENA region remains a hotspot for global investors, positioning itself as a key player in the evolving global M&A landscape.

In this interview with Gulf Business, Stuart Henwood, senior director of New Balance in the Middle East, Africa, and India (MEAI), discusses the brand’s impressive $7.8bn growth in 2024, its focus on blending heritage with innovation, and its evolving retail strategy in the region.

Henwood also shares insights into New Balance’s commitment to community-building, its impact on fashion trends, and the company’s plans for continued expansion in the next five years.

New Balance saw $7.8bn in global growth in 2024. Beyond the numbers, what’s driving this incredible momentum?

At New Balance, our growth reflects our commitment to blending heritage with innovation since our onset in 1906. We’ve stayed true to our roots in craftsmanship while pushing boundaries in performance technology and style.

Collaborations with cultural icons, athletes, and designers have allowed us to stay relevant across diverse markets. For instance, partnerships like the one with British rapper Action Bronson and our exclusive sneaker drops with Sun and Sand Sports here in the region for example, have helped keep us relevant and exciting in diverse markets.

Beyond products and partnerships, a key driver of our momentum is the vibrant communities we’ve cultivated through initiatives like the New Balance Run Club (NBRC) under our Run Your Way campaigns.

Across the region and globally, our run clubs are offering spaces where people connect over shared goals of fitness, wellness, and personal growth. This strong community engagement, combined with our focus on authenticity and quality, continues to position New Balance as a leader in the industry.

From the streets to the runways, “Dad shoes” have become a style staple. How did New Balance find itself at the heart of this trend?

The “Dad shoe” trend is indicative of how timeless design and comfort can intersect with modern fashion. New Balance has always prioritised functionality and comfort — traits that have become stylish in their own right.

The 990 series, originally launched in the 1980s, was designed as a premium running shoe, but its understated design and quality craftsmanship made it a staple beyond athletic circles.

Fast forward to today, and you see those same models on fashion runways and in streetwear, embraced by a new generation that values authenticity and heritage. We’ve leaned into this, collaborating with fashion-forward influencers and brands while staying true to our New Balance DNA.

With seven new stores opened in just 24 months — including the Dubai Mall flagship — what’s the vision behind New Balance’s retail experience in the region?

Our retail expansion in the Middle East, particularly with our flagship in Dubai Mall, reflects our ambition to create immersive brand experiences.

Each store, especially our latest retail concept, Uncommon Common concept (UCC), is designed to not just highlight our products but to tell our story — from our Boston roots to our global presence while highlighting the makers and origins of each.

We want customers to feel the craftsmanship, innovation, and cultural relevance of New Balance the moment they walk in.

The MEAI with its diverse, trend-conscious consumer base, is the perfect backdrop for this vision coupled with the regional investment in sport, and New Balance will continue to expand to reach and engage with our consumers.

As fitness becomes a lifestyle for many, how is New Balance redefining the intersection of sport, wellness, and fashion?

Anyone would agree that fitness today isn’t confined to gyms or tracks. It’s now become a lifestyle that influences how people dress and live. At New Balance, we’re committed to designing products that perform on the track but transition seamlessly into everyday life.

Our apparel and footwear collections reflect this duality, blending high-performance materials with contemporary design so whether it’s our Fresh Foam running shoes or our lifestyle collaborations, we’re focused on offering versatility.

This philosophy is at the heart of our Run Your Way ethos, which embraces the idea that there’s no one-size-fits-all approach to fitness. Whether you’re chasing personal bests, running for mental clarity, or simply enjoying an active lifestyle, Run Your Way encourages individuals to define what movement means to them.

With the brand eyeing $10bn in revenue, what’s next? Where do you see New Balance evolving in the next five years?

Reaching $10bn is a financial milestone but it’s not only about the numbers, it’s about scaling our impact while staying true to who we are and building a sustainable model across multiple platforms and categories.

Over the next five years, we’ll continue to invest in innovation and community engagement while growing our product ranges. Expanding our owned doors in key markets like the Middle East is a big part of this journey – alongside franchise doors across the MEAI region including Saudi, Kuwait, Qatar, India, Egypt and our latest market entry in Morocco.

We’re also committed to deepening our relationships with local communities through partnerships and initiatives that reflect the unique cultural landscapes we operate in. Our recent five-year partnership extension with Al Sadd SC and our collaboration with Ooredoo for the Doha Marathon, are just a few examples of how we’re strengthening ties across the region.

Ultimately, we want New Balance to be seen as not just a brand but a movement that empowers people to move confidently through sport and life and as a premium athletic brand.

Having been around for over 100 years, how does New Balance continue to stay relevant — especially with younger, trend-conscious audiences?

Staying relevant for over a century comes down to a balance of honouring tradition while embracing change. A brand with heritage as opposed to a heritage brand. New Balance has always championed individuality and authenticity, values that resonate deeply with younger audiences today.

We also invest heavily in digital engagement, meeting our audiences where they are — whether that’s on social platforms or the e-commerce website. At the end of the day, our commitment to quality, innovation, and community ensures that we’re not just keeping up with trends but often setting them.

Younger generations are looking for authenticity, they are looking for brands they can connect with on a deeper level and not just a product, and as an independent corporation, whose purpose is to create positive change in communities around the world through sports in craftmanship, we can offer much more than just a product or a trend, but also true connection.

First Abu Dhabi Bank (FAB) has secured final approval from the Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA) to launch its End of Service Benefits Funds (EOSB).

Following this approval, the FAB End of Service Benefits Funds are now available to private sector businesses across the UAE.

Scheme aligns with UAE’s new alternative EOSB scheme

This development is part of the UAE government’s new Alternative EOSB Savings Scheme, which allows businesses to enhance employees’ end-of-service benefits and align with the country’s evolving labor market initiatives.

The first business has already successfully onboarded, marking the beginning of the rollout of this innovative financial product designed to boost employees’ long-term financial security.

By adopting the scheme, businesses can manage and grow EOSB more efficiently, supporting employee retention and attraction in a highly competitive market.

FAB has introduced a digital platform integrated with the UAE Savings Scheme, allowing businesses to manage EOSB contributions and enabling employees to track and monitor their investments in real-time.

The platform, designed with a user-friendly interface, provides seamless access for employers to handle end-of-service contributions while giving employees more control and transparency over their financial future.

FAB has partnered with global leaders including Apex Group for fund administration, Aurem for technology platform development, and Deutsche Bank Securities for custody services to ensure a secure and seamless experience for all users.

The launch of FAB’s End of Service Benefits Funds also aligns with the UAE’s broader financial stability goals, providing a win-win scenario for both employers and employees.

Businesses benefit from streamlined benefit management, while employees gain improved financial outcomes through greater control over their savings.

FAB EOSB Funds offer two capital-protected investment options

• FAB End of Service Benefit Fund with Capital Protection, which invests in money market instruments to ensure stability and liquidity.
• FAB Islamic End of Service Benefit Fund with Capital Protection, which follows the same strategy using Islamic money market instruments.

FAB also plans to introduce additional risk-based investment options in the near future, offering both conventional and Shari’ah-compliant strategies to cater to diverse financial goals.

The funds are managed by FAB Asset Management, one of the largest MENA-focused asset managers with over 20 years of regional expertise, serving a wide range of clients, including sovereign wealth funds, pension funds, financial institutions, and individuals.

What are the benefits of adopting an integrated service solution approach in healthcare facility management?

Modern healthcare facilities are increasingly complex ecosystems requiring seamless coordination across multiple service areas. An integrated service solution approach offers numerous advantages over traditional siloed management methods. This comprehensive strategy enables healthcare facilities to streamline operations, reduce administrative overhead, and ensure consistent service quality across all areas of operation.

Key benefits include improved operational efficiency through unified management systems, enhanced cost control through economies of scale, and better risk management through coordinated oversight. The integrated approach also facilitates more effective resource allocation and faster response times to facility issues, ultimately improving patient care outcomes.

For example, when maintenance, cleaning, and technical services are managed under a single integrated framework, facility management (FM) heads can better coordinate scheduled maintenance to minimise disruption to patient care areas and optimise resource utilisation. This integration also enables more effective implementation of sustainability initiatives and technological innovations across all service areas.

How can healthcare facility managers effectively balance global standards with local cultural and regulatory requirements?

Successfully managing healthcare facilities requires striking a delicate balance between implementing international best practices while respecting and adapting to local cultural norms and regulatory frameworks.

The solution is to develop comprehensive cultural competency programs for staff, establish clear communication channels with local regulatory bodies, and create flexible operational frameworks that can accommodate global standards and local requirements.

Regular engagement with local stakeholders, including healthcare professionals and community representatives, helps ensure facility management practices remain culturally appropriate while maintaining international quality standards.

FM players have responded by creating hybrid operational models that combine globally proven methodologies with locally adapted solutions. For instance, in the Middle East, several healthcare facilities have successfully implemented international facility management standards while incorporating specific considerations for prayer rooms, gender-segregated areas, and cultural dietary requirements.

What are the key challenges in managing healthcare facilities across different regions, and how can they be addressed?

Managing healthcare facilities across different regions presents multiple challenges, including varying regulatory requirements, different cultural expectations, diverse environmental conditions, and disparate technological infrastructure. These challenges are compounded by the need to maintain consistent service quality and operational efficiency across all locations.

A systematic approach to addressing these challenges includes developing standardised yet flexible operational frameworks that can be adapted to local conditions while maintaining core quality standards. Organisations must implement robust quality management systems that ensure consistent service delivery across all locations, create effective knowledge-sharing mechanisms between facilities to leverage best practices and build strong local partnerships with teams who understand regional nuances and requirements.

The key to addressing these challenges lies in creating scalable systems and processes that can be effectively adapted to local conditions while maintaining consistent quality standards across all facilities. This requires establishing centralised monitoring and control systems while maintaining local operational autonomy to address specific regional needs.

What innovative strategies can healthcare facilities adopt to significantly reduce their environmental impact while maintaining operational efficiency?

Healthcare facilities face unique challenges in reducing their environmental impact due to their 24×7 operations and stringent operational requirements. However, innovative approaches can help achieve significant sustainability improvements without compromising care quality or operational efficiency.

Modern sustainability strategies in healthcare facilities focus on implementing smart building management systems that optimize energy usage while maintaining required environmental conditions. These approaches include installing renewable energy systems such as solar panels where feasible, developing comprehensive waste management and recycling programmes designed explicitly for healthcare environments, adopting water conservation technologies, and integrating green building principles in facility renovations and upgrades.

For instance, some healthcare facilities have achieved notable success through energy performance contracts, which have delivered significant reductions in energy consumption while maintaining optimal operational conditions. One such example is the Medical City of King Saud University, for whom ENGIE Solutions implemented various energy-saving measures, resulting in a 31 per cent reduction in energy consumption while maintaining full operational capability.

What specialised solutions are most effective for managing healthcare facilities in regions with extreme weather conditions?

Managing healthcare facilities in extreme weather requires specialised approaches to ensure continuous, reliable operation while maintaining energy efficiency.

Successful facility management in these conditions requires implementing advanced HVAC systems with redundant capabilities and smart controls, alongside building envelope optimisation to minimize thermal transfer. FM players should adopt specialised maintenance protocols adapted to local weather conditions and implement emergency response systems designed for extreme weather events. Smart building management systems that predict and adapt to weather patterns are crucial in maintaining optimal conditions.

These systems must be backed by robust maintenance programmes and round-the-clock monitoring capabilities to ensure consistent performance during challenging weather conditions. Success in this area requires combining technical expertise with local weather knowledge to develop resilient and efficient facility management solutions.

How can healthcare facilities ensure their service offerings remain adaptable to evolving industry standards and patient needs?

Healthcare facilities must maintain flexibility and adaptability in their service offerings to meet changing industry standards and evolving patient expectations. This requires a proactive approach to facility management that anticipates and responds to emerging trends and requirements.

Organizations must regularly assess current service offerings against emerging industry trends and standards while implementing modular and scalable facility management systems that adapt to changing requirements. Developing effective feedback mechanisms to capture and respond to changing patient needs is essential, as is investing in staff training and development to maintain current skills and knowledge.

Success in this area requires establishing a culture of continuous improvement and maintaining close engagement with healthcare professionals, patients, and industry stakeholders to understand and respond to evolving needs. This includes creating innovation programs to test and implement new service solutions that enhance facility performance and patient care.

How can digitalisation transform healthcare facilities’ management and operational efficiency?

Digitalisation represents a significant opportunity to enhance healthcare FM through improved monitoring, control, and optimization of operations. Smart hospital solutions are increasingly essential for maintaining competitive advantage and operational excellence.

Digital transformation in healthcare facilities encompasses integrating building management systems with maintenance management platforms and implementing IoT sensors for real-time monitoring and predictive maintenance. Advanced solutions include the development of digital twin technologies for better facility visualisation and management, adopting mobile applications for staff communication and task management, and implementing advanced analytics for operational optimisation.

These digital solutions can significantly improve operational efficiency, reduce costs, and enhance the quality of patient care through better facility management. However, implementation must be carefully planned to ensure data privacy in a highly regulated environment and maintain continuous operations during the digital transformation process.

What are the potential risks and challenges of implementing smart hospital technologies, and how can they be mitigated?

While smart hospital technologies offer significant benefits, their implementation comes with various risks and challenges that must be carefully managed. Understanding and addressing these challenges is crucial for successful digital transformation in healthcare facilities.

Cybersecurity risks must be addressed by implementing robust security protocols, regular security audits, and comprehensive staff training on cybersecurity best practices.

Integration challenges can be mitigated through carefully planning system architecture and integration points and a phased implementation approach to minimise operational disruption.