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Why Abu Dhabi is the new hotspot for homebuyers

Apartments outperformed other segments during the quarter, with values jumping 6.8 per cent to Dhs 1,296 per square foot

Nida Sohail
Nida Sohail

04 August, 2025

Why Abu Dhabi is the new hotspot for homebuyers
Image credit: Cavendish Maxwell Report

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Abu Dhabi’s residential market maintained its growth momentum in Q2 2025, with average prices rising by 6.4 per cent quarter-on-quarter to Dhs 1,230 per square foot, according to global property consultancy Knight Frank’s latest Abu Dhabi Residential Market Review.

This brings the emirate’s total annual growth to 17.3 per cent, and represents a 31.3 per cent increase in values since Q1 2020.

Read-Abu Dhabi real estate market surges 39% in H1 2025

Apartments outperformed other segments during the quarter, with values jumping 6.8 per cent to Dhs 1,296 per square foot. On a year-on-year basis, this marks a 17.3 per cent increase, placing current values 28.7 per cent above Q1 2020 levels.

Al Raha Beach emerged as the top-performing area, registering 11 per cent price growth since H1 2024. Saadiyat Island followed closely at 10 per cent. Both locations are popular for their prime beachfront living and proximity to leisure destinations, especially Yas Island.

Villas show strong long-term gains

Villas posted a 3.4 per cent quarter-on-quarter increase in Q2 2025, reaching Dhs 1,103 per square foot. This reflects a substantial 42.3 per cent increase since Q1 2020. Saadiyat Island villas led the charge with a 28 per cent year-on-year price surge, while Yas Island villas followed with a 22 per cent rise.

Faisal Durrani, partner – head of research, MENA at Knight Frank, noted: “Villas have delivered 35 per cent growth over the last five years. Despite strong demand, villas make up just 37.4 per cent of the supply pipeline, the rest being apartments. With average villa prices at around Dhs 1,100 per square foot, nearly half the price of villas in Dubai, Abu Dhabi is viewed as better value, especially for families.”

Future supply and development pipeline

The market is struggling to match increasing demand. Residential transactions totalled Dhs 9 billion during H1 2025, which is 36 per cent lower than H1 2024, suggesting a supply lag despite high interest.

Only 890 new residential units were delivered in 2025 so far. However, Knight Frank reports 33,074 homes under construction, scheduled for completion by 2029. Apartments make up 62 per cent of that pipeline.

Yas Island is the most active area for future supply, with more than 8,000 units in the pipeline, followed by Al Shamkha with approximately 3,000 units. Meanwhile, branded luxury residences on Saadiyat Island, including those by Mandarin Oriental and Nobu—are set to expand high-end offerings.

Will McKintosh, regional partner, head of Residential, MENA, said:
“There is growing interest from international buyers, thanks to Abu Dhabi’s world-class amenities and supportive business environment. Our data shows 7 per cent of buyers prefer off-plan homes, indicating demand for immediate-use properties.”

Global capital flows into Abu Dhabi

Knight Frank’s Destination Dubai 2025 report highlighted $1.6bn in private capital targeting Abu Dhabi’s residential real estate—making it the UAE’s second most popular investment hub after Dubai.

While Abu Dhabi trails Dubai’s $10.3bn, it offers average prices 30 per cent lower, appealing to both investors and homebuyers.

The report also shows growing interest from global high-net-worth individuals (HNWIs). About 19 per cent plan to purchase in 2025—up from 14 per cent in 2024. Demand is strongest among individuals worth $30–50m, with 75 per cent eyeing Abu Dhabi homes. Additionally, 65 per cent of individuals worth more than $50m plan to buy in the capital.

Among buyers with $1–5m, around 40 per cent plan to spend up to $2m on a home in Abu Dhabi. On the other end, a similar percentage of those worth over $20m aim to spend more than $80m, though this is less than Dubai’s focus on the “super-prime” segment.

Shehzad Jamal, partner, Strategy & Consulting, MENA, explained:
“About 63 per cent of HNWIs buy for personal use—as main residences, holiday homes, or for retirement. The rest are investing. For those priced out of Dubai, or looking to diversify, Abu Dhabi’s appeal is growing—supported by 17 per cent year-on-year residential price growth.”

Economic growth underpins property market

According to Cavendish Maxwell’s Q1 2025 report, Abu Dhabi’s economy grew 3.8 per cent year-on-year in 2024, hitting an all-time high of Dhs 1.2 trillion, based on Statistics Centre – Abu Dhabi (SCAD) data. The growth was led by a 6.2 per cent rise in the non-oil sector, which now accounts for 54.7 per cent of GDP.

The International Monetary Fund (IMF) projects even stronger growth: 4.2 per cent in 2025 and 5.8 per cent in 2026.

This macroeconomic momentum is fueling confidence in the real estate market, even as transactional volumes slowed slightly in early 2025 due to seasonality and fewer new launches. Still, Abu Dhabi recorded around 1,300 residential sales in Q1, driven largely by the ready property segment.

Demand set to outpace supply

Looking ahead, the outlook remains bullish. With about 11,900 new homes expected to be delivered in the remainder of 2025—and 7,000 more in 2026—supply will continue rising. But population growth, rising end-user demand, and government policies are likely to keep demand ahead of supply.

Government initiatives, like the Golden Visa and other long-term residency programmes, are attracting skilled professionals and global investors, driving sustained demand for quality homes.

The emirate’s broader strategy to grow knowledge-based industries is also helping solidify Abu Dhabi’s reputation as a desirable place to live, work, and invest.

Important information: UAE’s health ministry cuts services by half

Key features of the redesign included reducing documentation, eliminating redundant requirements, and consolidating digital platforms

Gulf Business
Gulf Business

04 August, 2025

Important information: UAE’s health ministry cuts services by half
Image credit: WAM/Website

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The Ministry of Health and Prevention (MoHAP) announced a 50 per cent reduction in key services as part of Phase II of the UAE government’s “Zero Government Bureaucracy” programme, aiming to simplify operations, boost efficiency, and enhance quality of life.

Read-Everything you need to know about the UAE’s basic health insurance plan

The initiative, launched to eliminate unnecessary complexity across federal services, seeks to create a more agile and responsive government through streamlined, digitised procedures. MoHAP’s efforts have so far focused on licensing and accreditation services for healthcare professionals and facilities, reducing the total number of these services from 32 to just 16, a WAM report said.

The redesign has significantly cut processing times, improved operational workflows, and brought the ministry’s work closer in alignment with the programme’s overarching goals.

Human-centric overhaul and digital integration

Under the second phase of the initiative, MoHAP adopted a customer-centric roadmap focused on service simplicity and digital integration. Key features of the redesign included reducing documentation, eliminating redundant requirements, and consolidating digital platforms to decrease the number of smart applications used.

The ministry also aimed to reduce the time, cost, and effort required by users while enhancing data interoperability with partner government entities. This has enabled smoother data exchange and quicker access to services for both citizens and professionals.

To measure the effectiveness of the improvements, MoHAP conducted surveys and user experience studies. These assessments also recognised internal teams and proactive service users whose input contributed significantly to the improvements.

These efforts support the programme’s goal of achieving 100 per cent digital bureaucracy elimination, providing modern, efficient services and fully digitised systems. MoHAP reaffirmed its commitment to supporting the UAE’s vision of a streamlined, responsive, and innovation-driven government that delivers tangible results.

Leadership commends progress

Dr. Mohammed Salim Al Olama, Undersecretary of the Ministry of Health and Prevention, emphasised that the successful implementation of Phase II reflects the UAE leadership’s dedication to providing efficient, high-quality public services.

“Our approach aligns with the government’s flexible and forward-looking service model,” said Dr. Al Olama. “It reinforces sustainable development, enhances the UAE’s global competitiveness, and is grounded in innovation, digital tools, AI integration, and the empowerment of high-performing teams.”

He added that the Ministry achieved significant progress across both phases of the programme by engaging stakeholders, internal teams, and wider society. “We adopted a proactive strategy to redesign services, simplify procedures, and boost efficiency, making services more accessible and customer-friendly.”

Dr Al Olama noted that the ministry’s operational model now prioritises continuous improvement through regular measurement of user satisfaction and service effectiveness.

Co-designing the future of government services

Abdullah Ahli, Acting Assistant Undersecretary for the Support Services Sector and head of the Zero Government Bureaucracy Team at MoHAP, highlighted the collaborative nature of the initiative.

“Our redesign efforts follow a co-design methodology, involving stakeholders from the healthcare sector and service users directly through workshops,” Ahli explained. “By deeply analysing user experiences, we ensured the updated services are simpler, more cost-effective, and results-driven.”

He emphasized the removal of unnecessary procedures to maximize user satisfaction and improve the overall service experience.

Ahli also revealed that additional service packages are in development across other sectors, following successful testing and user feedback. These upcoming packages will focus on high-priority services and are expected to further accelerate progress toward national strategic goals, including sustainable development and enhanced quality of life.

Phase II of the “Zero Government Bureaucracy” programme aims for complete elimination of digital redundancy by removing outdated processes, consolidating smart applications, and modernising government digital infrastructure. The initiative also includes the integration of artificial intelligence and promotes a shift toward a results-oriented culture in public service delivery, further strengthening the UAE’s international competitiveness.

Everllence’s Gaby Hanna on rebranding, decarbonisation and CCUS tech

The Everllence MEA MD shares the company’s focus on integrating proven technologies into existing operations to optimise efficiency

Neesha Salian
Neesha Salian

04 August, 2025

Everllence’s Gaby Hanna on rebranding, decarbonisation and CCUS tech
Image: Supplied

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As the newly rebranded Everllence (previously MAN Energy Solutions) is strategically positioning its carbon capture technologies to assist nations in the region with their ambitious energy transition journeys.

With its comprehensive carbon capture and hydrogen production know-how, Everllence is set to play a pivotal role in the decarbonisation of hard-to-abate industries like cement and oil and gas, supporting key national sustainability visions such as Saudi Vision 2030 and UAE Net Zero 2050.

In this interview, Gaby Hanna, SVP and MD at Everllence MEA, shares the company’s focus on integrating proven technologies into existing operations to optimise efficiency and drive economic viability. Here are excerpts from the discussion.

As the newly rebranded Everllence, how are you positioning your carbon capture technologies to support the decarbonisation of hard-to-abate sectors in the GCC, such as cement, and oil and gas?

The GCC is a key priority for Everllence because it is traditionally built on “hard-to-abate” industries and is simultaneously undertaking ambitious, world-leading energy transition journeys. Nations like the UAE, Saudi Arabia, and Oman are investing heavily in diversification and sustainable technologies.

The carbon capture technology will play a vital role in significantly reducing emissions from hard-to-abate industries such as cement and oil and gas.

We are already a partner of the GCC industry for more than 50 years and now we will support it on its way to climate-neutrality with our comprehensive carbon capture know-how:

Our compressor technology is already proven in 30 projects worldwide and helped to compress ~200 Mio. t of CO2.

Several regional carbon capture projects are underway in the UAE and Oman. Can you share insights on their progress, scalability, and what makes them globally significant?

We will supply one of the largest CO2 compressors in terms of size and mass flow for the Habshan carbon capture, utilisation and storage (CCUS) project of ADNOC.

The facility will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of carbon dioxide (CO2) within geological formations deep underground. This makes it one of the largest integrated carbon capture projects in MENA.

ADNOC is now proving that the CCUS technology is already applicable and scalable and the project will become a blueprint for the MENA region.

How do you address the common criticism that carbon capture is an expensive or transitional solution rather than a long-term fix for emissions reduction?


The so-called hard-to-abate industries such as cement and petrochemicals have no other choice. Their emissions cannot be reduced by direct electrification with green energy as it is applicable for other segments such as car transport.

The cement industry alone is responsible for 12 per cent of worldwide CO2 emissions, which are caused by the production process itself.

CCUS is the solution to capture these emissions before they are entering the atmosphere and even more: The CO2 can then be used as a valuable feedstock to produce climate-neutral fuels to decarbonise industries such as shipping or aviation.

It is already a proven technology which is clearly demonstrated by our 30 projects worldwide. I’m convinced that CCUS will become one of the key building stones of our climate-neutral future.

How is Everllence balancing innovation in carbon capture with economic viability for industrial clients, especially in countries like Iraq, Qatar, and Egypt where infrastructure and priorities vary?

Our tailored solutions are designed to meet the specific needs and national goals of each country.

The key is to integrate our technologies seamlessly into existing operations, optimising efficiency and reducing emissions, thereby supporting decarbonisation without hindering the vital industrial productivity that drives these economies.

With regional goals accelerating around green hydrogen, how does Everllence’s production of electrolysers and partnerships (in Duqm and Egypt) fit into the wider energy transition strategy?

Besides carbon capture, green hydrogen is an essential building block to decarbonise hard-to-abate sectors such as shipping and aviation. Both industries cannot be directly electrified, efor example by using batteries. They require climate-neutral fuels like green methanol or ammonia which are produced from green hydrogen.

The sunny GCC region, of course, offers a huge potential for the production of green energy from solar and therefore also for the production of green hydrogen. If the GCC is leveraging this potential, it can become one of the most important exporters of climate-neutral fuels worldwide.

As a company we are covering the complete value chain of hydrogen – from electrolysers and compressors for pipeline transport to reactor systems for the production of climate-neutral fuels. With our broad hydrogen technology portfolio we will support the GCC in its transformational journey.

What are your immediate priorities post-rebrand in the Middle East and Africa region, and how do you plan to scale Everllence’s impact while staying aligned with national sustainability visions like Saudi Vision 2030 and the UAE Net Zero 2050?

Our 50 plus years of partnership in the region, combined with the significant decarbonisation challenges and opportunities in the region, make it a natural and strategic focus for our solutions. In recent years, we have transferred a lot of capacity to our offices and workshops on-site.

It is important for us, that our local offices are not just mailbox addresses, they are an essential part of our localisation strategy providing extensive engineering know-how to the region. We will also follow this successful approach in the future and see a huge business potential in the MEA region.

Work perks: What employees in Saudi really want in 2025

Government-backed initiatives and a traditionally stable public sector have long reinforced a sense of security in employment

Nida Sohail
Nida Sohail

04 August, 2025

Work perks: What employees in Saudi really want in 2025
Image credit: Getty Images

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As Saudi Arabia’s workforce evolves, the definition of what keeps talent engaged and loyal is undergoing a major shift. While competitive salaries still matter, they are no longer the sole determinant of retention. Today’s professionals are placing increasing value on benefits that support a more holistic, human-centered employee experience.

Read-Workplace policy: Saudi updates key employment regulations

According to Vijay Gandhi, Regional Director at Korn Ferry, the most effective benefits today go beyond paychecks. They include:

  • Flexible work arrangements that allow employees to manage personal responsibilities and maintain work–life balance
  • Career development and upskilling opportunities that help individuals stay competitive and fulfilled in a rapidly evolving job market
  • Wellness and mental health support that demonstrates employer commitment to psychological well-being
  • Performance-based incentives that directly reward individual contributions

Together, these offerings are reshaping the employee value proposition in Saudi Arabia, where purpose, development, and support now hold as much weight as compensation.

Leadership evolution: Empathy and agility take center stage

Leadership styles across Saudi Arabia are evolving in tandem with workforce expectations. Today’s employees are increasingly looking to leaders who demonstrate empathy, foster inclusion, and embrace transformation.

“Organisations today are navigating unprecedented disruption, from digital transformation and AI adoption to shifting workforce dynamics and economic volatility,” said Mohamed Saleh, Principal Consultant at Korn Ferry. “As a result, leaders now spend the majority of their time, up to 70 per cent, focused on transformation rather than maintaining the status quo.”

To thrive in this changing landscape, Saudi employers are investing in leadership approaches that are:

  • Agile and inclusive, welcoming diverse voices across generations
  • Purpose-driven, offering clarity and motivation around broader goals
  • Empowering, creating environments where people feel valued and motivated

Leaders who succeed in this new paradigm are not just strategic thinkers but emotional anchors, those who foster trust and genuine engagement by combining capability with character.

Why job security feels stronger in Saudi Arabia

Unlike many regional markets, job security is not a widespread concern for most professionals in Saudi Arabia. This confidence stems from a mix of government policy, economic stability, and cultural norms.

Government-backed initiatives and a traditionally stable public sector have long reinforced a sense of security in employment. Simultaneously, Vision 2030’s strategic push toward private sector diversification has opened new pathways for meaningful careers, boosting long-term optimism among job seekers.

“Nationalisation policies like Saudisation have played a key role in broadening access to quality roles for Saudi nationals,” Gandhi explained. “This, in turn, has reduced fear of job displacement and allowed employees to focus on growth and purpose, rather than survival.”

Compensation isn’t enough: The employees want meaning

Though a competitive paycheck remains a cornerstone of talent attraction, it’s no longer enough to ensure retention. Research from Korn Ferry shows that emotional connection, purpose, and respect now play equal, if not greater, roles in driving long-term employee loyalty.

To balance monetary and emotional incentives, Saudi employers are shifting toward a more holistic talent strategy. Key elements include:

  • Embedding purpose in every role by aligning work with national goals such as Vision 2030
  • Consistent recognition that validates employee efforts in meaningful ways
  • Inclusive leadership that ensures every employee feels respected and heard
  • Sustainable investment in development and well-being to foster long-term engagement

This shift signals a broader transformation in workplace culture, where transactional relationships are being replaced by emotional commitment, loyalty, and shared purpose.

Gulf Business Awards 2025 nomination deadline extended

Organisations and business leaders get additional time to submit entries for the region’s most prestigious business awards

Rajiv Pillai
Rajiv Pillai

04 August, 2025

Gulf Business Awards 2025 nomination deadline extended
Image: Gulf Business Awards

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Gulf Business has announced an extension of the nomination deadline for the Gulf Business Awards 2025, giving companies and individuals across the region more time to enter. The new deadline is now set for Thursday, August 7, 2025.

Now in its 13th year, the Gulf Business Awards is the region’s premier platform for recognising business excellence, innovation, and leadership. The 2025 edition will take place on September 24 in Dubai, bringing together top decision-makers, executives, and entrepreneurs for an evening of high-profile recognition and networking.

The awards span key sectors including banking, real estate, healthcare, technology, energy, tourism, and more—honouring both standout companies and visionary leaders who are driving growth and transformation across the GCC.

Read: Gulf Business Awards 2025: Nominations, registration details revealed

Entries are judged by an independent panel of experts, comprising regional business leaders, industry veterans, and Gulf Business editorial leadership. The process is designed to ensure transparency, merit-based evaluation, and sector relevance.

With the deadline now extended, organisations have a valuable opportunity to finalise and submit their entries in categories that best reflect their strengths and impact.

Links below:

Submit your nomination
More about the awards

The Gulf Business Awards 2025 promises to be a landmark edition, celebrating the region’s most influential business stories and the individuals behind them.

IHC, RIQ form 10-year alliance, positions Abu Dhabi as key reinsurance hub

RIQ will deliver AI-native risk transfer solutions tailored to IHC and its group companies

Gulf Business
Gulf Business

04 August, 2025

IHC, RIQ form 10-year alliance, positions Abu Dhabi as key reinsurance hub
Image: Supplied

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International Holding Company (IHC) and RIQ, an AI-native reinsurance platform, announced a 10-year strategic partnership, anchored by a target of more than $500m in reinsurance premiums.

RIQ, which was launched earlier this year in Abu Dhabi by IHC in partnership with BlackRock and Lunate, will provide a full suite of reinsurance solutions to IHC and its group companies.

The platform is designed to offer capital-efficient coverage for complex specialty and property and casualty (P&C) risks using AI-augmented underwriting.

The partnership aims to enhance the resilience and operational agility of IHC’s companies and aligns with Abu Dhabi’s goal to become a global hub for reinsurance and financial innovation.

RIQ to obtain formal authorisation from ADGM as a reinsurer

RIQ is currently in the process of obtaining formal authorisation as a reinsurer from the Financial Services Regulatory Authority (FSRA) of ADGM.

The reinsurance transaction with IHC is subject to regulatory clearance.

Syed Basar Shueb, CEO of IHC, said the partnership reflects the company’s belief in “the transformative power of intelligent capital and data-driven risk transfer.” He added that the collaboration “is a strategic investment in the future of resilient infrastructure and industrial agility.”

Mark Wilson, CEO of RIQ, commented that the partnership is a “defining step in our mission to reshape global reinsurance from Abu Dhabi outward.”

RIQ has over $1bn in equity commitments from IHC and its partners and aims to write $10bn per year in reinsurance premiums.

Read: IHC rebrands eFunder as Zelo following acquisition

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