The UAE’s political and economic stability, rapid population and GDP growth, and an absence of corporate and personal taxes are only some of the factors contributing to the UAE’s attractiveness to foreign investors.

Dubai has confirmed its position as a hot spot for international occupiers and investors alike and has become the commercial engine driving investment into the region.

The city’s success can be attributed to the three T’s — tech, talent and tax (or the lack of it). Free zones offer zero corporation tax, free repatriation of profits and no personal income tax, which acts as a strong pull factor for publicly listed companies who have a fiduciary responsibility to minimise global taxes.

As part of UAE’s Vision 2021, the government invested Dh4.5 billion and had declared 2015 as the “Year of Innovation”. The effect of this current wave of innovation is transforming the nature of work as we know it.

The rise of mobile connectivity and networked technology, artificial intelligence and automation, among others, have both created and eliminated jobs and augmented others. It has spawned new ventures and lowered the barriers of entry to entrepreneurship.

But it has also shuttered those windows that are no longer useful or efficient. The idea that the office is a specific place where our professional lives happen is becoming less universal, and less important. These days’ people can be productive anywhere.

The tech industry is expected to increase in office take-up, with Google, Snapchat, Facebook, Amazon Web Services and Twitter already located. While the tech industry is not yet a major engine of growth or take up in overall GDP terms, Dubai has emerged as a regional hub for a range of sectors, including aviation, financial services, hospitality and media.

With the largest demographic of the population being 30-34 years old, Dubai offers access to a vibrant and well-educated pool of talent. This generation has specific expectations about technology in the workplace. They expect it to be a catalyst for innovation, as well as a major avenue of communication on the job. A recent survey by PwC noted:

• 59 per cent of those surveyed said an employer’s provision of state-of-the art technology was important to them when considering a job; and

• 78 per cent said access to the technology they like to use makes them more effective at work.

Tecom zone and the DIFC maintain high rental levels as occupancy remain strong; Their free zone status, quality of space, the developed surrounding infrastructure and proximity to amenities continue to work in their favour. The DIFC could witness growth in new companies setting up, offering blockchain and Fintech services.

However, competition will remain fierce as these companies are also being targeted by entities such as the ADGM in Abu Dhabi and Bahrain.

There is a long way to go in this sector’s evolution, but with overall market confidence remaining stable in Q1-17, this will help in the recovery of the core occupier market. But to witness a change in the quality and delivery of commercial office space, there will be a need for international investors to be attracted to Dubai. And with this, there is a need to adapt to changing occupier demand dynamics before being comfortable entering the market.

What implications could the tech movement have on real estate?

With increased pressure on the economy and businesses, many CEOs are scrambling to find innovative ways to reduce costs. One way in which to do this is by selectively introducing virtual offices as an option for employees.

Virtual offices are becoming more popular mainly because of the shift towards output based performance assessment. The traditional perception of work being a place to go to is fast being replaced by the idea that employees are responsible for achieving specific objectives in the most efficient manner.

The writer is Partner — Commercial Leasing at Knight Frank.