DREC offers 20pc rent cut for small enterprises
Dubai, February 10, 2008
Dubai Real Estate Corporation (DREC) and Sheikh Mohammed bin Rashid Establishment for Young Business Leaders (SME) have signed an agreement that will provide SME members with a 20 per cent discount on the lease of commercial premises owned by DREC.
The agreement will benefit more than 3,000 small and medium organisations associated with SME, in addition to the 1,000 individual members by encouraging entrepreneurial investments amongst young UAE nationals.
Hesham Al Qassim, CEO of DREC, said: “Our objective is to offer SME members the maximum support and provide them with facilities to establish their business. This initiative is in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to encourage UAE entrepreneurs to contribute to the future of their country.”
“We are confident that the discount we offer through the agreement will provide young entrepreneurs in the UAE an additional impetus to expand their operations and initiate new projects. Rentals generally account for 20-25 per cent of the overall start-up cost in any business establishment, whether it is retail, franchising, trading, professional education or tourism related services. Through the undertaking, we will reduce this burden which can be a deterrent to ambitious entrepreneurs,” added Al Qassim.
Estimates indicate that between 40 and 50 per cent of the UAE’s total industrial activity is facilitated by small and medium enterprises that operate in a variety of sectors; the contribution of SMEs is important to achieve the mandate of zero-unemployment amongst UAE nationals by 2020. The Mohammed bin Rashid Establishment for Young Business Leaders seeks to encourage the continued development of small and medium businesses in the UAE, said a statement.
Abdul Baset Al Janahi, CEO of Sheikh Mohammed Bin Rashid Establishment for Young Business Leaders, said: “We genuinely appreciate this gesture from DREC, which owns substantial real estate assets in Dubai, and invite entrepreneurs to take full advantage of its business enabling initiative and support. The agreement will prove to be an effective catalyst for UAE national entrepreneurs and encourage more young business leaders with the ability to emulate other successful businessmen.”
According to a study issued recently by CB Richard Ellis, one of the world’s largest commercial real estate companies, Dubai has emerged as the world’s ninth most expensive city for office space. At Dh321.75 per sq ft, Dubai’s commercial rent has increased by 40 per cent over the last 12 months.
Al Qassim added: “We believe that such agreements will contribute to encouraging young UAE entrepreneurs to enter different business sectors and select our commercial projects as their base to develop successful entrepreneurial ventures.” - TradeArabia News Service