Mussafah is one of the oldest industrial locations in UAE; the district had its beginnings from the 1970’s. The Mussafah Port is a driver for the district. The districts had light manufacturing units, warehouses, retails establishments, hotels, residential and worker accommodations.
Most businesses, maintenance workshops and factories are located in the industrial section, which is dotted with two- to five-storey structures. These structures are separated by roads punctuated with roundabouts and negligible greenery. The district is poorly designed and quality of industrial accommodation is poor. There are only a handful of decent quality warehouses in Mussafah.
The road network almost forms a maze and is prone to traffic jams. Entering and exiting the district is quite challenging, especially during peak traffic hours. The units in the district are poorly regulated and implementation of the municipal codes is poor in the older buildings. There are constant reports of accidents and sweeping fires in Mussafah.
No new supply of units is expected in the short-term or next 12 months. Abu Dhabi Business Hub is one of the better developments in the district and has very high occupancy (over 90%).
Dubai’s office market continued to witness limited demand in the first quarter of 2019, this has meant that pressure on offices rents in Dubai has been sustained over this time period, leading to further softening in the market.
Bahrain continues to be an attractive location for firms looking to setup a base in the GCC. Particularly as the region’s largest economy, Saudi Arabia, continues to open up. Bahrain will increasingly be considered as a hub location given its direct access to Saudi Arabia via the King Fahd causeway and growing number of direct flights from its new terminal in Q4 2019.