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Al Etihad
28-04-2025
- Automotive
- Al Etihad
Emirates Driving Company reports strong revenue growth in Q1 2025
REDDY (ABU DHABI) Emirates Driving Company (EDC), the leading provider of driver education in the emirate of Abu Dhabi, posted strong financial results for the first quarter of 2025, with significant growth across key metrics compared to the same period last year. According to the documents submitted to the Abu Dhabi Securities Exchange on Monday, revenue for the quarter surged by 85% year-on-year (YoY), reaching Dh167.1 million compared to Dh90.1 million in Q1 2024. The impressive increase was driven by the acquisition of a new subsidiary, geographic expansion, a higher number of enrolled students, and operational efficiency improvements. Gross profit also rose substantially, up 48% YoY to Dh105.8 million from Dh71.3 million in Q1 2024. However, the gross profit margin decreased to 63% from 79%, reflecting higher direct expenses associated with expanded operations. Profit before tax grew by 14%, reaching Dh79.7 million, compared to Dh70.2 million a year earlier. Net profit for the period stood at Dh68.8 million, an 8% increase from Dh64 million reported in Q1 2024. The company also benefited from additional income streams, including net gains from financial assets, dividend income, rental income, and interest income. Despite the strong earnings growth, the company's market capitalisation recorded a slight decline, standing at Dh2.694 billion as of March 31, 2025, down from Dh3.017 billion at the end of 2024. Nonetheless, EDC's market capitalisation has seen a robust 42% growth over the past five years, reflecting continued investor confidence. Total assets decreased by 8% to Dh1.54 billion in Q1 2025, compared to Dh1.67 billion at year-end 2024, mainly due to dividend payouts totalling Dh183 million. Since its establishment in 2000, EDC, a subsidiary of Multiply Group, created a strategic partnership with Sweroad, which was governed by the Swedish Transport Administration from 1983 – 2018, for the initial development and continuous improvement of its curricula according to global standards. The company has formed a joint quality committee with the Abu Dhabi Mobility aimed at ensuring its training programmes and methodologies align with the Emirate's laws.
Khaleej Times
27-01-2025
- Business
- Khaleej Times
Dubai: Tenants move to cheaper areas, lock long-term leases before commercial rental index rollout
Ahead of the launch of the commercial rental index in Dubai, many tenants of commercial properties are relocating to more affordable areas, while some are renegotiating as well as renewing leases early and securing long-term agreements to lock in current rates. Industry executives say landlords in Dubai are increasing rents of commercial properties in prime locations prior to the launch of the index. As reported by Khaleej Times earlier, the Dubai Land Department is working to launch a rental index for commercial properties in the first quarter of 2025. The launch of the commercial properties index will follow the launch of a smart rental index for residential properties launched by the Dubai Land Department (DLD) earlier this month. Using AI technology, the smart rental index is built on a classification system and provides fair and accurate valuations for tenants. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'Ahead of the launch of DLD's commercial rental index, several trends are shaping the market. A few notable things we have witnessed are landlords raising rental prices in prime locations to lock in higher benchmarks. Secondly, there is an evident, growing focus on sustainable, premium spaces, with landlords upgrading their assets to attract higher-value tenants. Lastly, tenants are seeking longer-term agreements, which are to secure current rates and avoid vast fluctuations,' said Ben Bargh, managing director, Commercial Real Estate Consultants (CRC), an affiliate of Betterhomes. He added that many tenants are relocating to more affordable areas, downsizing office spaces, or shifting to co-working setups to manage expenses. 'Others are renegotiating leases early, securing long-term agreements to lock in current rates, or requesting flexible payment terms to improve cash flow,' said Bargh. Landlords increasing pre-emptively The managing director of Commercial Real Estate Consultants (CRC) noted that many landlords are focusing on upgrading and modernising properties to align with the growing demand for premium and sustainable office spaces, ensuring their assets remain desirable in a potentially more transparent and regulated market once the index is implemented. 'Additionally, many are increasing rents pre-emptively, especially in high-demand areas, to secure higher base rates before the index sets clearer benchmarks. This is particularly evident in Grade A office spaces, where rents have already surged due to limited supply and strong demand,' added Bargh. Dubai's commercial real estate market has achieved unparalleled growth in 2024, recording an impressive 9,038 transactions, reflecting a 24 per cent year-on-year increase, while the total transaction value surged to Dh90.1 billion, marking a 11 per cent year-on-year growth. Shortage of office space Dubai is experiencing a significant shortage of premium office space, driven by robust business growth and a surge in new company registrations. 'For a long time, occupancy rates in prime office areas have stayed above 95 per cent, leading to substantial rises in rentals. Despite plans to add over 9 million sq ft of office space by 2028 through major developments, like Tecom's Innovation Hub Phase 2, One Za'abeel Tower, DMCC's Uptown Tower Phase 2, Al Wasl Tower, and DIFC 2.0, the current supply remains insufficient. This imbalance is expected to persist in the near future, maintaining pressure on both occupancy rates and rental rates,' said Ben Bargh. He added that the maximum shortage in Dubai's office market is undoubtedly in Grade A office supply. 'This trend reflects a growing demand for premium, high-quality spaces from both multinational corporations and regional companies expanding their presence in the city. Occupancy levels for premium offices are at an all-time high, with some reports citing rates of over 95 per cent in key locations such as the DIFC, Downtown Dubai, Business Bay and Sheikh Zayed Road. As a result, there have been a number of off-plan commercial projects coming to the market, predominantly offering Grade A offices. These include the likes of The One by Prestige One, Capital One and more,' added Bargh.
Hi Dubai
27-01-2025
- Business
- Hi Dubai
Dubai Tenants Move to Affordable Areas and Lock in Long-Term Leases as Commercial Rental Index Approaches
As Dubai prepares for the launch of its commercial rental index in the first quarter of 2025, tenants are reacting to anticipated market changes by relocating to more affordable areas, renegotiating leases, and securing long-term agreements to lock in current rates. Industry experts note that landlords are proactively raising rents, especially in prime locations, ahead of the new rental index's implementation. The Dubai Land Department (DLD) is also set to launch a rental index for commercial properties, following the successful introduction of a smart rental index for residential properties earlier this month. The new index, powered by AI, aims to provide fair and accurate property valuations, offering transparency to both landlords and tenants. According to Ben Bargh, managing director of Commercial Real Estate Consultants (CRC), a growing trend is emerging where tenants are opting for longer-term leases to avoid fluctuating rents, while others are downsizing or switching to co-working spaces to manage costs. 'Many landlords are focusing on upgrading their properties to attract higher-value tenants, particularly those seeking sustainable, premium office spaces,' Bargh explained. Dubai's commercial real estate market has seen remarkable growth, with 9,038 transactions recorded in 2024, a 24% increase year-on-year, and a total transaction value of Dh90.1 billion. However, the city faces a significant shortage of premium office spaces, especially in high-demand locations like DIFC and Downtown Dubai, where occupancy rates exceed 95%. This shortage, along with the limited supply of Grade A office spaces, is expected to maintain pressure on rental rates moving forward. News Source: Khaleej Times
Khaleej Times
27-01-2025
- Business
- Khaleej Times
Dubai: Tenants relocating to cheaper areas, securing long-term leases ahead of commercial rental index rollout
Ahead of the launch of the commercial rental index in Dubai, many tenants of commercial properties are relocating to more affordable areas while some are renegotiating as well as renewing leases early and securing long-term agreements to lock in current rates. Industry executives say landlords in Dubai are increasing rents of commercial properties in prime locations prior to the launch of the index. As reported by Khaleej Times earlier, the Dubai Land Department is working to launch a rental index for commercial properties in the first quarter of 2025. The launch of the commercial properties index will follow the launch of a smart rental index for residential properties launched by the Dubai Land Department (DLD) earlier this month. Using AI technology, the smart rental index is built on a classification system and provides fair and accurate valuations for tenants. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'Ahead of the launch of DLD's commercial rental index, several trends are shaping the market. A few notable things we have witnessed are landlords raising rental prices in prime locations to lock in higher benchmarks. Secondly, there is an evident growing focus on sustainable, premium spaces, with landlords upgrading their assets to attract higher-value tenants. Lastly, tenants are seeking longer-term agreements, which are to secure current rates and avoid vast fluctuations,' said Ben Bargh, managing director, Commercial Real Estate Consultants (CRC), an affiliate of Betterhomes. He added that many tenants are relocating to more affordable areas, downsizing office spaces, or shifting to co-working setups to manage expenses. 'Others are renegotiating leases early, securing long-term agreements to lock in current rates, or requesting flexible payment terms to improve cash flow,' said Bargh. Landlords increasing pre-emptively The managing director of Commercial Real Estate Consultants (CRC) noted that many landlords are focusing on upgrading and modernising properties to align with the growing demand for premium and sustainable office spaces, ensuring their assets remain desirable in a potentially more transparent and regulated market once the index is implemented. 'Additionally, many are increasing rents pre-emptively, especially in high-demand areas, to secure higher base rates before the index sets clearer benchmarks. This is particularly evident in Grade A office spaces, where rents have already surged due to limited supply and strong demand,' added Bargh. Dubai's commercial real estate market has achieved unparalleled growth in 2024, recording an impressive 9,038 transactions, reflecting a 24 per cent year-on-year increase, while the total transaction value surged to Dh90.1 billion, marking an 11 per cent year-on-year growth. Shortage of office space Dubai is experiencing a significant shortage of premium office space, driven by robust business growth and a surge in new company registrations. 'For a long time, occupancy rates in prime office areas have stayed above 95 per cent, leading to substantial rises in rentals. Despite plans to add over 9 million sqft of office space by 2028 through major developments, like Tecom's Innovation Hub Phase 2, One Za'abeel Tower, DMCC's Uptown Tower Phase 2, Al Wasl Tower, and DIFC 2.0, the current supply remains insufficient. This imbalance is expected to persist in the near future, maintaining pressure on both occupancy rates and rental rates,' said Ben Bargh. He added that the maximum shortage in Dubai's office market is undoubtedly in Grade A office supply. 'This trend reflects a growing demand for premium, high-quality spaces from both multinational corporations and regional companies expanding their presence in the city. Occupancy levels for premium offices are at an all-time high, with some reports citing rates of over 95 per cent in key locations such as the DIFC, Downtown Dubai, Business Bay and Sheikh Zayed Road. As a result, there have been a number of off-plan commercial projects coming to the market, predominantly offering Grade A offices. These include the likes of The One by Prestige One, Capital One and more,' added Bargh.
