Middle East Co-Working Space Market by Space Type (Open Coworking Spaces, Private Offices, Virtual Offices, Event Spaces, Meeting Rooms), by Business (Conventional Co-working, Professional Co-working, Others) by Business Model (Sub-Lease Model, Revenue Sharing Model, and Owner-Operator Model), by Application (Independent Professionals, Startup Teams, Small And Medium-Sized Enterprises, Large Enterprises), and Other End Users –Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 13-Jun-2025 | No of Pages: 163 | No. of Tables: 165 | No. of Figures: 110 | Format: PDF | Report Code : IC2046
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Market Overview
The Middle East Co-Working Space Market size is valued at USD 274.6 million in 2023, and is predicted to reach USD 1053.1 million by 2030, at a CAGR of 21.1% from 2024 to 2030. Co-working space represents a dynamic and adaptable solution to the evolving needs of businesses. These shared work environments offer flexibility in lease terms and space requirements, appealing particularly to startups and small enterprises seeking to avoid the upfront costs associated with traditional offices. The communal atmosphere encourages networking and collaboration among professionals from diverse fields, fostering innovation and creativity.
Equipped with modern amenities and strategically located, these managed workspaces provide cost-effective, scalable, and accessible alternatives for companies seeking a central presence without the constraints of long-term leases. The industry has experienced significant growth as businesses recognize the benefits of this model, embracing the collaborative opportunities and resource-sharing inherent in co-working spaces.
Economic Diversification and Modernization Fuel the Growth of the Market
As Saudi Arabia's economy undergoes diversification and modernization, there's a discernible shift in workplace preferences. With a growing number of individuals opting for flexible workspace arrangements and pursuing independent projects, the Middle East co-working space market demand is on the rise. This trend is driven by the need for convenient and cost-effective workspaces that cater to the evolving needs of professionals in the region.
Moreover, the expansion of international operators like IWG, as seen in their recent openings in the UAE, further fuels the co-working space market growth in the region. The availability of amenities such as private offices, meeting rooms, and creative workspaces adds to the appeal of coworking spaces, making them attractive options for individuals seeking modern workspace solutions.
Rise of the Gig Economy and Expansion of International Operators Drives the Market Growth
The rise of the gig economy is contributing significantly to the increasing demand for flexible workspaces in the Middle East. This trend is exemplified by IWG's strategic plans to launch 19 new coworking spaces across Egypt, Oman, and the UAE. By partnering with building owners, IWG aims to consolidate its presence in key markets, stimulating further growth in the market.
The expansion of international operators like IWG not only responds to the rising demand for hybrid work solutions but also signifies a broader trend of consolidation and expansion within the Middle Eastern co-working space industry. These developments underline coworking spaces' growing popularity and relevance as flexible workspace solutions in the dynamic business landscape of the Middle East.
The Rising Concerns of Cybersecurity Hinders the Market Growth
The cybersecurity threat poses a significant challenge to the widespread acceptance of managed workspaces, especially for enterprises handling sensitive data. These collaborative work settings, which depend on shared technological infrastructure, are vulnerable to potential security breaches that could lead to unauthorized access and data leaks. This concern is particularly pertinent for firms responsible for safeguarding client confidentiality and proprietary information. The communal nature of coworking spaces amplifies risks associated with network security, physical access, and device susceptibilities, raising alarm among businesses regarding the protection of sensitive information.
Adaptation of Augmented Reality (AR) and Virtual Reality (VR) Creates Future Opportunities for the Market
The advent of Augmented Reality (AR) and Virtual Reality (VR) in coworking is expected to generate abundant opportunities for the growth of the coworking space market. These immersive technologies are projected to redefine the experience of remote collaboration, enabling individuals to actively participate in virtual meetings, collaborative projects, and training sessions with a tangible sense of physical presence. By eliminating geographical barriers and enriching the interactive aspect of remote work, AR and VR are set to make coworking spaces equipped with these technologies highly desirable.
For instance, in May 2023, Sightful, a company based in Tel Aviv, unveiled Spacetop, the world's inaugural Augmented Reality (AR) laptop, securing USD 61 million in funding from investors like Aleph and Corner Ventures. Spacetop, which merges reality with AR, offers an advanced personal computing experience, transcending the physical limitations of conventional laptops and revolutionizing the landscape of coworking and remote collaboration. This integration is poised to attract a broader audience seeking innovative and technologically sophisticated solutions, thus significantly contributing to the expansion and progression of the coworking space market.
Competitive Landscape
The Middle East co-working space industry comprises various companies, including WeWork Inc., Regus Group Companies, Letswork, The Executive Centre, AstroLabs, Modern Working, The Bureau, Cloud Spaces, Alba Innovation Hub, The Co-Spaces, Nasab, Wrkbay, Nook Work, Servcorp, Spaces, and others.
The Middle East Co-Working Space Market Key Segments
By SPACE TYPE
-
Open Coworking Spaces
-
Private Offices
-
Virtual Offices
-
Event Spaces
-
Meeting Rooms
By BUSINESS TYPE
-
Conventional Co-working
-
Professional Co-working
-
Others
By Business Model
-
Sub-Lease Model
-
Revenue Sharing Model
-
Owner-Operator Model
By MEMBERSHIP TYPE
-
Hot Desks
-
Dedicated Desks
-
Private Offices
-
Weekender
-
Flexi Passes
BY APPLICATION
-
Independent Professionals
-
Startup Teams
-
Small And Medium-Sized Enterprises
-
Large Enterprises
BY END USERS
-
BFSI
-
IT Sector
-
Construction
-
Healthcare
-
Government
-
Others
By Region
-
Middle East
-
Saudi Arabia
-
United Arab Emirates (UAE)
-
Israel
-
Qatar
-
Kuwait
-
Oman
-
Other Countries
-
Key Players
-
WeWork Inc.
-
Regus Group Companies
-
Letswork
-
The Executive Centre
-
AstroLabs
-
Modern Working
-
The Bureau
-
Cloud Spaces
-
Alba Innovation Hub
-
The Co-Spaces
-
Nasab
-
Wrkbay
-
Nook Work
-
Servcorp
-
Spaces
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 274.6 Million |
|
Revenue Forecast in 2030 |
USD 1053.1 Million |
|
Growth Rate |
CAGR of 21.1% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Million (USD) |
|
Growth Factors |
|
|
Companies Profiled |
20 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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