During the height of the coronavirus pandemic, as Dubai faced an exodus of expatriates and increasing competition from neighboring business hubs, the government implemented a decision that is now helping the city avoid the commercial real estate crisis affecting the rest of the world, Invest-Gate reports.

The UAE, which Dubai is a part of, began to break away from its decades-old economic model that linked residency to employment. Officials expanded the eligibility criteria for long-term golden visas, aiming to transform Dubai’s transient image by attracting expatriates and encouraging them to establish businesses. This strategy seems to have paid off.

In response to inquiries from Bloomberg, authorities released data for the previous year, revealing the extent of the city’s turnaround. In 2023, Dubai had 411,802 active business licenses, representing a 30% increase from 2022 and a remarkable 75% increase from 2021.

Earlier this month, the Dubai International Financial Centre (DIFC) announced a 26% rise in the number of registered entities in 2023 compared to the previous year, surpassing 5,500. The free-zone now employs approximately 41,600 people, marking a 15% growth.

The impact of these developments is most noticeable in Dubai’s commercial real estate market, where occupancy rates are at record highs, in stark contrast to slumping demand observed in other cities such as London and New York.