IWG: Middle East expansion as hybrid work adoption grows

The stars have aligned it seems for IWG, the world’s leading flexible office space provider.

Along with rapid acceleration in the adoption of hybrid working, news of a WeWork bankruptcy is expected to see IWG accelerate its already aggressive expansion plans worldwide.

The Switzerland-based firm is looking to acquire more of troubled co-working rival WeWork’s sites, the company’s global CEO Mark Dixon said a day after WeWork sought US bankruptcy protection.

Already running 4,000 locations in 120 countries under multiple brands, including Regus, Spaces and Signature, the London-listed company previously announced plans to add 1,000 new centres globally over the next year – including across the Middle East and Africa, where demand for rental office space is surging. 

Following the opening of two new locations in Algeria in June, three in Oman in September, which brings the total number of sites in Oman to 10 – IWG has now announced 15 new locations in Egypt.

This comes in response to increasing demand for workspaces in these fast-growing regional hubs. 

Driving the expansion in the region is newly appointed CEO for the MEA region Marc Descrozaille – who says demand for co-working space in the MEA region continues to grow as hybrid working becomes the new normal.

"The new locations in Egypt are key milestones in IWG's global expansion," says Descrozaille. 

Flexible working increase across region

This rise of hybrid working has led to a staggering increase in the number of IWG centres, with 612 new locations added globally between January and September 2023.

The company, which already counts 83% of Fortune 500 countries among its customer base, is approaching 4,000 total locations, giving its members access to all workspaces in more than 120 countries via the IWG app.

With an annual investment of around US$61 million into its technology platform, IWG provides partners with access to all the company’s expertise, design and fit-out support, and sales and marketing capabilities.

IWG reported its highest-ever half-year revenue in its 34-year history in August 2023, "due to the rapid adoption of the hybrid model by companies of all sizes worldwide", Descrozaille says.

The openings come at a time when more and more companies are discovering that flexible working boosts employee happiness and satisfaction, while also helping the environment. 

According to research carried out by Hays Middle East in late 2022, 49 per cent of organisations in the Gulf offer some work-from-home options.

A new report from the CIPD has found that hybrid working is having a very positive impact on people practices, with nearly half (44%) of people professionals in Saudi, 39% in the UAE and 29% in Egypt, saying it was easier to attract, recruit and retain talent in a hybrid environment.

IWG’s workplace model has also proven to increase productivity and allows businesses to scale up or down at significantly reduced costs – helping businesses to increase productivity, efficiency, agility and market proximity.

Focus on productivity and sustainability

IWG’s multi-brand expansion strategy across the Middle East is designed to appeal to every type of business and entrepreneur.

Among the 10 locations opening in Egypt, four are in partnership with Arabella and will mark the debut of IWG’s flagship Signature brand in Egypt, and a further five new locations will open across Cairo in 2024, following a recent partnership with Premier Group.

The final Egypt location comes courtesy of a partnership with UAE developer Majid Al Futtaim delivering workspaces within the Mall of Egypt.

In Oman, IWG is working with partners to develop the Regus brand to deliver cutting-edge workplaces in the important business hubs of Duqm and Muscat.

Opening in January 2024, the first location in Muscat will feature private offices, meeting rooms, co-working and creative spaces, while the second in the heart of Muscat will deliver a space designed to foster productivity and collaboration.

In Algiers, Spaces Paragon 3 will be a LEED-certified, hybrid workspace, marking a sustainability triumph for the city.