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As organizations confront changes in their business environment, one of the big challenges confronting them is the ability to develop competitive advantage. The need to develop competitive advantage is not only limited to manufacturing firms but others as well as including firms which are involved in real estate activities. This study is an attempt to examine the perception of managers in real estate firms in Dubai with regards to competitive priorities and competitive advantage in their respective firms. More precisely, the study investigates the relationship between competitive priorities and competitive advantage in Dubai real estate firms.