HONG KONG: Curbs on buying property in Hong Kong have cooled a market pushed sky-high by mainland Chinese investors. But the steps have sparked a craze for an unlikely new investment — the car parking space.
The Asian financial hub slapped new taxes on residential properties in late October to rein in prices, amid growing complaints from Hong Kongers that buying even a tiny flat was now out of their reach.
Mainland Chinese buyers were largely blamed for the increase in prices, which have skyrocketed 90 percent since 2009, as they flocked to the city with their new wealth amid the country's economic boom.
Chief Executive Leung Chun-ying hoped the curbs would calm anger over the issue in the space-starved southern city of seven million, after previous promises of making more land available did little to help the situation.
The curbs appear to be working but have also had unusual side-effects, with the city's imaginative investors now focusing on car parking spaces, which analysts say could hit an all-time high.
The issue grabbed the public's attention with a single sale of parking spaces for HK$ 1.3 million ($ 166,666) last month, according to reports.
It was the most expensive sale when tycoon Li Ka-shing's flagship Cheung Kong Holdings offloaded 514 car park slots for a total of HK$ 600 million.
Some of the slots, located in the New Territories area of Hong Kong bordering mainland China, were reportedly quickly resold for profits of up to HK$ 300,000 each.
People who sell the spaces said they had seen a surge in activity, which they believed was because the slots are not affected by the new taxes, as well as being maintenance-free and relatively cheaper than buying a property.
They say car parking spaces were not previously a popular investment in a city which only has about half a million private cars and is well-connected by a vast public transport system.
"Parking was a very unattractive investment in the past. It's not easy to get rid of it so it's not a very tradable product," Josh Wong, who runs online car park trading website Parkinghk.com said.
High property prices is just one source of rising tensions between natives of the semi-autonomous southern Chinese city, a former British colony, and the mainland Chinese who are arriving in increasing numbers.
The curbs — a 15-percent stamp duty on non-permanent residents and corporate buyers as well as a higher stamp duty on the resale of property within three years — appear to have cooled the property market in general.
New home sales have fallen nearly 50 percent since they were introduced and prices are also edging down, albeit slowly, estate agents say.
"Definitely it has had quite a significant impact on the transaction volume," said analyst Buggle Lau from Midland Realty.
There were only 1,054 sales of first-hand residential properties in the month to Nov. 29, down 49 percent from the same period in October, according to a Midland survey that used official land registry figures.
Prices had fallen, but by an average of less than one percent, Lau said.
In Taikoo Shing, an area near the city center that is popular with Japanese expatriates, the average per-square-foot price has dropped two percent to HK$ 10,920 ($ 1,409), according to estate agent Centaline.
The fall has made savvy investors turn to car parking spaces, but Centaline research head Wong Leung-sing warned that it was a risky investment.
"Once the economy slows, the first thing people do is to sell their cars, not their house," he said. "But people have nowhere else to park their capital so they turn to high-risk products like this."
Nevertheless, he believed the average price of a second-hand car parking space looked likely to break its historic high of HK$ 660,000 recorded in late 1997 before the Asian financial crisis.
The average price of a space in the third quarter of this year was HK$ 640,000, he said.
Investors turn to car parks as Hong Kong property cools
Investors turn to car parks as Hong Kong property cools
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/media/03/12/2012/1354453699710401900.jpg?itok=VEeLHCze)
IMF board to discuss Pakistan’s $7 bln bailout on Sept 25 as PM hails friendly states for support
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/main-image/2024/09/12/4523539-1348032456.jpg?itok=OWTsrL2a)
- The South Asian country reached a staff-level agreement with the global lender in July, but approval for the 37-month program has been pending since then
- Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves and local currency devaluation
ISLAMABAD: The International Monetary Fund (IMF) executive board will meet on September 25 to discuss a $7 billion program agreed with Pakistan this year, an IMF spokesperson said on Thursday, as Prime Minister Shehbaz Sharif appreciated “friendly” countries for their support in meeting the lender’s requirements.
The South Asian country reached a staff-level agreement with the global lender in July, but the IMF board’s approval for the 37-month program has been pending since then.
Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves to critical levels, currency devaluation and record inflation.
“The board meeting is scheduled to take place on September 25 and this is following Pakistan obtaining necessary financing assurances from its development partners,” IMF spokesperson Julie Kozack said in a press briefing.
The development came hours after Prime Minister Shehbaz Sharif appreciated “friendly” countries for helping Pakistan meet requirements necessary to secure the IMF bailout.
“I’d like to say that our friendly and brotherly countries have supported us and have come all the way,” Sharif said on Thursday, while addressing a federal cabinet meeting.
The premier avoided delving into details and said the incumbent government was focusing on the commitments made with the IMF.
“For now, it would be fine to say that the finance minister, other government institutions and our ambassador in China have worked hard together for this,” he said.
Islamabad has for years relied on China, Saudi Arabia and the United Arab Emirates for financial assistance to meet external financing requirements and avoid sovereign default, which it came close to last summer.
Pakistan’s sovereign dollar bonds rallied on Thursday afternoon, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.
Sharif said Pakistan’s economy would greatly benefit if the monetary policy rate also reached single digits like the inflation rate, highlighting that the dialogue with the IMF was moving ahead in a “good manner.”
PM Sharif said Pakistan will take decisions regarding the growth rate once the program is finalized.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. The latest economic crisis has been the most prolonged and has seen the highest-ever levels of inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.
The conditions of the fresh IMF bailout have become tougher such as higher taxes on farm incomes and electricity prices. The bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country.
Closing Bell: Saudi main index ends higher at 11,842.55
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/main-image/2024/09/12/4523522-1712731364.jpg?itok=e7TMGLzc)
- Parallel market Nomu increased by 170.05 points, or 0.66%, closing at 25,934.60
- MSCI Tadawul Index climbed, adding 8.32 points, or 0.57%, to end at 1,471.48
RIYADH: Saudi Arabia’s Tadawul All Share Index reversed this week’s trend, rising by 76.15 points, or 0.65 percent, to close at 11,842.55 on Thursday.
Total trading turnover reached SR6.49 billion ($1.72 billion), with 154 stocks advancing and 72 declining.
The Kingdom’s parallel market Nomu increased by 170.05 points, or 0.66 percent, closing at 25,934.60. The session saw 43 stocks advance and 25 decline.
The MSCI Tadawul Index also climbed, adding 8.32 points, or 0.57 percent, to end at 1,471.48.
Top performer Rasan Information Technology Co. saw its share price jump 6.90 percent to SR57.30. Nayifat Finance Co. and Zamil Industrial Investment Co. also performed well, with share price increases of 5.66 percent and 5.43 percent, respectively.
Al-Baha Investment and Development Co. was the worst performer, with its share price falling 5.26 percent to SR0.18.
Saudi Fisheries Co. and Jamjoom Pharmaceuticals Factory Co. also faced declines of 3.68 percent and 3.58 percent, reaching SR23.06 and SR183.20, respectively.
In Nomu, ASG Plastic Factory Co. led with an 8.51 percent rise, closing at SR51.00. Alhasoob Co. and Alqemam for Computer Systems Co. also saw gains, with share prices up 8.17 percent and 7.10 percent, respectively.
The worst performer in Nomu was the Arabian Food and Dairy Factories Co., with a 3.61 percent drop to SR72.
Edarat Communication and Information Technology Co. and Osool and Bakheet Investment Co. also fell by 3.46 percent and 3.12 percent, respectively.
On the announcement front, Rabigh Refining and Petrochemical Co. reported a reduction in its accumulated losses to 36.16 percent of its SR16,710 million share capital by Aug. 31, down from 53.09 percent as of June 30. This equates to SR6.04 billion.
The decrease was achieved by waiving SR1.88 billion each in loans by the founding shareholders, the Saudi Arabian Oil Co. and Sumitomo Chemical Co. Ltd., and the associated accrued commissions.
Saudi Industrial Development Co. announced that its subsidiary, Global Marketing Co. for Sleeping System, known as Sleep High, plans to issue Murabaha sukuk valued at SR10 million.
In a statement to Tadawul, the company announced that the sukuk will be available for purchase via Sukuk Capital’s website. Sukuk Capital is authorized by the Capital Market Authority to issue and invest in debt instruments.
Bloom Consulting opens its first Middle East office in Saudi Arabia
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/main-image/2024/09/12/4523499-1809579606.jpg?itok=SnOg-Ctu)
- Move aims to create branding strategies that drive economic progression and enhance global competitiveness
- Regional headquarters initiative has seen over 120 companies set up their Middle East bases in Riyadh this year
JEDDAH: Madrid-based Bloom Consulting has opened its first Middle East office in Saudi Arabia, partnering with Destination Consultancy to help cities and regions improve economic growth.
In a statement, the company said that the move aims to assist in creating branding strategies that drive economic progression and enhance global competitiveness.
Bloom Consulting collaborates with global partners, amassing extensive experience in nation and place branding as well as placemaking. This includes its 2020 collaboration with the Royal Commission for Riyadh City to develop and implement the Riyadh City Brand strategy.
The office opening is the latest example of a firm establishing a presence in the Kingdom, following the regional headquarters initiative which has seen over 120 companies set up their Middle East bases in Saudi Arabia’s capital in 2024.
Bloom Consulting said that with the Kingdom undergoing significant transformation as part of Vision 2030, the need for robust place branding and strategic economic positioning has never been more critical.
Jose Filipe Torres, CEO of Bloom Consulting, stated that their partnership with Destination Consultancy, which exclusively represents their company, marks a significant milestone in their dedication to supporting Saudi Arabia’s economic aspirations.
“We believe that every place has a unique story to tell, and by harnessing that narrative, we can help regions attract investment, boost tourism, and ultimately enhance the quality of life for their residents.”
Iman Hajjed Al-Mutairi, founder and CEO of Destination Consultancy and managing partner at Bloom Consulting, stated: “We are thrilled to exclusively represent Bloom Consulting to bring cutting-edge Place Branding strategies to Saudi Arabia.”
Al-Mutairi, who has served as the executive director of destination branding, marketing, communication, and sales at Soudah Development Co. for nearly three years, emphasized that the economic growth of cities begins with a strong place brand.
“We will work together toward creating a vibrant and sustainable future for our cities and communities,” she said.
Destination Consultancy is a Saudi partner in strategic marketing and communication consulting focused on enhancing the economic viability and attractiveness of places with a commitment to driving impactful change.
In 2022, Brand South Africa chose Bloom Consulting for a project focused on assessing the country’s global reputation and providing strategic advice on brand management, while in the following year the firm worked with Essential Costa Rica to define Vision 2035 for the nation’s brand, incorporating new sustainability dynamics.
AI can affect job market positively, say experts at Global AI Summit
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/main-image/2024/09/12/4523476-385554783.jpeg?itok=qniDRpuh)
- AI’s wealth creation will need equitable distribution, says executive
- Other experts believe firms will set right ethical ‘guardrails’ around AI
RIYADH: Fears that the adoption of artificial intelligence will result in widespread job losses are overstated and there are likely considerable benefits to be derived from integrating the technology in the workplace, said experts during a panel discussion at the third Global AI Summit in Riyadh on Thursday.
Dr. Richard Benjamins, the co-CEO of RISE.ai, said AI would have an impact but probably in a positive way. “Some jobs will maybe disappear, but a lot of new jobs will be created,” he said.
He said the obvious negative was that some may lose their jobs, but AI could lead to greater productivity and even three- or four-day weekends. An important question was who would benefit.
“The question is, really, the issue of distribution of wealth,” he said. “Clearly, we are on a trend where there are increasing gaps between countries, and the haves and the have-nots.
“And within the countries also, the distribution is going to a few. I think a lot of people are worried about this and this has a huge impact on society.”
Benjamins said that most companies would regulate themselves to ensure their employees are not hurt in any way. However, there was also the possibility that employees would reject AI for fear of how it might affect their livelihoods.
Dr. Heather Doman, IBM’s global leader, responsible AI initiatives, said: “People are generally concerned … But I also want to say that I don’t personally feel that we need to slow down.
“Generally, we have learned, as with other technologies, that we can innovate and set the right guardrails around it, and that is what I believe we’re going to see.”
Benjamins added that AI must be used ethically. “I think AI is all about creating value and increasing productivity, but sometimes, even though the intention is positive and the use is legitimate, there might be, let’s say, negative, unintended consequences.
“If you speak about ethical AI, it’s to make sure that those unintended negative consequences are mitigated or prevented. And that requires what we call a methodology for responsible use of AI.”
He said that inaccuracies in AI could have varying consequences. If a social media algorithm is 1 percent inaccurate, it was probably not a big problem. But if a manufacturing process or healthcare analysis is 1 percent inaccurate, it could have significant consequences.
Simon Turner of Sofinnova Digital Medicine said: “I think we should go the way we’re going with healthcare in general … We’ve always had the guiderails, quality assurance, quality management, ethics committee approval, you know, a lot of work that’s been done in this space.
“AI is yet another tool, but not important. We’re just adding the same approach we’ve been using for years, which is always thinking first about the patient. So for us, it doesn’t really change much.”
AI could out-think humans in 10 years, expert tells Riyadh summit
![](https://www.arabnews.pk/sites/default/files/styles/n_670_395/public/main-image/2024/09/12/4523475-334076702.jpg?itok=yj0NzjVV)
RIYADH: Artificial intelligence experts have delivered their visions for the future of the technology at the 3rd Global AI Summit in Riyadh.
With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time.
Simon Turner, a partner at Sofinnova Digital Medicine, said: “In 10 years, I think we will have something that looks like what we’re talking about in terms of artificial general intelligence.
“So, I think we will have models that are more sophisticated, more intelligent than humans on basically any topic. I think that will be a very powerful and good thing, and I don’t think that it will be dangerous.”
Turner’s hope is that AI will be able create models that automate menial business tasks, freeing up employees’ time and producing value.
However, Dr. Richard Benjamins, the co-CEO of RISE.ai, said that artificial general intelligence may not be the key to the technology’s evolution.
“In 10 years, I believe that we will not have artificial general intelligence, so not general intelligence, but we will have much better problem solving,” he said.
“So, it’s not about emotions, about fear or power or what the AI wants or its intentions; it’s about solving hard problems, which we will use for business, and I think mostly in the context of the co-pilot concept. So, humans in the driving seat.”
But the danger, Benjamins added, is that human brain power may deteriorate as AI takes on all the hard work. Who remembers phone numbers anymore, he asked, when your mobile phone takes care of all the memory.
“I predict one of the jobs in the future will be to run a fitness center for your brain, because we don’t have to think anymore, we don’t have to be creative anymore,” Turner said.
“It’s all done by AI. So, I think that’s one of the risks that we hardly are seeing yet. In the future, we need to go to the gym to stay mentally healthy.”
But there is an upside to the evolution of AI, Turner added.
“In research, I think we’ll be making incredible groundbreaking biological discoveries. We’ll probably start getting towards the foundation of biology, understanding how we work, why we are the way we are, why we get diseases, how we potentially prevent them.
“When you go and see your GP, suddenly if some anomaly pops up, they’ll know what to do with you in a much more streamlined fashion.”