LONDON: Retailers and analysts are expecting sales of the new iPhone X and 8 to match the considerable pre-release hype when the the latest models are available for preorder in the Gulf from Oct. 27.
The sight of thousands of Apple-obsessed fans working themselves up into a frenzy and lining up around the block in order to get their hands on the latest iPhone is nothing new; the annual iPhone launch is as much a date in some people’s calendars as their birthday.
Analysts, however, are expecting sales of the iPhone X, Apple’s 10th anniversary model, and iPhone 8, launched amid the usual fanfare on Tuesday, to buck the trend of a recent fall in sales.
“We are expecting to see a growth this year over sales in 2016. Last year’s sales were down against 2015,” Anshul Gupta, research director of Gartner, a research and advisory company, told Arab News.
“We see this growth as being down to sales of the new iPhone 10 and 8, not least because sales of the iPhone in the first half of the year were down on the first half of 2016.”
For Gupta, the lower sales earlier this year and expected rise in sales during the second half of 2017 can be explained by fans being prepared to wait for the iPhone X rather than upgrade to the iPhone 7, which was released a year ago.
“There were rumors in the market about what the new features were going to be, and people knew there was going to be a 10th anniversary model,” Gupta said.
“So they waited for the significant upgrade. Pent-up expectations were building ahead of the launch and we anticipate this will lead to better second-half sales.”
That view was echoed by Nilesh Khalklho, CEO of Sharaf DG, who claims the excitement caused by the new models is twofold. First, the idea that the iPhone X is a significant departure from the previous models, and second, because customers in the UAE always love Apple devices.
“The new iPhone X is the all-new premium launch which has some amazing new features. We see this being a big draw for UAE residents who always like to go for the latest, cutting edge devices,” Khalklho said.
“The iPhone has been one of the most popular phones in the UAE for many years now.”
However, one analyst, while expecting strong sales of the latest iPhones, is predicting tough times for Apple beyond this latest launch.
Other than the wireless charging, the all-screen design and supposed longer battery life, the one common thing remarked upon about the iPhone 10 is the price: An eye-watering, gulp-inducing $999-plus.
For Brand Finance CEO, David Haigh, that could prove to be the iPhone’s undoing looking beyond last-quarter sales.
“Thanks to the new launch, the coming months will probably bring a surge in Apple’s sales, but the brand is going to struggle to retain its position in the long run,” Haigh told Arab News.
“Apple products remain status symbols in the Gulf. There is no doubt that many early adopters in the region will book their delivery of the new iPhone X or Apple Watch as soon as they become available.
“However, with the advent of cheaper handsets from brands like Huawei, whose success is particularly fueled by growth in emerging markets such as the Middle East, Apple’s increasing focus on what are effectively luxury products may ultimately cost the brand a large share of the mass market.
“Brand value depends on the topline figures and if Apple fails to boost revenues in key markets such as the Gulf, its brand value will continue to fall.”
But while Apple may need to worry about the long term due its pricing structure, Kutaiba Edrees, store manager at iStyle in Riyadh, foresees no problem with the price of the iPhone X.
“We are expecting very good sales of the iPhone X,” Edrees said.
“The price is not a problem, it will sell at around SR5,000 ($1,333) and that is not a problem for our customers, they love Apple and they love the iPhone. It is very popular in Saudi Arabia.”
He did, however, anticipate a marked difference in sales between the anniversary iPhone X and the iPhone 8.
“We expect the iPhone 10 to sell very well, but the iPhone 8 not so much. The 10 is completely new, new design, everything is new.
“The 8 on the other hand is very similar to the 7, the same design as 7, and the 6s.”
X marks the spot for iPhone sales boom
X marks the spot for iPhone sales boom
Saudi Arabia’s property market set for growth with billions in new projects
- The largest PIF projects in the Kingdom are in the Asir region
- At least 50 percent of the country’s tourism is expected be centered in Riyadh
RIYADH: The Saudi real estate landscape is poised for substantial growth, as industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh to unveil major developments in property investment and tourism.
Highlighting the Kingdom’s ambitious Vision 2030 objectives, Asir Gov. Prince Turki bin Talal revealed the Public Investment Fund is spearheading nine major projects in the region, with four already launched and five in progress. “The largest PIF projects in the Kingdom are in the Asir region,” the governor said, emphasizing the region’s pivotal role in Saudi Arabia’s evolving property market.
The governor highlighted the region’s growing hospitality sector, with between 6,000 and 8,000 approved hotel rooms currently available.
He also announced that Abha’s World Cup bid had been officially recognized as the best in the Kingdom by the Ministry of Sports.
Meanwhile, Al-Ahsa Gov. Prince Saud bin Talal unveiled plans to expand the region’s hospitality offerings. “Our pipeline includes over seven or eight hotels and more than 25 rural lodges, including three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said. Saudi Tourism Minister Ahmed Al-Khateeb noted the rapid expansion of the Kingdom’s hospitality industry, with hotel room capacity expected to grow from 475,000 to 675,000 by 2030. Al-Khateeb also discussed the impact of major infrastructure projects, such as the King Salman International Airport expansion and the launch of Riyadh Air, which are central to the Kingdom’s hyper-tourism strategy.
He forecast that at least 50 percent of the country’s tourism will be centered in Riyadh, but emphasized efforts to keep the capital’s share from exceeding 80-90 percent. In the financial sector, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, discussed the increasing role of real estate in the Kingdom’s investment market.
“Around 20 percent of the 55 initial public offerings currently under review involve real estate companies,” he revealed.
El-Kuwaiz emphasized the importance of financial stability and transparency for companies looking to list, advising them to treat investors as partners.
In a significant move, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors immediately.
SAMA permits full public launch of STC Bank in digitalization push
RIYADH: The Saudi Central Bank, also known as SAMA, has authorized STC Bank to launch its full operations in Saudi Arabia.
As the first licensed digital bank in the Kingdom, STC Bank’s approval marks a significant step in SAMA’s ongoing strategy to accelerate digital transformation and enhance competitiveness in the banking sector.
At the same time, the move ensures the safeguarding of financial stability, according to a press statement from the central bank.
This milestone underscores the growing dynamism and potential of Saudi Arabia’s digital economy, while also highlighting SAMA’s efforts to create a regulatory framework that fosters innovation within the financial sector.
“SAMA is committed to strengthening the resilience of the banking sector, boosting its appeal, and increasing its role in achieving Saudi Vision 2030 and the Kingdom’s broader national objectives. This includes empowering entrepreneurs and financial institutions to deliver innovative financial services to the Saudi market,” the central bank said.
The approval follows a significant step taken in April 2024, when SAMA formally approved the transition of STC Pay — the mobile financial services arm of Saudi Telecom Co. — to STC Bank. Following a nine-month beta launch, STC Bank is now poised to begin its full banking operations.
Additionally, in December 2024, SAMA also gave the green light to D360 Bank, another digital financial institution, allowing it to begin its operations in the Kingdom.
Al-Habtoor Group halts investment plans in Lebanon amid growing instability
DUBAI: UAE-based business conglomerate Al-Habtoor Group has abandoned its plans to reenter the Lebanese market, citing ongoing “unrest and instability” caused by armed militias.
In a statement issued on Tuesday, Khalaf Al-Habtoor, chairman of the group, explained that recent developments had deeply shaken his optimism.
“My team and I had been diligently preparing to launch new projects and expand existing investments in Lebanon, encouraged by promising signs such as the election of Gen. Joseph Aoun as president and the nomination of Nawaf Salam as prime minister. Both individuals embody integrity, credibility, and respect, instilling renewed hope among the Lebanese people — and investors like myself — for the country’s future,” the statement read.
However, he said that the continued dominance of armed militias, particularly what he described as “Shiite militias”, and the “absence of rule of law” have made it impossible for investors to proceed with confidence.
Tensions escalated with Hezbollah supporters holding rallies in Beirut, including in Christian-majority neighborhoods, further raising sectarian divisions. The protests followed the return of Shiite residents to southern Lebanon after a ceasefire between Israel and Hezbollah was recently extended.
In his statement, Al-Habtoor lamented the lack of decisive action from Lebanese authorities, including the army and the Ministry of Defense, in addressing these disturbances, noting that the situation was only worsening.
Unless the new government takes a firm stance against those working to destabilize the country, hopes for a “new Lebanon” will remain unfulfilled, he said.
Al-Habtoor clarified that the decision to pull out was made after careful analysis and close monitoring of the situation. As a result, neither he, his family, nor any group managers would be traveling to Lebanon.
Earlier this month, and following the wave of optimism that followed the election of President Aoun and Prime Minister Nawaf Salam, Al-Habtoor told Arab News in an interview that his group intended to move forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.
The group, a multibillion-dollar global conglomerate, has diverse interests spanning luxury hotels, shopping malls, and more. As of January last year, its investments in Lebanon were estimated at around $1 billion.
Experts predict suburban boom, smarter housing designs in Saudi Arabia
RIYADH: The rise of community living and the increased accessibility of suburbs, driven by advancements in transportation, are transforming real estate trends in Saudi Arabia, experts say.
At the Real Estate Future Forum in Riyadh on Jan. 28, Khaled Elsehamy, chief development officer for real estate at the National Housing Co., highlighted the significant shift in the Kingdom's real estate sector. According to Elsehamy, more people are now viewing suburban areas as attractive living options.
During a panel discussion, Elsehamy also noted a growing preference among Saudi residents for smaller housing units, moving away from the traditional multigenerational homes.
“Suburbs are becoming increasingly appealing,” Elsehamy said. “People now find areas outside the central cities more attractive due to their convenience, accessibility, and proximity to essential services. They can easily connect with the city whenever they wish.”
He continued: “The rising costs of utilities, furniture, and maintenance have led people to seek smaller, more efficient homes. There is a growing demand for durable, modular designs that offer long-term savings while meeting modern needs.”
Elsehamy’s remarks came just a day after NHC CEO Mohammad Al-Buty announced that lower interest rates in 2025 will help the company surpass its 2024 sales targets. This aligns with NHC’s broader ambition to become the leading real estate developer in the region and stay at the forefront of the industry.
Elsehamy also discussed the shifting mindset of Saudi homebuyers, noting a stark contrast to traditional purchasing habits. “In the past, people bought homes for their children and grandchildren. That’s no longer the case,” he explained.
“Today, people are looking for homes that fit different life stages. They think, ‘I’ll live in this house now, move to a bigger one later, and eventually downsize to a smaller place by the beach in 20 years.’”
The NHC official emphasized that community living is driving new trends in Saudi Arabia’s housing market. “Community living allows residents to interact more with those around them, and it often includes amenities like community centers where people can work, especially those with remote work options.”
Echoing these sentiments, Andrew Baum, emeritus professor at Oxford, also spoke during the panel, highlighting how modern homebuyers prioritize accessibility over location.
“Previously, location was everything in real estate,” said Baum. “But today, accessibility has become the key factor. The new metro in Riyadh is set to significantly impact property values, opening up newly accessible areas.”
Oussama Kabbani, group chief Development officer at ROSHN, emphasized that Saudi Arabia’s real estate sector has reached a global standard post-Vision 2030. Reflecting on ROSHN’s approach to enhancing community living standards, Kabbani explained that understanding customer needs is central to their success.
“It all comes down to data and actively listening to your customers,” he said. “We conduct numerous surveys online and engage directly with residents to understand what’s missing. We focus a lot on creating activities for children, with educational and cultural events to keep them engaged.”
He continued: “We also place a strong emphasis on sports. It's not complicated — you don’t need to spend a fortune to make people happy. The key is knowing what makes them happy and delivering it with quality.”
Kabbani also noted the growing sophistication of the community real estate sector. He predicted that investments in senior living spaces, alongside data centers and healthcare facilities, would soon become more prominent.
“Our communities are designed with schools, community centers, playgrounds, and more,” Kabbani added. “When people choose to live in our communities, they’re not just buying a home — they’re buying a lifestyle. And we’re committed to ensuring that lifestyle is truly lived.”
During the session, Nasser Al-Kadi, chief investment officer at Awqaf Investment, praised the recent regulatory reforms in Saudi Arabia’s real estate sector, noting their positive impact on the market.
He emphasized the importance of embracing technological advancements to further modernize the sector. “The regulatory changes in Saudi Arabia have not only attracted external capital but also increased transparency within the industry,” Al-Kadi said.
He continued: “Technology isn’t just a tool for optimization — it’s a driver of growth and innovation. We haven’t yet seen the full potential of these technologies in the Kingdom’s real estate sector.”
Robert J. Di Franco, chief development officer at Roaya Co., also highlighted the growing influence of technology, stating that innovation is fundamentally reshaping every aspect of the real estate industry.
“Innovation and technology are shaping everything we do — from pre-acquisition phases to market analysis, accessing real-time transactional data, to how we manage construction projects and facility handovers. Technology is now integrated into every part of our process,” Di Franco said.
Foreign investments set to revive Makkah’s property market: Ladun CEO
RIYADH: Saudi construction firm Ladun Investment Co. expects a surge in Makkah’s real estate sector following a key ruling by the market regulator allowing foreign investment in Saudi-listed companies owning property in the holy cities.
In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hassan Al-Hazmi, CEO of the Tadawul-listed firm, emphasized that the new regulations are poised to drive investor confidence in Makkah’s market, which has faced stagnation in recent years.
On the event’s opening day, the Kingdom’s Capital Market Authority announced that the Makkah and Madinah real estate markets will now be open to foreign investors. However, investments are limited to shares or convertible debt instruments of listed companies, with total non-Saudi ownership — individuals and legal entities — capped at 49 percent of a company’s shares.
The decision is expected to enhance the competitiveness of Saudi Arabia’s capital market and support the Vision 2030 economic diversification agenda.
“As Mohammed El-Kuwaiz, chairman of the CMA, mentioned yesterday (Jan. 27), the regulations have been studied for more than three years. He said they were supposed to be approved two years ago but were delayed to make them more holistic. There is now a big study regarding foreign investors having ownership in Makkah, Madinah, and the Kingdom as a whole,” said Al-Hazmi.
He said Ladun is focused on Makkah and anticipates growth. “We already manage and own assets in Makkah worth more than SR3.2 billion ($853.1 million).”
Al-Hazmi noted that Makkah’s real estate sector had faced stagnation since 2014, particularly due to the impact of COVID-19 on religious tourism and travel. However, he believes that the sector is on the brink of recovery.
“We already see signs of recovery — companies owning assets in Makkah are experiencing a rise in their share prices. This is very positive, and we anticipated this shift and planned accordingly,” he added.
Ladun is also focused on localizing its workforce and increasing Saudi employment opportunities, aligning with government initiatives.
“Just today, we signed an agreement with the Ministry of Municipal and Rural Affairs and Housing regarding human capital and how we are going to localize more Saudis. At the managerial level, including our C-suite, we have Saudis,” Al-Hazmi said.
He added: “In middle management, we have many young men and women who are part of our company, and they are truly giving us great empathy and trust in ourselves to move forward. This is one of the pillars of Vision 2030.”
In November, Ladun announced a new investment in Jabal Omar Development Co. in partnership with Musharaka Capital, acquiring a land plot worth SR600 million with an expected revenue of approximately SR2 billion. This investment is viewed as a major step in reinforcing Ladun’s presence in Makkah’s evolving real estate market.
Al-Hazmi also highlighted the broader impact of Vision 2030 on the Saudi real estate market, particularly in Makkah, which he sees as a prime beneficiary.
“Stability brings prosperity, and Saudi has enjoyed stability for 100 years now, that brings prosperity. We see it. We see it around the region,” he said.
Referring to comments made by Larry Fink, CEO of BlackRock, during the World Economic Forum in Davos, Al-Hazmi added: “Larry mentioned that if we take the US aside, we will find the most stable area in the world the GCC countries. Prosperity will be there.”
With a focus on sustainable expansion, strategic investments, and market recovery, Ladun Investment Co. remains optimistic about its role in shaping Makkah’s future real estate landscape.
