Dubai drives UAE real estate sector to record $208bn in transactions
Updated 27 March 2024
Arab News
RIYADH: Real estate transactions in four of the UAE’s emirates surged in 2023 as they recorded a combined 22.6 percent annual increase in value – totaling 765.1 billion dirhams ($208.34 billion).
Driven by 193,500 transactions across Dubai, Abu Dhabi, Sharjah, and Ajman, the steady growth highlights the sector’s contribution to the national economy and its growing appeal, evidenced by a significant rise in both local and international investor interest.
According to official data from local real estate departments in the emirates, Dubai maintained its lead in terms of transaction values in the UAE, with dealings surpassing 634 billion dirhams in 2023, marking an annual increase of 20 percent, as reported by the Emirates News Agency, WAM.
It also recorded more than 166,400 transactions in 2023, marking a 36 percent increase compared to 2022.
In Dubai, there were 157,798 investments attributed to 113,655 owners, among whom 71,002 were new investors, marking a 20 percent increase. Moreover, the percentage of non-resident investors rose, constituting 42 percent of the total new investors.
The UAE’s capital, Abu Dhabi, experienced a surge in economic activity as the number of property agreements reached 87.1 billion dirhams, involving 38,404 sales and mortgage transactions across various units in the emirate.
The value of real estate mortgages in Abu Dhabi totaled 12.2 billion dirhams, involving 22,800 agreements, marking a 19.5 percent increase compared to 2022.
The capital also experienced a surge in local investors by 71 percent and foreign and non-resident investors by 175 percent.
Meanwhile, the emirate of Sharjah recorded a volume of property deeds totaling 27.1 billion dirhams in 2023, marking a 13.1 percent increase compared to 2022.
This comes as the trading volume of non-Arab foreign investors in Sharjah surged by 165 percent, with the number of properties traded increasing by 131.7 percent compared to 2022.
On the other hand, the value of mortgage transactions in the emirate reached 7.5 billion dirhams.
Ajman’s real estate market also experienced significant growth in 2023, with deal value surpassing 16.9 billion dirhams, marking a 43 percent increase from 2022.
This surge was driven by 11,500 real estate transactions, with a total trading volume reaching 10.2 billion dirhams out of 8,675 trading transactions.
Oil Updates — prices inch up on geopolitical tensions, OPEC+ supply plans
Brent crude futures rose 23 cents, or 0.3%, to $73.85 a barrel
Analysts expect a 700,000 barrel decline in crude and a 639,000-barrel increase in gasoline
Updated 41 sec ago
Reuters
SINGAPORE: Oil prices firmed on Wednesday as market participants weighed up geopolitical tensions and the prospect of OPEC+ extending supply cuts against weaker demand, according to Reuters.
Brent crude futures rose 23 cents, or 0.3 percent, to $73.85 a barrel by 10:00 a.m. Saudi time, while US West Texas Intermediate crude futures gained 19 cents, or 0.3 percent, to $70.13.
On Tuesday, Brent posted its biggest gain in two weeks, rising 2.5 percent.
A shaky ceasefire between Israel and Hezbollah, South Korea’s curtailed declaration of martial law and a rebel offensive in Syria that threatens to draw in forces from several oil-producing countries, all lent support to oil prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Oil markets, however, are largely discounting an abundantly supplied 2025 amid sluggish demand signals from the US and China, the world’s top two economies, she added.
“Weaker demand signals from mainland China are raising concerns about demand in the oil market ... The world’s largest crude oil importer may struggle to maintain its significant share of global demand by 2025.”
Meanwhile, crude oil inventories in the US rose 1.2 million barrels last week, market sources said, citing data from the American Petroleum Institute.
Gasoline inventory also rose, by 4.6 million barrels, even though the week included Thanksgiving when demand typically rises as families travel by car for holiday get-togethers.
Official data on oil stocks from the US Energy Information Administration is due on Wednesday at 6:30 p.m. Saudi time. Analysts polled by Reuters expect a 700,000 barrel decline in crude and a 639,000-barrel increase in gasoline.
Also supporting prices, the Organization of the Petroleum Exporting Countries and allies, or OPEC+, will likely extend output cuts until the end of the first quarter of next year when members meet on Thursday, industry sources told Reuters. OPEC+ has been looking to gradually phase out supply cuts through next year.
“The main issue facing any return of OPEC+ supply is that non-OPEC supply growth in 2025 is expected to eclipse the growth in global oil demand,” said Commonwealth Bank of Australia analyst Vivek Dhar in a note.
“The International Energy Agency expects non-OPEC supply growth, led by the US, Canada, Guyana and Brazil, to increase supply by 1.5 million barrels per day next year. Global oil demand is only expected to lift about 1 million bpd as China’s oil demand is expected to remain subdued.”
In the Middle East, Israel said on Tuesday it would return to war with Hezbollah if their truce collapses, and its attacks would go deeper into Lebanon and target the state itself. The comment followed the deadliest day since Israel and Hezbollah agreed to a ceasefire last week.
In neighboring Syria, rebels advancing against government forces pushed close on Tuesday to the major city of Hama, rebels and a war monitor said, after their surprise capture of Aleppo last week.
Saudi Crown Prince unveils National Red Sea Sustainability Strategy to drive blue economy
Covering 186,000 sq. km and featuring 1,800 km of coastline, the area is home to diverse marine ecosystems, including the world’s fourth-largest barrier reef system and 6.2 percent of global coral reefs
The initiative reflects Saudi Arabia’s broader efforts to integrate environmental sustainability into its economic agenda while developing its marine-based industries
Updated 52 min 26 sec ago
SYED AMEEN KADER
RIYADH: Saudi Crown Prince Mohammed bin Salman has launched the National Red Sea Sustainability Strategy, an initiative aimed at safeguarding the marine environment, supporting local communities, and advancing the Kingdom’s transition to a blue economy.
The strategy is part of Saudi Vision 2030 and ties into national priorities for research, development, and innovation, particularly in environmental sustainability, the Saudi Press Agency reported.
“The Kingdom of Saudi Arabia continues to unleash its enormous economic, geographical and cultural potential, and its pioneering efforts in sustainability and environmental conservation,” said the Crown Prince, who also serves as prime minister and chairman of the Council of Economic and Development Affairs.
He added: “Through this strategy, the Kingdom positions the blue economy as a fundamental pillar of its diversified economy and aspires for the Red Sea region to become a global reference for leading blue economy activities, and for the Kingdom to become a global leader in the field of research, development and innovation in blue economy.”
Covering 186,000 sq. km and featuring 1,800 km of coastline, the area is home to diverse marine ecosystems, including the world’s fourth-largest barrier reef system and 6.2 percent of global coral reefs.
The strategy outlines measures to protect these resources while developing industries such as ecotourism, fisheries, renewable energy, and water desalination.
By 2030, the plan seeks to expand marine and coastal protected areas from 3 percent to 30 percent, increase the share of renewable energy in the energy mix to 50 percent, and create new jobs in the blue economy. It also aims to protect investments in coastal tourism, which are expected to contribute to the national economy.
The strategy focuses on five main objectives: environmental sustainability, economic development, social development, safety and security, and governance. It includes 48 initiatives designed to balance economic activity with environmental preservation and address climate challenges, the SPA added.
The Crown Prince emphasized the Kingdom’s commitment to a sustainable future for the Red Sea, adding, “We look forward to everyone’s cooperation in protecting our Red Sea coast and the nature and communities that depend on it.”
The initiative reflects Saudi Arabia’s broader efforts to integrate environmental sustainability into its economic agenda while developing its marine-based industries.
How Saudi Arabia and France aligned national visions for prosperity at Riyadh investment forum
Deals struck at Saudi-French Investment Forum deemed an important milestone in bilateral relations
French President Emmanuel Macron highlights the synergy between Saudi Vision 2030 and France 2030
Updated 03 December 2024
Zeina Zbibo
RIYADH: The Saudi-French Investment Forum that took place in Riyadh on Tuesday marked an important milestone in bilateral relations, with the signing of multiple memorandums of understanding and investment agreements worth billions of dollars.
Held to coincide with the state visit of French President Emmanuel Macron, the event brought together officials, policymakers, and business leaders from both nations, aiming to align their national visions for a prosperous future.
In his opening remarks, Saudi Minister of Investment Khalid Al-Falih welcomed French stakeholders, emphasizing the strong ties between the two countries. He lauded Macron as a “good friend of the Kingdom, leading a strong delegation.”
Al-Falih highlighted the enduring economic partnership, the breadth of sectors covered, and the presence of French companies in Saudi Arabia. “Every time there is an event involving Saudi Arabia and France, there is a special magic and attraction,” he said, noting France’s early support for Riyadh’s bid to host EXPO 2030.
In his opening remarks, Saudi Minister of Investment Khalid Al-Falih lauded Macron as a “good friend of the Kingdom, leading a strong delegation.” (Supplied)
Among the agreements signed were collaborations with French oil giant TotalEnergies and Al Jumeih Energy and Water for the Rabigh 2 solar power plant. Additionally, power purchase agreements for the Al Masa’a and Al Hnakia 2 solar projects involved EDF, SPIC, and the Saudi Power Procurement Company.
Another major deal involved the Public Investment Fund, Saudi Investment Recycling Company (SIRC), and Veolia, focusing on waste management and recycling initiatives in the Kingdom.
In his own remarks at the Forum, Macron highlighted opportunities for collaboration in clean energy, mobility, technology, culture, and artificial intelligence, noting the synergy between Saudi Vision 2030 and France 2030.
“For all the French business-people and investors, I want to encourage them to invest more in this country because investing here is investing in the cornerstone of the whole region,” he said.
The Saudi-French Investment Forum brought together officials, policymakers, and business leaders from both nations, aiming to align their national visions for a prosperous future. (AN Photo)
On Monday, Macron and Crown Prince Mohammed bin Salman signed a strategic partnership aimed at boosting cooperation in defense, energy, and AI.
The partnership aims at “multiplying co-operation and concrete achievements in all areas,” the Elesee Palace said in a statement. It also includes plans to co-host a Summit for Action on AI in Paris in February, according to the Elysee.
Tuesday’s Forum built on a long history of cooperation, highlighted by reciprocal delegations at major events like VivaTech in Paris and Saudi Arabia’s LEAP conference. Al-Falih emphasized the shared history, values, and mutual respect underpinning the partnership.
“Saudis love anything French — French design, French furniture, French technology,” he said.
A major deal involving the Public Investment Fund, Saudi Investment Recycling Company (SIRC), and Veolia, focusing on waste management and recycling initiatives in the Kingdom, was signed during the event. (AFP)
Al-Falih noted that Saudi Arabia, the Gulf Cooperation Council’s fastest-growing economy, achieved 3 billion euros in French investment in 2023. France is the Kingdom’s second-largest foreign investor.
“We are ahead of targets in overall investment, and (France) was a significant part in achieving our targets,” said Al-Falih.
“The value of our trade relations exceeded 10 billion euros last year; and with roughly 3 billion euros of French investment into the Kingdom in 2023, and the nation’s accumulated foreign direct investment in Saudi Arabia reached 17 billion euros.”
He added: “We are proud to be hosting in Saudi Arabia close to 500 leading French companies. Significantly, around 30 of these companies have established their regional headquarters here in Riyadh because their target is not just the Saudi market but to use Saudi Arabia as a platform to reach further beyond.
“We stand today as the world is changing so fast in a new era of partnership. There is alignment of our interests and complementarity in our capabilities. And we also have shared worldviews that are lifting this partnership to a new height, culminating in the signing of our strategic partnership.”
French President Emmanuel Macron speaks during the Saudi-French Investment Forum during an official visit in Riyadh on December 3, 2024. (AFP)
Green energy was a central theme, with agreements supporting renewable energy projects and emphasizing sustainability’s role in economic growth. French biopharma leader Sanofi also signed agreements to expand its healthcare projects in Saudi Arabia.
French expertise continues to play a significant role in Saudi Arabia’s development, from Riyadh Metro to the innovative tram systems in AlUla. The historic region, home to Saudi Arabia’s cherished heritage sites, is set to welcome Macron on Wednesday, reflecting ongoing cultural cooperation led by the French Agency for AlUla Development (Afalula).
French experts have been deeply involved with development in the historic region of northwestern Saudi Arabia. “Sharaan” by Jean Nouvel and Villa Hegra by Lacaton and Vassal are just two examples of cultural and heritage cooperation.
Tuesday’s Forum hosted six panels, featuring 50 keynote speakers, and facilitated hundreds of bilateral meetings. Themes included net-zero policies, urbanization, technology, entertainment, and fostering innovation.
The Saudi-French Investment Forum hosted six panels, featuring 50 keynote speakers, and facilitated hundreds of bilateral meetings. (Supplied)
French Minister Delegate for Industry Marc Ferracci underscored the Forum’s importance in strengthening ties amid Saudi Arabia’s unprecedented transformation.
“The Kingdom is undergoing one of the biggest transformations in recent history,” Ferracci told the Forum. “And as the second largest investor in the Kingdom, France supports the Kingdom in different sectors.
“Saudi Vision 2030 and France 2030 are transformative blueprints designed to tackle the challenges of our time, creating sustainable growth for the future, and the development of smart inclusive cities,” he added.
The objectives of France’s National Vision include achieving carbon neutrality and cooperation on green energy.
Ferracci added that France views Saudi Arabia as a vital partner, emphasizing shared goals of carbon neutrality and innovation. “The forum is a testament to our economic relationship and an opportunity to shape the future of our partnership,” he said.
Macron was received at Al-Yamamah Palace in Riyadh by Crown Prince Mohammed bin Salman on Monday. (X/@Bandaralgaloud)
The French economy is viewed as a gateway, offering access to the wider European market, making it an attractive investment destination.
“The relationship between Saudi Arabia and France is not new, rather dates back to centuries not decades,” Prince Faisal bin Abdulaziz bin Ayyaf, the mayor of Riyadh, told the Forum.
He highlighted historical milestones, including the meeting between Saudi King Faisal and French President Charles de Gaulle in 1967, which marked the debut of stronger ties, evolving through personal contacts and visits at the highest levels.
King Khalid visited France in 1978 and 1981, and King Fahd visited twice when he was crown prince, in 1975 and 1981.
Prince Faisal bin Abdulaziz bin Ayyaf, the mayor of Riyadh, highlighted historical milestones, including the meeting between Saudi King Faisal and French President Charles de Gaulle in 1967, which marked the debut of stronger ties. (AFP)
“Saudi Arabia’s Vision 2030 represents an ambitious roadmap towards a more prosperous and sustainable future,” said Prince Faisal.
“Riyadh, as the capital of the Kingdom, plays a pivotal role in achieving that Vision. The city is undergoing an unprecedented economic developmental transformation. The city today stands as a workshop … the future is greater than what we can imagine.”
Prince Faisal highlighted the examples of King Salman Park, which aspires to be the largest urban park in the world, and New Murrabbaa, which is set to become the world’s largest urban development.
“It’s not our journey alone,” said Prince Faisal. “We invite everyone to join.”
Aramco, TotalEnergies and Saudi Investment Recycling Company to explore sustainable aviation fuel plant
The firms have entered into a Joint Development and Cost Sharing Agreement
Updated 03 December 2024
Arab News
DHAHRAN: Saudi Aramco and the Saudi Investment Recycling Company, or SIRC, have partnered with French firm TotalEnergies to assess developing a sustainable aviation fuel plant in Saudi Arabia’s Eastern Province, it was announced on Tuesday.
The firms have entered into a Joint Development and Cost Sharing Agreement.
“With demand for air travel forecast to grow, it’s becoming imperative to address aviation emissions through lower-carbon alternatives. This is where major global energy companies like Aramco and TotalEnergies can play a part, by collaborating to help meet this need,” said Amin Nasser, Aramco president and CEO.
“Addressing transport emissions requires a wide range of approaches and Aramco is pursuing a number of potential innovative solutions, as we seek opportunities to contribute to global emissions reduction efforts.
“We already have a well-established partnership with TotalEnergies and this new collaboration demonstrates our intent to explore ways to leverage our combined strengths, in this case with a view to establishing a SAF plant in the Kingdom with SIRC. As Saudi Arabia’s tourism and aviation sectors expand, this could potentially benefit both domestic and international airlines,” he added.
The project would aim to recycle local waste, such as used cooking oils and animal fats, to produce SAF, advancing Saudi Arabia’s Vision 2030 sustainability goals.
Announced during French President Emmanuel Macron’s state visit to the Kingdom, the initiative is the latest in increasing Saudi-French collaboration on clean energy.
Patrick Pouyanne, chairman and chief executive officer at TotalEnergies, said: “We are delighted to partner with Aramco and SIRC to study the production of SAF in the Kingdom. By leveraging our expertise, we can take a further step toward the decarbonization of air transport together. SAF is at the heart of our company’s transition strategy, as we strive to meet the aviation industry’s demand to reduce its carbon footprint.”
Further details will follow pending feasibility studies.
SIRC chief, Ziad Al-Sheha, added: “In keeping with our commitment to supporting the ambitious sustainability objectives of Vision 2030 and the Saudi Green Initiative, we have a keen focus on increasing waste conversion rates into renewable resources.”
“The new partnership to assess the feasibility of a renewable aviation fuels plant signifies a major leap forward in our mission; we also believe it will enrich and energize our efforts to lead the development of the Kingdom’s circular economy,” he said.
Saudi Green Initiative unveils $60m in new environmental projects at COP16
Updated 03 December 2024
Miguel Hadchity
RIYADH: The fourth Saudi Green Initiative Forum began on Tuesday with the launch of five new groundbreaking environmental projects, valued at SR225 million ($60 million).
This announcement marks a significant step forward in Saudi Arabia’s ambitious environmental strategy, bringing the total investment in SGI initiatives to over $188 billion.
The new initiatives align with Saudi Arabia’s commitment to tackling climate challenges, focusing on reducing emissions, combating desertification, and preserving the Kingdom’s natural ecosystems. The announcement coincides with the 16th Conference of the Parties to the UN Convention to Combat Desertification, being held in Riyadh, and underscores Saudi Arabia’s growing leadership in global environmental efforts.
With 86 ongoing initiatives, the SGI is central to the Kingdom’s long-term vision of creating a more sustainable future. The program is focused on reducing emissions by 278 million tonnes annually and achieving net-zero emissions by 2060.
Saudi Arabia is also making significant strides toward its renewable energy targets, including plans to generate 50 percent of its electricity from renewable sources by 2030.
Since 2021, the Kingdom has planted over 100 million trees and rehabilitated 118,000 hectares of degraded land. By 2030, Saudi Arabia aims to restore 8 million hectares of land as part of its commitment to environmental regeneration.
The five new initiatives, led by Ma’aden, the Morooj Foundation in partnership with the private sector, and Tanmiah Food Co., will bolster efforts in afforestation, biodiversity conservation, and land rehabilitation. These projects are expected to plant millions of trees and mangroves, scatter 300 million seeds, and help reduce air pollution across the country.
According to a press release, these initiatives align with the broader Saudi Green Initiative goals, including the protection of 30 percent of the Kingdom’s land and marine areas by 2030.
Other notable conservation achievements include the successful rewilding of endangered species, such as the recent birth of four cheetah cubs — the first in Saudi Arabia in over 40 years — under the National Cheetah Conservation Strategy, it added
The continued focus on environmental restoration is integral to Saudi Arabia’s broader vision of safeguarding its natural resources and biodiversity for future generations.
