With the Kingdom’s massive $80 billion investment in infrastructure initiatives — including new seaports, airports, railways and train stations, metro systems, and bus and road systems — new real estate opportunities have been created in the market promising to change the property market landscape in the Kingdom.
To gain better understanding of the changing requirements and new driving forces in the Saudi real estate market, real estate professionals from the Kingdom and around the world will gather at the Riyadh Real Estate Summit, part of Cityscape Riyadh, taking place from Dec.10-12.
Commenting on the exhibition, Abdullah bin Mahfouz, chairman, National Exhibitions Company, said: “Now in its 4th year, the Riyadh Real Estate Summit has become an integral part of the Riyadh Urban Development and Real Estate Investment Event — Cityscape Riyadh and this year the interest of local, regional and international real estate professionals is at a its height because of the vast amounts being invested in real estate projects by the Kingdom’s government as well as the private sector.
“For this reason, day one of the summit will focus on the incredible expansion of the Saudi capital. Following the opening address, Envisioning Riyadh in 2030 and much sooner, delegates will discuss the driving forces that are evolving Riyadh and the greater region, looking at how infrastructure initiatives, including the new transportation systems, satellite cities and planned facilities, will dramatically change Riyadh’s landscape and affect property prices and the cost of suitable land plots.”
Next will be a presentation by Youcef Betraoui, CEO, Land Sterling, Saudi Arabia, who will shed light on the new real estate opportunities created by the Kingdom’s infrastructure initiatives.
“The benefits of infrastructure development are undeniable,” said Betraoui. “For instance, Dubai’s property sector owes its double digit growth to the ever developing infrastructure and it is now reaping the fruits of those early initiatives that seemed unviable five years ago due to the huge outlays.”
He added: “In terms of data, SR65 billion has been earmarked by Saudi Arabia for the infrastructure and transport sector, up 16 percent over 2012. This includes SR30 billion related to the development of 3,700 km of roads, modernization of existing ports, construction of regional and international airports and berths as well as other infrastructure projects, sowing the seeds for a flourishing property market.
New infrastructure investment acts as a catalyst for new property development. For example, the Riyadh Metro will require feeder bus services and improvements in the current road network to enhance connectivity. Retail and commercial operations will get a huge boost with improved consumer access, while new property developments will push the government to invest heavily in electricity, water and telecommunications.”
Day one will further discuss the new urbanism in Saudi Arabia and horizontal strain covering rethinking a city’s layout to mitigate strain on municipal resources. Real-time project management for greater efficiencies and accountability, and Risk management for large scale development of Saudi Arabia are also important topics that will be covered during the summit.
Day one will conclude with the head of Saudi Equity Research, HSBC Saudi Arabia, KSA, speaking on the subject of investment returns for real estate in Saudi Arabia, among types and compared regionally.
Recent issues facing the real estate market in Saudi Arabia will be one of the main topics of discussion on day two of the Riyadh Real Estate Summit. Experts speaking at the summit will look for short- and long-term solutions that real estate developers and the construction industry should have in place to guarantee availability of adequate manpower for future projects.
The annual Riyadh Real Estate Summit is the most powerful meeting of real estate professionals covering the hottest topics and is the key networking event for developers, government officials, investors and financiers shaping the real estate industry in the capital city of the Kingdom.
Event Sponsors at this year’s show include Tadawul Holding, principal sponsor; Barwa Real Estate Group, founding sponsor; Knowledge Economic City, inaugural sponsor; and Mohammed Al Habib Real Estate Company and Flash Properties, both gold sponsors.
The Saudi real estate market is driven by good demographic fundamentals, with a large local population, and a growing middle class. This has caused increasing unfulfilled demand in the residential sector as Saudi Arabia is currently facing a shortage of housing. According to NCB Capital, the Kingdom will require an additional 973,000 housing units by 2015 and needs to build 300,000 units every year from 2013-2028.
The Ministry of Housing has announced many projects across the Kingdom and recently appointed a contractor to build 7,000 new residential units on Othman bin Affan street, northwest of King Khaled International Airport in Riyadh. The project will include 24 mosques, schools and other supporting facilities. This is one of many projects undertaken by the ministry across the Kingdom to address the acute housing shortage.
Historically, Saudi Arabia’s economic performance is ranked among the best in the G20, mainly driven by high oil prices, which strongly contribute to government revenues, enabling the world’s largest oil exporter to carry out massive fiscal spending to fuel private consumption and create jobs.
Driven by efforts to diversify away from oil, the government continues to channel oil proceeds into public capital spending on massive infrastructure, power and housing projects, which will provide a boost to the Kingdom’s construction, real estate, transport and utility sectors.
Saudi infrastructure projects changing property market landscape
Saudi infrastructure projects changing property market landscape
Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting
- IMF executive board scheduled to meet today to discuss approval of $7 billion loan for Pakistan
ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday Pakistan had met the “tough conditions” set by the International Monetary Fund with the help of Saudi Arabia, the UAE and China, as the global lending agency’s board meets today to discuss the $7 billion loan program for the country.
Pakistan reached a staff-level agreement with the IMF in July for a fresh loan to keep its fragile economy afloat. Finance Minister Muhammad Aurangzeb had earlier expressed hope of sealing the deal by the end of August. However, delays were caused by an external financing gap, which prompted Pakistan to seek commitments from key allies and request debt reprofiling.
Just a day earlier, the finance minister again expressed optimism about securing the loan program after the IMF board meeting, while emphasizing the government’s commitment to structural reforms.
“[Today] is the IMF board meeting, and we have fulfilled all of their conditions, very tough conditions, but praise be to God, we have completed them,” he told the media in New York on the sidelines of the 79th United Nations General Assembly Session. “I want to express my heartfelt gratitude once again, to our trusted brother nations, Saudi Arabia, China and the UAE. Without their immense support, this would not have been possible.”
“At the final stage, the conditions were related to China, and just like in the past, the Chinese government once again held Pakistan’s hand and offered immense support,” he added. “I am deeply grateful to the Chinese leadership.”
Pakistan’s last $3 billion IMF program helped avert a sovereign default in 2023 amid a sharp decline in foreign exchange reserves, currency depreciation and record inflation.
The government has already maintained that the country’s macroeconomic indicators have improved, though it needs the 37-month-long IMF program to solidify those gains.
“You have to grow and build from a stable base,” Pakistan’s finance minister said on Tuesday while addressing a high-level private sector dialogue, ‘CPEC-II and the Region.’ “We have reached that level now. Now, we can say that we have a good foundation on which we can build from here.”
“Now we need to move forward and stay with the reform agenda whether it’s on the taxation or energy side [or] on the state-owned enterprises or privatization side,” he added.
Closing Bell: Saudi main index gains 75 points to end at 12,343
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 75.3 points, or 0.61 percent, to close at 12,343.72.
The total trading turnover of the benchmark index stood at SR7.09 billion ($1.89 billion), with 136 stocks advancing and 83 declining.
The Kingdom’s parallel market, Nomu, dropped 30.99 points, or 0.12 percent, to close at 25,653.38, as 26 stocks advanced and 33 retreated.
The MSCI Tadawul Index added 9.85 points, or 0.64 percent, to close at 1,545.63.
The best-performing stock of the day was Saudi Printing and Packaging Co., which surged 10 percent to close at SR14.52.
Other top performers included Saudi Industrial Development Co. and Saudi Fisheries Co., whose share prices rose 9.93 percent and 9.9 percent, respectively.
National Medical Care Co. was the worst performer, with its share price falling 2.47 percent to SR213.60.
Other underperformers were Gulf Union Alahlia Cooperative Insurance Co. and Saudi Reinsurance Co., which saw their share prices decline by 2.28 percent and 2.17 percent to SR16.26 and SR36, respectively.
On the parallel market, Al Mohafaza Co. for Education was the top performer, with its share price rising 9.21 percent to SR23.
Other top performers on Nomu were Armah Sports Co. and Balady Poultry Co., with their share prices increasing 5.33 percent and 4.49 percent, respectively.
Banan Real Estate Co. was the worst performer on Nomu, dropping 7.8 percent to SR5.44.
Other notable decliners included Academy of Learning Co. and Leen Alkhair Trading Co., with their shares down 6.73 percent and 4.55 percent, respectively.
On the announcements front, Saudi AZM for Communication and Information Technology Co. confirmed the award of a new project from the General Entertainment Authority.
The project aims to provide guidance and support to entrepreneurs and businesses in the entertainment sector, reflecting a strategic push to foster industry growth aligned with Saudi Arabia’s Vision 2030.
The project’s value exceeds 5 percent of AZM’s total revenues for the 2024 financial year. Its scope includes advisory services to strengthen the capabilities of entertainment sector stakeholders.
This initiative builds on the existing partnership between AZM and GEA. Previously, AZM collaborated with GEA on a major digital transformation project that modernized the authority’s operational framework.
Through that collaboration, AZM implemented IT solutions that enhanced GEA’s digital infrastructure, improving efficiency and service delivery. The project involved upgrading critical systems, automating processes, and integrating advanced technologies.
Saudi Arabia to host Global Logistics Forum in October
RIYADH: Saudi Arabia's transportation and supply chain sector evolution will be a central topic as top leaders discuss innovative strategies and advancements at the Global Logistics Forum in Riyadh.
The event, set to take place from Oct. 12-14, comes as investment in the sector is surging, with a 76 percent increase in new businesses registered in the second quarter of 2024, making logistics the fastest-growing sphere in the Kingdom.
Spearheaded by the Ministry of Transport and Logistic Services, the sector is undergoing significant changes to solidify the Kingdom's pivotal role in global trade. This transformation focuses on using advanced technologies to promote sustainability and improve infrastructure and transportation solutions, the Saudi Press Agency reported.
The forum highlights the Kingdom's initiatives to develop and strengthen logistics centers, improving domestic and international connectivity.
The three-day event is expected to gather over 100 speakers and participants, including industry leaders and government representatives.
This year's forum will also attract over 10,000 participants from leading global organizations who will address pressing logistics challenges with discussions on sustainability, supply chain resilience, workforce advancement, and technology adoption.
The agenda includes keynote speeches, dialogue sessions, and bilateral meetings, fostering innovative, sustainable visions for the industry's future.
The event falls in line with Saudi Arabia's strategic location as a trade corridor between Asia, Africa, and Europe and aligns well with the nation's goal to consolidate its position as a global logistics hub under Vision 2030 and the National Transport and Logistics Strategy.
These initiatives and efforts have propelled Saudi Arabia up 17 positions in the World Bank's Logistics Performance Index.
The Kingdom's port standings have also advanced, with the country climbing to 15th place globally in annual container handling.
Three Saudi hubs were mentioned in Lloyd's List One Hundred Ports 2024, a testament to the country's growing influence in logistics and support for economic growth.
The civil aviation sector is equally dynamic, highlighted by the Saudia Group's record-setting purchase of 105 Airbus planes and growing investment opportunities at airports.
These developments are establishing new standards for global connectivity and infrastructure.
This momentum marks a new era of leadership and innovation, aligned with national ambitions to redefine global trade and logistics under the ministry's sustainable and technologically progressive leadership.
The Kingdom presents substantial opportunities for global logistics players. With a population of approximately 36 million and a gross domestic product of $1.81 trillion in purchasing power parity as of the end of 2023, Saudi Arabia is a central hub for expansive trade routes supported by world-class infrastructure.
Another major catalyst for growth is the Kingdom securing the bids for Expo 2030 and the 2034 FIFA World Cup — both of which will attract substantial global business opportunities, opening new channels for trade and commerce.
New customs agreement to boost UAE, US economic ties
RIYADH: The economic partnership between the UAE and the US is poised for significant expansion with the introduction of a new customs cooperation agreement. This initiative aims to reduce customs violations, combat illicit trade, and enhance technical collaboration between the two nations.
The agreement was formalized during UAE President Sheikh Mohamed bin Zayed’s visit to the US, marking a crucial step in streamlining customs operations and strengthening trade relations. Ali Al-Shamsi, chairman of the UAE Federal Authority for Identity, Citizenship, Customs, and Port Security, and Troy Miller, acting commissioner of US Customs and Border Protection, signed the accord.
Al-Shamsi underscored the agreement’s importance, stating it would broaden trade opportunities and facilitate the exchange of customs expertise, alongside enhancing national capabilities through targeted training programs.
He told the Emirates News Agency, WAM: “Bilateral trade between the two nations continues to grow steadily, driven by our deep political and economic ties. This growth brings numerous advantages, particularly in fortifying customs relations and expanding trade scope to navigate challenges that may impede the seamless flow of goods.”
The UAE and the US enjoy a robust economic relationship, with bilateral non-oil trade skyrocketing to $31.4 billion in 2023, up from $23.8 billion the previous year. Notably, US exports to the UAE surged by 19 percent, totaling $24.8 billion. The UAE remains the largest market for US goods in the Middle East, highlighting its vital role as a trade hub.
This burgeoning trade dynamic yields substantial benefits for both economies. US exports to the UAE supported approximately 125,000 jobs across the US in 2023. Meanwhile, the UAE’s exports to the US reached around $6.6 billion, featuring a diverse array of products including aluminum and precious metals, reflecting the complementary nature of their trade.
Al-Shamsi further emphasized that the customs cooperation and mutual assistance agreement underscores the UAE’s pivotal role as a regional gateway for global trade. Its strategic location connects Asia, Europe, and Africa, making it an essential transit hub.
With the US, the world’s largest economy, as a historical partner, the UAE's non-oil trade strategy and investments in sectors like real estate, technology, and manufacturing highlight the mutual interest in nurturing a vibrant trade and investment relationship.
KAUST, Abdul Latif Jameel Motors strike deal with Toyota to advance hydrogen fuel research
JEDDAH: Saudi Arabia will accelerate hydrogen fuel cell research after two local entities joined with Toyota Motor Corp. to increase decarbonization efforts in the transportation sector and beyond.
King Abdullah University of Science and Technology and Abdul Latif Jameel Motors have embarked on a strategic partnership with the Japanese firm to implement cleaner energy solutions.
At the heart of this initiative, KAUST has acquired proton electrolyte membrane fuel cell modules from Toyota, establishing a cutting-edge laboratory within its Clean Energy and Research Platform.
This facility is poised to play a crucial role in the Kingdom’s hydrogen innovation efforts, particularly in adapting fuel cells to the region’s specific environmental conditions, KAUST said in a statement.
Saudi Arabia aims to deliver around 2.9 million tons of hydrogen by 2030, offering competitive domestic and export costs, and this collaboration aligns with the Kingdom’s commitment to reducing greenhouse gasses and achieving net zero emissions by 2060.
Mani Sarathy, professor of chemical engineering at KAUST, said they are excited to collaborate with TMC and Abdul Latif Jameel Motors to drive the adoption of hydrogen fuel cell technology in Saudi Arabia.
“Through our Clean Energy Research Platform, we are focused on advancing research that will optimize hydrogen fuel cells for the region’s specific conditions, ensuring their efficiency and reliability,” Sarathy said.
He emphasized that this partnership demonstrates their commitment to pioneering innovations that support sustainable solutions and contribute to a greener future for the Kingdom and beyond.
Sarathy and his CERP team are currently leading research efforts to explore the performance, durability, and environmental integration of PEM fuel cells, supported technically and financially by TMC and Abdul Latif Jameel Motors, the authorized distributor of Toyota vehicles in Saudi Arabia since 1955.
The team is undertaking a series of modeling and experimental studies to evaluate factors such as temperature sensitivity, humidity effects, and overall efficiency, aiming to optimize the environmental advantages of these fuel cells within the Kingdom’s infrastructure, KAUST said in its release.
Mazin Ghazi Jameel, managing director of Toyota marketing operations at ALJ Motors, commented that his company is dedicated to facilitating the development and adoption of solutions that benefit both local and global communities.
“A key focus is promoting fuel cell technology to establish Saudi Arabia as a key contributor to sustainable mobility. This strategic partnership reaffirms our commitment to enabling a future of cleaner, efficient and smarter mobility accessible to all, supporting the transformational needs of businesses and individuals in the Kingdom of Saudi Arabia,” Ghazi said.
Nobuyuki Takemura, chief representative of the Toyota liaison office for mobility and energy in the Kingdom, remarked that for more than two decades, TMC has been a leader in environmentally friendly mobility solutions, showcasing a steadfast commitment to a zero-carbon future through ongoing innovation and significant global investment.
“In partnership with the KAUST research team within CERP and Abdul Latif Jameel Motors, we are bringing this technology to Saudi Arabia, supporting its decarbonization goals. Toyota is dedicated to contributing to the research at KAUST and to advancing the Kingdom’s economic diversification and circular carbon economy, in alignment with Vision 2030,” he said.
