There is no doubt that Saudi Arabia’s real estate sector is poised to witness a boom in offering tremendous growth opportunities this year. This is due to the much-anticipated approval of the mortgage law, implementation of affordable housing projects and growth of the hotel and hospitality sector, as the industry further taps into religious tourism, which is expected to contribute to sector growth of more than 20 percent in 2013 alone.
It is for this reason that this year’s Cityscape Jeddah assumes importance. Currently in its fourth successful year, the exceptional event will take place with the support of Jeddah Gov. Prince Mishaal bin Majed from March 2-4 at the Jeddah Center for Forums and Events and will include a large exhibition, plus three intensive, interactive days, consisting of 40 top-level management speakers, including CEOs and chairmen, more than 20 interactive panel discussions and case study presentations, round tables to spread knowledge sharing and 7 networking opportunities to increase the possibilities to establish local and international contacts with key stakeholders that are otherwise impossible to reach.
Hussein Al-Harithy, VP and MD, National Exhibitions Company, said,” Among the newest features to be added to the event this year, in addition to the largest Real Estate Exhibition in Saudi Arabia is the Residential & Affordable Housing Summit, the Hotel Investment & Development Summit and the World Architecture Congress Saudi Arabia, which were created to meet everyone’s specific interests and objectives and to be the premier platform for real estate professionals and organizations to meet, network and discuss development and investment opportunities in Jeddah, Saudi Arabia and beyond.”
“It has been forecasted by the Saudi Commission for Tourism and Antiquities (SCTA) that among the most exciting opportunities expected to emerge in the near future will be in the Saudi hotel and hospitality sector. This is due to the government’s enhanced support of the development of the religious tourism industry with forecasts projecting the Kingdom to welcome 15.8 million religious tourists by 2014 and experience growth in tourist arrivals from between 6-8 percent over the next five years. It is for this reason that this year’s Cityscape Jeddah is the only event where local and international brands, that cannot afford to be left out, can gain insight into prime hotel and hospitality sector investment opportunities, unavailable any place else,” Al-Harithy said.
Despite Makkah being the most expensive city in the world, in terms of real estate and land prices, it as well as the Holy city of Madinah, has become one of the most lucrative and attractive investment cities on the globe, in especially enticing international brands.
According to data from the Real Estate Committee of the Makkah Chamber of Commerce and Industry (MCCI), real estate investments in 2012 rose to 45 percent in Makkah alone compared to 55 percent in the remaining regions of the Kingdom. This is as a result of the expansion of the holy sites, new Mashaer and Makkah railway projects and completion of the Jamarat Bridge, with Makkah expected to account for half of the country’s real estate investments by the end of this year.
Supporting the government’s vision for growth in the real estate industry, The Jeddah Urban Development and Real Estate Investment Event - Cityscape Jeddah, is expected to attract more than 10,000 visitors.
Real estate investments rose to 45 percent in Makkah in 2012
Real estate investments rose to 45 percent in Makkah in 2012
Argentina eyes deeper Saudi ties as multilateral trade landscape shifts, says minister
ALULA: Shifting global trade patterns are creating new opportunities for bilateral cooperation between Argentina and Saudi Arabia, particularly in the energy sector, said Federico Sturzenegger, Argentina’s minister of deregulation and state transformation.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Sturzenegger expanded on his goals at the event, Argentina’s growing economic relationship with the Kingdom, and the country’s position as a third-party player amid geopolitical tensions.
He said the forum provides a strong platform for collaboration because of the diversity of participants gathered in AlUla. Sturzenegger pointed to Argentina’s bilateral relationship with Saudi Arabia as an example of the type of cooperation the conference can facilitate, particularly in energy:
“Definitely we could see some of the knowledge, experience, capital, know-how of this country to exploit those resources. It’s always an opportunity to talk and learn about those things and see how things are going in each country,” the minister told Arab News.
Elaborating on the sector, he added: “I mean energy definitely, I mean this country is absolutely top tier, it’s a leader in the world. It has the engineers, it has the knowledge, it has the capital; Argentina is a potentially relevant hub in the world in this, in a very isolated place, and a very safe place from a geopolitical point of view.”
After speaking on Paper Session 1: Resetting Global Trade — which also featured Faisal Alibrahim, Saudi minister of economy and planning; Eyob Tekalign, governor of the Ethiopian National Bank; and Pol Antras, professor of economics at Harvard University — Sturzenegger outlined the effects of geopolitical tensions on trade agreements and the role of third-party countries.
He referred to a major trade deal recently signed between the US and Argentina as an example of how fragmentation in multilateralism has paradoxically created alternative avenues for cooperation, especially as such agreements historically took decades to finalize.
Building on that example, he raised the question of whether the rupture of multilateralism might in some cases lead to more trade rather than less — a view that Antras challenged during the session.
Geopolitical positioning remained a central theme in his remarks, particularly when discussing the importance of third-party countries during periods of tension.
“Until three years ago we had this kind of multilateralism; it was very well established, everything was contained within that framework. Of course, the US had a prominent role in that framework. Now things are a little bit more uncertain, and that has led to the proliferation of many bilateral agreements,” he said.
Despite that shift, Sturzenegger said the new environment is creating room for agreements that previously struggled to advance.
“I’m seeing some opportunities for trade which perhaps were not explored before,” the minister added.
He also referred to an increase in trade in Africa, emphasizing that there are different opportunities throughout the world that were previously unexplored under the contained sphere of earlier multilateralism.
On Saudi-Argentine ties, he maintained an optimistic outlook, again emphasizing energy as a priority.
“I know that Saudi companies have been visiting Argentina this year, and again, as I mentioned, you have the expertise, you have the know-how, it’s a business that you know, you have the global network of trade, so just adding an additional source of supply makes that network even more powerful, profitable, and resilient,” the minister said.
As the Emerging Market Economies Conference wraps up its first day, it is evident that while discussions on implementation and the strengthening of long-term economic planning are at the forefront, relationships with the Kingdom continue to develop and support bilateral ties.
