Saudi Arabia prioritizes real estate sector with 18 legislative initiatives to drive growth
Saudi Arabia prioritizes real estate sector with 18 legislative initiatives to drive growth/node/2512966/business-economy
Saudi Arabia prioritizes real estate sector with 18 legislative initiatives to drive growth
REGA’s participation in SEREDO 2024 is part of its role in raising awareness about real estate, exploring development opportunities, showcasing investment prospects, and exchanging experiences with industry professionals. SPA
Saudi Arabia prioritizes real estate sector with 18 legislative initiatives to drive growth
Updated 19 May 2024
Arab News
RIYADH: The Saudi government is prioritizing the real estate sector, enacting over 18 pieces of legislation to drive its growth and significantly boost its gross domestic product.
This initiative was highlighted during the recently concluded second edition of the Saudi Exhibition for Real Estate Development and Ownership, or SEREDO, held in Jeddah. The event aimed to raise awareness, explore development opportunities, and review investment potential in the sector.
According to Tayseer bin Mohammed Al-Mufarrij, spokesman for the Real Estate General Authority, over 18 legislations have been issued to date. These include real estate systems, executive regulations, and regulatory rules, reflecting the government’s commitment to this sector as part of Vision 2030.
He emphasized the sector’s role and contribution to the Kingdom’s GDP, reaching 5.9 percent in the fourth quarter of 2023. He also noted that the property sector’s contribution to the country’s non-oil activities was 12.1 percent, as reported by the Saudi Press Agency.
During the expo, Abdullah bin Saud Al-Duhaim, general supervisor of property development at REGA, provided a detailed explanation of the new system for selling and leasing off-plan real estate projects and its recently approved executive regulations.
In a workshop on the sidelines of the event, Al-Duhaim and other officials outlined the procedural steps for applying for qualification, obtaining licenses to practice the activity, and the requirements for developers to register with the authority.
They also underscored the importance of complying with the regulations and legislation governing the sector, which aim to provide high-quality services, enhance reliability, increase transparency, and protect the rights of all stakeholders.
REGA’s participation in SEREDO 2024 is part of its role in raising awareness about real estate, exploring development opportunities, showcasing investment prospects, and exchanging experiences with industry professionals, SPA added.
It also aims to engage the community in creating solutions to challenges, advancing toward future horizons that enhance the prosperity and sustainability of the real estate market.
This approach seeks to make the sector dynamic and capable of adapting to rapid changes, which aligns with Vision 2030 objectives.
The real estate development and ownership field in the Kingdom is considered one of the largest growing sectors in the Middle East. Its volume is estimated at approximately $69.51 billion in 2024 and is expected to reach $101.62 billion by 2029, recording a compound annual growth rate of 8 percent.
Emirates president asks Boeing for compensation over 777x delays
Emirates is refurbishing many of its existing 777 aircraft as it waits for the new version
Updated 5 sec ago
Reuters
DUBAI: Emirates President Tim Clark on Sunday called on Boeing to compensate the airline for delays in the development of the US planemaker’s latest 777 jet, which the carrier has bought.
Emirates is refurbishing many of its existing 777 aircraft as it waits for the new version, known as the 777x. Clark said that Boeing should pick up the costs of the refurbishment.
He also told reporters in Dubai that Boeing could not say when exactly the new 777x jet would start being delivered.
Boeing has said deliveries would start in 2025, five years later than originally scheduled
National Transformation Program driving Vision 2030 forward, says CEO
Updated 4 min 56 sec ago
MANAL AL-BARAKATI MIGUEL HADCHITY
RIYADH: Saudi Arabia’s National Transformation Program, the first initiative of Vision 2030, has played a significant role in driving the mission and helped the Kingdom achieve 34 of its 96 objectives, said its CEO.
In an interview with Arab News on the sidelines of the Global Project Management Forum 2024 in Riyadh, Thamer Al-Saadoun, the top official of NTP, shared his insights about the program, which was launched in mid-2016.
The national program is dedicated to achieving strategic objectives that are transforming Saudi Arabia into a leading nation. This includes empowering the private sector, enhancing government excellence, fostering economic partnerships, and fast-tracking the Kingdom’s digital transformation.
“The program is one of the 11 different vision realization programs. It is the program and the vision that all of the different programs, all of the different initiatives work together to achieve that ambitious vision,” he explained.
Al-Saadoun detailed the extensive scope of the NTP, saying: “We do have more than 300 initiatives, 79 KPIs, local and international, and we work with many ministries. So now over 50 government entities are working within the program with initiatives to achieve the targets.”
Reflecting on the program’s success, he highlighted achievements across various sectors: “If we look at our last year’s results, I think the program has been successful on many fronts.”
The CEO highlighted several key achievements, including empowering women and reaching Vision 2030 targets ahead of schedule.
He noted significant progress in environmental initiatives, the growth of the nonprofit sector, and the enabling of small and medium-sized enterprises.
Additionally, he emphasized the increased foreign investment, with over 200 companies receiving licenses to establish headquarters in Saudi Arabia each year. He also pointed out the country’s leadership in e-government and the digital economy.
Reflecting on the GPMF, Al-Saadoun emphasized its global importance and personal value, stating: “I think it's one of the most important forums now globally. And I’m keen to attend it every year because of the value it brings.”
He added: “It brings different experts and different sectors together, sharing experience, transferring knowledge. And the impact is really important. And I think in Saudi Arabia, with the vast number of projects that are happening, I think this forum is making a big impact.”
Saudi Vision 2030, an ambitious plan to transform the Kingdom across various sectors, has made significant strides since its inception. Al-Saadoun praised its achievements, calling it one of the most inspiring success stories.
“It’s an ambitious plan, aiming to transform a country like Saudi Arabia in all aspects, be it economic, social, etc. And if we look at the last seven years, it has been successful on many fronts,” he noted.
Highlighting the key factors behind this success, Al-Saadoun first credited the unwavering support from the leadership.
Collaboration and change management were also crucial, according to Al-Saadoun. “It is important in a vision with this magnitude that the different ministries, or even within the same organization, make sure there are no silos and there is collaboration,” the CEO emphasized.
He added that capability building has been a cornerstone of the vision’s implementation, with forums like the GPMF playing a pivotal role.
“What is happening in the forum here is key with building capabilities and making sure that people who are working on the vision and its initiatives have the right skill sets. And we are fortunate to have many younger Saudi men and women who are in the front seat, implementing the vision,” he added.
Execution focus was another vital aspect, according to Al-Saadoun: “While we do have excellent plans in the different vision realization programs, focusing on execution has been key. We spend lots of time and focus on the execution of the different plans we have in place.”
Al-Saadoun expressed optimism for the future, confident that the progress would continue. “And we are happy, and it’s only getting better and better. And we are aiming to achieve more in the coming years,” he concluded.
LONDON/DUBAI: The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, on Sunday agreed to extend most of its deep oil output cuts for 2024 but to start phasing them out in 2025
The decision seeks to shore up the market amid tepid global demand growth, high interest rates and rising US production.
Oil prices trade near $80 per barrel, below what many OPEC+ members need to balance their budget. Worries over slow demand growth in top oil importer China have weighed on prices alongside rising oil stocks in developed economies.
OPEC+ have made a series of deep output cuts since late 2022. The alliance’s members are currently cutting output by a total of 5.86 million barrels per day, or about 5.7 percent of global demand.
The cuts include 2 million bpd by all OPEC+ members, the first round of voluntary cuts by nine members of 1.66 million bpd, and the second round of voluntary cuts by eight members of 2.2 million bpd.
OPEC+ extended the first round of cuts until the end of 2025 from the end of 2024, the group said in a statement.
It also agreed to extend the third round of voluntary cuts into the third quarter of 2024, OPEC+ sources said, adding that more details were being worked out and would be announced on Sunday.
The countries which have made voluntary cuts in the second round are Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia, Saudi Arabia and the UAE and Gabon. The same countries except Gabon participated in the third round.
The group also agreed to allocate the UAE a higher production quota of 3.5 million bpd in 2025, up from the current level of 2.9 million.
OPEC+ also postponed the deadline for an independent assessment of its members’ production capacities to the end of November 2025 from June 2024. The figures will be used as guidance for 2026 reference production levels.
Saudi Arabia embraces advanced project management model to drive Vision 2030 objectives
Updated 58 min 6 sec ago
Nirmal Narayanan
RIYADH: An evolved project management office model, often called xMO, is crucial for promoting the outcomes of programs and initiatives, a leading official from Saudi Arabia’s Public Investment Fund has told an industry gathering.
Speaking at the Global Project Management Forum in Riyadh, Areej Naqshbandi, head of the Project Management Office at the entity, said that the shift toward xMO offers organizations an opportunity to achieve their goals more effectively.
According to the Project Management Institute, xMOs enhance value flow in organizations by prioritizing outcomes over processes.
“I would like to focus on a new trend of turning PMOs into xMO. A PMO typically focuses on processes, governments and project execution, while xMOs promote outcomes and value delivery,” said Naqshbandi.
She added: “This shift toward xMO is not just a trend, it is an opportunity that organizations can embrace to gain a powerful toolkit to achieve ultimate goals in several ways. xMOs ensure a faster return in investments for projects by streamlining processes and encouraging adaptability.”
An xMO indicates advanced PMOs focusing on value delivery rather than just project execution. As a result, these xMOs are often called by different names and are distinguished by their flexibility, supportive mindset, and strategic acumen.
The PIF official further noted that Saudi Arabia’s sovereign wealth fund exemplifies the xMO approach, as the Kingdom uses this method to achieve the goals outlined in Vision 2030.
“We are constantly implementing new innovative trends, solutions and strategies; spearheading the drive toward achieving Vision 2030 goals,” she added.
Naqshbandi further pointed out that Saudi Arabia’s PMO is fostering a strong project management ecosystem in the Kingdom.
“We always emphasize the importance of the community and giving back. We believe in sharing knowledge and expertise to make a positive impact in the project management landscape,” she concluded.
Badr Al-Dulami, Saudi Arabia’s vice minister at the Ministry of Transport, stated that the Kingdom’s project management strategy intersects all sectors and is building an inclusive ecosystem.
“It’s a great sense of pride to see Saudi Arabia with its ambitious vision, leading both globally and locally, as we increase the growth of our giga projects throughout the Kingdom. Vision 2030 is a journey of an ambitious nation and not a final destination,” said Al-Dulami.
The GPMF, which began in Riyadh on June 2, is widely considered a flagship forum for project management professionals.
This annual event is expected to attract over 2,000 participants, including project managers and diverse stakeholders.
Saudi entrepreneurs launch fintech startup to spur open banking growth in GCC
Updated 12 min 48 sec ago
Mohammed Kinani
JEDDAH: Fintech startup Thimsa aims to streamline business payments with direct bank transfers as it launches a beta platform in the UAE and Bahrain, targeting the region’s open banking growth.
Co-founded by two Saudi entrepreneurs along with a financial expert, the startup seeks to facilitate instant B2B pay-ins and payouts, while also offering eInvoice and subscription features.
The projected growth of open banking in the Gulf Cooperation Council countries has motivated Rayan Azab and Salah Khashoggi to partner with Dubai-based fintech entrepreneur Ash Kalra to spearhead this venture after four years of market research.
This comes as open banking is projected to account for over $124 billion worth of transactions in the GCC region alone by 2031, up from $14 billion in 2020, with an annual growth rate of 22 percent, according to a report by Allied Market Research.
Sharing the story behind Thimsa with Arab News, Azab said: “The journey took about three to four years, but realistically, we started this year with the different experience we have.”
He added that they have studied the market and know that fintech usage in the region is one of the highest in the world thanks to a young, vibrant generation across the GCC.
“We have advised and partnered with in a couple of other fintech companies, and then we decided (to found the company) since the open banking regulation has been implemented in the last few years,” Azab said.
Rayan Azab. Supplied.
The entrepreneur added that the process has become easier over time, highlighting their decision to enter the open banking sector now as the reason behind founding Thimsa. He noted that the partners possess diverse experiences, which he believes will contribute to their success.
“We are three partners. Kalra has fintech experience in Canada and the US for over 12 years, and I have been in the business world for over 14 years. Additionally, I have an advisory company aside from Thimsa. Salah Khashoggi, founder of Tamra Capital, is also part of our team and brings his expertise from Saudi Arabia,” he added.
Through open banking, the company states that its platform can access shared financial data via 350 integrated APIs, enabling businesses to streamline processes, create personalized financial services, and adapt to ever-evolving customer needs.
Additionally, the fintech firm emphasized that its solution can accept payments in over 60 currencies from more than 150 countries.
Explaining their decision to launch the payment management platform in the UAE and Bahrain first, Azab told Arab News that they wanted to test it in smaller markets before entering larger ones like Saudi Arabia.
He added that they are aligning their efforts and developments with the regulatory changes and expansions made by the local regulator as it enhances its framework.
“Saudi Arabia has recently advanced its open banking initiatives and is poised to become a regional leader in open banking," he explained.
Highlighting the potential impact of open banking growth in the GCC on their trajectory, Azab mentioned that the segment is already established in the region, and they are not introducing something entirely new.
“We are just revamping it. Thimsa is going to come and help small businesses that cannot afford to just go and do the huge accounting or whatever,” he said, adding that they will be adding value to these businesses.
Talking about their platform, he explained that the technology features instant payment management, corporate management, and most importantly, business-to-business and customer-to-business features.
Azab concluded by stating that they have encountered many challenges, but they have gained significant experience in understanding the market and its growth trajectory. Additionally, he mentioned that they are working closely with regulators.
Salah Khashoggi. Supplied
Envisioning the platform changing the financial services landscape for GCC businesses, Khashoggi told Arab News that the region, particularly Saudi Arabia, is undergoing a massive transformation in fintech and financial inclusion.
“We want to focus on enabling SMEs (small and medium enterprises). So, the idea behind Thimsa is how to help all these SMEs, making financing available to them in addition to easing their operations. All of this is a result of open banking,” Khashoggi said.
The co-founder added that without open banking regulations in Saudi Arabia, they could not have or even come up with something like Thimsa.
Speaking about their future expansion plans, Khashoggi emphasized that their primary focus is on product development. He explained that once they have demonstrated success in Saudi Arabia and the GCC region, they will aim to expand their product offerings to the global market.
He pointed out that the beauty of fintech lies in its integration with the digital economy, making it one of the most easily exportable products globally. However, he noted that it is crucial to remain attentive to market demands.
“So, if you want to expand to any other market, you need to localize the product to fit their needs,” he said.
He emphasized that their strategy involves perfecting their product here in Saudi Arabia first before confidently venturing into international markets.
Asked how Thimsa can ensure the security and privacy of its users’ information, given the extensive use of financial data, he stated that this is entirely under the control of the regulator.
“The regulator sets the bar very high when it comes to sharing any data. We are entrusted by our clients with their data for their benefit. We are not going to take it and use it or sell it or do anything with it. All of that is not allowed by the regulations. We will only use it for the benefit of the client,” he said.
For his part, Kalra described Thimsa as a state-of-the-art financial management platform, emphasizing that it is based on the core principles of open banking and finance.
“Open banking aligns very well with the Vision 2030 in Saudi Arabia, and it runs on real-time payment rails. So that means it spurs innovation, growth, and inclusiveness all across the market,” he said.
Highlighting the open banking landscape in the GCC market, particularly in Saudi Arabia, and discussing whether they will be competing with banks, Kalra commented: “Open banking is a technology which allows banks to share their data with third parties like us, which spurs innovation and growth in the market.
“For the Saudi market, that’s a huge deal. So, one of the pillars of Vision 2030 is diversifying the economy, and open banking just does that,” he said.
Ash Kalra. Supplied
Kalra added that it allows the incumbent banks to work with third parties like them, and said: “So we are not competing against the banks, we are actually working with them.”
Describing the technology and how their platform would make payment management easier, he said that Thimsa uses a microservices architecture and API-based technology.
“We collect a lot of data from the bank on the businesses and consumers and innovate around it. So, that is a key technology that Thimsa uses,” he concluded.
