RIYADH: The King Abdullah Financial District (KAFD) is too big for the local market, and will cause a glut in office space and accommodations once it becomes operational and tenants start moving in.
“In fact, some of the buildings at the northern portion of the $11.6 billion financial district have been canceled,” said a source working for one of the companies involved in the project.
He said that this is expected because many of the 112 multi-storey buildings that have been constructed were not part of the original plan.
A foreign magazine earlier critisized the project, saying that KAFD is a “sober alternative to Dubai’s exuberant international financial center.”
But oversupply in office space and accommodation is not the only problem facing the sprawling project which is located in a 1.6 million sq. meter area in the northern part of the Saudi capital.
“The rent is also exorbitant. This is probably because of the huge capital that has been invested to develop and construct the project,” said the general manager of a construction and landscaping firm.
He added that the rent per sq. meter is estimated at SR3,000 to SR4,000, “which is quite high for many local firms which are interested to have their offices at KAFD.”
Because of the high rent, the rent outside the financial district has also doubled.
But despite the exorbitant cost, there are companies which intend to establish their head offices inside the financial district. For this purpose, the head of an investment bank in the UAE visited the Saudi capital sometime back.
“If you’re not inside the financial district, you’ll be left behind by the competitors who are already established in the market. They will likely move in at the opportune time,” he added.
KAFD may cause office space glut
KAFD may cause office space glut
Saudi Cabinet condemns ‘blatant’ Iranian aggression; affirms Kingdom’s right to respond to threats
RIYADH: Saudi Arabia has warned it reserves the “full right” to respond to Iranian aggression following a series of “blatant and cowardly” strikes targeting the capital and the Eastern Province.
The warning came during a late-night Cabinet session on Tuesday, chaired by Crown Prince and Prime Minister Mohammed bin Salman via videoconference, according to the Saudi Press Agency (SPA).
During the session, the Cabinet “reaffirmed Saudi Arabia’s full solidarity with the brotherly countries whose territories were subjected to blatant Iranian aggression”, signaling a united front against regional threats.
The session followed a dramatic escalation of hostilities, including a direct drone attack on the US Embassy in Riyadh.
Major General Turki al-Malki, spokesperson for the Ministry of Defense, confirmed that while air defenses intercepted multiple threats, the embassy compound sustained a “limited fire and minor material damage.”
General Al-Malki further announced that Saudi forces successfully intercepted and destroyed eight additional drones targeting the cities of Riyadh and Al-Kharj early Tuesday morning.
In a sharp rebuke of the embassy strike, the Saudi Ministry of Foreign Affairs (MOFA) cited a flagrant violation of the 1949 Geneva Convention and the 1961 Vienna Convention on Diplomatic Relations.
“The repetition of this flagrant Iranian behavior... will push the region toward further escalation,” the Ministry stated, underscoring that these provocations occurred despite Riyadh’s explicit policy of not allowing its airspace or territory to be used as a launchpad for strikes against Iran.
Global condemnation and solidarity
The Cabinet expressed deep appreciation for the wave of international support as world leaders condemned Tehran’s “indiscriminate” behavior.
In a joint show of force, the US and GCC member states (Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE) along with Jordan stood united, labeling the strikes a “dangerous escalation” and reaffirming a collective right to self-defense.
Leaders from the United Kingdom, France, and India. — including Prime Minister Narendra Modi — voiced strong solidarity with the Kingdom. The UK government confirmed its forces are engaged in “defensive actions” to maintain regional stability.
Amid the heightened military tension, the Cabinet reviewed the Kingdom’s hospitality efforts for GCC citizens currently stranded at Saudi airports due to regional airspace closures. The crown prince reaffirmed that the state would mobilize all capabilities to support brotherly nations in any measures they take to restore regional peace and stability.
