Transport GCC on track to be linked by rail in next 10 years GCC governments are preparing to hand out $167 billion worth of contracts to link the six member countries by railway. “We should expect to see some significant contracts awarded on the railway to link all the GCC states over the next 24 to 26 months,” said Ed James, head of content and analysis at Meed, […] June 13, 2023
Construction Building firm targets rival in $145m deal to stem losses Saudi construction firm Red Sea International Co has announced plans to buy a majority share in a rival for more than SAR544 million ($145 million). The proposed deal to acquire 51 percent of The Fundamental Installation for Electric Work Company Ltd (First Fix) is part of a plan to turn around increasing losses at Red […] June 12, 2023
Opinion Tourism Raffles the Palm could just be peak Dubai bling Global billionaires keep demanding more ways to splash their cash in the emirate June 9, 2023
Real Estate UAE’s overseas property tax may push rents up The introduction of a tax on income from UAE property held by non-residents could cause rents to creep up as owners pass on the increment to tenants, experts have told AGBI. “The rental market is based on supply and demand, so if there’s less supply and more demand at any point, landlords can ask for […] June 8, 2023
Analysis Infrastructure Ooredoo to cut losses in Myanmar to tune of $2.3bn Should Ooredoo succeed in selling its Myanmar subsidiary, the Qatari telecom operator will exit nursing multi-billion-dollar losses in what has proved to be a disastrous strategic failure for the former monopoly. Ooredoo Myanmar’s customer base has shrunk by nearly half in just over two years, while its cumulative pre-tax losses from 2013-2022 total QAR8.6 billion […] June 8, 2023
Real Estate Lusail is first choice for wealthy Qatari buyers Lusail, Qatar’s second-largest city and host for much of the Fifa World Cup last year, has become wealthy buyers’ preferred destination for residential real estate in the Gulf state, a new report shows. Lusail Marina and Lusail Waterfront were named as the most popular destinations where Qatar-based high net worth individuals (HNWIs) are planning to […] June 7, 2023
Construction Saudi firms scrap hotel joint venture as costs spiral A planned hotel joint venture between Saudi travel giant Seera Group and the AlUla Development Company (UDC) has been scrapped due to rising costs. The two parties have agreed to terminate the contract, due to “the futility” of the planned investment in a new hotel project in Saudi Arabia. In a filing to the Saudi […] June 7, 2023
Construction Neom secures $5.6bn to expand workforce housing Saudi Arabia’s smart city developer Neom has secured more than SAR21 billion ($5.6 billion) in financing to start work on the first phase of residential housing for its workforce through a public-private partnership. The preferred bidders in the first phase include local contractors such as Alfanar Global Development, Almutlaq Real Estate Investment Company, Nesma Holding […] June 7, 2023
Opinion Real Estate Dubai’s office market upswing is no temporary blip It's a sign of the emirate's strong economic fundamentals June 1, 2023
Real Estate Palm Jebel Ali to add much needed beachfront properties A revamped master plan for the billion-dollar Palm Jebel Ali man-made island development in Dubai has been approved, helping to meet demand for prime, residential, beachfront properties. The 13.4 sq km mega-project – twice the size of Palm Jumeirah – will add 110 km of coastline to the emirate and provide real estate for approximately […] June 1, 2023
Oman unveils $5.2bn startup fund and plans for new city Oman is planning to set up an investment fund with a capital of OMR2 billion ($5.2 billion) to support economic diversification. The news was first reported by state-owned Oman News Agency, citing a decree by Sultan Haitham Bin Tariq Al Said. The Oman Future Fund will allocate a percentage of its capital to stimulate the […] June 1, 2023
EXCLUSIVE Giga-projects Red Sea signs ‘pioneering’ carbon-negative concrete deal Red Sea Global and Bahamas startup Partanna have agreed to trial the use of carbon-negative concrete and other products at the kingdom’s Red Sea and Amaala giga-projects. The deal – the value of which is not disclosed – is the next stage of partnership between the companies. As revealed by AGBI, the two began exploring ways […] June 1, 2023
Banking and Finance Saudi banks need more funding to finance Vision 2030 The Saudi banking system cannot provide enough funding alone to finance the kingdom’s ambitious Vision 2030 and will require a combination of developing the local capital market and tapping international markets, S&P said on Wednesday. While the banking sector has seen rapid growth over the past few years, primarily driven by mortgages, deposit growth has […] May 31, 2023
Video length: 3:37 Video Real Estate Dubai’s wealthy buyers short of new homes in prime areas Global high-net-worth individuals are looking to Dubai to invest in property, but with only 289 units due to be completed in prime residential areas by 2026, supply in the emirate’s real estate market is low, driving prices up. “We are short of easy-to-activate waterfront development sites – we have run out of coastline,” said Faisal Durrani, […] May 31, 2023
Real Estate Egypt’s commercial property sector resists economic woes Demand for commercial property in Egypt remains buoyant despite the fragile economy, as retail and office landlords offer “flexible and generous” terms until the market stabilises, according to a report. Landlords are resorting to making changes to retail and office lease terms in response to “challenges stemming from the current local and global economic volatility”, […] May 31, 2023
Infrastructure Dubai’s Dewa gets 2 bids for $410m Hassyan water project Utility provider Dubai Electricity and Water Authority (Dewa) received two bids for its 120 million gallons per day Hassyan independent water producer project. Bids were submitted from Saudi’s Acwa Power and UAE’s Abu Dhabi National Energy Company (Taqa). Acwa Power sent the lowest water levelised tariff of $0.389 per cubic metre for the base proposal […] May 26, 2023
Real Estate Q Holding in $1.9bn deal to build 1,742 villas Abu Dhabi-listed developer Q Holding has signed two agreements with the emirate’s housing authority, Adha to design and build 1,742 villas. It will also see the development of mosques and commercial buildings, and in total will involve an investment of AED7 billion ($1.91 billion). The West Baniyas project includes 1,500 villas and 14 commercial buildings. […] May 25, 2023
Real Estate Dubai tenants staying put as rents continue to soar More Dubai renters are opting to renew their existing tenancies than move to a different property altogether, to avoid being hit by soaring rental rates in a “very strong” property market, according to CBRE. The number of rental renewals in Dubai’s residential market grew by 29.7 percent year-on-year in the first quarter of 2023, compared […] May 23, 2023
Real Estate Dar Al Arkan profit dip no cause for alarm Saudi Arabian real estate firm Dar Al Arkan posted a 47 percent profit dip in the first quarter of the year to SAR117.6 million ($31.3 million), from SAR221 million a year earlier. The decrease was attributed to lower property sales in Q1 and higher financing burdens, the company said in a filing to the Tadawul […] May 22, 2023
Real Estate Rising cost of credit squeezes Bahrain luxury property The increased cost of credit due to higher interest rates is starting to dent demand for luxury property in Bahrain, with apartments experiencing the most impact. High-end apartment prices in Bahrain dropped by 1.3 percent quarter on quarter in the first three months of 2023, according to a report published this week by Savills. Luxury […] May 21, 2023
Analysis Construction The Pointe is latest rebuild in Dubai’s property upswing The Pointe is the latest in a string of retail and leisure destinations in Dubai that are being repurposed as landowners seek to capitalise on the emirate’s growing property market. State-owned Nakheel Properties confirmed this week that it plans to shut down and redevelop its 130,000 square metre The Pointe on Palm Jumeirah from next […] May 18, 2023
Logistics New $2bn port to serve Saudi’s Neom More than SAR7.5 billion ($2 billion) has so far been invested in a new port at Saudi Arabia’s planned $500 billion smart city Neom, with plans to open a new terminal in 2025. Located on the Red Sea at the crossroads of global trading routes, the port will be a critical enabler for Neom and […] May 18, 2023
