Holland Gulf Chamber of Commerce » Makkah

Foreign and local firms line up for Makkah Metro deals

jochemgeheniau — Thu, 30 Jan 2014 10:06:01 +0000

Several alliances of local and international companies have started submitting prequalification applications to join the bidding process for the Makkah Metro service project.
“Fifteen national and multinational consortia have submitted their eligibility documents to be qualified for bidding for the civil works of the Phase 1 of the Makkah Metro project,” said Makkah Mayor Osama Al-Barr who is also chairman of the executive committee of the city’s public transport system.
The Development Authority for Makkah and Holy Sites received applications for prequalification for bidding.
The announcement about procedures were made on Nov.10 last year.
The first phase of the project comprises two lines (Green and Red lines) of 46 km with 22 stations.
While 60 percent of the lines will be hanging on elevated bridges, the rest of the lines will run through tunnels.
While the quotations will be invited in the first quarter of the year, contracts are expected to be signed in the last quarter of the current year, he said.
Saad Al-Qadi, executive president of the Makkah Trains Company for Public Transport and director general of the project, said the civil works have been divided into two contract packages with the aim of speedy completion of their works.
One package is for the underground lines of the ‘green category’ and part of the ‘red category’ while the other package covers the remaining ‘red category’ lines that run on hanging bridges.
The mass transit system in Makkah consists of four lines with a total length of 114 km and 62 stations in addition to a wide network of buses linking all districts with important areas.

Makkah records SAR59bn real estate deals in 2013

jochemgeheniau — Tue, 21 Jan 2014 09:11:21 +0000

Real estate index for Makkah region surprised all forecasts that said deals in the sector will point to the downside during 2013.
The numbers, values, and scopes of the deals up to the end of last year witnessed a rise of 350 percent compared with a year before.
The value of deals during the year stood at SR59.4 billion, against SR16.1 billion in the year before, an increase of 350 percent.
The number of deals during 2012 registered a pickup of 4.677 deals and increased to a record of 17.920 deals last year, an increase of up to more than 400 percent.
Real estate experts expected the index to rise in the holy capital this year, and the value of deals in the sector to rocket up to SR80 billion in view of the massive development project in the real estate sector, and the generous expenditure on the infrastructure of the city.
Head of the Real Estate Committee at Makkah Chamber of Commerce and Industry Mansour Abu Al-Reesh stated that the bearish real estate market forecasts by some analysts were not based on scientific grounds or on studies of the markets, adding: “They were just inaccurate speculations.”
Abu Al-Reesh projected real estate market to witness a big upbeat, and a rise in the value of the sector’s deals to more than SR80 billion because of the giant projects in the city, mainly the projects of public transportation, the ring roads or circumferential highways, the train stations and the development of slums that entailed expropriating thousands of properties and pumping more than SR100 billion as compensations into the market.
“Investment infrastructure in the holy city has become attractive to more and more investors who recently moved to establish large investment portfolios in building large residential projects, such as hotels and residential towers.
Yusuf bin Awad Al-Ahmadi, a developer said real estate investing in Makkah had become one of the most successful investments. “This has led to the revival of the real estate market, in addition to the disbursement of compensation related to the expropriated properties for the expansion of the Grand Mosque,” he added.
Another developer, Meshal Al-Zaiydi said the market is bound to have more deals this year because of the state’s expenditure on development projects. “The construction of quality hotels and the other residential projects will increase the capacity of the city to accommodate more numbers of Umrah and other seasonal pilgrims,” he said, adding that the majority of beneficiaries of the compensations are expected to buy new properties, which will lead to an increase of land development and residential projects.
Al-Zaiydi revealed that many capital owners and real estate investors moved to invest in the holy city where several conglomerates emerged to buy lands for constructions.
Agreeing with him, another developer, Tawfiq Suehra said real estate market in Makkah was witnessing a rebound.
“The attractive investment environment in Makkah has become the focus of many real estate investors and venture capitalists who have moved to form large conglomerates, pumping huge liquidity in the market.”
“This year, 2014, of all real estate investments, the hotel sector will receive bigger investments than before, with capitalists moving toward safe investments in Makkah in view of the increasing number of Umrah and seasonal pilgrims that will come once expansion and construction projects are completed,” said Fayez Zaqzoq, a developer.
On the other hand, real estate expert Marie bin Mubarak bin Mahfooz said real estate prices will spike this year because of the increasing demand on lands and properties. “This quantum leap in the real estate market during the last five years made real estate investors and venture capitalists dribbling,” he added.

Makkah-Riyadh link road to be ready in a year

jochemgeheniau — Thu, 14 Nov 2013 09:14:01 +0000

The contractor responsible for implementing the Taif-Makkah-Riyadh road link has said that the project would take a year to complete.
Ahmad Abdul Ghafoor, the engineer in charge of the project, said: “We are still in the early stages. The first part of the work involves laying down an 8-km section of the road. We have completed the surveying part of the work. Some technical matters need to be resolved, and we will then be able to move on to asphalting the section. This part of the road includes a number of culverts that need to be built, so we expect to complete the project within a year.”
“We were also given orders to construct a bridge at the intersection of Al-Urafa Road with Riyadh Road. We have completed the base and cement columns. The bridge work will be completed within five months at a cost of SR75 million,” he said.
Omar Al-Hussaini, director of the Taif Transport Department, said this road is considered “vital to the area.”
“Its completion will help reduce the distance for motorists driving along the Riyadh-Taif road leading to Makkah. This will be very helpful, especially for those who want to visit the Grand Mosque. It will also solve the problem of traffic jams in Taif. There are lanes marked for big trucks. The remaining section is 24 km long and there will be four lanes on each side,” he said.
“This project was not accounted for in earlier ministry budgets. We are now giving it top priority and it will be included in the next budget. The money needed for the project will be allocated and will be awarded to a specialized company for implementation,” he said.

Makkah Gate to be built in 20 years

jochemgeheniau — Wed, 28 Aug 2013 08:01:01 +0000

The structural plan for the Makkah Gate project that was recently approved by Makkah Gov. Prince Khaled Al-Faisal will be implemented in four stages over 20 years, said Osama Al-Bar, Makkah mayor and chairman of the board of directors at the Makkah Gate Company.
He said that 70 percent of the project is located inside the borders of the Grand Mosque.
“The strategy of the project will allocate a series of places to be developed independently in phases,” he added.
“The infrastructure network proposed is proportional to the phases of development and is in accordance with a development plan that extends between 15 to 20 years, five years being allocated for each phase,” said Al-Bar.
Spokesman Issam Kolthoum said that the properties conform to 10 percent of the area to be developed, with owners from different parties such as the Ministry of Finance and other individuals in the loop.”
Very small properties, he added, as well as a number of infringements, will not hinder the progress of the project and insure the lawful rights of their owners.
Kolthoum said the project includes a location for Makkah National Park designed in harmony with the natural features and landscapes of the area.
“The projects pays much heed to consistency of the geological conformation with the facilities and their use,” added Kolthoum.
Once completed, the project will accommodate 1,000 visitors who will enjoy 40 different activities, including more than 300 campsites, 30 kilometers of long pedestrian lanes, sports locations, a children’s park, places for rest and services.

Water and sanitation deals worth SR394 million signed

jochemgeheniau — Wed, 21 Aug 2013 07:18:24 +0000

Water and Electricity Minister Abdullah bin Abdulrahman Al-Hossein has recently signed 22 contracts for the implementation of water and sanitation projects in different parts of the Kingdom at an overall cost of SR394 million.
Saudi Arabia falls under the category of countries with water scarcity problems and several water and sanitation projects are under progress across the country to counter the depleting water resources.
These projects are part of the holistic plan to achieve greater economic growth and keep apace with accelerating population growth in cities and provinces.
The contracts include sewer projects in Dawadmi district in Riyadh, at an estimated cost of SR109. 6 million and another contract for the establishment of a water tank in Hail, signed at a value of SR64.3 million.
According to the Saudi Press Agency, the ministry is also working on a project designated for the maintenance of water and sanitation in Qatif area in the Eastern Province as well as a similar project in Asir region worth SR46.5 million.
The other projects includes internal drinking water system for the city of Al Quoz in Makkah, an expansion project contract for Rafha water system with reservoirs in the northern border, a water surplus line sewage treatment plant in Asir Province, which is expected to cost around SR10 million as well as water and sanitation projects in Abha, Tabuk, Najran.
Moreover, the National Water Company (NWC) is also implementing the strategic water storage project in Jeddah with a power of 1 million cubic meters.
Loay Al-Musallam, CEO of NWC recently announced that the company is working to enhance the vision of leadership in achieving water security and provide better services to citizens.
Al-Musallam also pointed out that the project in Jeddah was implemented according to international standards and high-quality specifications.

SAR4bn contracts signed to build 40,000 homes

jochemgeheniau — Tue, 20 Aug 2013 06:45:23 +0000

The Ministry of Housing signed contracts worth SR4 billion on Sunday to develop eight residential districts in different parts of the Kingdom to build around 40,000 homes.
Housing Minister Shuwaish Al-Duwaihi said 26 million square meters of plots would be developed in Jeddah (1/2), Madinah, Dammam (North and South), Al-Ahsa, Qatif, Tabuk and Al-Kharj under the project which will house 250,000 people.
Custodian of the Two Holy Mosques King Abdullah has instructed the ministry to develop new residential areas across the country and provide loans to citizens to build homes. The king had earlier allocated SR250 billion to construct 500,000 low-cost homes to solve the country’s pressing housing problem caused by its fast growing population. The new projects would be ready within 24 months.
“We’ll sign more contracts in the coming months to build homes in Asir, Najran, Baha, Makkah, Riyadh, Qassim, Hail, Al-Jouf, Northern Border Region and Tabuk,” said Al-Duwaihi.
All new housing districts would be provided with advanced infrastructure facilities including water, electricity and sewage systems in addition to schools, mosques and health centers.
“Citizens will be given land and loans to build homes either by themselves or with the help of real estate developers,” Al-Duwaihi said. The fees to be charged for the land will depend on the cost for developing it, he added.
Asked about the reasons for the delay of some past projects, the minister said: “We have received over five new housing projects from contractors. If any contractor delays the work we’ll hand it over to another.”
Al-Duwaihi said the ministry would soon announce the details of those who deserve new housing lands and loans. “We’ll encourage construction of homes in vacant lands,” he said when asked whether the ministry had plans to confiscate such lands. He disclosed plans to implement 60 new housing projects.

SR300bn Makkah projects to expand pilgrim services

jochemgeheniau — Thu, 15 Aug 2013 07:10:02 +0000

New projects worth more than SR300 billion are being implemented in Makkah to improve services being rendered to millions of pilgrims who come for Haj and Umrah, said Makkah Gov. Prince Khaled Al-Faisal.
He said the new development projects in Makkah, including largest expansion of the Grand Mosque, were not aimed at making any financial gains for the Kingdom but to enhance facilities for the guests of God who are growing in numbers year after year.
“The ongoing Haram expansion project, the largest in history, is being carried out on an area of 400,000 square meters. It will double the mosque’s capacity to two million worshippers,” the governor said.
The new Haram project has six main components: Expansion of its plazas; construction of bridges and pedestrian pathways; new service buildings; health centers; civil defense office; a central air-conditioning station; and a reserve power plant.
“There are plans to construct more pathways and tunnels around the mosque as part of the project,” he said, adding that all these works would facilitate the movement of pilgrims.
Prince Khaled stressed the significance of the SR69 billion Makkah public transport project, including a metro system, adding that it would ensure smooth flow of traffic inside the city.
He also said the King Abdullah Project for the Development of Makkah and Holy Sites aims at increasing the present capacity of Mina and linking the holy sites with Makkah with an advanced transport system.
The ongoing expansion of King Abdulaziz International Airport (KAIA) in Jeddah will increase its capacity to 80 million passengers, he said. KAIA is the main gateway of pilgrims.
“The Haramain Railway will reduce the waiting time of pilgrims at KAIA and will carry more than three million passengers annually,” the governor said.
The railway linking Makkah and Madinah via Jeddah will have a length of 480 km.
He referred to government’s plan to set up a full-fledged pilgrim city in Makkah with housing units, offices of Haj service providers and exhibition centers.
The expansion of masaa, the running area between the Safa and Marwa inside the mosque, has increased its capacity to 188,000 pilgrims per hour, he said.