Holland Gulf Chamber of Commerce » Riyadh

Saudi Arabia plans region’s largest electricity supply expansion by ’20

jochemgeheniau — Wed, 11 Dec 2013 08:36:04 +0000

RIYADH – Saudi Arabia is currently overseeing the largest electrical supply expansion plan in the Middle East to meet the rising demand for power driven primarily by steady population growth, a rapidly expanding industrial sector, surging air conditioning requirements, and heavily subsidized electricity rates. In order to stay ahead of the demand curve, the Kingdom is set to increase generating capacity from 55 GW to 120 GW by 2020, with further increases planned by 2032.
In support of the Kingdom’s plans, Riyadh Exhibitions Company ( REC ) has announced that it has partnered with Informa Exhibitions to organize Saudi Energy 2014 – The International Trade Exhibition for Electricity, Power Generation, Alternative Energy, Water Technology, Lighting and HVAC. Saudi Energy 2014 will be held from May 26 to 28, 2014 at the Riyadh International Convention and Exhibition Center.
Saudi Energy is a specialized trade exhibition targeting energy professionals, government officials, investors, and buyers locally and regionally. It is a vital marketplace for energy products, solutions and services and is designed to help national businesses achieve greater progress through broader exposure to the latest offerings and technologies in the related fields. The comprehensive event will cover all aspects of the industry, namely, electricity generation and distribution; alternative and renewable energy technologies; modern lighting products and technologies; water and water resources management technologies; and heating, ventilation, and air conditioning (HVAC).
Zeyad Al Rukban, Deputy General Manager, Riyadh Exhibitions Company , said: “With investment in the energy sector at an all-time high, specialized companies are currently vying to establish their market leadership, while newer players are looking for the right platform to introduce their products and services to the Saudi market. Given the tremendous potential, the significance of an organized, streamlined platform for meaningful business engagement is paramount.”
“Saudi Energy is a leading business gateway that will showcase industry-specific products, services and technologies to a professional audience from Saudi Arabia and the wider Middle East region. It allows access to promising industry prospects, presents partnership opportunities with local companies and facilitates networking with government officials, buyers and developers. Most importantly, it will help businesses to improve their brand visibility,” he added.
In 2013, Saudi Energy gathered 314 exhibitors and 7,564 visitors. Successful past editions have gathered professionals from government agencies, power production companies, factory operators, construction and development companies, service providers, large industrial establishments, and distributors and retailers.

Riyadh tops in real estate with SAR99bn deals

jochemgeheniau — Wed, 04 Dec 2013 10:31:05 +0000

Riyadh, with SR99 billion real estate transactions, has ranked as the most sought-after city in the Kingdom. The capital city outweighs Jeddah, which had recorded more than SR90 billion of real estate transactions as per the real estate index issued by the Ministry of Justice.
The real estate sector has revealed the positive impact of the economic and social stability experienced across the Kingdom as per the Ministry of Justice index. The index closed at a value of SR99 billion of commercial and residential deals for the year 1434H in Riyadh, surpassing last year’s deals that registered SR87 billion.
The index recorded more than 43,476 real estate deals in Riyadh city covering a total area of 227m2, with SR47 billion commercial transactions and more than SR51 billion residential transactions. This reflects the need toward seeking large locations to develop residential units to meet the increasing demand in the market.
Jeddah comes second with more than SR50.6 billion of residential transactions and SR39.9 billion commercial transactions, which represent 40,132 deals and over 90m2 of real estate area.
Majed Al-Hogail, MD, RAFAL, described as the premier residential communities innovator, said: “The economic and real estate cycle is moving rapidly and positively, and the demand on innovative residential units is increasing, which urges the real estate developers and investors to work on providing innovative residential solutions.”
Al-Hogail added: “We at RAFAL are investing in new strategic locations and the innovation of more than 3,950 residential units over the next 5 years with cost of over SR5.1 billion. Our growth strategy covers the Kingdom with new and bold opportunities within a prosperous real estate investment in the Kingdom.”
To facilitate the ownership of housing units by the citizens, more mortgage companies will be launched in 2014, as the Saudi government is working on activating the mortgage systems as per the enacted mortgage laws and regulations, to work alongside local banks and related governmental sectors, such as the Real Estate Development Fund and the residential units provided by Ministry of Housing.
The first half of the year 1434H has witnessed more than 70 percent of real estate deals, which indicates the investors’ activity who conducted SR62 billion of real estate deals in Riyadh city alone.
Al-Hogail said: “RAFAL leads the dynamic lifestyle pattern that requires an enriched, homogeneous social environment, as well as common facilities adhering to environmentally friendly and safety principles to create vibrant residential hubs, self-sustained communities, desired by many Saudi and expatriate families.”
According to Al-Hogail, the challenge facing the real estate market in the Kingdom is interesting, where the demand is increasing at an annual rate of 8 percent and is expected to last for a minimum of 10 years.
“This requires a consistency between the way of business and the regulations and challenges faced by the sector. Therefore, the performance has to be distinguished in order to be among the leading real estate development companies.”

Riyadh plans rain drainage network

jochemgeheniau — Tue, 03 Dec 2013 09:03:56 +0000

Around 70 percent of Riyadh will have a rain drainage network in the next three years. Currently, only 26 percent of the city contains such an infrastructure, said Riyadh Mayor Abdullah Al-Miqbil.
Al-Miqbil said 22 percent of the city is currently having rain drainage systems installed and that 48 percent will be covered within one and a half years. He was speaking on the sidelines of a Saudi-Jordanian engineering forum.
He said that the Riyadh governorate, in collaboration with the Higher Commission for the Development of Riyadh (HCDR), has drawn up an ambitious plan to develop the city center on an area spanning 15 square km.
The area is targeted to become an enormous business and entertainment hub, with greenery, pedestrian crossings and multilevel parking lots, he said.
He stressed that the private sector would be a partner in the provision of public services and construction activities.
The Ministry of Municipal and Rural Affairs has continuously urged engineering offices to give utmost care to quality and excellence in drafting engineering plans, he was quoted as saying.
Hamad Al-Shaqawi, head of the Saudi Council of Engineers (SCE), said the forum focused on the quality of engineering products and commitment to the principles of building standards through different stages of construction.
SCE’s Secretary-General Ghazi Al-Abbasi said Saudi Arabia is experiencing an unprecedented developmental boom as part of its overall economic, educational and health infrastructure development.
This, he said, puts a heavy burden on engineers in the local market.
He expressed hope they would implement sustainable projects commensurate with the expectations of the citizens and leadership.

Kingdom to be world’s 3rd largest exporter of petrochemicals by ’15

jochemgeheniau — Thu, 21 Nov 2013 08:50:00 +0000

RIYADH – The Kingdom of Saudi Arabia is expected to become the world’s third largest exporter of petrochemical products with its market share poised to reach 10 percent by 2015. Saudi plastics and petrochemical exports grew from less than $500 million in 1985 to $22 billion in 2011.
Moreover, the outlook for domestic plastics and petrochemicals is highly favorable as the country shifts its focus beyond increasing oil production capacity towards expanding its natural gas, refining, and petrochemicals industries.
Saudi Plastics & Petrochem 2014 – the 11th International Plastics and Petrochemicals Trade Exhibition will boost growth prospects even further.
Organized by Riyadh Exhibitions Company , the event will be held on Feb. 17-20, 2014 at the Riyadh International Convention and Exhibition Center.
The upcoming edition of the largest industrial event in the region will gather local and international industrialists and professionals, in addition to a number of governmental industrial commissions from the Gulf States. The event will showcase the latest technologies in machinery, equipment and processes, in addition to raw materials, semi-finished products, spare parts and services in the plastics and petrochemical fields.
Zeyad Al Rukban, Deputy General Manager, Riyadh Exhibitions Company , said: “Saudi industrial sectors are witnessing unmatched growth, as multi-billion dollar investments are being made in developing the Kingdom’s infrastructure. Saudi Plastics & Petrochem 2014 will reflect the pulse of Saudi Arabia’s plastics and petrochemicals industry, which is witnessing profound growth as well. Designed as an ideal business-to-business networking platform, the event will offer innovative products and technologies that businesses can leverage to stay competitive.”
Saudi Plastics & Petrochem 2014 will be held concurrently with Saudi Print & Pack 2014 – The 11th International Printing and Packaging Technologies Exhibition.
The forthcoming premier event is expected to cover more than 20,000 sqm of exhibition space and host exhibitors from over 26 countries. It will also feature 10 national pavilions to emphasize the potential of the Saudi market. Premier local companies such as the Saudi Basic Industries Corporation (SABIC) and the National Industrialization Company (TASNEE) will support the event as Diamond Sponsors, while Saudi Polymers has a tie-up as the official Platinum Sponsor.

Saudi construction sector poised for growth

jochemgeheniau — Fri, 15 Nov 2013 09:04:41 +0000

RIYADH – With the recent announcement of the Saudi government to allocate a social benefit package of SR 487.5 billion for the development of housing, infrastructure and transport in the Kingdom, the construction sector is set to see a surge driven by increasing private and public investments. The government has earmarked a total of SR 247.5 billion for housing development and SR 61.875 billion for transport expansion while an estimated SR 7.5 billion has been allocated to road projects under construction. Moreover, the General Authority of the Civil Aviation of Saudi Arabia has set aside a fund of SR2497.5 million for construction of 34 airports across the Kingdom in the next five years and a budget of SR101.25 billion has been approved for the rail projects that are either underway or at the bidding phase.
Celebrating its silver jubilee as the region’s premier construction show, Saudi Build 2013 – the 25th international construction technology and building materials trade exhibition – will be a perfect gateway to explore the lucrative Saudi construction sector as the exhibitors display latest technologies, machineries and equipment as well as offer complete business solutions to real estate agents, contractors and developers. The 25th edition of Saudi Arabia’s largest business-to-business construction fair will run from Nov. 4-7, 2013, at the Riyadh International Convention and Exhibition Centre.
Zeyad Al Rukban, Deputy General Manager, Riyadh Exhibitions Company, the organizers of Saudi Build, said “since its inception a quarter of a century ago, Saudi Build has been the foremost construction show in the region offering a platform to both exhibitors and visitors to leverage business opportunities in the region. The 2013 edition will proudly mark 25 years of continuous success of the show along with the record growth achieved during the recent years. This year’s event promises to be a special celebration as Saudi Build continues to enjoy a strong local, regional and global following, attracting high-profile personalities, decision makers, trade missions and key government officials from all over the world.”
Saudi Build 2013 will witness strong local and foreign participation from 28 countries. It is the only construction trade show in Saudi Arabia accredited by UFI, the Global Association of the Exhibition Industry.
Supported by diamond sponsor Rajhi Steel, Saudi Build 2013 will showcase the latest products and services related to Building Materials and Equipment, Architectural Finishing Products, Stone, Marble and Granite Products, Construction Tools and Technology, Engineering Services, Infrastructure Materials, and Security and Safety Systems, among others.
Saudi Build 2013 will host two concurrent events: Saudi Build PMV 2013 – The 3rd International Exhibition for Construction Equipment, Plant, Machinery and Vehicle; and Saudi Stone-Tech – The 15th International Stone and Stone Technology & Machinery Exhibition.

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.

GCC railway fully operational in 2018

jochemgeheniau — Tue, 05 Nov 2013 08:32:36 +0000

Abu Dhabi: The 2,177-km-long GCC rail network, which will link all six Gulf states by rail for the first time, providing an alternative to air or sea travel for both goods and passengers in the region, will be fully operational in 2018, said Dr Ramiz Al Assar, World Bank resident adviser of the GCC Secretariat General in Riyadh, yesterday.

“The designs of the nearly $200 billion (Dh734.490 billion) network, which will run down the Gulf coast from Kuwait, through Saudi Arabia, to the UAE and Oman, with branches linking Bahrain and Qatar, will be completed by the end of this year or in the first quarter of next year. Construction on the network is to start in 2014-15 and it will be fully operational in 2018,” Dr Al Assar told the MENA Rail and Metro Summit, being held in Abu Dhabi.

Abu Dhabi is leading the GCC rail network with its Dh40 billion Etihad Rail project. The 1,200-km line, planned to be completed in 2018, will link major industrial zones, cities and ports in the UAE, and will eventually connect with the GCC railway.

GCC transport ministers approved the feasibility study for the railway in October 2008, although a number of other key decisions have yet to be taken, including the precise route of the line.

Dr Al Assar said talks were under way between Saudi Arabia and Jordan, on the one hand, and between Kuwait and Iraq, on the other, on connecting the Arabian Mashreq (Eastern) to Maghreb (Western) networks.

“Designs of a causeway to link Bahrain to the GCC railway is expected to be approved in the third quarter of next year and there are plans to link Muscat with Yemen,” Dr Al Assar said.

Dr Al Assar said a tender for a study to set up GCC railway authority was to be issued by the first quarter of next year.

“This year has seen a turning point in the regional rail market,” says MEED editorial director Richard Thompson. “Over the past 10 months, we have seen the region’s ambitions to build Metro systems and main line rail networks start to become a reality, with more than $30 billion worth of rail construction contracts awarded so far this year And there is a lot more to come.”

More than $30 billion worth of rail construction contracts have been awarded across the region in the first three quarters of 2013, compared with just $3.9 billion worth of contracts signed in the first three quarters of 2012. The single biggest investments this year saw $22 billion worth of construction contracts awarded in June on Saudi Arabia’s Riyadh Metro.

“The success of this project so far is likely to act as a catalyst for further Metro schemes in the kingdom,” Thompson said.

The Riyadh Metro project is one of the key projects being discussed at the MENA Rail and Metro Summit 2013. Other projects under discussion include the Etihad Rail, Doha Metro and plans for an integrated GCC rail network.

The rail boom also raises challenges for the region, particularly around skills shortage and supply chain bottlenecks.

“Everybody will be competing for the same resources,” Thompson said. “And there is a real risk of unnecessary delays and cost escalation unless people manage the situation effectively. A coordinated approach is required. That is what we are aiming to achieve with this summit meeting of regional rail industry leaders.”

Riyadh and Beijing spur global economic growth

jochemgeheniau — Thu, 17 Oct 2013 08:08:42 +0000

Saudi Arabia and the People’s Republic of China enjoy a comprehensive and in-depth development of bilateral relations and fruitful economic cooperation, especially in the fields of trade, energy and infrastructure.
The strong relationship is moving forward steadily since the diplomatic ties were established in 1990.
A major diplomatic visit between the Kingdom and China was made in 1999, when Chinese President Jiang Zemin visited Riyadh, which resulted in the mutual signing of the 1999 strategic oil cooperation agreement.
It paved the way for China to open its oil refinery sector to Saudi Arabia if the Kingdom allows for exploration and development opportunities for Chinese investors.
Sino-Saudi diplomatic and economic relations grew closer in the year 2000. Their bilateral trade showed significant expansion.
In 2004, the two countries initiated a series of regular political meetings and in the same year Sinopec, China’s state-run oil company, signed an agreement to explore gas in the Empty Quarter (Rub’al Khali) in Saudi Arabia.
In 2005 alone, trade increased 59 percent, allowing Saudi Arabia to overtake Angola as China’s largest source of oil for the first time. Now oil is the backbone of the relationship.
In January 2006, Custodian of the Two Holy Mosques King Abdullah became the first Saudi head of state to visit China.
He signed five major agreements on energy cooperation during his visit, which was also used as a way to discuss broader economic trade, taxation and technical accords, a vocational training agreement, as well as to finalize an urban development loan for the Saudi Arabian Development Bank in China’s Xinjiang province.
Chinese President Hu Jintao hoped that this bilateral cooperation would “write a new chapter of friendly cooperation between China and Saudi Arabia in the new century.”
The high-profile visit was reciprocated by President Hu Jintao on April 22 in the same year.
The president became only the second foreign leader in history who was granted permission to address Saudi legislative council.
The two leaders were instrumental in signing several agreements regarding further energy exploration and security collaboration.
King Abdullah adopted a pro-Asian Look East trade policy, with more than half of Saudi oil going to Asia.
Saudi Basic Industries Corporation (SABIC) alone exports products such as petrochemicals worth over $2 billion to China on an annual basis.
Consequently, the value of Sino-Saudi bilateral trade rose to €32,500,000,000 in 2008, making Saudi Arabia China’s largest trading partner in Western Asia.
In the first quarter of 2010, Saudi oil export to China reached more than 1 million barrels, exceeding exports to the US.
The Kingdom is expected to remain China’s largest supplier of crude oil in the world and the largest trading partner in West Asia and Africa.
With the huge increase in Sino-Saudi trade, Saudi Arabia has emerged as a significant investor in China as the Kingdom is eager to invest in Chinese oil industry-related projects as a way to secure their status as a major oil provider to the China.
In 2004, Saudi Arabia’s Saudi Aramco Overseas Company invested nearly one-third of the $3 billion in funds needed for the construction of a petrochemical facility in China’s southeastern province of Fujian, which is planned to process 8 million tons of Saudi crude oil.
In 2006, the two countries agreed to jointly construct an oil storage facility on China’s Hainan Island and the Kingdom invited Chinese firms to participate in infrastructure development worth $624 billion.
On April 6, 2012, SABIC announced a new investment plan of $100 million to set up a new technology center in the Kangqiao area of Shanghai.
It was not only oil related companies that ventured into their bilateral relationship cementing the ties further, but major Saudi companies such as the Saudi Arabian General Investment Authority (SAGIA) and Saudi Arabian Airlines also established offices in China by that time.
In 2006, Saudi Arabia invested $1.1 billion in China, the first significant investment since 2000. In 2009, China Railway Company won a $1.8 billion bid to build a monorail in Makkah as a way to help transport pilgrims.
China Railway Construction Corporation Ltd. undertook the Al-Mashaaer Al-Mugadassah metro project Southern Line and completed its work.
The volume of trade exchange between Saudi Arabia and China soared to $73.4 billion.
China imported more than 50 million tons of crude oil from the Kingdom in 2012, and 27 million tons of oil imported in the first half of the current year and the volume of trade between the two countries reached $36.2 billion.
So far as the level of practical cooperation and bilateral relations are concerned, there are more than 140 Chinese companies operating in the Kingdom in the fields of construction, telecommunications, infrastructure, petrochemicals and others, as well as increasing mutual investment between the two countries, which clearly contributes in the economic boom for the two countries.
Cultural cooperation and people-to-people exchanges between the two countries progressed smoothly.
Saudi Arabia took an active part in the Shanghai World Expo spending $150 million on its pavilion.
The Saudi Pavilion was one of the most popular pavilions during the expo and received more than 4 million visitors.
As friends, China and the Kingdom have always been exchanging visits.
In recent years, there have been hallmarks of their increasing friendship through the Kingdom’s participation in the Olympic Games in Beijing, and the generous assistance by King Abdullah to the region affected by earthquakes in Wenchuan County, Sichuan Province, China in 2008.
Moreover, around 15,000 Chinese Muslims make pilgrimages to Saudi Arabia every year.
There are tremendous investment opportunities for both countries to work on further cooperation, especially in the areas of technology transfer and renewable energy, medical technology and certain other segments.
The Kingdom is looking forward to register further growth and China marching ahead with full confidence building a moderately prosperous society in a most comprehensive way.
Their economies have been providing a new impetus to the global financial system.

Call for linking of industrial cities with rail networks, gas pipelines

jochemgeheniau — Thu, 19 Sep 2013 08:13:51 +0000

The Council of Saudi Chambers of Commerce and Industry (CSCCI) has urged the Ministry of Commerce and Industry to link industrial cities with gas lines and rail networks in the Kingdom.
Members of the CSC made their request during a meeting with Walid Abu-Khalid, undersecretary to the Ministry of Commerce and Industry , in Riyadh last week.
Saad Al-Moajil, chairman of the national industrial committee at the Council of Saudi Chambers, led the CSC team of businessmen.
Al-Moajil said that such a link would boost the production rate of industrial cities. He added that such a move could promote the sector and offer affordable energy substitutes. In addition, he said it could reduce costs, support national factories and further ensure local products’ access to foreign markets.
Al-Moajil commenced the meeting by highlighting the positive cooperation maintained by the CSC and the ministry to promote trade and commerce in the Kingdom. He said fruitful cooperation would boost investor confidence and stimulate trade in the Kingdom.
Some of the other concerns raised by industrialists included issues such as the continued increase in land rent, as well as abrupt fines enforced on them by the Saudi Industrial Property Authority (MODON) with no prior notice. They also requested a fair representation of industrialists within MODON’s board of directors for a better understanding in matters concerning the sector.
Abu Khalid assured the ministry’s readiness to assist with industrial affairs. He emphasized that the ministry would continue supporting the council’s government procurement department in its efforts to activate the decision concerning granting priority to national products in projects implemented by the government.

SBG to build Damac luxury housing project in Riyadh

jochemgeheniau — Tue, 17 Sep 2013 07:53:35 +0000

JEDDAH – Dubai real estate developer Damac Properties has handedSaudi Binladin Group ( SBG ) a SR353 million ($96 million) to construct a luxury housing project located on King Fahad Road, Riyadh.
The work will be completed by Binladin subsidiary Haramain Gate for Construction, the main construction contract for Damac’s Esclusiva Luxury Serviced Apartments.
The 150m tower will include 100 luxury apartments and features interiors designed by Italian fashion house Fendi Casa.
Saudi Binladin Group is considered the world’s largest construction company and recently signed a $1.23 billion deal to build Kingdom Tower, which will be the world’s tallest building when complete.
“Damac Properties is thrilled to be working with Biladin group on the construction of Damac Esclusiva which will take the standards of luxury home living in the Middle East to a new level,” said Niall McLoughlin, senior vice president, Damac Properties.
“Together we can bring an experience to the market which the region is yet to see. It is a perfect synergy between two visionary companies looking to reach the pinnacle of luxury living,” he added.
Damac, one of the property developers worst hit by Dubai’s financial crisis of 2008-2009 when a number of its projects stalled or cancelled, has launched several new developments this year on a back of a resurgence in the emirate’s housing market.
Earlier this year it announced its Akoya by Damac development, which will include a gold course designed by flamboyant US business magnate Donald Trump.
The residences will each have views of the golf course, the first in Asia by Trump’s Trump International. Akoya by Damac is the company’s largest development to date, spanning 28 million square feet off Umm Sequim Road.
It will also include a spa, boutique hotels and international schools from kindergarten to secondary, as well as globally-recognized retail brands, leisure and entertainment offerings and a sports complex.
The land has already been bought from Dubailand, but no timeline for construction has been announced.
Damac, regarded as the largest luxury developer in the Middle East, is also building two mixed-use developments in partnership with movie producer Paramount.