Holland Gulf Chamber of Commerce

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.

Saudi renewable energy projects in global spotlight

jochemgeheniau — Wed, 29 Jan 2014 14:57:10 +0000

Saudi Arabia has a growing population with a steadily rising demand for energy as consumption increases by 7-10 percent each year, according to experts attending the high-profile event in Riyadh on “Empowering Saudi Arabia’s emerging renewable sector”.
They said 80 percent of the Kingdom’s GDP is dependent on oil revenues.
Although rich in oil, the Kingdom faces a real problem of supplies for exports running out as it continues to cater to high internal demands.
The event brought together experts from both local and global energy experts, including Michelle T. Davies, head of clean energy practice, Eversheds LLP, and Maher Alodan, director of research, development and innovation at the King Abdullah City for Atomic and Renewable Energy (KACARE)
In order to cope with the demands, KACARE has been tasked with developing plans to deploy nuclear power and renewable energy in the Kingdom.
KACARE recently drew up plans to develop 54 GW of renewable energy by 2032, potentially the biggest solar program of its kind.
The event was hosted by Global law firm, Eversheds , with the cooperation of various local and global firms, during which they discussed renewable energy projects in the Middle East in general and in Saudi Arabia in particular.
“The Middle East is currently an attractive market for global renewable energy funders and developers. The recent program outlined by Saudi Arabia, for example, is a 54GW renewable energy opportunity, one of the largest the world has ever seen,” said Davies.
The immense opportunity that the ME presents also throws up a whole host of challenges for the development of projects in the region, securing of capital and the development of renewable energy projects in Europe.
Jordan, on the other hand, is lacking in sufficient domestic fossil resources needed to secure its own energy independence — it is currently heavily reliant on imports through the Arab Gas Pipeline. Jordan’s renewable energy strategy will, therefore, not only help to reduce reliance on alternative sources of energy but also enable it to develop its own domestic renewable energy industry with demand for domestic workforce and expertise which will ensue.
Despite holding the seventh largest oil and gas reserve in the world, the UAE relies on imported gas for the production of its electricity and has a rising energy consumption of up to 10 percent each year.
This mix of drivers still provides the motivation to change the domestic energy mix. The two main emirates of Abu Dhabi and Dubai have their own energy strategy and their own renewable energy schemes.

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.

Construction market to hit SAR1.12 trn by 2015

jochemgeheniau — Thu, 09 Jan 2014 08:43:56 +0000

The volume of Saudi Arabia’s booming construction and contracting market is expected to hit $300 billion (SR1.12 trillion) by 2015, said Fahd bin Mohammed Al-Hammadi, chairman of the National Contractors Committee at the Council of Saudi Chambers.
“Construction is the Kingdom’s second largest economic sector after oil,” he said. In 2012, the sector contributed 16.5 percent of the gross domestic product compared to the private sector growth of 11.5 percent and GDP growth of 8.6 percent in current prices, he explained.
The construction sector’s total assets are valued at SR200 billion while the value of government contracts awarded in 2013 amounted to nearly SR157 billion. “We don’t have the correct figure of disrupted government projects,” he said. “We have to differentiate between delayed and disrupted projects,” he pointed out.
From the beginning of 2013 to its third quarter, the Finance Ministry sanctioned 1,855 contracts worth SR120.24 billion. “They included 627 contracts for operation, maintenance and cleaning with a total value of SR24.45 billion.”
Al-Hammadi said government contracts account for 65 percent of the sector’s activities. The number of registered contractors in the Kingdom reached about 115,000 by the end of 2013, which is 41 percent less than the figure of 2010 when it was 280,000. Among them 3,052 are classified contractors.
Firms licensed to provide contracting and maintenance services reached 3,487, which account for 77 percent of investment licenses in the Kingdom.
“The contracting sector is one of the important economic sectors in the country,” Al-Hammadi said. He expected the private sector’s contribution to nonoil GDP at 58.75 in 2013 while estimating actual growth in the sector at 8.11 percent.
About 34 percent of firms registered with the General Organization for Social Insurance are from the contracting sector with total participants reaching more than 2.17 million (40.1 percent of the total). The number of Saudis working in the sector has increased to 193,785. “There are about 300 job titles in the sector,” Al-Hammadi said.
Fawaz Al-Khodary, deputy chairman of the committee, said the construction sector was facing a lot of problems and emphasized the need for an authority to strengthen the sector. “We also need specialized centers to train workers required for the sector and a research center to conduct studies on better implementation of projects.”
Saleh Al-Habdan, chairman of the contractors committee at the Riyadh Chamber of Commerce and Industry, said they have presented proposals to resolve the problems facing the sector. This included setting up of a fund to finance contracting companies and sanctioning of more visas to recruit skilled foreign workers.

GCC health care spending set to grow 11.4%

jochemgeheniau — Wed, 08 Jan 2014 08:40:51 +0000

The health care industry in the GCC is expected to continue its robust growth propelled by demographic and macroeconomic factors in the region. GCC health care spending is expected to increase by a CAGR of 11.4 percent from 2010-2015.
The main growth drivers of the industry include the region’s fast growing population, rising income levels, increased prevalence of lifestyle diseases, growing demand for quality health care and mandatory health insurance policies. GCC governments are trying to make significant investments to support health care provision and help the industry to grow to international standards. Several GCC nations have announced plans to ramp up infrastructure to cater to rising demand, with major health care projects across the region being planned to accommodate the ever growing demand. Even though GCC governments continue to lead in health care expenditure, increased participation by private players has been seen in the GCC health care industry.

Andrea Longhi, MENA advisory health care leader, EY, said: “The health care industry is driven by positive growth prospects and increased purchasing power. The growing demand for health care services coupled with regulatory changes and emphasis on quality health care makes the GCC an important destination for both domestic and international investors. Health care spending in the region has witnessed significant growth over the past few years and we expect the growth to continue in the future with the higher incidence of lifestyle diseases and an increasing amount of GCC governments enforcing mandatory medical insurance.”
With programs such as mandatory insurance, there is an increasing reliance on the private health care sector and most well established facilities are focusing to expand rapidly to create capacity for their growing markets. One way of doing this is by way of an IPO and raising capital for expansion. The recent IPO of several health care facilities have set a precedent and more are to follow in the coming years. Not only this, numerous new facilities are planned in almost all GCC countries.
Imad U. Bokhari, MENA transaction advisory services health care leader, EY, said: “Health care in general is now a major topic for private investors, as it weathered the recent financial crisis. The inclusion of this sector as part of the overall investment strategy for major institutions has become vital. We are at the dawn of a major expansion in the health care sector in the region, even if only few of the many planned facilities come to fruition. Some of these health care developments are so large that they can only be called medical cities. These promise to bring more successful medical treatments, world-class health care education, significantly experienced human capital and some concepts that are entirely new to the region.”
Despite the fast growth of the industry as well as the increasing demand, there are challenges facing the GCC health care sector. Considerable shortage of local physicians and qualified allied health care staff in the region poses an obstacle to the industry’s growth as GCC countries are heavily depending on expatriates for health care workforce.
Health care expenditure in the region as a percentage of the gross domestic product (GDP) still remains low, despite the considerable health care spending, which was witnessed over the past few years. Health care infrastructure in the GCC also continues to lag international standards, which restrains the market from expanding, given GCC’s strong demand and high income per capita.
“The region will need to invest in training their local talent to help build a larger pool of physicians to cater to the growing demand. As the GCC governments continue to invest in health care, we should see health expenditure as a percentage of GDP increase in the future. The new health care projects will help to attract people to the region as a medical tourism destination. Additionally, establishing research and clinical trial centers will have significant impact on retention of talent,” Bokhari added.

UAE rail to link to GCC network

jochemgeheniau — Mon, 06 Jan 2014 10:10:26 +0000

Abu Dhabi: Completion of the UAE railway by 2018 can only bring more prosperity not only to the UAE but also the country’s five GCC neighbours as rail lines are constructed across the region, said Etihad Rail .

The UAE railway will connect with the sources of raw materials, industrial areas, ports and major population centres, says Etihad Rail , and will be built in three phases, the first of which will be a 266km-long western stretch between Al Ruwais and Shah. The Shah-Habshan-Ruwais freight line is being built in collaboration with Abu Dhabi National Oil Company (Adnoc).

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, in October.

“The designs of the nearly $200 billion (Dh734 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.

In October 2011, Etihad Rail signed an agreement with Adnoc to transport about seven million tonnes of granulated sulphur a year from Habshan and Shah to Al Ruwais in Abu Dhabi for export.

The second phase will connect Abu Dhabi with Dubai. It will also provide links to Jebel Ali port, Mussaffah and Khalifa port. The third phase will be the extension to link the northern emirates. The second phase is expected to be completed by 2016 and the third phase by 2017.

The Etihad Rail network will also connect with the GCC network and this — once fully established — will cover Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

GCC industrial investments exceed USD338 billion

jochemgeheniau — Mon, 16 Dec 2013 08:40:55 +0000

Total Industrial investments in the GCC have jumped from $81 billion in 1998 to $338 billion in 2012.
The Gulf Organization for Industrial Consulting ( GOIC ) revealed some figures about the progress of industrial activities in GCC countries.
The number of firms in the GCC jumped from 7,089 in 1998 to 15,165 in 2012. The number of workers grew from 55,9420 workers to 1.34 million workers.
Most of these investments were in the areas of chemicals, refining petroleum products, base metals, construction metals, building materials and food industries.
GOIC highlighted these figures during the “Reality and prospects of UAE national industrial sector” conference in Sharjah, according to a press release here.
It is taking place with the support of Sheikh Sultan bin Mohammed Al-Qasimi, member of the Supreme Council of the UAE and Ruler of Sharjah.
This conference aims at introducing high-quality UAE industries at the regional and international levels and discussing means of developing and diversifying them.
GOIC Secretary General Abdulaziz bin Hamad Al-Ageel gave a keynote speech in which he highlighted the Gulf industrial sector development.
Al-Ageel said: “More than 83 percent of GCC industrial firms are small and medium industries, but most industrial investments are in the area of big industries. More than 95.8 percent of the cumulative investments in the industrial sector of the Gulf.”
He added: “As to the contribution of the industrial sector in GCC countries’ GDP, it ranged between 9.5 percent and 10.5 percent from 2001 to 2012, except for 2008 when it was reduced to 8.5 percent because of the global financial crisis.”
GCC countries also maintained a positive growth in the manufacturing industry value added in terms of the GDP throughout the last five years.
The GOIC secretary general stressed the role of GOIC in supporting industrial development projects in GCC countries by developing GCC industrial and economic databases, preparing several studies about the industrial sector and suggesting industrial investment opportunities in GCC countries.
In addition, GOIC provides public and private sectors with technical consulting services.
It also prepares studies and reports at the regional level, notably the GCC industrial map project that shed light on missing industries and target industries in GCC countries.
The organization suggested and promoted several investment opportunities in different GCC countries in coordination with chambers of commerce and industry and ministries of industry and trade.
Al-Ageel reiterated GOIC ‘s will to keep up with international developments and their repercussions on manufacturing industries and knowledge-based industries in GCC countries.
The organization publishes an annual report about the readiness of GCC countries to move to knowledge-based industries.
In the last three years, analysis has led to two groups of states: the first is for countries that achieved remarkable progress toward knowledge-based industries and includes Saudi Arabia, UAE and Qatar.
These countries will be ready to move to knowledge-based industries by 2020 if they manage to fix their current vulnerabilities.
As to the second group, it includes Kuwait, Oman and Bahrain. They should deploy additional efforts to move to knowledge-based industries.
Al-Ageel also commended GCC countries for their achievements in this area.
He said: “Knowledge-based industries and industry innovation clusters have five pillars, and human resources is the most important pillar. In this regard, GCC countries made a quantum leap in terms of expanding the reach of basic, secondary and university education. Nevertheless, further efforts should be deployed to improve the quality and quantity of professionals in the area of knowledge. As to the second pillar, it is a framework for developing knowledge-based industries. GCC countries adopted excellent macroeconomic policies, and while frameworks of business policies still differ between these countries, they are generally solid but with some room for overcoming a number of restrictions.”
The GOIC secretary general said: “The third pillar is a combination of capital, funding and liquidity.
Although they are largely available in the region, there is a need to expand financing structures that are necessary to develop knowledge-based industries. Innovation systems are the fourth pillar. They encompass collective assets and operations boosting innovation in business applications. Foundations for supporting innovation systems in the GCC are being laid, but these initiatives are still immature and require additional time and attention in order to reinforce innovation capacities.”
As to the fifth pillar, Al-Ageel said: “It is knowledge-based industry infrastructure; GCC countries have a relatively advanced infrastructure to develop knowledge-based industries, but further changes to some policies should be implemented.”
He reiterated: “GCC countries need a specific policy for knowledge-based industries, since this type of knowledge has several implications on policies such as protecting knowledge assets and investing in producing or using knowledge assets. Government policies can develop appropriate frameworks to protect intellectual property that encourages producing and sharing knowledge between all stakeholders.
In addition to that, technical infrastructure and innovation are necessary, but they are not enough to prove the active development of manufacturing industries and to reinforce knowledge-based industries.
These industries require appropriate legal and business environments in order to prosper and thrive in open and competitive markets. In fact, policies play a major role in determining these conditions.”
Al-Ageel reminded governments and industrial investors that “knowledge-based strategies rely on competitive advantages in different countries. Therefore, industries with competitive advantages have a wide reach and benefit from established skills. They need comprehensive political reforms to provide a vibrant work environment which reduces bureaucracy barriers, improves access to financing and regulatory and statutory frameworks, and help improving education that is the first milestone toward responding to the pressing need for human capital.”
Al-Ageel said: “Governments should play a bigger role in providing knowledge networks and public-private partnerships (PPPs). Such measures would reinforce knowledge-based industries, give priority to small and medium knowledge-based industries and boost privatization.”

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.

KSA ‘to award SR337.5bn construction deals in 2014′

jochemgeheniau — Mon, 09 Dec 2013 08:38:27 +0000

The Saudi construction market, which captures 40 percent of the GCC market, is expected to award construction projects worth $90 billion (SR 337.5 billion) in 2014, local media said quoting a study prepared by a British financial firm. The study, disclosed at the Big Five International building & Construction Show, Dubai, said the value of the projects, being implemented or planned in the Kingdom, is estimated at $700 billion (SR 2.6 trillion).
The Kingdom was represented at the show by the Saudi Export Development Authority (SEDA), an affiliate of the Ministry of Commerce. The construction sector in the Kingdom is considered the biggest in the Middle East region thanks to huge government spending on infrastructure projects which will lure foreign investors to set up new firms or enter into joint ventures (JVs) with local companies in a bid to avail new projects in the Saudi markets which are currently estimated at $40 billion (SR150 billion), the study said.
However, the building and construction sector in the Kingdom is encountering a series of challenges, notably the Saudization (localization) of jobs and shortage of technical cadres for the implementation of projects and absence of legislation which will negatively affect performance and non-compliance to standards, the 44-page study said. The building and construction sector in the Kingdom witnessed a growth rate of 4.7 percent in 2012 and poised to grow to 6.4 percent in 2014, it said. On the other hand, the rate of expansion in construction costs slowed down in 2012 due to long bidding processes.
The consumption rate of steel and cement was, however, projected to increase by 8.5 percent and 22 percent, respectively, in 2013, the study said. With $2.87 trillion of projects currently in the planning or construction phase, the Middle East region offers unlimited business opportunities, with the Gulf countries representing the most active markets, according to data released by the show organizers. They say a thriving trading environment, ease of doing business and consistent demand for innovative products and project solutions, from construction through to fit-out, make the GCC an attractive proposition for local and international companies looking for new market opportunities.

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.”