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Mega-economic cities expected to attract more than US$80 billion in investment.
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| 30 Sep 2007 |
With Saudi Arabia committed to enhancing its investment potential, the latest real estate developments and projects in the kingdom are to figure prominently at Cityscape Dubai 2007.
The world’s largest business-to-business property investment and development event takes place at the Dubai International Exhibition Centre from 16-18 October 2007.
More than 45,000 people are expected to participate in Cityscape Dubai and Saudi Arabian projects are expected to be magnets for investors looking to improve the regional balance of their portfolios. Some of the prestigious Saudi developments on show include; Dar Al Arkan’s five million sqm Shams Al Riyadh ‘neighbourhood’ project which is situated in the northern suburbs of the sprawling Saudi capital. Al Makam Tower developed by Jiwar Real Estate Management, Marketing & Development which was recently sold in a deal worth 2.2 billion Saudi Riyals and two leading projects by Al Masarat near the commercial hub of Jeddah, in the western province.
Computer generated image of the King Abdullah Financial District of Riyadh currently under construction.
“With a record number of real estate developments and iconic buildings being promoted in the UAE, it is sometimes easy to overlook the huge property and real estate market of Saudi Arabia,” said Frederique Maurell, Exhibition Director, Cityscape Dubai.
The kingdom's best known and astute businessmen, Prince Al Waleed bin Talal, plans to invest heavily in the real estate sector in both Riyadh and Jeddah. The Riyadh project will have residential units and commercial areas, as well as a Fairmont-operated leisure resort, with some 69,000 residents. The cost on completion is expected to be US$7 billion. In Jeddah, his Kingdom Holdings will develop a 5.3 million square metre mixed-use complex. Al Waleed estimates the cost on completion at US$13.3 billion.
Saudi Arabia, already the biggest economic market in the Middle East, has launched a series of mega-economic cities expected to attract upwards of US$80 billion in domestic and foreign investment as well as creating thousands of jobs for Saudi nationals.
The economic cities are spearheaded by the Saudi Arabian General Investment Authority (Sagia) which seeks to harness large-scale private sector investment to create the multi-use integrated zones.
Sagia Governor Amr al Dabbagh says Saudi Arabia plans to become one of the top 10 most competitive nations in the world by 2010. At present the kingdom is 38th. He added: “Investment is the oxygen of an economy. Without investment there is no growth, there is no job creation.”
The King Abdullah Economic City on the Red Sea coast is an embodiment of the drive for economic diversification. Others are planned in Madinah, Hail and Jizan with two more expected in Tabouk and Dammam. The US$26 billion city is a 168-million square metre project with six key components: a seaport, industrial zone, central business district, resort district, educational zone and residential communities.
Riyadh, the kingdom’s capital, is also bidding to develop the largest financial centre in the region with the King Abdullah Financial District. Billed as not only the largest but also one of the most technologically advanced centres in the Middle East, it will cover an area of 1.6 million square metres. It will include residential properties, hotels, sports facilities, retail and commercial outlets. The first building is set to open toward the end of 2008.
“Saudi Arabia has many advantages in strategic sectors at regional and global levels which make it attractive to international and regional investors,” added Maurell. “It is ranked first on the price of energy provided for investment projects. Investments in the kingdom also realise high profit ratios for local, foreign and shared projects with low risk exposures and a simple form of tax and property registration fees.”
Cityscape Dubai has attracted wide industry support with platinum sponsors Emaar Properties, Tanmiyat Investment Group, Aldar Properties, Dar Al Arkan, Nakheel, and Qatari Diar; gold sponsors Tameer Holdings and Saraya Holdings; and silver sponsor Aqaba Development Corporation.
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