An amount of AED 65 billion (USD 17.7 billion) has been allocated to an Emirati housing project in Dubai, according to the UAE’s official news agency, WAM.

The budget for the housing project was approved by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. It will be spent over the next two decades, to construct housing for the local Emirati population.

The number of citizens to be benefited by the Emirati housing project will be increased by 4x next year, the report noted. Meanwhile, land plots allocated to Emirati housing projects will also be increased to 1.7 billion square feet, catering to demands for citizens for the next 20 years.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, noted that a "comprehensive plan” was under development to ensure “high quality housing over the next 20 years” for Emirati citizens. Dubai’s urban development plans were under constant review, Sheikh Maktoum added, and would develop according to citizen requirements.

EMIRATI HOUSING PROJECT IS A PRIORITY FOR UAE GOVERNMENT

According to the report, Sheikh Mohammed noted that quality housing was a basic right, and a priority for his government, as it looks to make Dubai the world’s best city to live in.

In May this year, the Al Mughirah housing project in Al Mirfa City, Al Dhafra, was inaugurated. The Abu Dhabi-based housing project involved 410 residential villas for UAE citizens, with a total cost of AED 1.264 billion.

Another housing project in Abu Dhabi, the Al Samha housing project, was also inaugurated last year. At a cost of AED 674 million, the project included 250 residential villas – 150 of which are located at Al Samha West, and the remaining 100 in Al Samha East.

In April this year, a UAE government official noted that over 11,000 houses were being built for citizens across the UAE. These included 3,018 government homes in residential communities, 6,459 housing loans and 1,626 grants.

The Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei said that 35,000 houses have been completed and delivered since the launch of the Sheikh Zayed Housing Programme, of which he is the Chairperson. Total housing approvals under the programme surpassed 74,000, for a value of AED 41.3 billion.

Last year, 2,347 housing-related decisions had been made, including 2,141 loans, 206 grants, and the delivery of 2,538 houses.

_{Photo credit: www.arabnews.com/node/1934851/business-economy}

 

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Two major real estate development companies – The Red Sea Development Company (TRSDC) and Amaala – are soon to be merged, according to the CEO of both companies.

Speaking at the Arabian and African Hospitality Investment Conference, CEO John Pagano said that TRSDC will be taking over Amaala.

The move is aimed at further opening up tourism in Saudi Arabia, which is one of the ways the country is reducing its reliance on oil, Pagano noted.

Amaala is a sustainable ultra-luxury tourism destination located at the Prince Mohammad bin Salman Natural Reserve towards the north west of Saudi Arabia. Meanwhile, TRSDC is also developing a sustainable tourism giga-project called The Red Sea Project.

Both projects are backed by Saudi Arabia’s Public Investment Fund (PIF). The transaction was not valued as both developments are owned by the PIF. Further, they will continue to retain their individual identities post consolidation, Pagano said.

“Amaala has its own unique positioning and branding, which is not going to change, as well as the Red Sea project,” he said at the conference. “Amaala is focused on wellness, while the Red Sea project is very much focused on eco-tourism – that is not going to change.”

Pagano added that the consolidation will look to leverage “synergies” and “unique skill sets” between both projects, while boosting operational efficiencies.

Pagano was appointed CEO of Amaala in January this year.

UPCOMING PLANS FOR AMAALA AND THE RED SEA PROJECT

Pagano noted at the conference that Amaala is likely to go to market next year. The project will be raising between SAR 5-10 (USD 1.3-2.7 billion) next year for its first phase through conventional senior debt against assets under construction and their eventual income.

The first phase includes 9 hotels with 1,300 rooms, to be completed by mid-2024. Overall, the project will feature 2,800 hotel keys, over 900 residential villas, apartments and estate homes, and 200 retail, fine dining, wellness and recreational establishments.

Meanwhile, TRSDC will also be leveraging debt for funding subsequent phases, apart from SAR 14 billion in green financing that it has already raised this year. It is also considering REITs and a public listing as financing alternatives.

The company will be awarding contracts worth SAR 18 billion over the next 18 months. It is also in the process of signing several hotel deals which will be announced at the Future Investment Initiative summit in October, Pagano said. TRSDC is also looking to hire 700 employees in the next 12 months.

_{Photo credit: www.english.aawsat.com, www.thestylemate.com}

 

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The Red Sea Development Company has plans to raise up to SAR 10 billion (USD 2.67 billion) in green financing next year, Reuters reported. The funding will be raised for ultra-luxury tourism development Amaala, with which the The Red Sea Development Company was recently merged.

According to the report, CEO John Pagano said that The Red Sea Development Company was looking to raise SAR 5-10 billion next year, noting that the amount was “likely going to be on the lower end of that scale.”

"We will come to the market probably sometime next year with a financing for Amaala specifically related to the first phase of the project," Pagano told Reuters.

The green financing will be aimed at nine hotels to be developed in the first phase of Amaala, to be opened in 2024.

The plans follow on the heels of a green loan of SAR 14.12 billion (USD 3.76 billion) raised by The Red Sea Development Company this year.

THE RED SEA DEVELOPMENT COMPANY RAISES GREEN FINANCING IN MARCH

The developer, which is behind the ecotourism giga-project The Red Sea Project, raised SAR 14.120 billion (USD 3.76 billion) through a riyal-led green credit facility.

The term loan facility and revolving credit facility was raised from four Saudi banks – Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank. HSBC was the Green Loan Coordinator for the deal.

This was the first riyal-led credit facility to receive a Green Financing accreditation. The accreditation is governed by the International Capital Markets Association and the Loan Market Association.

The funding was largely responsible for a growth in green financing in H1 this year. Green and sustainability-linked loan financing touched USD 6.4 billion, surpassing the USD 4.7 billion raised in all of 2020. Issuances of green financing and sustainability-linked loans in the MENA region also went up by 38% in the first half.

The Red Sea Project is on track to open an international airport and hotels, and welcome guests by the end of next year. Phase one of the sustainable tourism project is anticipated to be completed by 2023.

The entire project, meanwhile, is scheduled for completion by 2030. By then, The Red Sea Development Company will have developed 50 resorts with up to 8,000 hotel keys, over 1,000 residential properties across 22 islands and six inland sites at the project. The destination will also include luxury marinas, golf courses, and entertainment and leisure facilities.

_{Photo credit: www.design-middleeast.com/serene-luxury-amaala/, www.argaam.com/en/article/articledetail/id/607731}

 

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Despite being heavily impacted by restrictions imposed to curb the spread of Covid-19 over the past 18 months, the industry is now set to make a rapid recovery, according to a new report by JLL.

The successful roll-out of the UAE’s vaccine programme as compared globally and recent lifting of restrictions in restaurants and hotels are just two of the factors contributing to the sector’s forecasted recovery.

Speaking at the Arabian & African Hospitality Investment Conference (AHIC) this week, Alexis Marcoux-Varvatsoulis, Foodservice Consulting Lead at JLL MENA, highlighted the “higher levels of overseas visitors due to travel restrictions continuing to ease globally and improving consumer confidence among the resident population” as further driving forces.

SPOILT FOR CHOICE

In an analysis of over 45,000 foodservice units across the UAE, KSA and Europe, Dubai topped the list for number of outlets per person and variety regarding category and cuisine.

Fast-foods are particularly popular in the GCC with just under half of all food outlets in Saudi Arabia (44%) and over a third in the UAE (32%) falling into this category. While in Europe, full-service restaurants are more prominent at 56%, versus 35% in the UAE and 25% in Saudi Arabia.

Regionally, there are notable differences in foodservice offerings between Dubai and Abu Dhabi. Owing to its greater number of international visitors and larger ex-pat population, Dubai has more casual dining restaurants (31%) than Abu Dhabi (24%).

A vast majority (80%) of the region’s 340 fine dining restaurants are in Dubai, located in the areas of the city with the highest apartment rents, namely the Dubai Marina and DIFC.

THE FUTURE OF F&B

The evolution of the F&B sector in Dubai and Abu Dhabi of recent has marked a rise in the number of home-grown brands, such as Orange Hospitality, Solutions Leisure, and Gates Hospitality, whose unique foodservice concepts are shaping the domestic and global foodservice sector.

Dinnertainment, a concept which combines F&B and entertainment within one outlet, is a trend which is set to continue growing in popularity as people seek noteworthy social experiences post-pandemic.

According to Paul Evans, Founder and CEO of Solution Leisure and Creator of Wavehouse, “full-bodied, sensory-driven experiences” that “cater to the middle-man of the UAE – offering that VIP, feel-good, personalized service that Dubai’s elite hospitality sector is so well-recognised for, at an approachable and affordable price point,” categorises the future of F&B.

Food halls, of which six already exist in Dubai and one in Abu Dhabi are also expected to grow in number in the region over the coming years. Currently, nine in ten food halls are located in malls or retail complexes, yet JLL predicts that stand-alone food halls will soon be developed in local areas, acting as social hubs for communities.

 

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Real estate in Saudi Arabia has “blossomed,” and “further exponential growth” can be expected from the sector, according to the latest report from Knight Frank.

Noting that 2021 marked five years since the launch of Saudi Arabia’s Vision 2030, Faisal Durrani, partner and head of middle east research at Knight Frank said that the impact of the national agenda was reflected strongly in real estate in Saudi Arabia.

“What we’ve seen happen over the last five years has been nothing short of incredible,” Durrani said. “The lightning speed at which reforms are being implemented and the pace at which giga real estate projects are rising is just the tip of the iceberg.”

1.3 MILLION RESIDENTIAL UNITS TO BE ADDED TO REAL ESTATE IN SAUDI ARABIA

Nearly USD 1 trillion worth of projects were announced in infrastructure and real estate in Saudi Arabia during the period. It represents just a third of the total planned spending of USD 3.2 trillion, the report said. Projects include eight mega projects and super cities, such as Saudi’s USD 500 billion planned city NEOM, and a USD 20 billion Diriyah Gate neighbourhood in Riyadh.

Further, residential mortgages issued in the first half of the year grew 10x in number, as compared to H1 2016, the year in which Vision 2030 was launched. A total of 150,000 residential mortgages were issued in H1 2021, Durrani said.

In the same vein, the demand for advisory services for real estate in Saudi Arabia has also grown. Harmen de Jong, partner, real estate strategy and consulting at Knight Frank Saudi Arabia, said that the surge in residential mortgages correlated with increased demand for real estate advisory services, which have surpassed pre-pandemic levels in 2018 and 2019.

“We are beginning to see increased appetite from private sector real estate developers in the form of public-private-partnership initiatives with large scale government led projects. This is a key trend which will further support the realisation of Vision 2030,” de Jong added.

Prime office rates in Riyadh have also grown sufficiently to reach pre-pandemic levels, with growing demand, even though headline rents in national office markets were “clearly impacted” due to COVID-19, the report said.

Meanwhile, foreign business investment licenses reached record levels this year. In Q1 2021, newly issued foreign business investment licenses reached the highest number ever.

Real estate in Saudi Arabia will also see the completion of over 1.3 million residential units, more than 3 million square metres of new office space, and over 100,000 hotel keys, the report suggested.

_{Photo credit: https://www.constructionweekonline.com/business/266451-saudi-arabias-diriyah-is-the-jewel-of-the-kingdom}

 

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Middle Eastern countries featured prominently in the recently published Future Readiness Index survey. According to the survey, the UAE was the top Middle East-based country by future readiness, ranking third in the list of 27 emerging economies.

It was also one of only three emerging economies to feature in the quartile of best performers across all four pillars of the future readiness survey. These were institutions and infrastructure, technology, talent, and innovation. The Emirati nation followed Singapore and Israel to form the top three emerging economies for future readiness.

Other Middle Eastern countries to make the list included Qatar, Saudi Arabia, Turkey, Kuwait, Jordan, Morocco, Lebanon, and Egypt.

The report noted that Middle East countries, joined by Singapore, were the best in class for internet access and affordability. Qatar topped the global ranking for affordable internet access, followed by Singapore, the UAE, Saudi Arabia, and Kuwait. Qatar, Singapore, and the UAE also topped the list as the least discriminatory emerging economies.

Qatar and the UAE were also the top two emerging economies in terms of digital transformation. They were followed by China, Singapore, and Kuwait. Other Middle Eastern countries to feature in the top 10 included Saudi Arabia and Israel.

UAE RANKS 23 IN THE OVERALL RANKING OF FUTURE READINESS

The UAE stood at the 23rd rank in the overall global future readiness rankings of 123 countries. The report noted that the UAE was “well above the global average” across all dimensions of future readiness assessed.

It stood 16th for talent, due to its ability to attract and develop human skills. However, talent retention was listed as a challenge.

Moreover, the UAE also ranked 19th for its institutions and infrastructure, 26th for technology, and 22nd for innovation.

The UAE recently became home to the first deployment of a robotic elevator installation system in the Middle East. Developed by Schneider, Robotic Installation System for Elevators (RISE) was deployed to fit 14 elevators at DMCC’s Uptown Dubai, a supertall 81-storey tower.

It has also gained prominence for its progress in 3D printing. The country is home to both the world’s first 3D printed office building, which was built in 2016, and the world's largest 3D-printed building, built in 2019.

Further, the country is also a frontrunner as a preferred destination for data centres in the MENA region. It also recently kicked off a drive to attract coding talent from across the world.

 

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Sales of off plan property in Dubai have registered strong growth this year, according to findings announced by Property Finder. In August this year, off-plan properties recorded AED 4.95 billion, or USD 1.3 billion across 2,599 sales deals, a statement from the company said.

This is the highest sales value to be recorded for sales of off plan property in Dubai since December 2013, representing an eight-year high. It also represents the highest monthly off plan transactions by number since November 2019.

“During the pandemic last year, the off-plan market significantly declined. The average was about 30% of properties sold were in the off-plan segment.”

“Today, we have bounced back to 2019 ratios where secondary and off plan segments are almost 50/50,” Lynnette Sacchetto, Director of Research and Data for Property Finder, said. “This is a clear indication that investors are coming back into the market due to their confidence in the future of Dubai.”

MEDIAN PRICES FOR OFF PLAN PROPERTY IN DUBAI MOVE UP

Arabian Ranches 3 and Villanova recorded the most off-plan villa and townhouse sales, the report said. A total of 187 units were sold in Arabian Ranches 3, and 157 in Villanova. Other areas of interest included Tilal al Ghaf with 79 units, Dubai South with 58 units, and Mohammed bin Rashid City with 16 units.

Dubai Harbour recorded the most sales of off-plan apartments, with 260 units sold. Mohammed bin Rashid City also showed strong sales of 239 units, followed by Business Bay with 219 units, Jumeirah Village Circle with 171 units, and Jumeirah Lakes Towers with 137 units.

Meanwhile, in terms of demand for off-plan property in Dubai during August, top areas for villas and townhouses included Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Damac Hills 2 and Mohammed bin Rashid City. Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay and Jumeirah Village Circle were most in demand for off-plan apartments.

Further, the average transaction price for off-plan property in Dubai saw a year-on-year increase of 53%, climbing from about AED 1.2 million in August 2020, to AED 1.9 million in August 2021.

Median prices for off-plan apartment sales stood at AED 1.1 million in August 2021, a growth of 48% from AED 745,500 in the same period last year. Median prices for off-plan villas and townhouses stood at about AED 1.8 million for the month this year, gaining 12% as compared to 1.6 million last year.

_{Photo credit: https://propsearch.ae/dubai/villanova}

 

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The Saudi Real Estate Company, otherwise known as Al Akaria, is moving ahead with plans to raise SAR 1.6 billion (USD 426.4 million) additional capital through a rights issue. The company made an announcement on Tadawul last week.

Al Akaria said in the disclosure that it would use the funds to finance and implement future projects and expand its activities.

The additional capital would be used to finance major projects such as the Public Investment Fund-backed Qiddiya and ROSHN, and other projects associated with Saudi Arabia’s Vision 2030. This was confirmed by Al Akaria CEO Ibrahim Al-Alwan, reports said.

The appointment of NCB Capital as financial adviser was also approved by Al Akaria’s board, according to reports.

Al-Alwan said that the capital raise was required for the company to link expected growth with the pace of major projects, with Riyadh undergoing a rapid expansion in infrastructure projects.

Meanwhile, the real estate company also has plans for the restoration and revival of previous projects, along with new projects under consideration.

Al-Alwan highlighted Saudi’s residential sector as one of the most important segments of its property market, particularly concerning plans to make Riyadh one of the top cities across the world. Subsequently, Al Akaria will be focusing on housing projects, and is also looking at integrated projects with services that promote good quality of life.

AL AKARIA LOOKS TO FINANCE SAUDI MEGA PROJECTS

Saudi Arabia has a number of mega-projects in the works, including Qiddiya and ROSHN developments, which Al Akaria aims to finance with the capital raise.

Qiddiya is being developed as an entertainment mega-project with sports, arts, and entertainment initiatives. These include a FIA Grade 1 circuit, a theme park called Six Flags Qiddiya, a water park, football stadiums, a golf course, and more.

Meanwhile, ROSHN signed SAR 1.6 million in contracts last year for the development of its flagship Riyadh community. Called SEDRA, the 30,000-home development was officially launched in August this year, with 4,500 homes to be built in the first phase.

Overall, Saudi Arabia has a total of USD 1 trillion worth of real estate and infrastructure projects underway as part of Vision 2030.

These projects represent just a third of total planned spends by Saudi authorities, as they look to diversify the economy. They include eight new planned cities, including Qiddiya, and mega-projects worth around USD 63 billion in Riyadh.

_{Photo credit: https://www.roshn.sa/en/sedra, https://www.arabnews.com/node/1516691/saudi-arabia}

 

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A second batch of 14 real estate conciliators will be supporting real estate in Abu Dhabi, according to the UAE’s official news agency WAM.

Deputy Prime Minister of the UAE, Minister of Presidential Affairs, and Chairperson of the Abu Dhabi Judicial Department (ADJD), Sheikh Mansour bin Zayed Al Nahyan approved the real estate conciliators late last week, WAM reported.

The conciliators will be working on settling real estate disputes at Mediation Centres located in Abu Dhabi, Al Ain, and Al Dhafra municipalities. The move is aimed at improving Abu Dhabi’s competitiveness, and attracting investments for real estate in Abu Dhabi.

A more effective redressal of real estate disputes will help to save time and effort, promote the flow of capital, and reduce caseloads, Counsellor Yousef Saeed Al Ebri, ADJD Under-Secretary and Abdullah Al Sahi, Under-Secretary of the Department of Municipalities and Transport said at the oath ceremony.

The new conciliators have undergone a basic training programme by the Abu Dhabi Judicial Academy. The programme provides conciliators with the required knowledge and skills for negotiation, mediation, conciliation, and neutral evaluation of disputes.

Abu Dhabi’s Real Estate Disputes Resolution Centres have been successful in establishing stability in real estate in Abu Dhabi, Al Ebri noted.

REAL ESTATE IN ABU DHABI

In Q1 this year, real estate in Abu Dhabi recorded USD 3.13 billion in gains across 3,847 land, building, and unit deals. 66% of sales transactions, worth USD 90 million across 777 transactions, came from land deals. Real estate units comprised 34% of sales, or USD 46 million from 978 transactions.

Mortgages of USD 1.77 billion across 2,092 transactions were also recorded in Q1.

Abu Dhabi real estate companies Sky Abu Dhabi Developments, IHC, and Aldar have also been looking at making regional real estate investments.

While Aldar has offered to purchase a majority stake in Egypt’s SODIC, IHC’s multi-billion dollar investment plans include a second-tier Abu Dhabi property developer. Meanwhile, Sky Abu Dhabi Developments is looking to invest nearly USD 1 billion in Egyptian real estate.

Further, residential rents and sales in real estate in Abu Dhabi remained “normal” last year.

Abu Dhabi was also named the most liveable city in the Middle East for the second year in a row, according to The Economist Intelligence Unit’s Global Liveability Index 2021. The emirate was also spotlighted for its handling of the COVID-19 pandemic.

Abu Dhabi’s AD Ports Group has signed a letter of intent with the Aqaba Development Corporation for the setting up of a state-of-the-art cruise terminal at Marsa Zayed, in Jordan’s Aqaba city.

The terminal is aimed at supporting tourism in Jordan. According to a statement, the cruise terminal will be a gateway for cruise ship passengers visiting the Red Sea, as well as a touristic, commercial, and entertainment attraction for Aqaba residents.

The facility is the first to be developed by AD Ports Group in Jordan and is its first cruise facility outside the UAE.

“The creation and operation of a new cruise terminal at Marsa Zayed will be a milestone for Jordan’s fast-growing cruise and tourism sector and is the first of many enhancement projects that we have planned,” Captain Mohamed Juma Al Shamisi, Group CEO of AD Ports Group said.

An additional letter of intent was signed for Maqta Gateway, the digital arm of AD Ports Group, to implement an advanced Ports Community System (PCS). The PCS will oversee communication between Aqaba ports and multiple stakeholders.

These include terminal operators, the Aqaba Special Economic Zone Authority, the Aqaba Development Corporation, the Jordan Maritime Commission, customs, support services, and on-land connections at the Port of Aqaba. The PCS is aimed at supporting the technical capacity of Aqaba ports, the statement said.

The agreement is the first of several future strategic partnerships with AD Ports Group.

TOURISM IN JORDAN BRACES FOR RECOVERY

Hussein Alsafadi, CEO of Aqaba Development Corporation, noted in the statement that the new cruise terminal would “significantly support” tourism in Jordan, expand onsite facilities and services, create new jobs, and promote Aqaba as a “major regional hub.”

“It will also facilitate the movement of cruise ship passengers arriving from countries across the Mediterranean Sea and Europe, who typically visit the Golden Triangle of Jordan,” Alsafadi added. “Stretching from the desert landscape of Wadi Rum to the sandy beaches of Aqaba and the ancient city of Petra, the Golden Triangle is considered by many to be among Jordan’s top tourism destinations.”

Tourism in Jordan suffered a blow last year due to the COVID-19 pandemic, with hotel occupancy rates dropping as low as 2-3%.

Government measures to support tourism in Jordan included opening the Golden Triangle exclusively for the fully vaccinated, lifting lockdown measures on public places after a drop in infections, and subsidising charter flights. The measures paid off – occupancy rates touch 40-50% in Aqaba for instance, with an uptick for the Dead Sea and Amman.

_{Photo credit: www.ayla.com.jo/locations/jordans-golden-triangle/, www.transportandlogisticsme.com/smart-sea-freight/ad-ports-group-to-set-up-new-cruise-terminal-at-marsa-zayed-in-aqaba}

 

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