Saudi Arabia has now expanded 5G services to 51 cities and provinces across the country, the Saudi Arabian Communications and Information Technology Commission (CITC) has confirmed.

The move is part of the country’s economic diversification programme, Vision 2030. Digital expansion across the country is a key part of the strategy, which aims to develop all sectors, readying the Kingdom for a post-oil economy.

ATTRACTING INTERNATIONAL INVESTMENT

The news comes at a particularly significant time for Saudi Arabia, which like much of the rest of the world, is currently battling against the COVID-19 pandemic. The 5G rollout will no doubt be welcomed by remote-working business efforts across the areas affected.

In the long term, the Kingdom hopes to attract international interest and investment through its efforts. Along with enhancing its competitiveness in the region and further afield.

Aside from the 5G rollout, the government’s ICT strategy includes plans to develop broadband and fibre networks, and as a result, advance the e-government, e-commerce and technology sectors across the country. Goals include having high-speed broadband coverage in 90% of homes in populated cities, and 66% of households in other areas.

THE IMPACT OF THE ICT ROLLOUT

According to the most recent data from Saudi Arabia, the country’s ICT efforts are beginning to pay off. Investment and spending in ICT were up approximately 2.4% from 2019 to 2020, according to the International Data Corporation, at around USD 37 billion for 2020 in total. Global Data added to this predicting ICT spending over the next few years would grow, expecting to reach USD 46.6 billion in 2024.

So far, unsurprisingly, cybersecurity has been one of the fastest-growing market segments as the country’s digital market develops. In 2019 the sector was worth USD 120 billion, which is expected to reach USD 300 billion by 2024, according to Global Market Insights.

_{Photo Credit: www.sustg.com}

 

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Industry experts JLL have reported a significant increase in office refurbishment requests in the past year.

According to the industry body, landlords are making plans to improve office spaces in order to encourage tenants back to office buildings, after spending much of the past year remotely working from home, as a result of the global COVID-19 pandemic.

The report from JLL said, “everything from traditionally-leased office floors to lobbies and end-of-trip facilities are being looked at, triggered by the shift to a hybrid work model.”

CHANGING OFFICE EXPECTATIONS AS A RESULT OF COVID-19

The study focused on 2,000 office workers across 10 countries. According to those interviewed as part of the study, the majority of workers want to work two days remotely on average. Prior to the COVID-19 pandemic, this number was just one day per week.

“There is a shopping list of capital expenditure strategies that landlords can and will get underway in their buildings as a proactive defensive strategy in the current climate. Tenants now want fewer people at workstations and would rather prioritize spaces that enhance teamwork, collaboration, and innovation. Employees also expect the experience of the office to be worth commuting for, with food, social spaces, health and wellbeing amenities, smart technology, clean air and the highest hygiene practices,” said James Peterson, head of asset and digital development, Australia for JLL, one of the countries which took part in the survey.

DRIVING VALUE IN A COMPETITIVE FIELD

Australia is not alone in this new development, according to JLL data approximately 40 percent of offices that are currently over 10 years old require some form of enhancement or refurbishment in order to remain competitive in the current market. “There are many buildings that are well located with efficient floor plates and strong structural bones but have mounting stress inside them such as looming lease expires. This can be mitigated with clever strategies,” Peterson added.

The trends from the past 12 months and the experiences learnt from remote working are only likely to increase in terms of their influence on our workspaces, Anthony Couse, Asia Pacific chief executive for JLL added. “The new year may not shake off all the challenges of a pandemic-hit economy, but with recovery in many markets and new dynamics influencing how people work, live, and play, 2021 could establish itself as a year where the Asia Pacific enters a new cycle of real estate growth, innovation and investment,” said Couse.

 

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There’s a reason investors consider Egypt’s real estate market a sound, stable investment even in a volatile climate. With an increase in population of about 2.5 million people per year, it is unlikely the appetite for real estate across the nation will diminish any time soon — pandemic, or otherwise.

In fact, in October 2020, the IMF revised its economic growth forecast for Egypt, dialling it up from an initial projection of 2% to an improved one of 3.5% — Egypt’s economy was now outperforming that of the rest of the region. And according to Ayman Sami, Country Head for Egypt at JLL, a substantial chunk of this growth can be laid at the doorstep of the nation’s real estate sector.

So what’s in store for Egypt’s property market in 2021? Ayman Sami tells us what to expect.

How would you describe Egypt's property market across sectors in the wake od the COVID-19 pandemic?

I would say the Egyptian market proved quite resilient, with real estate coming out one of the strongest drivers of the economy. But I wouldn’t say the performance was uniform across segments. For example, the hospitality sector was hit the hardest with RevPar (revenue per available room) down by 70%, and occupancy levels down to 28%. The retail segment, however, saw a quick recovery and even some growth in the second half of the year. And the office sector remained stable, with continuing high occupancy levels in east Cairo.

So which was the best performing asset class of 2020 - Why did it outstrip others?

Both, the retail sector as well as the residential sector, performed well in 2020. The residential sector because it is a defensive sector — it is always seen as ‘safe haven’. The retail sector, in spite of the restrictions on mall timings and capacities, owing to the uptick in e-commerce towards the latter half of the year. Footfall also eventually picked up, particularly in outdoor retail spaces — shopping is, after all, a form of socialisation.

What is the outlook for Egypt's property market in 2021?

The outlook is optimistic, particularly in light of projected economic growth, the widespread prevalence of better safety standards, and vaccine rollouts. As the economy grows and movement increases, affordability levels will respond and start to rise. This will reverberate across the real estate market. Of course, not every sector will respond equally, but there will be an overall improvement.

So which real estate sectors will do well?

Throughout the various stages of macroeconomic challenges, the residential asset class proved resilient and will continue to do so. Retail is quite sensitive to change, but it is also quick to recover. And it will definitely respond to increases in purchasing power. Online businesses will continue to grow, and this will trigger a stronger demand for logistic space and warehousing.

And which sectors will be slow to recover?

The hospitality sector might be the last to recover since the revival of tourism depends on global efforts to curb the pandemic. It should recover in line with vaccine rollouts around the world. The remaining sectors, however, are closely linked with local demand drivers and are therefore likely to perform well.

What about government measures - How will they influence investments into the property market?

One of the government’s objectives is to create jobs and mitigate unemployment, and they have been quite successful in doing that. This will improve affordability. The government is also creating opportunities for investors and developers through its infrastructure projects. These mega projects, coupled with the right environment, will drive continued growth across Egypt’s property market in 2021.

 

Recommended Podcast: Looking Beyond the Pandemic:

 

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A new Egyptian property start-up has received its first major boost for development through a six-figure US dollar investment.

LEADING THE WAY IN EGYPTIAN PROP TECH

Initially set up in August 2020, the platform – called Isqan –  is one of the first proptech companies in the country.

The app offers free real estate services and is currently working with more than 50 Egyptian real estate companies, providing listings for more than 10,000 properties.

Despite being in the market less than a year, it has already accrued thousands of users in the country.

THREE INVESTMENT ROUNDS

According to the company, it raised a six-figure US dollar investment in its pre-seed round in September 2020, before its most recent investment, which has come from real estate developer Mohamed Gaballah, the chief executive officer (CEO) of Egygab Holding.

“We are thrilled to be working with Mohamed Gaballah. His investment in Isqan is a testament to his belief in our team, product and growth strategy,” said co-founders Ali Ezzat and Karim Kazem.

According to the team, the new investment will be used to increase operations across the country, as well as hiring new team members and investing in app development and marketing. The team said they wish to significantly increase the company’s market presence in the year ahead, with plans for a further round of investment in Q4 for 2021.

 

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Responsible investment is an increasingly hot topic in 2021, with companies looking at ways they can better improve their office green credentials, offer their employees cleaner technology, while contributing to the wider community through sustainable policies and practices.

According to Brie Williams, Head of Practice Management, State Street Global Advisors, a key part of best practice Environmental, Social and Governance (ESG) is through “incorporating ESG factors in investment decisions and active ownership asset stewardship.” Below we look at some of the key practices and areas in this field.

KEY ESG AREAS TO CONSIDER

One of the difficulties first-time ESG investors tend to face, is trying to develop a policy which covers all three areas – environment, social and governance. Environmental factors can cover areas such as water usage (and its conservation), clean technology, and green buildings. Meanwhile, social factors can include anti-bias issues, avoidance of harmful products in the workplace (such as tobacco) and general labour relations. Governance however, tends to focus exclusively on corporate issues such as board diversity, anti-corruption policies.

Whereas ESG used to be a ‘box tick’ within a company’s portfolio, modern day investors need to view ESG as something that has a part to play in decision making at every level within a company.

Indeed as Brie WIlliams, Head of Practice Management at State Street Global Advisors says: “Trends bubbling under the surface for the last decade have come to a head, positioning ESG to transform from a check-the-box portfolio component to a significant component of a portfolio.”

HOW TO INCORPORATE ESG INTO COMPANY POLICY

Those looking to improve their ESG performance should integrate their traditional investment analysis and decision-making processes with ESG policy. It is only when it is part of the core structure – rather than a separate target – that it can become a fully functional part of any company practice. Moreover, it is important to have key ESG goals in place and a method of measuring performance and targets in this field. For example, introducing specific ESG themes such as human rights performance or climate and carbon targets.

Another key way to build ESG is through creating a screening policy for any companies that work with your business. For example, picking companies which perform well in terms of ESG, while excluding any that perform badly or do not meet the screening criteria.

A key mistake many businesses make is thinking that ESG is contradictory to performance in the market. As Suzanne Smetana, Head of ESG Investment Integration at State Street Global Advisors says: “Do your research, as there is growing, clear and compelling research suggesting a correlation between ESG and corporate financial performance.”

 

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Egypt is currently undergoing multiple new construction developments, including its New Administrative Capital and its pan African transport network.

AT 98 PERCENT COMPLETION

In the latest announcement from the country’s government, the Assistant Minister of Tourism and Antiquities Al-Tayeb Abbas announced this week that the country’s new Grand Egyptian Museum is now 98 percent completed, on track for its opening date later this year.

The project initially was due for completion in 2020, however its original deadline was extended due to the impact of the COVID-19 pandemic on construction.

According to Abbas, several of the new tourism hubs key attractions (such as pieces from the reign of Tutankhamun) would be placed in the new museum over the next week, with the museum’s planned opening date planned for Q4 of this year.

BOOST TOURISM AND INVESTMENT

The government hopes that the new project will boost tourism and investment in the country’s second-biggest city of Giza. Currently, the project has cost the government approximately USD1 billion, according to local reports.

The new development is close to the city’s famous Giza Pyramids, and once completed will house the world’s largest collection of historical artefacts belonging to a single country’s heritage.

The museum will span 500, 000 square metres and will include 5,000 artifacts from the reign of Tutankhamun, 2,000 of which have never been displayed to the public before, and is expected to boost both regional and international tourism to the city.

 

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ANNOUNCEMENT - The Awards celebrate Saudi Arabia’s real estate landscape and the ambitious strides being made to transform KSA into an investment and tourism hub. The Cityscape Intelligence judges will be looking for projects that not only show architectural excellence but also speak to the changing and challenging climate.

• Project Submission Deadline: 18 March 2021 
• The winning and shortlisted projects will be profiled on Cityscape Intelligence on 21 March. 

To enter the awards please fill the form here

CATEGORIES

• Leisure & Hospitality
• Residential
• Office
• Retail
• Sustainability
• Tech & Innovation

ELIGIBILITY

Projects must be based in Saudi Arabia

JUDGES

Cityscape Intelligence and a panel of independent judges will assess each nomination.

Don't miss your chance to get the recognition your project deserves: ENTER THE AWARDS NOW

As the built environment grapples with the consequences of climate change, the architecture industry is looking for innovative ways to inject sustainable solutions and ensure that cities are liveable in the future.

Take for example China’s, Chengdu Future Science and Technology City. Touted as a sustainable blueprint for the future, the city, in China's Sichuan province, is design studio OMA’s response to a carbon-neutral environment.

CAR FREE CITY

The 4.6 sq. KM city will be car free, contain six clusters modelled after traditional village settlements while incorporating space dedicated to education and innovation.

While each cluster within the city will be car free with all buildings being accessible by foot, a smart mobility network will also connect residents to the surrounding city through automated vehicles.

OMA Partner Chris van Duijn said: “With this project, we hope to provide an alternative to the typical masterplan, which is based on the traditional car-oriented road network. We intend to create a design rooted in the geography of the site. We hope that connection between architecture and landscape will result in a dynamic environment for education that will inspire innovative ideas.”

EDUCATION AND INNOVATION PARK

OMA together with GMP will develop the first phase of the overall masterplan, which will include an International Educational Park in the west, and a Transit Oriented Development (TOD) in the southeast.

The International Education Park will feature landscaped terraces and become an extension of the natural landform of the site. The centre of the campus will be formed by a valley, and include a landmark complex building. The 80,000-square-metre building will form the heart of the education life and include a university library, student centre, auditoriums, laboratories, and offices.

_{Photo Credit: www.dezeen.com}

 

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Saudi Arabia’s Crown Prince Mohammed bin Salman announced a brand-new development called Coral Bloom this week, which will be part of the country’s ambitious Red Sea Project.

FOSTER + PARTNERS TAKE THE LEAD

The development will be on Shurayrah Island, the main island at the new ecotourism hub. In the announcement made this week, it was unveiled that the architectural plans for Coral Bloom have been designed by internationally recognised British firm, Foster + Partners.

The team behind the Red Sea Project have high expectations for the new project, with John Pagano, the CEO of The Red Sea Development Company, saying that he hoped Coral Bloom will “set the standard in groundbreaking architecture and sustainable design, not just for our region, but globally”.

The natural island has previously been described as having a “dolphin-like shape” and is home to the fourth largest barrier reef in the world.

The waters around Shurayrah Island are rich with untouched corals and endangered species, all of which will need to be taken into careful consideration as the building work commences.

THE GATEWAY TO THE RED SEA PROJECT

“The Coral Bloom design takes inspiration from the incredible flora and fauna found uniquely in Saudi Arabia… Shurayrah Island is the gateway to The Red Sea Project so it’s important that it sets the standard in groundbreaking architecture and sustainable design, not just for our destination, but globally too. This is achieved by going beyond simply protecting the environment, to applying a regenerative approach,” Pagano said.

Luxury ecotourism hub Coral Bloom will include 11 hotels on the island, that will include some of the “most famous and largest hotel brands in the world.” according to the Saudi Press Agency – although it has not yet been disclosed which hotels have signed up to the project or how many.

According to Foster + Partners, the architectural plans for the island are focused on keeping as much of the island as possible in its natural state, will providing luxury amenities for travellers:

“Our vision for Shurayrah is inspired by the island’s natural state, with the hotels designed to give the impression that they have washed up on the beaches and nestled among the dunes almost like driftwood. The materials we use and the low impact they have ensures that the pristine environment is protected, while the additions we make to the island serve to enhance what is already there – hence the name, Coral Bloom” Gerard Evenden, head of studio at Foster + Partners said.

According to the team, the project will also aim to add to the current flora and fauna on the island, through landscape developments which will enhance the island.

_{Photo Credit: www.designboom.com}

 

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Following the impact of COVID-19 and the on-going pandemic, one real estate company in Dubai has thought of an innovative new way to make their service more competitive in the current market.

NEW RENOVATION APP TO BOOST SALES

Nomad Homes, a Dubai-based Proptech real estate company has launched a new wing to its business model, aimed at quickening sales in the current highly competitive market. The new service – called Nomad Renovation Concierge – offers to renovate homes before putting them on the market at a higher price, while promising to sell them quicker.

Nomad Homes, which first launched in 2019 is a digital-only real estate platform that uses PropTech to streamline and simplify the buying and renting process in the emirate.

Through its new division, the company covers the cost of the renovation. Typical changes to the properties they sell include upgrading amenities and providing new flooring.

THE YEAR AHEAD

Helen Chen, CEO of Nomad Homes, said: “We hope this new service will help speed up transactions in prime neighborhoods such as Downtown or JBR. We hear from buyers that they are looking for upgraded units in prime areas and hear from sellers that they want their homes to sell faster. Nomad Renovation Concierge is the solution to these problems. With our new service, sellers can sell faster while buyers find the like-new home they dreamed of. We’re very excited to provide innovative solutions to make real estate transactions easier and more efficient in Dubai."

According to Core Real Estate, an industry consultancy based in the UAE, both rent and sales prices are expected to remain under pressure in 2021, following the trends seen in recent years due to concerns such as oversupply in both the residential and commercial markets. According to the consultancy 2020 also marked an eight year low for new launches, a trend which it said is likely to continue in the year ahead.

 

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