The studies, which began in October 2019, will illustrate how Saudi Arabia can redevelop and renew its national rail transport infrastructure. It will cover dozens of options for passenger transport within the kingdom.

CONNECTING EAST TO WEST

It will look to renovate the existing railway line linking the national capital of Riyadh with the country’s Eastern Region, before expanding the network elsewhere in the kingdom.

This prospective project will involve connecting Yanbu with King Abdullah Port, followed by a line between Jeddah on the west coast and Riyadh.

There will be significant investment in logistics infrastructure to ensure the new railway lines are fully functional and add real value to the Saudi economy.

The project will be led by an “alliance” led by a Chinese governmental agency with substantial experience in developing railway infrastructure; also involved is eleven international companies, including a large Saudi contractor firm and several European and American organisations.

BIG PLANS FOR RAIL EXPANSION

Part of Saudi Arabia’s railway expansion plans is the Saudi Landbridge Project, a long-term plan slated to connect Jeddah and Riyadh, and Damman to Jubail on the country’s Gulf coast.

The country is also developing its  North-South Railway project, a passenger and freight line which will connect the country’s bauxite and phosphate centres to the capital.

Saudi Arabia’s railway expansion plans are part of the kingdom’s efforts to diversify its economy and promote economic development. It is attracting significant attention from international investors.

Al-Jasser said these studies will be complete within two months. They are said to be detailed and extensive and will shed more light on the kingdom’s plans for its railway expansion.

_{Photo Credit: Arab News}

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With demand for residential property increasing in the kingdom, this Sharia-compliant fund has been set up in response to a real estate market displaying very strong fundamentals.

EXPANSION PLANS

Called Al Dar Investment Fund, it will develop more than 1,500 residential units aimed at high- and medium-income buyers in Riyadh, the national capital. The fund has been set up by Jadwa in collaboration with Al Majdiah Group and Riyad Bank.

Jadwa is already a major player within Saudi Arabia. It currently manages assets worth 35 billion Saudi riyals, in the public market, private equity, property, private credit, and fixed income segments.

The fund has been launched in accordance with Saudi Arabia’s Vision 2030 programme of national economic and social transformation, which aims to increase home ownership among Saudi citizens to around 70%. The country has already exceeded its target of 60% home ownership by 2020, and the kingdom has big ambitions for its future growth.

The Saudi government intends to turn Riyadh into one of the top-ten urban economies in the world. Part of this strategy involves doubling Riyadh’s population of 7.5 million people by 2030.

EXPECTING BIG THINGS

The government is investing USD220 billion into this project and expects substantial contributions from the private sector. Al Dar Investment Fund is an important piece of this investment jigsaw puzzle.

The fund reflects a healthy real estate market ripe for investment and represents the confidence internal investors have in the country’s economy.

Jadwa's managing director Haitham Al Ghannam recognised the strength of the Saudi market, noting "the attractiveness of the local residential real estate market today, particularly in Riyadh”.

The launch of this property fund, which has already seen record demand during its offering period, will surely herald a much greater interest in the Saudi real estate market as the global economy begins to recover from COVID-19.

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Launched by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, the Dubai Creative Economy strategy will look to increase the number of creative companies from 8,300 to 15,000 within the next five years, and double the sector’s contribution to the city’s economy to 5 percent by 2025.

The strategy will seek to make the emirate a more attractive destination for creators, investors, and entrepreneurs to prompt international as well as local investment in the city.

The creative economy, which includes everything from publishing, writing, cinema, and music to artistic and cultural industries, cultural heritage, fashion, and gaming, currently represents only 2.6 percent of Dubai’s economy.

NEW CREATIVE ZONES

To achieve this goal, the emirate will invest in a new integrated zone for creative individuals and offer flexible packages and incentives for creators and investors. It will also develop a new framework to better measure the city’s “creative pulse” and determine the impact the sector is having on the local economy.

The emirate has already begun creating hubs for the creative industries, including Dubai Internet City, Dubai Media City, Dubai Production City, Dubai Studio City, and Dubai Design District.

OPPORTUNITIES FOR INVESTORS

These new purpose-built hubs will offer new opportunities for real estate investors as offices and workspaces are constructed to meet the expected demand from the creative industries.

The plan, which will also encompass museums, archives and libraries, will require an enormous amount of new buildings and infrastructure. Further incentives offered by the Dubai government will make investing in these construction projects even more attractive to international investors.

The Dubai Creative Economy is part of the emirate’s long-term plan to diversify its economy, and build an economy based on knowledge and innovation in a sustainable way.

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DRIVERS OF CHANGE: Top 20 most Influential Sustainable MENA Real Estate Professionals. You can nominate a peer, colleague, line report, or a key figure in real estate who is making a significant strides towards the MENA region’s green transition here.

Located in Al-Khankah to the north of Cairo, this new development is envisaged as a centre for the Egyptian pharmaceutical industry. It will act as a hub for developing and manufacturing safe and effective medicines, providing a dedicated platform for cooperation between the state and private enterprise.

A REGIONAL HUB FOR MEDICINE

At 180,000 square metres, it is the largest pharmaceutical city in the entire Middle East.

It is hoped the city will help transform Egypt into a regional hub for the pharmaceutical industry, attracting international companies to set up shop.

In particular, the city will provide a platform for exporting medical products to other African and Middle Eastern countries. To that end, it contains a center dedicated to manufacturing medicines in concert with foreign companies.

It is a timely development. This new city will help to address the ongoing Covid-19 crisis by providing space for the manufacture of coronavirus drugs, as well as remedies for other chronic illnesses.

HIGH STANDARDS

Gypto Pharma City has been developed with the very latest technology, including state-of-the-art automation and self-cleaning devices. All the facilities in the city will meet the highest, WHO-approved standards.

When fully operational, will include 160 production lines to manufacture 150 types of medicines—in its early phase, it will also focus on the production of medicine packaging.

The city is intended not only to attract Egyptian and international corporations but also to create jobs for a young, tech-literate workforce.

Speaking at the opening, President Sisi said: “We must have the ability to produce medicine at the highest levels. The antibiotic produced in the medicine city will be as efficient as its counterparts in the most prestigious countries in the world.”

_{Photo Credit: www.behance.net/gallery/93918409/Redesign-for-gypto-pharma}

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President Abdel Fattah el-Sisi announced Egypt’s plans to create a more attractive business environment for American investors following a video conference between the American Chamber of Commerce in Egypt and the Egypt-US Business Council.

Attendees included CEOs and senior corporate leaders from the United States, including Apache, Honeywell, Uber, Lockheed Martin, ExxonMobil, Chevron, Google, Mastercard, Pepsi, and the Hilton group, as well as the Egyptian Prime Minister, Foreign Minister, Minister of International Cooperation and the Minister of Trade and Industry.

ATTRACTIVE SECTORS

Following the event, Sisi reflected on Egypt’s development goals and identified a number of areas in which the country was attractive to international investors.

The American delegates to the meeting reserved particular praise for Egypt’s energy sector, which they said paved the way for the country to become a regional leader in energy trade, helped by its strategic location. Becoming an energy hub is already a key strategic goal of the Egyptian government.

In addition, they lauded Egypt’s progress in the digital economy, tourism, transport, water desalination, and health care, as well as its large-scale infrastructure projects. This is most readily demonstrated in the New Administrative Capital, a planned capital city designed to incorporate smart technology—it is an enormously attractive prospect for real estate investors.

SECOND PHASE OF ECONOMIC REFORM

This announcement comes as Egypt launches its second phase of economic reform, which is set to introduce new measures to reduce poverty and ensure sustainable rates of economic growth.

This stage of reform will address structural issues within the economy, improve quality of life and reduce unemployment to create jobs and attract investment.

Creating a conducive environment for US investors goes hand-in-hand with these development goals. It is hoped American investment in Egyptian infrastructure and industries will help Egypt continue its economic development.

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Saudi government data reveals 466 investment licenses were issued to foreign investors in the fourth quarter of 2020—this represents a 60 percent increase on the previous year.

December was by far the busiest month, with 189 investment licenses issued. The country received around USD1.9 billion of foreign investment in the fourth quarter.

Over the course of the year, the flow of foreign investment rose by more than 20 percent, representing a return to pre-pandemic levels. In total, this amounted to around USD5.5 billion of foreign investment in 2020.

AN ATTRACTIVE MARKET

Overall, around 1,300 new foreign companies obtained an investment licence in 2020, a 13 percent increase since 2019. Industrial, manufacturing, logistics, retail and eCommerce were among the sectors receiving the most foreign direct investment.

This strong recovery reflects a high level of confidence in the Saudi market, particularly as the country looks to diversify its economy away from oil with huge infrastructure projects such as Neom and the Red Sea Project.

Saudi Arabia has been actively courting international corporations, hoping to encourage more to establish their Middle East hubs in the country instead of its Gulf neighbours.

STRONG GROWTH AHEAD

This comes days after Saudi Arabia was predicted by S&P Global Ratings to experience average real GDP growth of around 2.3 percent for the next few years. This makes the country a stable and reliable target for foreign direct investment.

Saudi Arabia’s economic recovery has been continuing apace, and real estate firms will hope to capitalise as more opportunities to invest in infrastructure and mega projects emerge.

In addition, the country’s Vision 2030 project, aimed at diversifying the Saudi economy, will create more space for manufacturing, logistics, and eCommerce real estate.

Currently, there is a supply of around 700,000 apartments and villas in Dubai. Analysts believe the city will require an additional 483,000 to 550,000 residential units in the next twenty years to accommodate its rapidly expanding population. This amounts to more than 25,000 new units each year.

This rapid population growth is expected to create substantial opportunities for real estate investors, in particular creating demand for properties within the middle-income segment of the market.

A POPULATION MASTER PLAN

The ambitious Dubai 2040 Urban Master Plan sees population growth as an essential ingredient in a recipe to maintain Dubai’s international competitiveness as an investment destination.

The plan was launched to make Dubai one of the most liveable cities in the world. It has been described as a people-centric plan which places inclusivity, diversity, and sustainability at its heart.

It focuses on developing five urban centres across the Emirate—two new and three existing—with an emphasis on efficient resource allocation, better green space and public beaches, improved educational and healthcare infrastructure, and more tourist attractions.

It is hoped it will make the Emirate a more attractive destination for tourism and foreign direct investment.

SUSTAINABILITY AT ITS HEART

In particular, it will prioritise green space, which is anticipated to occupy as much as 60 percent of the city. It will also involve significant investment into public transport, with the aim of ensuring all the city’s inhabitants are within a short walk of the transport network.

The Dubai 2040 Urban Master Plan is the latest in a long line of urban development schemes that have witnessed the city’s population balloon from just 40,000 in 1960. This latest plan is built around modern trends of happiness, wellbeing, and environmental sustainability, but it is also one that offers incredible opportunities for real estate developers as Dubai’s population continues to grow.

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Sharjah, the United Arab Emirates’ third-largest city, has often been considered the nation’s cultural capital. In 2019 it was named World Book Capital by UNESCO—this new library seeks to build on that legacy.

A MODERN LIBRARY

This two-storey building is located opposite Sharjah International Airport, and features a large roof with a 15-metre overhang designed to provide shade.

The ground floor houses an exhibition space, a children’s educational area, a reading space and a café, as well as a unique “espresso book machine” that prints and binds books on demand.

The first floor features pod spaces suspended above the central courtyard, as well as reading lounges, more exhibition areas, a prayer room and a women-only area.

Outside the building is a “knowledge garden” and a children’s play area, shaded by the overhang and surrounded by native plant life and water features.

REFLECTING CULTURE AND HERITAGE

The structure is designed to reflect the Arab world’s long literary heritage. The building itself is named after the legendary Baghdad House of Wisdom, which was an important centre of learning and book repository during the Islamic Golden Age.

A large exterior sculpture by British artist Gerry Judah called “The Scroll”, designed to resemble an Arabic scroll captures something of this heritage.

However, the building is designed to be a modern interpretation of a library, a place for contemplation and learning envisioned as an accessible community hub combining digital technology and traditional books.

It is also a demonstration of Sharjah’s growing international profile—particularly as a cultural centre and a destination for Islamic tourists from across the region.

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There are rules to investing in real estate during a pandemic. A quick round-up of lessons property buyers everywhere have known a while, but have recently seen play out on a global scale. First, the market is like a nervous animal. It scares easy, and it does not like uncertainty. Second, during prolonged periods of uncertainty, take the long view. Hold, don’t panic, don’t sell, buy long-term. Property has always been a clunky asset, anyway.

And third, cleverer markets will respond by remodelling themselves, retooling their policies, making concessions, offering cuts — anything to make themselves more attractive, more investor friendly. And those are the ones you want to invest in.

We’ve seen quite a lot of that here in Dubai. Changes to citizenship and visa rules, trade licences and work permits, new digital investment platforms, a new Urban Master Plan. But if you’re thinking to invest in Dubai’s property market, here’s a subtle fourth rule: choose your asset class wisely. It doesn’t have to be a house, an investment favoured by first-time buyers. Instead, tailor your selection to your specific buy, hold and sell strategy. To help, we’ve put together a quick guide to Dubai’s real estate performance across its three major asset classes.

RESIDENTIAL

For some years now, any honest discussion of Dubai’s real estate market — and particularly of its residential sector — has included the issue of oversupply. This glut, it is said, drove the market to a price slump. But then with the Expo on the horizon, 2020 got off to a promising start — and then the pandemic hit.

Still, by the third quarter of 2020, demand returned, and transaction numbers started climbing. So much so, that the fall of residential property sales was mitigated to 14% for the year. Villa sales prices showed only a moderate decline, but apartment sales prices more so. In 2021, experts are projecting modest declines in both prices and rents, but an otherwise healthy demand — unsurprisingly, lower prices have turned Dubai’s residential sector into a buyer’s market. The oversupply, meanwhile, is expected to ease by 2023.

OFFICE

Work-from-home, remote-working and staggered-return-to-work policies hit the commercial real estate sector hard — how could they not? Landlords did their best: they offered concessions to existing tenants and incentives to new ones, they realigned their asking prices. But the office sector will witness only limited levels of additional uptake in the near-term — many companies have yet to resume operations at pre-pandemic levels. And then there’s that oversupply.

Despite this, some firms are taking this opportunity to upgrade their occupational space — prime and grade-A offices in Dubai’s Free Zones are most likely to benefit from this ‘flight to quality'. But experts also claim that Dubai’s prime and grade-A vacancy, which is relatively low at present, will increase over the course of this year with the delivery of additional supply.

HOSPITALITY

Compared to other major tourism markets in the region, Dubai’s hospitality sector proved relatively resilient in 2020. And by the end of the year, hotel occupancy rates saw a resurgence, oscillating between 50% and 70%.

The outlook for the sector is better still. With the rescheduled Expo once again on the horizon, the rapid immunisation drive, the normalisation of trade relations with Qatar, and the establishment of diplomatic relations with Israel, have all instilled plenty confidence in the long-term outlook. So while the sector is now chugging along on the back of domestic travel and stays, experts have projected a favorable long-term outlook for Dubai’s hospitality market.

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