Makkah real estate industry ‘in chaos’

Updated 20 January 2013

Makkah real estate industry ‘in chaos’

Every city and town in the Kingdom is grappling with the housing problem. It is beyond the means of an ordinary citizen to buy a plot or house while speculators and investors dominate the sector. The property situation in Makkah is further complicated.
Prices have reached exponential levels and the market is ridden with unforeseeable risks. The price rise has affected not only the Central Zone surrounding the Grand Mosque but reached the fringes of the city, Al-Madinah daily reported yesterday.
“Now massive investment activities have spread to all streets and roads and even to the city suburbs including the third and fourth ring roads,” said Al-Shareef Mansour Abu Rayyash, chairman of the Real Estate Committee at the Makkah Chamber of Commerce and Industry (MCCI).
Abu Rayyash blamed the municipality for not providing a congenial environment for the healthy growth of the real estate industry.
“The Makkah Municipality should take immediate steps to simplify the issue of construction licenses and lay down clear guidelines and specifications for buildings. Instead of simplifying its procedures, the municipality takes more than a year to register a property document. No municipal official can deny this fact,” he said.
He added that the real estate industry in Makkah has reached such proportions that 50 percent of the real estate portfolios in the Kingdom are dominated by Makkah properties. He said real estate activities in Makkah would increase in future but without any official incentive or encouragement to help the investors.
Mustafa Rida, a member of the Real Estate Committee in the MCCI, slammed the municipality for lack of coordination in implementing projects causing a lot of hardships for the real estate industry. Lack of coordination while implementing various projects of the municipality and of different departments has led to rise in property prices and also the aggravation of the housing crisis, he said.
He recommended that there should be a coordination committee in the municipality that regularly monitored the implementation of projects. He said lack of coordination had led to failure of millions of riyals’ worth of projects, which deprived jobs for citizens and delayed economic progress.
He blamed the municipality for the long delay in issuing building permits. “Lack of transparency of future municipal plans posed a threat to real estate activities. A man invests a lot of capital to construct a building and only later he learns that there is a municipal project at the same spot and the building has to be demolished,” he said.
He added that the real estate boom is artificial and a day will come when the unnatural boom would turn into bust.
Muhammad Malibari, deputy chairman of the Real Estate Committee at the MCCI, compared the real estate business in the city to a moving target which is difficult to hit because of poor planning. He said the speed at which land prices went up was astounding.
Malibari said the demolition of 25,000 properties for the five-year expansion projects in Makkah was a major factor that triggered the rapid rise in prices. Another problem that baffled investors was the inordinate delay in the registration of title deeds in the municipal records.
By the time the registration completed the value of properties would have shot up. The victims of such delay are not only large investors but even owners of small plots.
A man whose property is expropriated or sold for a project would have to wait such a long time for the completion of official formalities that the cash he got as compensation would no more suffice to buy a new house because of the rapid rise in prices.
He said the real estate situation in Makkah is in total chaos. “We do not know through where the proposed railway and metro tracks would pass or the site for the construction of other railway facilities. If only the businessmen and investors had specific information in advance about such locations they would be able to develop such locations, he said.

Saudi Arabia to send Syrians an additional $100 million of humanitarian aid

Updated 26 April 2018

Saudi Arabia to send Syrians an additional $100 million of humanitarian aid

  • Total relief provided by the Kingdom since the war began now stands at about $1billion
  • Latest package announced by Foreign Minister Adel bin Ahmed Al-Jubeir at conference in Brussels

JEDDAH: Saudi Arabia will provide an additional $100 million of humanitarian aid to alleviate the suffering of the people of Syria, through the King Salman Humanitarian Aid and Relief Center.

The announcement of the latest aid package was made by Minister of Foreign Affairs Adel bin Ahmed Al-Jubeir on April 25 at an international conference on the future of Syria and the region, held in the Belgian capital Brussels. He pointed out that the meeting comes after the suspected chemical attack in the city of Douma, in eastern Ghouta, which killed dozens of civilians, including women and children.

“The world is facing a regime allied with terrorist militias who believe that spreading atrocities and committing crimes will bring victory to it, and that war crimes are bearing fruit,” said Al-Jubeir. “In addition to bombing civilians with explosive barrels, the policies of starvation and siege, ethnic and sectarian cleansing, and the demographic change of Syrian cities and towns, its use of chemical weapons have shocked the entire world.”

He said that the only acceptable solution to the Syrian crisis is a peaceful political resolution, and that Saudi Arabia has been working to achieve this since the crisis began, while also working with others to end the continuing human tragedy in the war-torn country.

The Kingdom has played a role in unifying the ranks of the Syrian opposition and encouraging them to speak with one voice, he added. After the Riyadh 1 Conference in 2015, Saudi Arabia hosted the Riyadh 2 conference for the Syrian opposition in November 2017, which succeeded in unifying the factions and establishing a negotiating body to take part in the rounds of talks held since then, earning praise from the United Nations.

The foreign minister also reiterated his country’s support for the efforts of the UN secretary-general’s envoy, Stephan de Mistura, to resume negotiations between all sides of the conflict.

“The Kingdom hopes that the agreements endorsed by the international resolutions on the ceasefire and the delivery of humanitarian aid to its beneficiaries will be implemented throughout Syria, regardless of their ethnic, religious, sectarian or political affiliations, and calls for the speedy release of detainees and abductees and clarifying the situation of those absent,” said Al-Jubeir. “It also renews its demand to punish individuals and institutions for war crimes and to prevent their impunity.”

He added that the worsening humanitarian crisis affecting refugees inside and outside of Syria should add to the urgency of finding a political solution and resuming the negotiating process as soon as possible.

Since the war began, the Kingdom has taken in about two and a half million Syrians and treats them like its own citizens, Al-Jubeir said, providing them with free health care, work and education. Saudi universities and schools have more than 140,000 Syrian students. He added that Saudi Arabia is also supporting and helping to care for of millions of Syrian refugees in Turkey, Jordan and Lebanon, in coordination with the governments of those countries. The humanitarian assistance provided so far totals about $1 billion.