SR 60 m labor camp planned in JEC

Updated 13 July 2013
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SR 60 m labor camp planned in JEC

Red Sea Housing Services Company, a provider of high-profile modular housing solutions, has announced that it will begin construction of the first phase of a SR 60 million industrial labor camp in Jazan Economic City (JEC) by Q1, 2014, following the receipt of approval from the Economic Cities Authority (ECA). The construction of the 188,999 sqm labor camp is in line with Red Sea Housing’s 2020 growth strategy, which includes strategically expanding the company’s business.
The labor camp, which will be constructed in different phases to serve the various companies operating within JEC, is expected to have a maximum capacity of 10,000 residents and will be operational by the second quarter of next year. Red Sea Housing also revealed that in addition to providing high quality housing units for senior staff, junior staff, and workers; occupants of the labor camp can enjoy a continuous supply of electricity and fresh water and an array of entertainment amenities, recreational facilities including swimming pools and play courts, laundry and catering services.
Mohammed Othman Mallawi, investor relations manager, Red Sea Housing Services Company, said: "ECA approval is a reaffirmation of Red Sea Housing’s expertise and excellent track record in constructing high quality labor camps across the region and providing comprehensive housing solutions to its clients. The new labor camp at JEC will be financed through Red Sea Housing’s internal cash flow, in addition to credit facility lines and bank loans that will be arranged locally. Being involved in a development — as prestigious as Jazan Economic City — gives us another opportunity to showcase our know-how and the quality of our products and services that have made us the preferred supplier of remote site housing solutions for companies specializing in oil and gas and mining projects."
The JEC is ideally placed at the mouth of the Red Sea to service markets in Asia, East Africa and Europe as well as to receive raw materials from the surrounding countries that are currently not well served with processing and manufacturing facilities. JEC focuses on four areas — heavy industries, secondary industries, human capital and lifestyle. The city will provide an environment for key industries, technology exchanges, commerce and trade, employment opportunities, education and training, housing and a broad spectrum of socioeconomic activities for a projected population of 300,000 people.


Wealthy Gulf individuals feel more confident about regional prospects

Updated 25 April 2018
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Wealthy Gulf individuals feel more confident about regional prospects

  • “Factors like the region’s stability, attractive investment opportunities and low-tax environment are seen as the main drivers behind the growing confidence in the region’s economy.”
  • Among the most optimistic were respondents in the UAE, with 57 percent of those surveyed saying they thought the overall outlook was improving.

DUBAI: Survey finds growing optimism on region’s economies, but Saudi investors remain wary.

Wealthy individuals in the Gulf are more optimistic over the future of the region and the global economy compared with last year, and are increasing likely to invest in their own countries and other emerging markets in Asia than in western economies. These are among the main findings of an annual survey by Dubai-based Emirates Investment Bank (EIB), released on Tuesday, of the sentiment among high net worth individuals (HNWIs) in the region. 

After two years of falling confidence, some 60 percent of regional HNWIs now believe things will improve or stay the same. Fewer are pessimistic about both regional and global economic prospects than last year, while nearly 80 percent of respondents said they would prefer to invest in Gulf assets, rather than looking abroad.

The recovering oil price was a big reason for the increasing feel-good factor in the Gulf, according to Khalid Sifri, EIB’s chief executive officer, who added: “Factors like the region’s stability, attractive investment opportunities and low-tax environment are seen as the main drivers behind the growing confidence in the region’s economy.”

After falling below $30 per barrel in early 2016, oil has subsequently recovered to a three-and-a-half-year high, breaching the $75 a barrel mark yesterday for the first time since November 2014.

However, the overall optimism of the survey masks some concerns among regional HNWIs; in Saudi Arabia, 48 percent of respondents said that they saw the regional economic situation improving or staying the same, against 52 percent who felt it was likely to worsen in 2018.The survey was conducted last November and December, when investor sentiment in the Kingdom was affected by the high-profile anti-corruption campaign undertaken against some prominent business people accused of financial wrong-doing. “It may have been affected by that. We shall see what the situation is at the end of this year,” Sifri said. 

Respondents from Kuwait were even more pessimistic. None of the respondents from the country felt that things were going to improve on the investment front this year, while 54 percent said they would worsen. Among the most optimistic were respondents in the UAE, with 57 percent of those surveyed saying they thought the overall outlook was improving. On the long-term global outlook, a total of 78 percent of those surveyed across the region were optimistic about prospects over the next five years, with most citing positive economic and political stability as the reason, along with a smaller number who said oil price stabilization would benefit the world economy. The oil price recovery was the biggest reason for regional optimism. 

The geopolitics of the region was claimed as a big factor in deciding investment decisions, but Saudis were less concerned than others. Only 29 percent in the Kingdom said they were influenced by geo-political events, compared with 83 percent in Qatar and 85 percent in the UAE. 

Oil prices, economic reforms and the introduction of VAT were also factors influencing investment, as was the election of Donald Trump as president of the USA. There has been a big shift in global investor orientation outside the GCC. Nearly half of regional wealthy investors (47 percent) are now looking to Asia, 38 percent to the wider Middle East and North Africa, some 34 percent to Europe and only 17 percent to North America. The survey was conducted among 100 HNWIs with $2 million or more in investable assets.