JEDDAH, 21 April 2005 — Saudi Arabia’s Al-Bundoquia Islands urban development project will make its international debut at Waterfront 2005 Dubai, a conference on the future of the Middle East’s coastline development.
Named in Arabic after the historic Italian city, Venice, Al-Bundoquia Islands will be built along the Kingdom’s Red Sea coast, 26 kilometers south of Jeddah, extending over nearly 21 square kilometers.
“The Middle East’s real estate market is one of the fastest growing in the world. While Dubai is leading the way, other regional countries, such as Saudi Arabia, are emerging with fresh development opportunities, “said Chris Hayman, managing director, Seatrade, organizers of Waterfront 2005 Dubai.
“Al-Bundoquia Islands is one of the world’s largest and most modern developments and Waterfront 2005 Dubai will highlight some of its key design and development features,” he said.
Saudi Arabia’s real estate sector seems to be the major beneficiary in the current investment activity generated by the high liquidity caused by the repatriation of funds invested overseas.
Now with oil prices skyrocketing, there has been an unprecedented rise in the business and investment activity, resulting in new projects in both public and private sectors.
The rapid pace of growth of the real estate sector in Saudi Arabia has prompted the government to take measures in organizing, regulating and systemizing activity within the sector.
Pushing forward regulations within the industry would further fuel investments, with a regulatory framework providing opportunities not just to large players, but also to the small to medium-sized investors. Market participants have already commended government efforts in supporting development of properties for housing purposes through the relaxation of rules, regulations and procedures in issuing licenses. A gradual relaxation in regulations for multi-story buildings has also helped stimulate further activity.
Real estate was the leading choice for investment in Saudi Arabia last year, according to a recent study. Businessmen say that real estate investment is the safest as it cannot be affected by sudden price surges, unlike other fields of investment such as the stock market, which was the second choice of investors last year.
A specialized study on Saudi investment abroad conducted by King Saud University showed that investment in real estate is the top choice for Saudis abroad because it is safe and not affected by sudden price changes.
According to the Riyadh Chamber of Commerce and Industry, the total investment in this field is SR900 billion.
The study showed that Makkah and Madinah have become the most preferred areas for real estate investment. Riyadh came second and Jeddah third followed by Alkhobar, Dammam and Abha. The northern area was at the bottom of the list of preferences.
Waterfront 2005, to be held at the Al-Bustan Rotana Hotel, Dubai on May 9-10, will be the first dedicated business-to-business event outlining future opportunities in waterfront design, construction and planning. The conference will bring together speakers from across three continents.
“The conference will probe the latest issues surrounding waterfront development, including investment risks, the challenges of land reclamation and dredging, environmental impact, water and land transportation links and infrastructure, “ Hayman said.
“It will also provide case studies not only from the Gulf and Middle East but from around the world.”
Waterfront 2005 Dubai is being held with the support of Dubai Chamber of Commerce & Industry, Dubai Ports Authority and Dubai Maritime City.