- According to Al Masah Capital, the Saudi real estate market is considered to be the largest in the GCC.
- However, despite its size, the Kingdom’s real estate market is largely underdeveloped.
Alaa Hatahet, marketing & leasing manager at Hadia Abdul Latif Jameel Co. Ltd. spoke to Arab News about the success of the company’s prime office tower, Jameel Square. Opened in Jeddah in November 2009, Jameel Square has become a magnet for multinational companies. Tenants include such well-known names as Microsoft, Philips, Price Waterhouse Coopers, Sumitomo and many more.
“We signed with Siemens to construct a building that incorporates smart systems. There were many subcontractors who did portions of the needed work and brought in their own excellent technologies to meet various requirements,” explained Hatahet. “The building is equipped with the most advanced building management system (BMS), which monitors and controls safety, security, accessibility, electromechanical systems and communications to provide the ideal business atmosphere for any company.”
All common areas in Jameel Square, internally and externally, are covered by networked CCTV cameras and motion sensors. There is also a firefighting system and the building system is directly connected to the Civil Defense authorities through a private network. The building has 1,600 telephone lines, 135 DSL lines and wireless services.
“Before commissioning Jameel Square we looked into the smart systems available in office buildings in Europe and aimed to exceed those specifications,” said Hatahet. “We are very pleased with the outcome. The BMS has introduced many operational savings for the property. Jameel Square attracts quality tenants who are willing to pay a premium due to the available services. Important as well is that smart buildings are good for the environment.”
Jameel Square is unusual in the Jeddah real estate market where most buildings don’t cater to the requirements of international firms. However, Hatahet pointed out that the conditions in regards to property development are changing.
“There are lots of investors with lots of cash, but they don’t have the international experience that encourages them to build something different. Also, there’s the fact that for a long time quality office space was in short supply in the country. Consequently, people were reluctant to invest in smart building systems when customers would lease the space without such technology,” he remarked. “This is changing rapidly. Riyadh will be the first to see the change since there is so much new office space in the pipeline. This is due to the mega projects such as the King Abdullah Financial District. There’s also Techno Valley, Business Gate and many others. Next the change will take place in Jeddah. Although the projects in Jeddah are smaller compared to those in Riyadh, there are still some very good office buildings coming up. Once these are leasing, investors will be forced to consider quality in construction and smart building systems will become more common.”
For Hadia Abdul Latif Jameel Co. Ltd. there will be no return to the old style of building operations. Hatahet advised that the company has three mega projects within Jeddah. Two of them will be residential, most likely semi-gated communities, although final decisions are yet to be made. The third project is on a 20,000 square meter prime piece of land. Studies are underway to determine what will be built at that location.
“Our intention is to bring smart technologies into all of these real estate projects,” said Hatahet. “We have engaged very famous architects and designers and are spending heavily in the planning and design phases. Usually in Saudi Arabia investors don’t spend enough on architects, designers and system engineers. I can assure you that’s not the case for us.”

