Dubai real estate lagging behind the global boom says Knight Frank

Dubai real estate lagging behind the global boom says Knight Frank
The burst of supply will probably leave Dubai, alongside Buenos Aires, as the only two cities in Knight Frank’s selection of 25 prime locations to witness a decline in values for their top-end residential properties. (Shutterstock)
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Updated 01 June 2021

Dubai real estate lagging behind the global boom says Knight Frank

Dubai real estate lagging behind the global boom says Knight Frank
  • Fast emerging from the pandemic slump, the construction industry will deliver an estimated 62,000 homes in the emirate this year and nearly 63,500 in 2022

RIYADH: A supply glut that’s held down Dubai’s property prices for over half a decade will likely keep it on the sidelines of a global upswing in values of prime residential real estate, Bloomberg reported, citing Knight Frank research.
Fast emerging from the pandemic slump, the construction industry will deliver an estimated 62,000 homes in the emirate this year and nearly 63,500 in 2022, which would be the most since 2009, according to consultancy firm Knight Frank.
The burst of supply will probably leave Dubai, alongside Buenos Aires, as the only two cities in Knight Frank’s selection of 25 prime locations to witness a decline in values for their top-end residential properties.
“The supply-demand imbalance has been a defining feature of Dubai’s residential market ever since the Great Recession of 2008-2009,” said Faisal Durrani, head of Middle East Research at Knight Frank. “Looking at the next few years, this looks set to persist.”
The pandemic compounded the pressures from job losses and departures of foreign workers, chipping away at demand for rentals.
Still, Knight Frank forecasts prices will decline at a slower pace thanks to easing travel restrictions and plans to stage the postponed Expo 2020 later this year.
With “an improved economic outlook, business confidence is rising and that is filtering through to the property market in the form of heightened interest and rising deal volumes,” Durrani said.


US’s Lockheed Martin to design NASA space station

US’s Lockheed Martin to design NASA space station
Image: Shutterstock
Updated 16 sec ago

US’s Lockheed Martin to design NASA space station

US’s Lockheed Martin to design NASA space station
  • The company will be working on the Starlab project along with Nanoracks and Voyager Space

RIYADH: Lockheed Martin, the US-based aerospace company has confirmed it is one of three partners awarded a $160 million contract by NASA. 

As per the contract, the company is to design NASA’s Starlab commercial space station as part of the US agency’s Commercial Low-Earth Orbit Development program, Cobb County Courier reported. 

The company will be working on the Starlab project along with Nanoracks and Voyager Space. 

“Starlab is the confluence of Lockheed Martin’s rich space expertise and history, Nanoracks’ innovation, and Voyager’s financial savvy,” said Lisa Callahan, vice president and general manager at Lockheed Martin.

“This team is equipped to aid NASA on its mission to expand access to LEO and to enable a transformative commercial space economy,” she added. 

Last month, the company appointed Robert Lightfoot as the new executive vice president of the Space business area as of Jan.1 2022. 


China’s economy expected to grow 5.3 percent in 2022, says govt think tank

China’s economy expected to grow 5.3 percent in 2022, says govt think tank
The main shopping street in Shanghai. Shutterstock.
Updated 06 December 2021

China’s economy expected to grow 5.3 percent in 2022, says govt think tank

China’s economy expected to grow 5.3 percent in 2022, says govt think tank
  • The world’s second-largest economy is expected to have expanded by about 8 percent this year

China’s economy expected to grow 5.3 percent in 2022, says govt think tank

China’s economy is expected to grow around 5.3 percent in 2022, bringing the average annual growth rate forecast for 2020-2022 to 5.2 percent, the Chinese Academy of Social Sciences (CASS), a top government think tank, said on Monday.


Advisers to the government will recommend that authorities set a 2022 economic growth target lower than the target set for 2021 of “above 6 percent,” Reuters reported, amid growing headwinds from a property downturn, weakening exports and strict COVID-19 curbs that have impeded consumption.


The world’s second-largest economy is expected to have expanded by about 8 percent this year, according to the annual blue book on the economy from CASS.

The think tank warned that the property downturn was likely to persist and weigh on the expenditures of local governments next year.


It urged the central government to proactively engineer a soft landing for the property sector, to avoid failed land auctions in big cities and to fend off risks of quickly falling property prices in smaller cities, the report said.


Alibaba appoints new CFO, reshuffles e-commerce businesses

Alibaba appoints new CFO, reshuffles e-commerce businesses
Image: Shutterstock
Updated 06 December 2021

Alibaba appoints new CFO, reshuffles e-commerce businesses

Alibaba appoints new CFO, reshuffles e-commerce businesses
  • Alibaba said that it would be creating an International Digital Commerce team to handle its e-commerce businesses in international markets

China’s largest e-commerce group Alibaba said Monday it is appointing a new chief financial officer and reorganizing its e-commerce businesses amid a regulatory crackdown in the technology industry.


The company said in a statement Monday that Toby Xu will succeed Maggie Wu as its new CFO from April 1, 2022. Xu joined Alibaba from PricewaterhouseCoopers three years ago and was appointed deputy group CFO in July 2019.


Wu, who has been Alibaba’s CFO since 2013 and has helped lead three Alibaba-related company listings, will continue to serve as an executive director on Alibaba’s board.


She will also remain as a partner in the Alibaba Partnership – a group of senior executives who have the right to nominate a simple majority of Alibaba’s board of directors.


“We are focused on the long-term, and succession within our management team on every occasion is always in the service of ensuring Alibaba will be stronger and better positioned for the future,” said Daniel Zhang, chairman and CEO of Alibaba Group.


Separately, Alibaba said that it would be creating an International Digital Commerce team to handle its e-commerce businesses in international markets. A China Digital Commerce team will be in charge of e-commerce operations inside China, according to a post on the company’s Alizila news hub.


The international and domestic digital commerce teams will be led by executives Jiang Fan and Trudy Dai respectively.


Jiang has been in charge of Taobao and Tmall, Alibaba’s core e-commerce sites in China. Dai was the firm’s chief customer officer.


The Hangzhou-based firm was fined a record $2.8 billion for antitrust violations and is under scrutiny as regulators step up oversight of the technology industry at a time when the economy is slowing.


Last month, Alibaba cut its sales outlook for the year amid mounting competition from rivals such as Pinduoduo. It expects growth for its current year to be the slowest since it listed in New York in 2014.


Alibaba’s flagship Singles’ Day shopping extravaganza also posted its slowest-ever growth this year, amid muted marketing campaigns and a shift to sustainability and philanthropy amid Chinese President Xi Jinping’s calls for “common prosperity.”


Alibaba’s New York stock price has plunged more than 50 percent over the last 12 months. The company’s Hong Kong-traded shares were down 4.9 percent Monday.


American, Lebanese restaurants lag behind home-grown eateries in Riyadh’s lifestyle boom

American, Lebanese restaurants lag behind home-grown eateries in Riyadh’s lifestyle boom
Updated 06 December 2021

American, Lebanese restaurants lag behind home-grown eateries in Riyadh’s lifestyle boom

American, Lebanese restaurants lag behind home-grown eateries in Riyadh’s lifestyle boom
  • The US and UAE are the second and third largest sources of restaurant chains in Riyadh

RIYADH: More than two-thirds of Riyadh’s new restaurants are Saudi, dwarfing American and Lebanese influenced eateries, according to a report from real estate firm Knights Frank.

The Saudi capital has seen the birth of 288,000 square meters of new developments since 2016, when the National Transformation Plan was announced, the research says. 

“The Kingdom’s capital is beginning to morph into a foodie’s treasure trove and we’re not done yet,” Faisal Durrani, head of Middle East research at Knight Frank said. 

This growth is led by home-grown restaurants and cafes, he added, with 68 percent of Riyadh’s new outlets being Saudi - 21 percent of which specialize in international cuisine. 

“American food outlets account for 16 percent of food and beverage outlets, while Lebanese restaurants are the third most prevalent at 13 percent,” Durrani said. 

The US and UAE are the second and third largest sources of restaurant chains in Riyadh, respectively, he added.

“International brands must adapt their proposition across the full spectrum to suit demand, both in terms of operational aspects, as well as the actual menu offering itself,” said Pedro Riberio, head of retail advisory KSA at Knight Frank.

The Kingdom’s capital will further benefit from upcoming tourism developments, including the Bujairi Terrace and Diriyah Gate, which the Knight Frank report said will add “15,000 sqm of lifestyle retail space to the capital when it's 17 restaurants open their doors in 2022.”

This rapid growth and competition are putting pressure on older developments, the report indicated, with some operators struggling to keep vacancy rates and footfall up. 


TASI rises for a third consecutive day, up 1 percent in early trading, led by SADR: Market Open

TASI rises for a third consecutive day, up 1 percent in early trading, led by SADR: Market Open
Updated 06 December 2021

TASI rises for a third consecutive day, up 1 percent in early trading, led by SADR: Market Open

TASI rises for a third consecutive day, up 1 percent in early trading, led by SADR: Market Open

RIYADH: Share prices of the major players in the Saudi stock market rose for a third consecutive day as omicron-related imbalances eased.

Sadr Logistics came on top of the biggest gainers, up almost 10 percent to SR94.8 ($25.26), which marks an all-time record for the company.

Biggest moving stocks of the day also include Wafrah for Industry and Development Co., National Industrialization Co., and Al Kathiri Holding Co, up 6.26 percent, 5.02 percent, and 4.14 percent respectively.

Today’s gains were crimped by a 3.97 percent drop in stc’s price.

This came as the Saudi Public Investment Fund and stc’s announced the subscription period for stc’s secondary offering that could raise as much as SR11.6 billion.

 

9:30am Saudi Time: Will TASI reignite after its slight fall in November? Here are key takeaways: Premarket

Saudi Arabia’s main benchmark index TASI started the week in the green zone with stocks recouping omicron-related declines, up around 350 points from last week.

Al Rajhi Bank traded at 4.8 percent higher this week with around 4 million traded shares.

Sahara International Petrochemical Company saw a recovery of 7.44 percent.

The Kingdom’s oil giant Aramco saw gains of 0.72 percent.

This came as the group announced its entry into the Kingdom’s domestic lubricants as well as its collaboration agreement with French companies including hydrogen car deals with Gaussin.

The International Company for Water & Power Projects, or ACWA Power, and Natixis CIB signed a memorandum of understanding aiming to collaborate on the development of ACWA power in the GCC region.

Natixis CIB will finance up to almost SR7.5 billion ($2 billion) over two years to finance ACWA Power’s projects.

Sadr Logistics’ shareholders approved the board of directors’ recommendation to raise SR175 million through a rights issue worth SR150 million to expand its logistics services. The rights issue trading and new share subscription period will start today Dec.6.

Apart from its rights issue, Sadr Logistics has been on the rise since last week jumping to an all-time high of SR86.2.

With reference to the Public Investment Fund and stc’s earlier announcement, the subscription period for stc’s secondary offering will start on Dec.7 and end on Dec. 8 for retail tranche whereas, for participating parties, it started yesterday and will end on Dec.9.

Saudi Exchange announced the initial public offering of Saudi Tadawul Group Holding Company to be 442.53 percent oversubscribed.

Subscriptions exceeding individual subscribers will be refunded no later than Dec.8, when the listing and trading of the company’s shares on the main market will begin.

Jahez International Company for Information Systems Technology issued the prospectus for its initial public offering at 13 percent of its capital on Nomu, Tadawul’s parallel market.

The offering period will commence on Dec. 23 and end on Dec. 26.