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.


Gazprom could cut gas to Moldova if contract not signed

Gazprom could cut gas to Moldova if contract not signed
Image: Shutterstock
Updated 8 sec ago

Gazprom could cut gas to Moldova if contract not signed

Gazprom could cut gas to Moldova if contract not signed
  • Moldova's contract with Gazprom ran out in September

Moscow's Gazprom could cut Moldova's gas supply if the country does not settle its bill and sign a new contract, the energy giant's top official was quoted by Russia's Interfax news agency as saying.


Moldova declared a 30-day state of emergency on Friday in an effort to secure the ex-Soviet country cheaper natural gas from Europe after Moscow - its traditional supplier - raised prices.


Gazprom's Sergei Kupriyanov said Chisinau owed the company $709 million (610 million euros).


Moldova's contract with Gazprom ran out in September, but Kupriyanov said the pair were able to "meet half way" and extend a contract for October.


"If payment for gas supplies is not fully paid and a contract is not signed from December, then Gazprom will halt gas supplies to Moldova," he told Interfax.


The country of 2.6 million people wedged between Romania and Ukraine gets gas from Russia via its pro-Russian separatist region of Transnistria and Ukraine.


Gazprom this month hiked prices more than 40 percent to $790 per thousand cubic metres from $550 -- a level Deputy Prime Minister Andrei Spinu said was "not justified and not realistic" for Europe's poorest country.


Despite the contract being extended, Moldovan Prime Minster Natalia Gavrilita said on Friday the country was receiving a third less natural gas than usual for October.


"We face a critical situation," she said.


She told parliament Moldova would be seeking supplies from EU countries and thanked Romania and Ukraine for already providing some gas.


The month-long state of emergency, which will last until November 20, gives Moldovan utility company Energocom the powers to secure gas from other countries.


The country's gas shortages come amid skyrocketing gas prices that some in Europe have blamed on Moscow not providing additional supplies to put pressure on the continent.


Saudi industrial sector grows on MODON-led initiatives: Knight Frank

Saudi industrial sector grows on MODON-led initiatives: Knight Frank
Updated 3 min 43 sec ago

Saudi industrial sector grows on MODON-led initiatives: Knight Frank

Saudi industrial sector grows on MODON-led initiatives: Knight Frank
  • The consultancy firm said the “fast-paced growth” is due to initiatives by MODON, or the Saudi Authority for Industrial Cities and Technology Zones

DUBAI: Investments in Saudi Arabia’s industrial sector grew 281 percent in the last 12 months, global property consultant Knight Frank showed, attributing it to strong regulatory support. 

The consultancy firm said the “fast-paced growth” is due to initiatives by MODON, or the Saudi Authority for Industrial Cities and Technology Zones, which include offering new products and services such as warehouses, self-storage units, and financing solutions. 

“The 281% jump in industrial sector investments in the last 12 months has delivered a staggering 30,000 new jobs across the Kingdom,” Faisal Durrani, head of Middle East research at Knight Frank, said. 

The COVID-19 pandemic has also played a big role in the Kingdom’s industrial sector, as online shopping drove a surge in requirements for better logistics facilities, Durrani said. 

“We do not expect a let-up in online shopping and indeed the government forecasts revenues for the sector to close in on SR30 billion ($8 billion) this year, up from SR24.7 billion in 2020,” he added.

This strong market performance has also led to rising lease rates and occupancy levels in industrial real estate in the Kingdom — 7 percent growth in Riyadh, and 4.5 percent increase in Jeddah.

“Riyadh in particular is expected to outperform Jeddah as stock levels have remained unchanged so far this year. Indeed, over the last six months, prime rents have increased by close to 8%, while grade B rents have retreated by 3.5,” Durrani explained. 

The Knight Frank researcher said developers traditionally “developed warehouse and logistics facilities based on speculative demand, while built-to-suit stock has always been limited.”


Saudi food giant NADEC appoints Solaiman Altwaijri as new managing director

Saudi food giant NADEC appoints Solaiman Altwaijri as new managing director
Updated 18 min 33 sec ago

Saudi food giant NADEC appoints Solaiman Altwaijri as new managing director

Saudi food giant NADEC appoints Solaiman Altwaijri as new managing director
  • NADEC's new managing director has extensive experience in the field of investment, industry, business development and corporate transformation

RIYADH: The National Agricultural Development Company (NADEC) appointed Solaiman Abdulaziz Altwaijri as its new managing director, taking effect as of November 1, 2021, a bourse filing revealed.

Altwaijri was the chief executive officer of Saudi Arabian Amiantit Co., and he was a chairman and member of many boards of directors and committees for many listed companies inside and outside the Kingdom. He also managed a number of industrial, agricultural and investment companies. 

NADEC's new managing director has extensive experience in the field of investment, industry, business development and corporate transformation for more than 25 years through holding a number of leadership positions, the company said in a statement on Saudi Stock Market (Tadawul).

Altwaijri holds a Ph.D. in Accounting from Case Western Reserve University in the US and a Master's degree in Accounting from the University of Illinois.


Private Saudi medical group Sulaiman Al Habib sees 35% profit rise

Private Saudi medical group Sulaiman Al Habib sees 35% profit rise
Updated 23 min 55 sec ago

Private Saudi medical group Sulaiman Al Habib sees 35% profit rise

Private Saudi medical group Sulaiman Al Habib sees 35% profit rise

DUBAI: Saudi Arabia’s biggest private medical group Sulaiman Al Habib reported a net profit of SR993 million for the first nine months of 2021, an increase of 35 percent from a year earlier.


Saudi bank Al Rajhi reports 44% rise in the first nine months of 2021 net profits 

Saudi bank Al Rajhi reports 44% rise in the first nine months of 2021 net profits 
Updated 18 min 23 sec ago

Saudi bank Al Rajhi reports 44% rise in the first nine months of 2021 net profits 

Saudi bank Al Rajhi reports 44% rise in the first nine months of 2021 net profits 
  • The bank attributed the profit increase to the rise in total operating income by 26.4 percent

Al Rajhi Bank reported a 44 percent increase in net profit for the first nine months of 2021, from SR 7.474 billion ($ 1.992 billion) in the same period last year, to SR 10.73 billion ($ 2.860 billion).

The higher net profit for Q3 2021 is spurred by 43 percent year-on-year to SR 3.794 billion, compared to the third quarter of 2020. 

The bank attributed the profit increase to the rise in total operating income by 26.4 percent, as a result of higher net financing and investment income. 

Shareholders’ equity, excluding minority interest, increased to SR 63.637 billion, compared to SR 54.919 billion at the end of the same period of 2020.