NEOM tops wish-list for Saudi home buyers, TRSDC is 2nd, survey shows

NEOM tops wish-list for Saudi home buyers, TRSDC is 2nd, survey shows
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Updated 23 February 2022

NEOM tops wish-list for Saudi home buyers, TRSDC is 2nd, survey shows

NEOM tops wish-list for Saudi home buyers, TRSDC is 2nd, survey shows

RIYADH: NEOM, Saudi Arabia's $500 billion project, tops the wishlist of homebuyers in the nation, according to a new survey.

The Knight Frank’s annual 2022 Saudi Residential survey, carried out in partnership with YouGov, found out that NEOM is the most preferred location to buy a home by the Kingdom’s homeowners, first-time buyers, and high net worth individuals. 

According to the survey, The Red Sea Development Co., or TRSDC, project came next to NEOM in terms of buyers' desirability. 

The research team made this conclusion after surveying 1,003 households, and 55 HNWI in Riyadh, Jeddah, and Dammam. 

It said that 41 percent of the participants find NEOM the most attractive Giga project in the Kingdom to buy a home. 44 percent in Dammam found it the most appealing Giga project, while 36 percent of the first-time home buyers believe NEOM is the best location for their first home.

“The gargantuan NEOM has clearly captured the imagination of Saudis all across the Kingdom, with the appetite to purchase here amongst tenants, homeowners, and HNWI running above 70 percent. Indeed most are even willing to pay a premium for the privilege of living, or owning a home here,” said Faisal Durrani, Partner and Head of Middle East Research, Knight Frank. 

Additionally, the Knight Frank’s HNWI survey showed that 97 percent of the group are likely to make a purchase in NEOM, with the 60 percent naming it as a Giga project they would most be interested in buying a home in. 

Saudi Residential Survey also revealed that 73 percent of HNWI in the Kingdom are planning to buy a second home over the next 12 months, with 50 percent preferring villas to apartments for their acquisition. 

Regarding Saudi homeowners, the survey showed 44 percent are looking for a second home for personal use. 

“What’s more, the scales are relatively evenly balanced in terms of the intended use, with 49 percent of homeowners saying the purchase would be driven by investment considerations, specifically rental yields, while 44 percent say it will be solely for family use,” Durrani said. 

“These findings will undoubtedly strengthen the resolve of the Kingdom’s Giga project developers to deliver their planned mostly-luxury residential developments,” he added. 


Saudi minister stresses need to establish direct trade ties with Uzbekistan

Saudi minister stresses need to establish direct trade ties with Uzbekistan
Updated 15 sec ago

Saudi minister stresses need to establish direct trade ties with Uzbekistan

Saudi minister stresses need to establish direct trade ties with Uzbekistan

RIYADH: Direct import and export relationship between Saudi Arabia and Uzbekistan is needed, as most of the trade between the two countries is happening through Turkey and the UAE, according to Saudi Investment Minister Khalid Al-Falih. 

While speaking at the Saudi-Uzbekistan Business Council in Jeddah on Aug. 17, Al-Falih said that Uzbekistan is a huge player in agriculture, real estate, hospitality, and human resources. 

“We want to make this relationship one of the most important for Saudi Arabia. We are here to facilitate. We are here to serve,” said Al-Falih. 

During the speech, Al-Falih added that the relationship between Saudi Arabia and Uzbekistan has reached new heights with the involvement of ACWA Power, as the firm will sign a $2.4 billion deal with the government of Uzbekistan for a 1,500MW wind project. 

He further added that Uzbekistan is a country full of opportunities, and ACWA Power is a firm that is exploring new horizons. 

 

 


Saudi Arabia issues 1,211 commercial registers in logistics sector

Saudi Arabia issues 1,211 commercial registers in logistics sector
Updated 13 min 46 sec ago

Saudi Arabia issues 1,211 commercial registers in logistics sector

Saudi Arabia issues 1,211 commercial registers in logistics sector

RIYADH: The total number of commercial registers issued in the Kingdom’s logistics industry has reached 1,211, as the Ministry of Transport and Logistic Services seeks to boost the sector as part of a national strategy.

A commercial register is a set of documents mandatory for a company to be compliant with a country’s legal procedures to conduct business.

The Saudi Ministry of Commerce revealed that the commercial registers issued from the beginning of 2022 until August have reached 514, the Saudi Press Agency reported. 

Last year, Saudi Transport Minister Saleh bin Nasser Al-Jasser launched a unified logistics license issuance system to raise the efficiency of the sector, facilitate procedures, and apply international best practices.


Commodities Update — Gold gains; Corn recovers from one-week low; Carlsberg Q2 sales below analysts expectations

Commodities Update — Gold gains; Corn recovers from one-week low; Carlsberg Q2 sales below analysts expectations
Updated 14 min 57 sec ago

Commodities Update — Gold gains; Corn recovers from one-week low; Carlsberg Q2 sales below analysts expectations

Commodities Update — Gold gains; Corn recovers from one-week low; Carlsberg Q2 sales below analysts expectations

RIYADH: Gold prices have inched higher on Wednesday as the US dollar pulled back, with investors awaiting minutes from the Federal Reserve’s latest policy meeting that could offer clues on further interest rate hikes.

Spot gold rose 0.2 percent to $1,778.53 per ounce, as of 0511 GMT, after hitting its lowest since Aug. 8 at $1,770.86 on Tuesday.

US gold futures gained 0.2 percent to $1,793.20.

Silver rises

Spot silver rose 0.3 percent to $20.17 per ounce, while platinum gained 0.2 percent to $936.55. 

Palladium climbed 0.3 percent to $2,159.82.

Corn rebounds

Chicago corn edged higher on Wednesday, after dropping earlier in the session to its lowest in a week on pressure from crop-friendly US weather and easing Black Sea supply concerns.

Wheat and soybeans rose 0.8 percent.

The most-active corn contract on the Chicago Board of Trade added 0.3 percent to $6.12 a bushel, as of 0338 GMT, after hitting its lowest since Aug. 8 at $6.06-3/4 a bushel.

Wheat gained 0.8 percent at $8.09-1/2 a bushel and soybeans climbed 0.8 percent to $13.92-1/4 a bushel.

Carlsberg Q2 sales below expectations as higher costs drag

Danish brewer Carlsberg on Wednesday reported second-quarter sales below expectations as earnings were dragged down by higher commodity and energy prices.

The world’s third-biggest brewer said sales in the quarter reached 20.51 billion Danish crowns ($2.81 billion), compared with the 21.6 billion crowns forecast by analysts in a poll gathered by the company.

 

(With input from Reuters) 


OPEC not to blame for soaring inflation, says secretary-general

OPEC not to blame for soaring inflation, says secretary-general
Updated 16 min 10 sec ago

OPEC not to blame for soaring inflation, says secretary-general

OPEC not to blame for soaring inflation, says secretary-general

RIYADH: The secretary-general of the Organization of the Petroleum Exporting Countries, Haitham Al-Ghais, said that the influential group of producers is not responsible for rising inflation.

He also pointed to the chronic underinvestment in the oil and gas industry.

“OPEC is not behind this price increase,” Al-Ghais told CNBC. 

He added: “There are other factors beyond OPEC that are really behind the spike we have seen in gas (and) in oil. And again, I think in a nutshell, for me, it is underinvestment — chronic underinvestment.”

“This is the harsh reality that people have to wake up to, and policymakers have to wake up to. Once that is realized, I think then we can start to think of a solution here. And the solution is very clear. OPEC has a solution: invest, invest, invest,” Al-Ghais said.

Al-Ghais’ comments come shortly after the oil producers' group of OPEC and non-OPEC partners, surprised market participants at its Aug. 3 meeting by announcing plans to add only 100,000 barrels per day from next month.


China in-Focus — PAG to delay IPO; Yuan rebounds; Stocks rise; China pares back holdings of US Treasuries for 7th month

China in-Focus — PAG to delay IPO; Yuan rebounds; Stocks rise; China pares back holdings of US Treasuries for 7th month
Updated 33 min 13 sec ago

China in-Focus — PAG to delay IPO; Yuan rebounds; Stocks rise; China pares back holdings of US Treasuries for 7th month

China in-Focus — PAG to delay IPO; Yuan rebounds; Stocks rise; China pares back holdings of US Treasuries for 7th month

RIYADH: Private equity firm PAG, backed by Blackstone Inc., is considering a delay of its planned initial public offering in Hong Kong amid market volatility, Bloomberg reported, quoting people familiar with the matter. 

According to the report, the firm led by Chinese dealmaker Weijian Shan, is now more likely to make its debut in 2023. 

The firm has taken this decision due to market volatility which will lead investors to demand steep discounts, ultimately resulting in weak trading in the initial days, the people, who wished to stay anonymous, said. 

Bloomberg News has previously reported that the firm’s offering could raise as much as $2 billion. 

Yuan firms

China’s yuan firmed on Wednesday, recovering from a three-month low hit in the previous session on growing signals Beijing will provide more support to shore up growth in the struggling economy.

Traders were also eyeing minutes from the Federal Reserve’s July meeting due later in the day for any new clues on how large the central bank’s interest rate hike is likely to be in September.

The People’s Bank of China set the midpoint rate at 6.7863 per dollar prior to market open, weaker than the previous fix of 6.773.

In the spot market, the yuan opened at 6.7800 per dollar and was changing hands at 6.7711 at midday, 179 pips firmer from the previous late session close.

Stocks up

China and Hong Kong stocks climbed on Wednesday, led by gains in developers on rising hopes that the government would roll out supportive measures to prop up the country’s ailing property sector.

By the midday break, the benchmark Shanghai Composite index had climbed 0.3 percent, while the blue-chip CSI 300 index was up 0.7 percent.

In Hong Kong, the benchmark Hang Seng Index advanced 0.8 percent, while the Chinese H-shares listed in Hong Kong also gained 0.8 percent.

China pares back holdings of US Treasuries

China slashed holdings of US Treasuries for a seventh consecutive month in June, Treasury Department data released on Monday showed, with investors closely tracking this measure in the wake of tensions between the world’s two largest economies involving Taiwan.

China’s stash of US government debt dropped to $967.8 billion in June, the lowest since May 2010 when it held $843.7 billion. 

In May, the world’s second-biggest economy had $980.8 billion in Treasuries, data showed. China’s hoard of US debt has seen multiple 12-year lows in the last few months.

Data also showed Japan increased its holdings of Treasuries to $1.236 trillion in June, from a revised $1.224 trillion in May. The Treasury report released in July showed Japan had $1.213 trillion in Treasuries for the month of May.

Overall, foreign holdings of Treasuries rose to $7.430 trillion in June from a revised $7.426 trillion in May.

 

(With input from Reuters)