Saudi Arabia drives growth across MEA commercial property markets  

Saudi Arabia drives growth across MEA commercial property markets  
The report found that 81 percent of respondents based in Saudi Arabia believe that the market is in an upturn. (Shutterstock)
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Updated 26 January 2023
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Saudi Arabia drives growth across MEA commercial property markets  

Saudi Arabia drives growth across MEA commercial property markets  

RIYADH: Saudi Arabia’s commercial real estate sector is witnessing an upturn as the Kingdom’s plan to diversify its economy continues to drive demand within the overall property market, according to a new report from the Royal Institution of Chartered Surveyors. 

This comes as solid market conditions in the Middle East and Africa region continue to defy the broader global macro narrative, according to the firm’s Global Commercial Property Monitor.

The RICS report said that occupier and investor demand is reportedly rising across all sectors, with expectations for rental and capital value growth remain firmly positive, led by particularly upbeat feedback in Saudi Arabia, the UAE and Nigeria. 

The report found that 81 percent of respondents based in Saudi Arabia believe that the market is in an upturn as the Kingdom is currently experiencing a boom within the real estate sector driven by infrastructure, housing and entertainment. 

According to the report, the overall commercial property occupier demand growth was a touch down to 43 percent from the 60 percent posted in the third quarter. But it added that this figure matched the 43 percent posted in the fourth quarter of 2021, demonstrating a stable rate of strong growth over the past year. 

“Like much of the MEA region, the firm trend is visible in all parts of the market in Saudi Arabia where the results for the office sector remain more positive than for the retail and industrial sectors,” said the RICS report.  

Saudi Arabia’s office sector reported a reading of 59 percent, down a touch from the 64 percent reported in the third quarter, the report said. It added that retail and industrial still posted strong growth readings with 32 percent and 38 percent, respectively. 

The RICS report showed that international investment demand has gathered impetus in each of the last three quarters, with all sectors seeing an uptick during this stretch. Leading the way, it said Saudi Arabia attracted strong growth in foreign buyer interest over the fourth quarter, posting a net balance of 49 percent. 

Overall, the findings of the report pointed out that the Saudi Arabian commercial property market, much like its neighbor the UAE, has firm foundations for future growth, even if it becomes caught in the tailwinds of the global economic downturn. 

The report further added that the UAE’s commercial property market also remains strong despite global challenges as around two-thirds of respondents feel the market is on the rise. It added that tenant demand growth in the UAE accelerated within all sectors of the market during the fourth quarter of 2022. 

The outlook for the UAE’s commercial real estate market remains positive as 12-month capital value expectations continue to rise, said the RICS report, adding that foreign investment demonstrates growing confidence in the market with further growth.


New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates
Updated 27 sec ago
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New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

New KAPSARC-led analysis shows Saudi methane emissions 73% lower than IEA estimates

RIYADH: Saudi Arabia has the second-lowest methane intensity in oil and gas production when compared to other crude-producing countries, according to new research by the King Abdullah Petroleum Studies and Research Center.

Working in collaboration with global environmental intelligence company Kayrros, KAPSARC used satellite technology to analyze emissions from 2016 to 2022.

The findings show that the Kingdom’s oil and gas sector was responsible for approximately 780 kilotons of methane in 2022, second only to Norway.

The emission estimates developed by are around 73 percent lower than those reported by the International Energy Agency and the Emissions Database for Global Atmospheric Research for the same year.

Fahad Alajlan, president of KAPSARC, said: “This stark difference underscores the groundbreaking nature of our findings, challenging existing norms and emphasizing the importance of our innovative approach in redefining our understanding of emissions in Saudi Arabia.”

The project estimates that methane emissions from the Kingdom’s oil and gas industry constitute only one-third of total releases, aligning with the most recent national greenhouse gas inventory submitted by the Saudi Clean Development Mechanism Designated National Authority in 2022.

Antoine Rostand, co-founder and president at Kayrros, said: “Producers should strive to emulate the Saudi model, introducing strong methane regulations to limit emissions of this potent greenhouse gas and using independent, verifiable, and reliable data to guide action.

“We’re pleased to be working with KAPSARC to advance the collective understanding of methane emissions and to be involved in this first-of-its kind practice.”

KAPSARC and Kayrros will present the project at the UN climate change conference in Dubai on Dec. 10, 2023, during a side-event session titled “Satellite Technology for Measuring and Tracking GHG Emissions.”


Pakistan targets $50 billion export goal in five years with focus on textile sector

Pakistan targets $50 billion export goal in five years with focus on textile sector
Updated 7 min 43 sec ago
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Pakistan targets $50 billion export goal in five years with focus on textile sector

Pakistan targets $50 billion export goal in five years with focus on textile sector
  • The country has set up Export Advisory Council while eyeing $100 billion export target in the long term
  • Pakistan’s commerce minister says the country needs export driven growth to alleviate financial challenges

KARACHI: Pakistan wants to increase its exports to $50 billion in five years, according to a commerce ministry statement released on Friday, by strengthening its textile sector and arranging a major expo to promote its products.

The country aims to achieve a $100 billion export target in the long term to address its recurrent economic crises. Last year, its export revenue stood at $39.42 billion, marking a 24.94 percent increase from 2021.

The official statement said an inaugural meeting of the country’s Export Advisory Council was chaired by the commerce minister Dr. Gohar Ejaz earlier in the day to discuss how to increase Pakistani exports and make them more competitive.

“Dr. Ejaz highlighted the importance of increasing exports as a means to bolster national income and drive economic development,” the ministry announced. “He stressed that a robust export strategy can potentially alleviate the burden of debt, positioning Pakistan competitively in the global market.”

“As part of the broader agenda, the council also considered proposals to elevate domestic exports to $50 billion within the next five years,” it added.

The minister acknowledged the textile sector had traditionally made the largest contribution to the country’s exports, though he maintained it had still been operating far below its actual potential.

“To address this, the council discussed plans to organize a Textile Expo, a dedicated platform aimed at boosting textile exports,” said the statement.

Ejaz expressed confidence that Pakistan’s textile exports could reach $50 billion through concerted efforts and strategic initiatives, contributing significantly to the country’s overall economic growth.

Pakistan’s textile sector is frequently described as the backbone of its economy and employs 40-45 percent of the total labor force in the country.

The minister envisioned Pakistan’s GDP to rise to $1 trillion dollars, saying it would increase its average per capita income three times.

He also emphasized that Pakistan needed export driven growth to alleviate balance of payments problem.

The commerce ministry informed the new council comprised of prominent figures and would help address pressing challenges faced by Pakistani export sector.


Saudi Arabia, Hong Kong sign agreement to boost direct investment

Saudi Arabia, Hong Kong sign agreement to boost direct investment
Updated 08 December 2023
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Saudi Arabia, Hong Kong sign agreement to boost direct investment

Saudi Arabia, Hong Kong sign agreement to boost direct investment

RIYADH: Direct investment opportunities between Saudi Arabia and Hong Kong are set to grow after a new agreement was inked.

A memorandum of understanding focusing on greater cooperation across funding avenues was signed in the Asian city in presence of the Kingdom’s Minister of Investment, Engineer Khalid bin Abdulaziz Al-Falih.

The agreement aims to enhance and encourage direct investment between Saudi Arabia and Hong Kong by facilitating the exchange of rules and regulations related to the business environment and its developments. 

The memorandum also seeks to support and promote exhibitions and work sessions, and facilitate exchange visits and experiences in order to enhance direct investment opportunities.

The agreement came during the visit of a high-level Saudi delegation of government and private sector leaders to China and Hong Kong.

The deal is the latest evidence of the Kingdom’s growing relationship with the city, which is classed as a special administrative region of China.

In November, Hong Kong’s stock market became the first in the Asia Pacific region to allow investors to speculate on an exchange traded fund investing solely in Saudi Arabia’s equities market.

The ETF tracks the FTSE Saudi Arabia Index, and has since attracted $1 billion in initial investment, making it one of the largest ever debuts in the territory. 

Ahead of its launch in November, Paul Chan, the financial secretary of the Hong Kong Government, said: “The asset size of this ETF is the largest of its kind in the world, and it can be said to be a practical example of the financial connectivity of the Belt and Road Initiative.” 

He added: “I look forward to more two-way co-operation on financial products between the two places in the future, so as to make financial connectivity and capital flow wider and broader.”  

In February 2023, both exchanges signed a memorandum of understanding to collaborate in sectors such as fintech and environmental, social, and governance, exploring listing opportunities. 


Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market
Updated 08 December 2023
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Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

Oil Updates – crude heads for 7th weekly loss as supply surplus, weak China demand weigh on market

LONDON: Oil benchmarks were headed for a seventh straight weekly decline on worries over a global supply surplus and weak Chinese demand, although prices recovered ground on Friday after Saudi Arabia and Russia called for more members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to join output cuts, according to Reuters.

Brent crude futures rose $1.29, or 1.7 percent, to $75.34 a barrel by 6:59 a.m. Saudi time, while US West Texas Intermediate crude futures gained $1.11, or 1.6 percent, to $70.45 a barrel.

Both benchmarks slid to their lowest since late June in the previous session, a sign that many traders believe the market is oversupplied. Brent and WTI are also in contango, a market structure in which front-month prices trade at a discount to prices further out.

“Some short sellers closed their position as the oil market was seen oversold. Meanwhile, the plunging oil prices forced OPEC+ to improve solidarity to calm the market,” said analysts from Haitong Futures in a note.

Saudi Arabia and Russia, the world’s two biggest oil exporters, on Thursday called for all OPEC+ members to join an agreement on output cuts for the good of the global economy, only days after a meeting of the producers’ club.

The organization agreed to a combined 2.2 million barrels per day in output cuts for the first quarter of next year.

“Despite OPEC+ members’ pledges, we see total production from OPEC+ countries dropping by only 350,000 bpd from December 2023 into January 2024 (38.23 million bpd to 37.92 million bpd),” said Viktor Katona, lead crude analyst at Kpler.

Some of the OPEC+ countries may not adhere to their commitments due to muddied quota baselines and dependence on hydrocarbon revenues, Katona said.

Brent and WTI crude futures are on track to fall 4.5 percent and 4.8 percent for the week, respectively, their biggest losses in five weeks.

Concerns about China’s economy and surging US oil output have also fueled the market’s downturn this week.

Chinese customs data showed its crude oil imports in November fell 9 percent from a year earlier as high inventory levels, weak economic indicators and slowing orders from independent refiners weakened demand.

In India, fuel consumption in November fell after touching a four-month peak the previous month, hit by reduced travel in the world’s third-biggest oil consumer as a festive boost fizzled.

In the US output remained near record highs of more than 13 million bpd, US Energy Information Administration data showed on Wednesday. 


Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal
Updated 08 December 2023
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Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal

RIYADH: Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin stressed in their meeting in Riyadh the need for OPEC+ members to commit to the group’s agreement, Saudi Press Agency said on Thursday, citing a joint statement.
They welcomed the close cooperation between their nations and the successful efforts of OPEC+, of which both are members, to provide stability in global oil markets.
They said it is important that this cooperation continues and stressed the need for all member states to adhere to OPEC+ agreements in a way that serves the interests of producers and consumers and supports the growth of the global economy.
OPEC+ is a group that constitutes the Organization of the Petroleum Exporting Countries and Russia and other allies.
Regarding Sudan, the two leaders stressed the importance of building on the Jeddah Declaration, which was signed on May 11 with the aim of protecting civilians during the conflict in the North African country.
On Iran, Putin welcomed the resumption of diplomatic relations between Riyadh and Tehran and expressed hope that this would lead to enhanced stability and security in the region.
Both sides also stressed their full support for regional and international efforts to reach a comprehensive political solution to the crisis in Yemen.
The two leaders said they were keen to enhance mutual and joint investments in their countries.
They welcomed a 46 percent increase in the volume of bilateral trade in 2022, compared with 2021, and affirmed their intentions to continue to work together to enhance and diversify trade relations.
Turning to the crisis in Ukraine, the Russian side praised the humanitarian and political efforts undertaken by Saudi Arabia.