Saudi Real Estate Refinance Co., BlackRock to develop Kingdom’s property finance market

Saudi Real Estate Refinance Co., BlackRock to develop Kingdom’s property finance market
The deal was signed by SRC CEO Majid Al-Abduljabbar and General Manager of BlackRock in the Middle and CEO of BlackRock Saudi Arabia Yazeed Al-Mubarak. SPA
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Updated 25 August 2024
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Saudi Real Estate Refinance Co., BlackRock to develop Kingdom’s property finance market

Saudi Real Estate Refinance Co., BlackRock to develop Kingdom’s property finance market
  • Signing came during visit by Saudi Minister of Municipalities and Housing Majid Al-Hogail to New York
  • Kingdom signed deal with K. Hovnanian Homes ME to develop 500,000 housing units in the US

RIYADH: The Saudi real estate finance market will be supported by a deal between a Public Investment Fund subsidiary and US investment giant BlackRock.

The Saudi Real Estate Refinance Co. signed the memorandum of understanding with BlackRock in New York City on Saturday, the Saudi Press Agency reported.

It came during a visit by Saudi Minister of Municipalities and Housing Majid Al-Hogail.

The deal seeks to develop the real estate finance market in Saudi Arabia and increase the share of businesses in the real estate sector capital markets, the SPA said.

The agreement was signed by SRC CEO Majid Fahd Al-Abduljabbar and Yazeed Al-Mubarak, general manager of BlackRock Middle East and CEO of BlackRock Saudi Arabia.

BlackRock President Robert Kapito also attended the signing ceremony.

Al-Hogail is in the US to discuss ways to boost Saudi-US partnerships in urban development, construction, building, and real estate finance.

The ministry signed a separate memorandum of understanding with K. Hovnanian Homes ME to develop 500,000 housing units in the US.

Al-Hogail said the deal came from a belief in the “importance of attracting global expertise to support our journey in the real estate development sector.

“Through this partnership, we aim to benefit from successful experiences and expertise to build more integrated residential communities that are consistent with our continuous efforts to enhance the real estate supply with the highest standards, best practices and technologies, and to meet the aspirations of Saudi families,” he added in a post on his X account.


Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium
Updated 03 October 2024
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Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

JEDDAH: Saudi Arabia’s project developer Qiddiya Investment Co. has awarded a Spanish consortium an SR4 billion ($1 billion) contract for the Prince Mohammed bin Salman Stadium initiative. 

The agreement was granted to the company FCC Construction and the Kingdom’s leading contracting firm Nesma & Partners for the building of the sports facility at the project on the outskirts of Riyadh.

With the US-based architect Populous as the undertakings consultant, the contract covers the construction of a multipurpose stadium on top of the 200-meter-high Tuwaiq cliff in the new sports and entertainment district within the city, according to media outlet MEED.

In July, Saudi Arabia submitted its official bid to host the 2034 FIFA World Cup at a ceremony organized by the Federation Internationale de Football Association, known as FIFA, in Paris, France. The official announcement of the host nation for the tournament will be made on Dec. 11.

The new project marks a significant milestone in the realization of Vision 2030, aimed at enhancing tourism, generating thousands of jobs, boosting the national economy, and increasing annual visitors to the Kingdom by 1.8 million football fans and an additional six million drawn to non-football events.

The stadium’s design allows for multipurpose use, with the entire pitch capable of being transformed within hours to host various sporting and entertainment events, including rugby, boxing, and mixed martial arts, as well as esports championships, exhibitions, and concerts.

The facility will be built in the heart of Qiddiya, just 40 minutes from Riyadh, atop one of Tuwaiq Mountain’s peaks at an elevation of 200 meters, according to the Saudi Press Agency.

With a seating capacity of over 45,000, it is expected to attract international visitors with its innovative design and unique technological offerings, creating an immersive experience for guests. 

Among its features are retractable flooring, a foldable roof, and a movable upper wall that can open, revealing views of the lower city, home to key attractions like Six Flags Qiddiya and the water park.

The sports facility’s exterior frame, selected interior walls, and roof will also be covered with 1.5 km display screens. 

A standout feature of the stadium is its advanced climate control system, which will enable year-round events without excessive energy consumption. This will be achieved through an eco-friendly cooling lake located beneath the stadium, where rainwater collected from the surrounding area will be pumped into an ice wall to cool the air entering the central conditioning system.

Earlier in 2024, the investment company announced the launch of the stadium, which is set to be one of the world’s most prominent. 

The announcement followed Crown Prince Mohammed bin Salman’s unveiling of Qiddiya’s urban master plan and global brand, positioning it to become a leading destination for entertainment, sports, and culture globally.


Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s
Updated 03 October 2024
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Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

RIYADH: Saudi Arabia’s non-hydrocarbon real gross domestic product is set to grow between 5 and 5.5 percent from 2025 to 2027, driven by increased government spending, a new analysis showed. 

In its latest report, US-based credit rating agency Moody’s stated that this growth marks an improvement from the 4.6 percent growth recorded in 2022-2023 and the modest 1.5 percent seen between 2017 and 2019. 

The Kingdom’s efforts to strengthen its non-oil sector align with the strategic objectives of Vision 2030, which aims to diversify the economy and decrease reliance on crude oil revenues. 

Moody’s emphasized that sustained government spending will be essential to support economic diversification initiatives. 

“While we expect non-hydrocarbon economic activity to remain robust, downside risks to oil prices and production levels will amplify the trade-off between implementing diversification projects and maintaining a robust fiscal position and sovereign balance sheet,” Moody’s noted in the report. 

The recent pre-budget statement from Saudi Arabia, issued on Sept. 30, underscores the focus on advancing economic diversification and social programs, particularly under Vision 2030 and various giga-projects. 

Government spending is projected to stay high at around 30 to 32 percent of GDP during 2025-2027, consistent with recent trends. 

“The relatively high level of spending, which will likely have an increased allocation to capital expenditure, will support non-hydrocarbon economic growth and the gradual reduction of the kingdom’s exposure to long-term global carbon transition,” added the rating agency. 

Moody’s emphasized the crucial role of Saudi Arabia’s Public Investment Fund in the Kingdom’s economic diversification efforts, noting that the fund could mitigate economic challenges during periods of lower oil prices. 

“The PIF’s role may reduce some of the implementation risks to economic diversification in the event of lower oil prices and production. Continued robust growth in non-hydrocarbon private-sector activity would also provide momentum to the diversification efforts,” concluded the report. 

In a separate analysis, S&P Global recently projected Saudi Arabia’s GDP growth at 1.4 percent for this year, with an acceleration to 5.3 percent anticipated in 2025. 

According to the analysis, this growth is expected to be bolstered by the Kingdom’s diversification strategy, which focuses on enhancing the non-oil private sector and reducing reliance on crude oil revenues. 

The report also noted that potential US Federal Reserve rate cuts could benefit emerging markets like Saudi Arabia, enhancing growth fundamentals and attracting greater capital inflows.


Saudi leaders unite with global icons in Uzbekistan to discuss growth of creative economy

Saudi leaders unite with global icons in Uzbekistan to discuss growth of creative economy
Updated 15 min 57 sec ago
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Saudi leaders unite with global icons in Uzbekistan to discuss growth of creative economy

Saudi leaders unite with global icons in Uzbekistan to discuss growth of creative economy

TASHKENT: Industry leaders from Saudi Arabia joined fashion icon Naomi Campbell and other prominent figures at a pivotal conference in Uzbekistan dedicated to the creative economy. 

Taking place in Tashkent from Oct. 2 to 4, the forum serves as a platform for members of the global creative community to engage in essential discussions on sustainable development and innovation within artistic practices. 

The conference also highlighted the promising future of the creative economy, a sector rapidly expanding worldwide. Currently, cultural and creative industries generate approximately $2.3 trillion annually and contribute 3.1 percent to the global GDP, with projections suggesting this could rise to 10 percent by 2030.

Organized by the Uzbekistan Art and Culture Development Foundation, Indonesia, the UN Conference on Trade and Development, and the World Intellectual Property Organization, this year’s event aimed to explore new avenues for the creative economy. 

The 4th World Conference on Creative Economy showcased a robust Saudi presence, aimed at fostering collaboration under the theme: “Inclusively creative: A shifted reality.” 

Saudi Arabia’s participation in the event underscores the country’s rising influence in the international creative landscape, aligning its initiatives with global movements in sustainability, creativity, and cultural diplomacy. 

Although she was unable to attend in person due to unrest in the Middle East and North Africa region, Princess Nourah Al-Faisal— a key figure in the Kingdom’s creative community— underscored the significance of the discussions, referring to the conference as “an exciting and important platform.” 

Speaking exclusively to Arab News, she emphasized: “It’s extremely important that, at a time like this, people come together to talk about creativity, youth empowerment, and the sustainability of the creative economy to develop a better world for future generations.” 

She further expressed her regret at missing the event: “I am just so sorry that I was unable to make it. It’s such an exciting event, an important event to have, and so many important discussions and dialogues are taking place.”

Jeroen Frumau, lead consultant for Princess Nourah Al-Faisal’s consulting service, Adhlal, elaborated on her contributions during a panel discussion titled “Creative and sustainable — visions for a world that works for people and planet.” 

Nora Al-Dabal. Supplied

Nora Al-Dabal, executive director for Arts and Creative Industries at the Royal Commission for AlUla, participated in another panel, “Innovation engines — creative clusters, fab-labs, and artist accelerators.” 

She shared her motivation for being part of the discussions: “A lot of our work focuses on the Global South, and being here today with the creatives and the policymakers is very important.” 

Al-Dabal added: “We do run a residency program in AlUla that is open for artists from all over the world. We strive to make sure it is inclusive.”

AlUla, renowned as one of the largest open living museums globally, has recently emerged as a significant hub for creatives in northwestern Saudi Arabia. 

Ahmad Angawi, a prominent Saudi speaker and founder of Zawiya 97— described as a “creative hub located in the heart of historic Al-Balad, Jeddah”— also shared insights on the Kingdom’s leadership in the creative economy. 

He expressed his satisfaction with the Saudi presence at the conference: “I was very pleased to see the Saudi presence here; we have Nora Al-Dabal from AlUla and, later, Mashael Al-Yahya from Misk Foundation.” 

Angawi told Arab News that while Princess Nourah Al-Faisal was unable to attend, her planned participation signifies that “we are already leading in the creative economy.”

His work with the Al Makmad Foundation and Zawiya 97, alongside decades dedicated to reviving traditional Saudi crafts, underscores the Kingdom’s commitment to preserving traditional arts while embracing innovation. 

“It’s always a pleasure to be here in Uzbekistan — it’s a rich history,” Angawi said, adding, “We have a beautiful connection of cultural exchange between Uzbekistan and Saudi. It’s always a great pleasure to highlight and show the commonality between us and them.” 

Angawi went to say: “It’s a great time for creatives, for artists, for craftsmen, and for makers to be developing work … even the technology of AI is rooted in the crafts.”

Ahmad Angawi. Supplied

Key participants at the WCCE included Saida Mirziyoyeva, adviser to the president of Uzbekistan, along with other influential figures. The sessions covered a broad spectrum of topics, including the integration of AI in the arts, the future of creative education, and the potential for art and culture to enhance diplomacy and urban development.

Gayane Umerova, chairperson of Uzbekistan’s Art and Culture Development Foundation, expressed her enthusiasm for the ongoing creative transformation: “We are living in a very exciting time for arts and culture,” she said. “Creators today are blurring the lines between business, arts, and technology, and WCCE comes at an opportune time for a global discussion on uplifting the next generation of creators.”

A panel discussion at the event, which was held in Uzbekistan for the first time. Supplied

Discussions at WCCE, established in 2018, emphasized the importance of mindful collaboration across industries and sectors to ensure equitable growth, particularly as creative fields increasingly intersect with technology and sustainability initiatives.

As the first WCCE held in Uzbekistan, the conference demonstrated the potential of the creative sector to drive sustainable development, job creation, and cultural enrichment on a global scale. The next biennial WCCE is set to return to its origins in Indonesia, where the inaugural event took place.


UAE’s non-oil sector growth steady amid slight PMI decline: S&P Global

UAE’s non-oil sector growth steady amid slight PMI decline: S&P Global
Updated 03 October 2024
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UAE’s non-oil sector growth steady amid slight PMI decline: S&P Global

UAE’s non-oil sector growth steady amid slight PMI decline: S&P Global

RIYADH: The UAE’s non-oil sector growth remained stable in September, with the Purchasing Managers’ Index dipping slightly to 53.8 from 54.2 the previous month, according to S&P Global. 

Although the index remains well above the neutral 50 mark, this reading is the second-lowest in three years, only surpassing July’s figure of 53.7. 

The PMI decline was primarily driven by a slowdown in new orders and reduced job creation. 

Despite indicating robust gains, rates of growth in activity and new business across the non-oil economy receded in September. 

David Owen, senior economist at S&P Global Market Intelligence, said: “The UAE PMI continued to show a loss of momentum in the non-oil private sector, with growth having softened considerably since the start of the year.” 

He added: “Businesses faced further challenges with the completion of new work, despite a slowing of sales growth and a strong uplift in purchases.” 

Owen also highlighted the impact of competitive pressures, stating that “tougher market conditions have led to a more cautious outlook for the upcoming year — output expectations are now at their lowest since early 2023.” 

Although business activity rose in September, it did so at the slowest pace since the same month of 2021. 

Nevertheless, new business levels for non-oil firms increased sharply, bolstered by a solid rise in export sales and favorable local market conditions. 

“Firms opted to maximize revenues while sales are still strong, as output charges rose at the fastest rate for over six-and-a-half years,” said Owen. 

Although cost pressures remained significant, he added there are signs of easing inflationary trends compared to recent months. 

The report also indicated a robust expansion in Dubai’s non-oil private sector. Overall activity levels increased at the fastest pace in four months, even with a slower rise in new business volumes. 

“The expansion led non-oil businesses to increase staffing and inventories to greater degrees than in August. Supplier performance also improved, though to a lesser extent amid reports of customs delays,” stated S&P Global. 

Kuwait PMI rises 

In a separate report, S&P Global revealed that Kuwait’s PMI rose to 50.3 in September from 49.8 in August, indicating a modest expansion in new orders. 

The analysis indicated a return to growth in employment and increased business confidence among non-oil private sector companies. 

Andrew Harker, economics director at S&P Global, said: “While new orders expanded and firms raised output, growth rates are not what they were earlier in the year. It was good to see employment return to growth, but here too the rate of job creation was only marginal.” 

The report noted that price discounting and marketing efforts contributed to further expansion of new orders in September, while new export orders continued to rise steadily. 

Additionally, the analysis highlighted that purchase stocks returned to growth in September after pausing in August. 

“On the whole, companies continued to do a good job of limiting price rises to customers, but this again came in the face of sharply rising input costs, suggesting that there is some pressure on margins. It therefore remains to be seen how long firms will be able to maintain competitive pricing policies,” added Harker. 

Egypt’s businesses deteriorate 

Meanwhile, Egypt’s PMI fell to 48.8 in September from 50.4 in August, signaling weakened business conditions due to rising pressures that dampened sales. 

“As cautioned as a possible risk last month, rising price pressures curbed the non-oil private sector’s recovery in September. With input cost inflation at a six-month high and output charges rising accordingly, albeit to a softer degree, firms reported this having a dampening effect on customer orders, leading them to scale back business activity,” said Owen. 

According to the report, non-oil companies in Egypt reported a solid reduction in their activity levels in September, reversing the first uplift for three years in August. 

Despite this downturn, the report indicated sustained improvements in purchases and employment levels. 

“There were some positives from the latest data, however, namely that firms continued to increase their buying levels and staffing. The expansions suggest there is still some hope that the non-oil sector could bounce back in the fourth quarter,” added Owen. 

The report concluded by saying that business confidence in the 12-month activity outlook remained positive in September, although the degree of optimism softened from August and was the lowest in three months.


Oil climbs on prospects of wider Middle East war, ample supply caps gains

Oil climbs on prospects of wider Middle East war, ample supply caps gains
Updated 03 October 2024
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Oil climbs on prospects of wider Middle East war, ample supply caps gains

Oil climbs on prospects of wider Middle East war, ample supply caps gains

SINGAPORE: Oil prices rose on Thursday as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the key exporting region overshadowed a stronger global supply outlook.

Brent crude futures were up 94 cents, or 1.27 percent, to $74.84 a barrel at 9:15 a.m. Saudi time. US West Texas Intermediate crude futures were up 99 cents, or 1.41 percent, to $71.09.

Both benchmarks had jumped over $1 earlier in the session.

“Following the initial jitters from geopolitical risks in the Middle East, we have seen some calm return to global markets, but of course, with market participants still keeping a side-eye on any upcoming Israeli response,” said Yeap Jun Rong, a market strategist at IG.

“The question for oil now is whether Iran’s energy infrastructure will be in Israel’s crosshairs,” said Yeap.

Israel bombed central Beirut early on Thursday, killing at least six people, after its forces suffered their deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

The strike comes a day after Iran fired more than 180 ballistic missiles at Israel in an escalation of hostilities, which have seeped out of Israel and occupied Palestinian territories into Lebanon and Syria.

“From here, it’s a waiting game to see what the Israeli response will be and I suspect that comes after the conclusion of the Rosh Hashanah holiday tomorrow,” said IG market analyst Tony Sycamore.

“I doubt that Israel will target Iranian oil infrastructure, as such a move would likely drive oil prices toward $80, which would be frowned upon by Israel’s allies, who are making strides against inflation,” Sycamore said.

Meanwhile, US crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended Sept. 27, the Energy Information Administration said, compared with expectations in a Reuters poll for a 1.3 million-barrel draw.

“Swelling US inventories added evidence that the market is well supplied and can withstand any disruptions,” ANZ analysts said in a note.

Some investors remained unfazed as global crude supplies have yet to be disrupted by unrest in the key producing region, and spare OPEC capacity tempered worries.

“After Iran’s attack, prices may stay elevated or remain more volatile for a little longer, but there’s enough production, there’s enough supply in the world,” Jim Simpson, chief executive officer of East Daley Analytics, told Reuters.

OPEC has enough spare oil capacity to compensate for a full loss of Iranian supply if Israel knocks out that country’s facilities.

However, traders worry the producer group would struggle if Iran retaliates by hitting installations of its Gulf neighbors.

“The effectively available spare capacity might be much lower if renewed attacks on energy infrastructure on countries in the region happen,” said Giovanni Staunovo, a UBS analyst.