Thursday, April 18, 2019

Gulf Real Estate Market Summary

SAMA: Mortgage loans grow 3-fold during last February

Riyadh -  a reports Issued by the Saudi Arabian Monetary Agency (SAMA) on a consumer credit survey for February, which showed that the loans have made a big jump, with growth of more than 3 times compared to February of last year.

The number of financing contracts offered to individuals during this month was more than 210% compared to the same month last year. In February 2019, 9736 new financing contracts worth more than 4.6 billion riyals were signed, with 3,143 financing contracts amounting to SR 2.079 billion. Of banks and financing companies.

The statistics indicated that the government has directed during the last period to activate the housing finance contracts provided to individuals with the support of the State, where the month of February last increase of 1.7% compared to January of the same year, and the Ministry of Housing during the past period a government program specialized to provide Housing options for citizens, including facilitating access to finance with the support of the state, by providing support to citizens to bear profits on mortgages, to contribute to raising the ownership rate to 70% by 2030.

During the month of February, real estate finance for individuals increased by 121% compared to the same month last year. The total amount of mortgage finance provided by Saudi banks and other financing companies since the beginning of 2019 in January and February, To reach SR 9.4 billion, with a total of 19.314 thousand financing contracts, which is equivalent to the total amount of real estate finance provided during the first half of last year 2018, with contracts amounting to about 20,059 thousand financing contracts.

The number of contracts supported by housing support programs provided by the Ministry of Housing or the Real Estate Development Fund in February 2019 represents 84% ​​of the total number of contracts, up to 8135 financing contracts, and 77% of the value of funding was through support programs Housing, representing about 3.6 billion riyals, registering a growth rate of more than 1%, compared to the previous month, January 2019, which saw the submission of financing contracts supported by the ministry exceeded 3.58 billion riyals.

According to the Saudi Arabian Monetary Agency (SAMA), about 92% of mortgage loans were provided through commercial banks, with a total of 9049 loans. The share of financing institutions represents up to 8% with a total of 687 contracts. While the number of mortgage contracts for individuals in February 2018 provided by banks and other financing institutions about 3143 financing contracts, including 2959 contracts of banks and 184 of the financing companies with a total value of 2079 billion riyals.

Abu Dhabi 3848 units real estate during the past year

Abu Dhabi - The total number of completed buildings in the Emirate of Abu Dhabi reached 3,848 during 2018 compared to 3844 in 2017. A report published by the UAE news agency WAM said that the number of completed buildings reflects The real estate sector is one of the most active economic sectors in the UAE. Figures from the Abu Dhabi Statistics Center show that the Al Ain area witnessed a significant activity last year compared with the rest of the region. The number of completed buildings reached 2034 buildings, constituting 53% of the total buildings completed in the Emirate in 2018.

In the Abu Dhabi area, the number of completed buildings reached 1644 buildings, constituting 43% of the emirate's total buildings. In 2006, 96% of buildings completed in the Emirate of Abu Dhabi were in the Abu Dhabi and Al Ain regions, while the share in Al Dhafra was 6%, according to the Statistics Center.

In terms of building classification, the number of residential buildings reached 3,047, accounting for 79.2% of the total number of buildings completed in the Emirate of Abu Dhabi (Abu Dhabi, Al Ain and Al Dhafra). According to the statistics center, 19.8% of buildings completed in the Emirate of Abu Dhabi were distributed to public facilities, commercial and industrial buildings and those classified as residential. The number of buildings completed in the Emirate of Abu Dhabi reached 2,181 during the first half of 2018 with a growth rate of approximately 5% compared to 2080 buildings in the same period of 2017.

The Future of Construction Exhibition concludes in Ajman

Ajman Chamber of Commerce & Industry (Ajman Chamber of Commerce & Industry) has concluded the "Future of Construction" exhibition, which was attended by 52 of the largest local and international companies specialized in sustainable building technology and cities of the future.

Chairman of Ajman Chamber of Commerce & Industry, Abdullah Al Muwaiei, stressed the importance of leadership in the UAE by providing the necessary elements for the growth and sustainability of the construction, contracting and real estate sectors and keeping abreast of what is new in these various fields.

"The success of the exhibition was the result of concerted efforts and the keenness of government and private sectors to highlight the objectives of the exhibition and to improve the infrastructure, real estate, construction and construction sectors," he said.

The exhibitors and participants in the exhibition recommended that the event should be organized annually and the number of local and international exhibitors should be increased, in view of the special importance of the exhibition for the sectors of infrastructure, construction and construction, and the latest developments in the fields of building materials, transportation, energy, control, communications, security and other fields. The products are in constant evolution and innovation. Calling for increasing the participation of government agencies concerned with infrastructure and real estate development to open the field and partnership with companies and factories involved.

Representatives of the participating parties praised the exhibition "Future of Construction" and its role in providing an international platform through which the exchange of experiences, partnerships and deals between participants and visitors of the relationship.

The final day of the exhibition witnessed the signing of a memorandum of understanding between Ajman Chamber and The Line Company, signed by Amna Khalifa Al Ali, Board Member of Ajman Chamber, and Omar Al Falasi of The Line Company, to offer discounts to Ajman Chamber of Commerce and Ajman Businesswomen Council .

Expo Dubai boosts UAE economy

Expo Dubai adds 33 billion dollars to the UAE economy until 2031.

The Expo 2020 Dubai is expected to contribute a total value of AED 122.6 billion (US $ 33.4 billion) in the UAE economy between 2013 and 2031, according to an independent study by Ernst & Young, And quoted by news agencies Reuters and Aawsat newspaper

The global exhibition could help Dubai's economy, which grew 1.94 percent in 2018, the weakest pace since the real estate crash in 2009 triggered a debt crisis. The Expo 2020 will allow up to 905,000 and 200 years of work between 2013 and 2031, equivalent to about 49,700 full-time jobs per year during this period, Ernst & Young said in a press release on Monday.

 During its events from October 2020 to April 2021, Expo 2020 is expected to attract about 25 million visits to Dubai and contribute 1.5 per cent of the UAE's expected gross domestic product.

Following the exposition, from May 2021 to December 2031, Expo will contribute 62.2 billion dirhams ($ 16.94 billion) in gross domestic product (GDP) and an average of 53,800 jobs.

According to an executive summary of the study received by Reuters, investment in infrastructure and other assets is expected to reach AED 40.1 billion in preparation for the Dubai Expo.

"This independent report shows that Expo 2020 Dubai is an important and long-term investment in the future of the UAE, contributing more than AED 120 billion to the economy between 2013 and 2031," said Najib Mohammed Al Ali, Executive Director of Expo 2020 Dubai.

"The event will not only encourage millions of people around the world to visit the UAE in 2020, it will also stimulate tourism and travel and support economic diversification for years after Expo, leaving a sustainable economic legacy that will help ensure the UAE remains a leading destination for business, leisure and investment."

Ernst & Young said that the SME sector, which is a central part of the national economy of the UAE, will benefit from AED 4.7 billion of investments being made during the pre-launch phase of Expo 2020. Expo 2020 brings Dubai under its umbrella To 200 participants from countries, companies, multinational organizations and educational institutions.

The study considered direct increases in economic activity, the indirect benefits of increasing demand across the supply chain, and the benefits of increased spending by corporate staff participating in Expo 2020 Dubai, but analysts question whether Expo 2020 will provide sustainable economic growth, Given the current slowdown.

"Our biggest concern for Expo is whether long-term benefits will be realized," said William Jackson, chief emerging market analyst at Capital Economics in London. It depends on whether other companies move to Dubai 2020. " "If this does not happen, it could result in a surplus in Dubai's absorptive capacity," he said. "This may be particularly notable in the hotel industry, where the expected number of visitors is very high ... Surplus capacity may make companies Are having a harder time repaying the debt they borrowed to finance the construction of Expo. "

Dubai's stock index lost more than a quarter of its value in 2018, its worst performance in the Middle East last year amid renewed declines in real estate prices. S & P Ratings said in February last year that after property prices fell between 5 and 10 per cent in 2017, they could fall between 10 and 15 per cent in Dubai over the next two years.

"Expo 2020 Dubai is a long-term investment for the UAE and is expected to have a significant impact on the economy and the process of creating jobs directly and indirectly," said Matthew Benson, partner of Ernst & Young's Transaction Advisory Services. As the host, Dubai aims to take advantage of this international event to further strengthen its reputation and reputation internationally.

The event will celebrate innovation, promote progress and work together, and provide fun and education to a global audience. "

At the heritage stage from May 2021 to December 2031, Expo 2020 will become Dubai after the end of the year to the "Constitution 2020" - the integrated urban community, which is expected to include major companies to establish centers of operations in addition to the expansion of the operations of the Dubai Exhibition Center.

It is planned to support the future vision of the UAE by supporting sustainable economic development, moving towards an innovation-based economy and providing a working environment that will support key growth industries such as logistics and transport, travel and tourism, construction and real estate, and education. More than 80 per cent of Dubai Expo buildings will be retained in the Constitution 2020, which will later expand to a city of more than 4 million square meters.

Economic growth of the Arab countries in the coming years

The Arab Monetary Fund expects Arab countries to grow by 3.1 per cent in 2019 and 3.4 per cent in 2020, reflecting expectations that the growth rate of the Arab Petroleum Exporting Countries will continue to rise to about 2.8 and 3.1 per cent in 2019 and 2020 respectively , Amid an expected divergence of trends in economic activity across the Group.

The Arab Economic Outlook, issued by the Fund for the month of April, was quoted by It included an update on the economic performance forecasts of the Arab countries on several levels including economic growth, trends in domestic prices, monetary and financial conditions and expectations for the sector. External relations in the Arab countries during the years 2019 and 2020.

The report pointed out that the most prominent policy priorities for the Arab countries is to create more job opportunities to meet the challenge of unemployment in light of the high rate of unemployment in the Arab countries to almost double the rate of global unemployment. The unemployment challenge in Arab countries is concentrated in the youth sector, especially females, where the unemployment rate among young people rises to 26 per cent according to World Bank data, which is also twice the global average. Young female unemployment is at the highest level Globally is 40 per cent compared to 15 per cent for the world average.

The potential repercussions of the Fourth Industrial Revolution and the subsequent technical developments increase the magnitude of the challenges facing Arab countries in the future.

Addressing the unemployment challenge requires the Arab countries to adopt an integrated approach based on a comprehensive transformation of the structures of the Arab economies, increasing labor market dynamics, facilitating access to finance, adopting institutional reforms to increase the flexibility of labor markets and products, As well as the establishment of educational observatories to explore the needs of the labor markets, seek greater integration into the global economy, and conclude trade liberalization agreements and labor and capital transfers.

With regard to trends in the development of domestic prices, the inflation rate in the Arab countries is expected to decline to 9.3 per cent and 8.1 per cent during 2019 and 2020, respectively, as a result of the low rate of inflation in the Arab oil-exporting countries to 6.1 per cent and 5.9 per cent respectively In 2019 and 2020.

At the sub-group level, inflation in the GCC is expected to fall to around 1.3 per cent in 2019, while inflation is expected to be about 1.6 per cent by 2020. In other oil-producing countries, The inflation rate to about 6.3 per cent during 2019. While expected to reach about 6.5 per cent during 2020.

In the group of Arab oil-importing countries, inflation is expected to fall to about 11.8 percent in 2019 and 9.9 percent in 2020.

With regard to monetary conditions, it is expected that during the years 2019 and 2020, monetary conditions in Arab countries will be affected by economic trends, external demand levels and monetary policy positions in the United States and the European Union. In this context, the return of traditional monetary policy in the United States and the euro zone is expected to have implications for monetary conditions in countries that adopt fixed exchange rate regimes, which will affect the cost of domestic and external financing and capital flows.

In countries that adopt more flexible exchange rates, improved monetary conditions in some will remain linked to improved external demand levels, which will support net foreign assets, help to provide domestic credit and reduce interest rates, and help reduce pressures in the foreign exchange market.

With regard to the financial situation, the combined budget deficit of the Arab countries as a percentage of GDP is expected to decrease to 5.5 per cent in 2019, reflecting the expected impact of the fiscal reforms adopted during the forecast horizon.

On the external sector, the current account surplus is expected to stabilize at around 1.6 per cent of GDP in 2019 and 2020.

Sunday, April 14, 2019

Marketing of the new administrative capital of the Gulf States

MasterGroup has announced that it has launched a promotional tour in several Gulf countries, led by Saudi Arabia and the United Arab Emirates, for its projects in the Egyptian market, especially in the new administrative capital through The City & The City Valley project. Egyptian Pound.

The company began promoting its projects in two of the largest real estate exhibitions in the Arab world, namely, Wafix Real Estate Fair in Jeddah, which was held under the patronage of the Saudi Minister of Housing Majid bin Abdullah Al-Haqail. After the completion of the Saudi market, the company participated in the " In the city of Abu Dhabi in its eighth session, which will be held during the period from 14 to 16 March in Al Ain.

The company's president, Eng. Mohamed Lashin, said that his company is working to promote the outstanding projects in Egypt in light of the real estate boom experienced by the Egyptian real estate sector after the launch of the new administrative capital projects. He pointed out that the concept of exporting real estate sector in the Arab and Gulf countries under the facilities and incentives provided by Egyptian State.

He explained that the company did not only address Egyptians working abroad, but focused its marketing plan on the Gulf brothers wishing to obtain a residence in Egypt in return for owning a property, which has had a great impact on opening new ways of marketing in the Gulf region, especially we have touched the great passion about the capital project As the future of Egypt's real estate which resonates greatly abroad.

Lashin pointed out that the great demand for the company's projects in the foreign exhibitions encouraged them to continue to participate in regional exhibitions and events in order to introduce the Arab peoples to the national projects in Egypt such as the administrative capital, stressing that MasterGroup has future plans to continue investing in the new Egyptian development axes such as Ain Sukhna axis and Ras Sidr axis.

Real estate investment partnership contracts

Egyptian real estate market is the second phase of partnership projects signed new contracts with real estate development companies.

The Urban Communities Authority in Egypt ends this month with the signing of contracts for the second phase of partnership projects with the private sector.

The Commission signed 3 contracts out of a total of 6 contracts with SODIC, Al Ahli Real Estate Development Company and Arkan Palm Real Estate Investment Company for three projects with an area of ​​849 acres in the cities of Sheikh Zayed and 6 October with expected investments of 93.5 billion pounds, providing over 163,000 jobs Directly and indirectly, according to the newspaper "stock market" Egyptian.

"Urban communities" are negotiating with Arab Real Estate Development Company (ARCO) and Iwan Real Estate Development Company to sign contracts for three projects in the cities of New Cairo and Sheikh Zayed, Ministry of Housing sources said.

She added that the negotiations are in their final stages and agreed on the financial and in-kind shares of the Authority and will obtain the approvals of companies on the final version of the contract during the month.

During the second phase of the partnership projects, 21 real estate investment companies submitted 36 bids to compete for 12 plots of land in the cities of New Cairo, Sheikh Zayed and 6th of October.

The Arab Real Estate Development Company (ARCO) has won the development of an integrated 410-acre urban project in Sheikh Zayed City. Palm Al-Alamein, a joint venture of Palm Hills and Arkan Real Estate Investment Company, has also developed a mixed-use commercial, administrative, hotel, medical and entertainment project. "With the plot of" Zayed Spark "with an area of ​​205 acres in" Zayed ".

West Ewan Real Estate Development Company has developed a 1,000-acre integrated development project in the Sheikh Zayed City extension. SODIC has successfully developed a fully integrated 500-acre construction project along Sheikh Zayed City.

AlAhli Real Estate Development Company has successfully developed a fully integrated urban development project on 144 acres in the 6th of October City. East Ewan Real Estate Investment Company is developing an integrated urban tourism project with an area of ​​104 acres in the new city of Cairo.

Public Investment Fund and development of NEOM

The Neom project, the future destination for dreamers and innovators in the world, is a new milestone in its most ambitious journey worldwide, having received the necessary approvals from the official authorities in Saudi Arabia to establish a closed joint stock company under the name of "Neom Company" It is owned by the Public Investment Fund.

This establishment will give Neom the legal and legal capacity to carry out its main tasks: to develop and supervise the Neom area in the north-west of the Kingdom and to make it a new global destination for the implementation of the basic vision of the project. Neom is the land of the future. Leading and crossing boundaries in a real world inspired by imagination.

In order to realize the vision of the project, the company will have the main tasks of creating a unique environment for living and working in the world to attract the minds and talents to create new solutions to the most important challenges facing the future of mankind. Kamel is based on 16 sectors, developing and applying the latest technologies in various sectors such as mobility, energy, water, food and biotechnology to advance the future of mankind.

The company will build new cities and complete infrastructure for the region including a port, a network of airports, industrial zones, arts support centers, innovation centers that support the business sector, and the development of targeted economic sectors.

The project will be supported by more than $ 500 billion from the Public Investment Fund, as well as local and international investors.

The Neom project is designed as an international project aimed at the world with independent goals and meets its objectives with the objectives of the Kingdom's Vision 2030 in its three axes; creating a vibrant community that is at the forefront of the world's most livable cities, a thriving economy and making Saudi Arabia an ambitious homeland and destination for the latest technologies.

Neom will contribute to raising the Kingdom's GDP through two aspects. The first is the direct financial returns that will go to the Public Investment Fund as the owner, and the second is to stop the economic leakage. The project will provide additional opportunities for Saudi investors in sectors that were not previously available, Luxury and advanced centers of therapeutic health reduce spending abroad.

The Neom project is managed by an international team of more than 30 nationalities. Neom is headed by Nazmi Al Nasr, who has previously developed and managed several mega projects such as the giant Sheiba field project built in an isolated area in the heart of the Empty Quarter, Abdullah will be responsible for the development of the 16 sectors of the economy and the elite of executives and experts drawn from all over the world.

Neom CEO Nazmi Al Nasr stated that the role of Neom will be unique and historical. It is responsible for developing a new global destination on a large land area and a future civilization based on sustainability and based on the best of living. A global attraction for investment, knowledge, innovation and technology competes with all capitals of the economy.

Since the launch of the Neom Project during the first edition of the Future Investment Initiative Conference in Riyadh, significant preparatory and planning steps have been completed, including the formation of the Advisory Board and the appointment of its members, the adoption of the first phase of the Neom Strategy, and the adoption of the Strategic Concept of the Neom Bay, Which will be developed in Neom.

PIF seeks funding for between 5 and 8 billion dollars

Through this financing, the Fund aims to diversify the Kingdom's economy

The Public Investment Fund (PIF) is holding initial talks for $ 5 billion to $ 8 billion in bridge financing, according to Bloomberg sources.

The sources said that the proceeds from the sale of the share of the Public Investment Fund in SABIC will be paid to Saudi Aramco amounting to $ 69 billion.

General Manager of the Public Investment Fund Yasser Al-Rumayyan announced earlier that the fund intends to increase its stake in ACWA Power from 25% to 40%.

The Saudi Public Investment Fund has announced that it has acquired a significant stake in ACWA Power, the developer and owner and operator of power plants and power plants, on July 4, 2018.

At the time, the fund added that this investment would make the Fund a direct contributor to 15.2% of ACWA Power.

Sanabel Investment Company, a wholly-owned subsidiary of the Public Investment Fund, invested 9.78% in ACWA Power. The fund's total stake in ACWA Power was direct and indirect 24.98%. Today, The sovereign raised this quota to 40%.

The investment of the Public Investment Fund in ACWA Power comes in the form of an increase in the company's capital, and its revenues will be used to support the company's growth strategy and future investment plans.

Since its establishment in 2004, ACWA Power has been a Saudi success story to become a leader in the development of energy and desalination projects in the Kingdom, as well as its rapid expansion into new markets.

ACWA Power is able to meet the Kingdom's electricity needs by 14% and 33% of desalinated water, accounting for 54% of the company's total electricity, while 93% of its total desalinated water.

The public investment fund reinforces the shareholder base of ACWA Power, which includes the General Retirement Corporation and the International Finance Corporation, a member of the World Bank Group.

It is also mentioned, The government's share of the public investment fund in NCB is 64.5%, while the government stake in Riyad Bank is 48%. The Public Investment Fund also has 50% interest in Samba and 26% in Alinma Bank Demonstrating the Fund's investment potential.