You are here

  • Home
  • Saudi Arabia explores real estate technologies to diversify national income 

Saudi Arabia explores real estate technologies to diversify national income 

The summit aimed at encouraging the real estate technology sector in the Kingdom. Majid bin Abdullah Al-Hogail, the minister of municipal and rural affairs and housing, who is also chairman of the Saudi Real Estate Authority, inaugurated the event. SPA
The summit aimed at encouraging the real estate technology sector in the Kingdom. Majid bin Abdullah Al-Hogail, the minister of municipal and rural affairs and housing, who is also chairman of the Saudi Real Estate Authority, inaugurated the event. SPA
Short Url

https://arab.news/nuuz5

Updated 07 November 2023
Arab News
Follow

Saudi Arabia explores real estate technologies to diversify national income 

Saudi Arabia explores real estate technologies to diversify national income 
Updated 07 November 2023
Arab News
Follow

RIYADH: Saudi Arabia is looking at opening new markets that diversify national income through real estate technologies, said a top government official. 

Speaking at the Saudi Proptech Summit that concluded on Tuesday, Real Estate General Authority CEO Saud Al-Hammad said integrating technology with real estate is a global trend expected to help create an investment-friendly environment. 

Moreover, it also has the potential to serve the Kingdom, which is diversifying its economy away from oil, he added.

The authority is also working toward creating legislation to attract more investors into Saudi Arabia and further contribute to the Kingdom’s economic diversification journey. 

According to a US-based research firm Tracxn, the Kingdom has about 38 real estate tech startups, including Wasalt, Vibes, Aqaraz and Nuzul. 

While Wasalt is an online platform for buying, selling and renting properties, Vibes offers a virtual reality experience for property viewing.   

Nuzul, on the other hand, provides property management solutions for residential and commercial assets. 

The summit aimed at encouraging the real estate technology sector in the Kingdom. Majid bin Abdullah Al-Hogail, the minister of municipal and rural affairs and housing, who is also chairman of the Saudi Real Estate Authority, inaugurated the event. 

During the event, Al-Hogail launched the Real Estate Registry Platform, which combines digital services such as registering mortgages and adding real estate rights and obligations, among other services, under one platform. 

The two-day event featured dialogue sessions and interactive workshops with the participation of over 25 speakers from 20 different countries. 

The primary goal of the summit was to advance knowledge in the domain of real estate technology within the Saudi market and bolster investments in this sector. 

A real estate tech exhibition featuring local and international real estate and technology companies was also organized as a part of the summit. 

Topics: real estate Saudi Arabia

Related

Majid bin Abdullah Al-Hogail. (SPA)
Saudi Arabia
Saudi PropTech Summit: A Global Real Estate Tech Showcase

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Updated 04 November 2024
Nadin Hassan
Follow

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Updated 04 November 2024
Nadin Hassan

RIYADH: Saudi Arabia’s telecommunications company, Mobily, has entered into a cooperation agreement with Telecom Egypt to establish the first Saudi-owned subsea cable connecting the two nations across the Red Sea.

The agreement includes the installation of the subsea cable, which will be fully owned by Mobily, with landing stations in Duba, Saudi Arabia, and Sharm El-Sheikh, Egypt, as stated by Mobily on X.

This cable will serve as a link between Asia and Africa, creating a route to Europe by connecting Saudi Arabia with Egypt.

It will enhance connectivity options for Gulf countries and neighboring regions through Mobily’s digital network, integrating with Egyptian landing stations in the Mediterranean.

Additionally, it will provide new routes to improve service reliability and meet customer needs within the Kingdom and beyond.

“The new cable represents a significant milestone in strengthening Saudi Arabia's position as a leading international hub for telecommunications services and data traffic, in alignment with the goals of Saudi Vision 2030,” said Salman bin Abdulaziz Al-Badran, CEO of Mobily.

He added: “The signing of the agreement underscores our commitment to expanding our infrastructure and enhancing our capabilities both regionally and internationally, as Mobily’s new cable will connect Saudi Arabia to Egypt and improve communication flexibility between the Middle East and Europe.”

This agreement aligns with Mobily’s strategy to bolster its infrastructure and network capabilities. Building on its previous investments in subsea cables that connect global regions, the new cable will expand Mobily’s international reach and capacity.

“Complementing the newly established landing station in Sharm El-Sheikh, we are developing new crossing routes to connect Sharm El-Sheikh to the Mediterranean Sea,” stated Mohamed Nasr, managing director and CEO of Telecom Egypt.

He further said: “We are confident that this commercial agreement will be a valuable addition to our ongoing efforts to support this critical sector and cater to the rising demand for capacity and connectivity.”

By increasing capacity and expanding its global reach through new collaborations, Mobily is dedicated to enhancing its subsea network infrastructure both domestically and internationally.

“I am pleased with our cooperation with Telecom Egypt, which will enable us to offer the best services to all our customers around the world,” Al-Badran noted.

“Telecom Egypt is dedicated to advancing the international telecommunications infrastructure by enhancing the geographical diversity of the global subsea cable networks,” Nasr added.

This commitment aims to provide cutting-edge digital solutions to customers and support the sustainable growth of the Kingdom’s ICT sector through advanced infrastructure.

Topics: Mobily Egypt

Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 

Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 
Updated 36 min 33 sec ago
REEM WALID 
Follow

Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 

Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 
Updated 36 min 33 sec ago
REEM WALID 

RIYADH: Saudi Arabia and Turkiye deepened commercial ties by signing 10 cooperation agreements at an event in Istanbul, advancing strategic initiatives across diverse sectors.   

The Saudi-Turkish Business Forum spotlighted opportunities for joint ventures in agriculture, food, and tourism, along with potential collaborations in advanced manufacturing, construction, and infrastructure. Other key areas included technology, innovation, and logistics, the Saudi Press Agency reported.   

Organized by the Federation of Saudi Chambers and the Foreign Economic Relations Board of Turkiye, the event attracted over 450 companies and several government agencies from both nations.   

This comes as the trade volume between Riyadh and Ankara reached SR25.4 billion ($6.76 billion) in 2023, marking a 15.5 percent growth. Saudi exports to Turkiye represented SR15.6 billion, while Turkish imports to the Kingdom accounted for SR9.8 billion.    

Turkish Minister of Trade Omer Bolat said: “Turkiye aims to raise the volume of its bilateral trade with the Kingdom to $30 billion in the medium and long term, and diversify its fields, especially tourism, health, infrastructure, information technology, and the defense industry.”    

The minister praised the strong bilateral relationship, the quality of Turkish products, and the success of the country’s services sector, encouraging mutual benefit from these strengths. He also highlighted the Kingdom’s transformations across sectors such as mining, health, technology, and communications.   

“Today in Istanbul, I met with my brother, His Excellency the Turkish Minister of Trade Omer Bolat, and we discussed strengthening relations and expanding trade partnerships for the good and interest of the two brotherly countries,” Saudi Minister of Commerce Majid Al-Qasabi said in a post on X.     

Fayez Al-Shaili, vice president of the Federation of Saudi Chambers, noted a qualitative shift in Saudi-Turkish relations. He stated that the establishment of the business council has played a critical role in enhancing economic relations, positioning the Kingdom among Turkiye’s eight largest trading partners. 

The number of Saudi companies operating in Turkiye has surged from 11 in 2011 to over 1,400 in 2023, with total investments reaching SR18 billion, according to Al-Shaili. 

Sami Al-Osaimi, chairman of the Saudi-Turkish Business Council, highlighted that around 390 Turkish companies are now investing in the Saudi market, with the council targeting a trade exchange volume of $10 billion in the short term. 

The forum showcased investment prospects for Turkish investors within the framework of Saudi Vision 2030, particularly in tourism infrastructure, industrial zones, healthcare, digital services, and energy. 

Additionally, the business council met on the sidelines of the forum to discuss plans, initiatives, and the government support needed to address challenges faced by investors from both countries.

Topics: Federation of Saudi Chambers Saudi-Turkish Business Forum

Related

New Zealand reaches trade deal with Gulf states
Business & Economy
New Zealand reaches trade deal with Gulf states
Saudi-Pakistan business deals enhanced to $2.8bn, says Al-Falih
Business & Economy
Saudi-Pakistan business deals enhanced to $2.8bn, says Al-Falih

SABIC sees turnaround as it reports $266.2bn Q3 profit

SABIC sees turnaround as it reports $266.2bn Q3 profit
Updated 04 November 2024
Nadin Hassan
Follow

SABIC sees turnaround as it reports $266.2bn Q3 profit

SABIC sees turnaround as it reports $266.2bn Q3 profit
Updated 04 November 2024
Nadin Hassan

RIYADH: Petrochemical firm Saudi Basic Industries Corp. reported a net profit of SR1 billion ($266.27 million) for the third quarter of 2024, a marked improvement from a loss of SR2.87 billion in the same period last year.

SABIC attributed its positive results to various factors, including higher income from operations by SR797 million, bolstered by a heightened gross profit margin offset by raised operating costs.

The company’s revenue rose 3 percent year on year to SR36.88 billion, primarily driven by increased average selling prices despite a slight decrease in sales volume.

The firm also benefited from gains related to divesting its Functional Forms business and favorable currency exchange fluctuations.

According to the London Stock Exchange Group, the third quarter profit missed analyst forecasts of SR1.6 billion, as reported by Reuters.

A notable factor was SABIC’s reduced losses from discontinued operations, amounting to SR3.3 billion, mainly stemming from a fair value reassessment of the Saudi Iron and Steel Co., known as Hadeed.

The reclassification of Hadeed as a discontinued operation will continue until the completion of its sale, which was previously announced by the company.

When compared with the second quarter of 2024, however, net profit fell from SR2.18 billion due to a lower gross profit of SR194 million, attributed to softer selling prices and higher feedstock costs.

The quarter also saw a rise in operating expenses by SR223 million and a decline in profits from associates and joint ventures by SR313 million, following a fair value assessment related to the firm’s agreement to sell its shares in Alba, announced in September.

Despite these challenges, SABIC’s total revenue for the first nine months of 2024 reached SR105.28 billion, with a net profit of SR3.43 billion, a sharp turnaround from the SR1.04 billion loss in the same period last year.

This was aided by reduced discontinued operation losses and lower Zakat expenses by SR1.05 billion, stemming from regulatory-driven provision adjustments in June.

In September, Saudi Arabia’s Mining Co. completed the acquisition of SABIC’s 20.62 percent shareholding in Aluminium Bahrain, also known as Alba, marking a significant milestone in its strategy for regional growth.

According to a press statement, the transaction valued between SR3.62 billion ($960 million) and SR3.97 billion.

Topics: SABIC Saudi Basic Industries Corp. (SABIC)

Related

Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba
Business & Economy
Saudi Ma’aden acquires SABIC’s 21% shareholding in Bahrain’s Alba
Saudi Arabia’s SABIC to build thermoplastic compounding plant in China
Business & Economy
Saudi Arabia’s SABIC to build thermoplastic compounding plant in China

Saudi Vision 2030 to catalyze banking sector growth: Moody’s

Saudi Vision 2030 to catalyze banking sector growth: Moody’s
Updated 04 November 2024
Nirmal Narayanan
Follow

Saudi Vision 2030 to catalyze banking sector growth: Moody’s

Saudi Vision 2030 to catalyze banking sector growth: Moody’s
  • Rating agency said development of planned mega projects in Saudi Arabia will play important role in generating huge business and lending opportunities for banks
  • Kingdom’s housing program has been a driver of credit growth for the banks over the last five years
Updated 04 November 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s Vision 2030 program to diversify the economy could accelerate the country’s banking sector development in the coming years, according to an analysis by Moody’s. 

In its latest report, the US-based credit rating agency said the development of planned mega projects in Saudi Arabia will play an important role in generating huge business and lending opportunities for banks. The infrastructure required to host major events like the Asia Cup in 2027, the Asian Winter Games in 2029, Expo 2030, and the FIFA World Cup in 2034 is expected to support this growth further.

Vision 2030 aims to reduce the Kingdom’s decades-long dependence on crude revenues and steadily bolster its presence in other sectors like tourism, technology, and real estate. 

“Planned mega projects to diversify the economy include the tourism, real estate, and infrastructure sectors, and the government provides the country’s banks the opportunity to help fund them,” said Abdulla Al-Hammadi, assistant vice president and analyst at Moody’s Ratings. “One part of Saudi Vision 2030 is a plan to raise home ownership to 70 percent by 2030 from 47 percent in 2016.”

The report said the Kingdom’s housing program has been a driver of credit growth for the banks over the last five years, with household mortgages reaching SR607 billion ($161.67 billion) at the end of 2023, up from SR110 billion in 2016. They now comprise around 24 percent of total banking sector loans.

“Given these mortgages were secured at a fixed rate during a time of low interest rates and that tenures are often for 25 to 30 years, this could place some pressure on margins in the sector. We believe that larger banks will be hit hardest due to their dominant position in the Saudi mortgage market,” said Al-Hammadi. 

If deposit development continues to lag loan growth, banks could also face growing funding shortages. Given the nature of mortgage fixed-rate loans, it may be challenging for financial institutions to offload them in the still-developing secondary markets.

The agency said Saudi banks could also face challenges in this run, which include insufficient deposit growth to meet the growing credit demand associated with Vision 2030 infrastructure and development projects. 

“A challenge is that availability of deposit growth is lagging behind accelerated credit growth at Saudi banks, while the home-ownership push has packed the banks with long-term, fixed-rate mortgages that tie up funds. 

“The banks will need to tap more confidence-sensitive market funding. This could entail foreign deposits, interbank syndications, and debt issuance, particularly Islamic bonds or sukuk,” said Al-Hammadi.

According to the report, reliance on short-term foreign funding will be riskier than long-term, such as senior unsecured debt and additional tier one, since long-term allocations will better match these banks’ long-term loans.

Topics: Saudi Arabia Vision 2030 Moody’s Saudi banking

Related

Special Sindalah showcases Saudi Arabia’s investment potential, says commentator Ali Shihabi
Business & Economy
Sindalah showcases Saudi Arabia’s investment potential, says commentator Ali Shihabi
Number of hotel rooms in Saudi Arabia surges 107% in Q3
Business & Economy
Number of hotel rooms in Saudi Arabia surges 107% in Q3

Oil Updates – crude gains more than $1 after OPEC+ delays output hike

Oil Updates – crude gains more than $1 after OPEC+ delays output hike
Updated 04 November 2024
Reuters
Follow

Oil Updates – crude gains more than $1 after OPEC+ delays output hike

Oil Updates – crude gains more than $1 after OPEC+ delays output hike
  • Brent up 1.9 percent, WTI up 2 percent
  • OPEC+ delays December output hike by one month
Updated 04 November 2024
Reuters

BEIJING/SINGAPORE: Oil prices extended gains on Monday, rising more than $1 on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a week that spans a US presidential election and a key meeting in China.

Brent futures rose by $1.39 per barrel, or 1.9 percent, to stand at $74.49 a barrel by 10:22 a.m. Saudi time. US West Texas Intermediate crude rose by $1.41 a barrel, or 2.0 percent, to stand at $70.90.

On Sunday, OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, said it would extend its output cut of 2.2 million barrels per day for another month in December, with an increase already delayed from October because of falling prices and weak demand.

The grouping had been due to increase output by 180,000 bpd from December.

“While the delay until January does not change fundamentals significantly, it does potentially leave the market having to rethink the strategy of OPEC+,” ING analysts said in a note.

The delay bucked the expectations of some in the market for OPEC+ to deliver the planned hike in output, they added.

“This delayed supply increase means that maybe the group are more willing to support prices than many believe,” they said.

The group is set to gradually unwind the 2.2-million-bpd cut over the coming months, while another 3.66 million bpd of production cuts will stay until the end of 2025.

Brent and WTI posted weekly declines last week of about 4 percent and 3 percent, respectively, as record US output weighed on prices. But both contracts edged up on Friday on reports that Iran could launch a retaliatory strike on Israel within days.

On Thursday, US news website Axios said Israeli intelligence suggested that Iran was preparing to attack Israel from Iraq within days, citing two unidentified Israeli sources.

It is questionable whether the price uptrend will be sustained as previous initial positive reaction to the delayed output hike and geopolitical tension have eventually fizzled off, said Yeap Jun Rong, a market strategist at IG.

For now, oil prices may stay in a broad consolidation range, with any upside likely to find some resistance at the level of $78.50, he added.

Markets await Tuesday’s US presidential election, with polls showing Democratic Vice President Kamala Harris and Republican former President Donald Trump neck-and-neck.

And on Thursday, economists expect the US Federal Reserve to cut interest rates by 25 basis points.

In China, the Standing Committee of the National People’s Congress meets from Monday to Friday and is expected to approve additional stimulus to boost the slowing economy, though analysts say the bulk may go to help cut local government debt. 

Topics: oil updates oil prices

Related

OPEC countries extend 2.2m bpd voluntary production cut until end of December
Business & Economy
OPEC countries extend 2.2m bpd voluntary production cut until end of December
Oman’s oil exports hit 230.6m barrels by September: official data
Business & Economy
Oman’s oil exports hit 230.6m barrels by September: official data

Latest updates

Philippines to pursue sustainability, halal sector projects with Saudi businesses
Philippines to pursue sustainability, halal sector projects with Saudi businesses
Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 
Saudi Arabia, Turkiye sign 10 cooperation agreements at business forum in Istanbul 
KSrelief aids earthquake victims in Turkiye
KSrelief aids earthquake victims in Turkiye
Germany’s top diplomat in Kyiv as Ukraine girds for impact of US election on the war
Germany’s top diplomat in Kyiv as Ukraine girds for impact of US election on the war

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.