Alandalus Property commences $222m commercial center project in Makkah
Alandalus Property commences $222m commercial center project in Makkah/node/2553556/business-economy
Alandalus Property commences $222m commercial center project in Makkah
In a statement to Tadawul, the Saudi-based real estate firm announced the start of work on a new commercial center in the Makkah Al-Mukarramah region, spanning over 50,650 sq. m. Supplied
Alandalus Property commences $222m commercial center project in Makkah
Updated 01 October 2024
Arab News
RIYADH: Saudi holy city Makkah is set to see a boost in its commercial infrastructure with Alandalus Property Co. commencing construction on an SR831 million ($222 million) project.
In a statement to Tadawul, the Saudi-based real estate firm announced the start of work on a new commercial center in the Makkah Al-Mukarramah region, spanning over 50,650 sq. m.
The center is designed to include 350 rental units, such as showrooms, retail spaces, hypermarkets, entertainment areas, and dining options. It will also feature parking facilities for 1,800 vehicles.
Alandalus’ move underscores its commitment to enhancing Makkah’s commercial capabilities. This project follows recent expansions by UAE-based Lulu Group, which launched two new projects in Makkah and Madinah earlier this year.
“According to the developer’s report, the optimal final engineering design for the project was chosen from a group of designs prepared by the most skilled engineering offices in the Kingdom,” said Alandalus in the Tadawul statement.
It added that construction is underway with all necessary municipal permits secured, and the center is expected to be completed in the first quarter of 2027.
The project is being developed by Masat Property Co., a joint venture between Alandalus and Buroj International, with Hamat Holding Co., in which Alandalus holds a 25 percent stake, overseeing construction.
Funding for the project will be primarily sourced from bank loans, with supplementary contributions from the partners’ own resources.
The ongoing development projects are set to significantly enhance infrastructure in Makkah and Madinah, supporting their transformation into leading hubs for business and tourism.
In December 2022, the Makkah Chamber of Commerce, Madinah Chamber of Commerce, and the Islamic Chamber of Commerce, Industry, and Agriculture signed the Manafea agreement, aimed at transforming these holy cities into pivotal financial and business hubs in the Islamic world.
In a separate update, Alandalus reported a 67 percent decline in net profit for the first quarter of 2024, falling to SR4.7 million compared to the same period last year.
The drop was attributed to higher financing costs and increased expenses in the hospitality and office sectors.
It added that consolidated revenue also decreased by 2.70 percent year-on-year to SR53 million, driven by a 6 percent decline in the retail and operations segment.
UAE reaches 26 trade agreements under economic partnership initiative
Updated 52 sec ago
Nirmal Narayanan
RIYADH: The UAE has signed five new trade deals so far in 2025, bringing the total number reached under its Comprehensive Economic Partnership Agreement program to 26.
According to the state news agency WAM, Malaysia, New Zealand, and Kenya, as well as Ukraine and the Central African Republic, all signed deals in the first quarter of the year.
These agreements sit alongside those inked with countries such as Turkiye, India, and Indonesia since the CEPA program was launched in September 2021.
CEPA is a free trade agreement between two countries designed to reduce or eliminate barriers to trade and investment, thereby facilitating stronger commercial ties between the participating parties.
The UAE is also in the final stages of negotiations with several major economies, including Japan, and the talks are expected to be concluded by the end of this year, the statement revealed.
According to WAM, the CEPAs are having a positive impact on the UAE’s goal to raise the total value of the non-oil foreign trade in goods to 4 trillion dirhams ($1.09 trillion) and to increase non-oil exports to 800 billion dirhams by the year 2031.
“The CEPA program has accelerated this upward trajectory, supporting progress toward the targets outlined in the ‘We the UAE 2031’ vision,” said the statement.
The news agency further said that these agreements, signed over a period of less than four years, significantly expanded the country’s global trade network while creating new opportunities for the UAE’s private sector and businesses.
Alongside the six deals that have already come into force, 14 are undergoing technical and ratification procedures in preparation for implementation.
The report added that negotiations on another six agreements have been finalized, and the signings are expected to happen soon.
According to the UAE’s Ministry of Economy, the six CEPA deals that have come into force are with India, Israel, and Indonesia, as well as Turkiye, Cambodia, and Georgia.
The ministry added that another CEPA agreement with Costa Rica will come into force on April 1.
Following the CEPA agreement with India, which became effective in May 2022, non-oil trade between the UAE and the Asian nation grew by 20.5 percent, with the Emirates’ exports to India jumping by 75 percent by the end of 2024.
WAM added that trade with Turkiye rose by over 11 percent, with Indonesia seeing growth exceeding 15 percent, and Georgia recording a remarkable 56 percent increase since the implementation of CEPA.
The major beneficiaries of these CEPA agreements include sectors such as logistics, clean and renewable energy, advanced technology and applications, and financial services.
Other key sectors benefiting from these deals include green industries, advanced materials, agriculture, and sustainable food systems.
Gold hits record high, on track for best quarter since 1986 on tariff worries
Bullion up over 18 percent so far for the quarter
Trump expected to announce reciprocal tariffs on April 2
Silver, platinum, palladium set for monthly gains
Updated 31 March 2025
Reuters
BENGALURU: Gold hit a record high and was set to post its biggest quarterly gain in over 38 years on Monday, as concerns over US President Donald Trump’s tariff plans widening the global trade war and triggering an economic slowdown boosted bullion’s appeal.
Spot gold jumped 1.1 percent to $3,116.82 an ounce, as of 0638 GMT, after hitting an all-time high of $3,128.06 earlier. US gold futures was up 1.1 percent to $3,148.00.
Gold, traditionally seen as a hedge against political and economic uncertainties, has risen over 18 percent so far this quarter, its biggest quarterly gain since September 1986.
Interest rate cut bets, central bank buying and exchange-traded fund demand are the other factors that have supported the rally. The rapid price rise prompted multiple banks to increase their 2025 price forecasts.
The dollar index eased 0.2 percent, making greenback-priced gold less expensive for buyers holding other currencies.
“Markets’ anxiety levels have been ramping up ahead of the reciprocal US tariff announcements, which is keeping gold in high demand as a defensive play,” KCM Trade chief market analyst Tim Waterer said.
“If the tariff announcements this week are not as severe as feared, then the gold price could start to backtrack as profit-taking from the highs may be triggered.”
Trump is expected to announce reciprocal tariffs on April 2, while automobile tariffs will take effect on April 3. On Sunday, Trump said he was “pissed off” at Russian President Vladimir
Putin and would impose secondary tariffs of 25 percent-50 percent on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
Meanwhile, San Francisco Federal Reserve Bank President Mary Daly said inflation data released on Friday confirms her decreased confidence in her baseline expectation that two rate cuts this year are a “reasonable” projection.
Spot silver rose 0.6 percent to $34.32 an ounce, platinum was up 1.1 percent to $994.60 and palladium gained 0.9 percent to $980.11. All three metals headed for monthly gains.
Oil Updates — prices ease despite Trump warning of possible tariffs on Russian buyers
Updated 31 March 2025
Reuters
LONDON: Oil prices slipped on Monday, heading for a modest quarterly loss, despite a warning from US President Donald Trump that he may impose secondary tariffs on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
The more active June Brent crude futures fell 30 cents, or 0.4 percent, to $72.46 a barrel by 6:30 a.m. Saudi time, while US West Texas Intermediate crude declined 33 cents, or 0.5 percent, to $69.03 a barrel.
Front-month Brent, which was down 26 cents, or 0.4 percent, at $73.36, expires later on Monday.
Both benchmarks were on track to end the month slightly lower, and post their first quarterly drop in two quarters.
Trump said on Sunday he was “pissed off” at Russian President Vladimir Putin and will impose 25 percent-50 percent secondary tariffs on buyers of Russian oil if he feels Moscow is hindering his efforts to end the war in Ukraine. Trump said he could impose the new trade measures within a month.
“There are a couple of ways to read the headlines and the price sell-off. The first is that the market isn’t buying into Trump’s threats and doesn’t believe it,” IG market analyst Tony Sycamore said.
“The second is that Trump’s threats, if enacted, would be another step down the pathway toward a trade war, which will weigh on global growth and demand for crude oil.”
Trump also threatened Iran on Sunday with bombing and secondary tariffs if Tehran did not come to an agreement with Washington over its nuclear program.
Meanwhile, the OPEC+ group, which comprises OPEC and allies led by Russia, is set to begin its program of monthly increases in oil production in April. The group will likely continue to raise oil output in May, Reuters reported last week.
“We expect WTI to stay in a range of $65 to $75 for now as the market assesses the impact of Trump tariffs on oil supply and global economy, as well as the supply situation from the US and OPEC+,” said Yuki Takashima, an economist at Nomura Securities.
Top oil exporter Saudi Arabia may lower its crude prices for Asian buyers in May to a three-month low, tracking the steep declines in benchmark prices this month, traders said.
Elsewhere, Iran has lowered the price of its light crude oil grade for Asian buyers to $3.95 a barrel above the Oman/Dubai average for April.
Talks to restart Kurdish oil exports through the Iraq-Turkiye pipeline have hit a snag as a lack of clarity over payments and contracts persists, two sources with direct knowledge of the matter told Reuters.
Qatar’s producer prices steady in February as oil, gas drag index
Updated 30 March 2025
REEM WALID
RIYADH: Qatar’s general producer price index for the industrial sector stood at 114.01 points in February, reflecting stability compared to January and a 0.33 percent decrease year on year.
Released by the Gulf country’s Planning and Statistics Authority, the data indicated that the PPI for the industrial sector is made up of four main components: mining and quarrying, which constitutes 82.46 percent, manufacturing at 15.85 percent, electricity at 1.16 percent, and water at 0.53 percent.
The newly released figures align with Qatar’s inflation easing by 1.15 percent year on year in January, with the consumer price index settling at 107.45 points, driven by declines in food, housing, and transport costs, official figures showed.
This trend is consistent with the 2.53 percent drop in CPI in January, mainly attributable to a decline in housing, water, electricity, and other fuel costs.
The decline comes as Qatar is projected to record the lowest inflation in the Gulf Cooperation Council region this year, averaging 1.4 percent, below the GCC’s 1.9 percent and the wider Arab region’s 8.5 percent, according to Kamco Invest.
The data further showed that the mining and quarrying sector index declined by 0.12 percent compared to January, primarily owing to a 0.11 percent drop in the prices of crude oil and natural gas extraction, while the costs for other mining and quarrying activities remained unchanged.
Annually, the sector’s index dropped by 0.42 percent, primarily due to a decline in oil and gas extraction, although there was a modest 0.06 percent increase in prices for other mining and quarrying activities.
In the manufacturing sector, the index rose by 0.50 percent on a monthly basis, driven by price increases in rubber and plastic products, refined petroleum, chemicals, and basic metals, as well as cement, non-metallic minerals, and beverages.
On an annual basis, the manufacturing sector index increased by 0.60 percent compared to the corresponding month a year earlier, driven by a notable rise in prices for basic metals, cement and non-metallic mineral products, and rubber and plastic products, as well as chemical products, beverages, and printing.
In the electricity, gas, and air conditioning supply sector, the index rose by 1.01 percent compared to January but showed a year-on-year decline of 8.28 percent.
The water supply sector saw a decrease in its index by 2.75 percent compared to January but recorded an annual increase of 7.24 percent in February.
The numbers also indicated that prices declined for refined petroleum goods and food products, while there was no change in the prices of printing and reproduction of recorded media.
Saudi Arabia’s domestic tourism thrives as Eid travel peaks
Updated 30 March 2025
REEM WALID
RIYADH: Saudi Arabia’s domestic tourism sector is experiencing a sharp rise in travel during Eid Al-Fitr, injecting fresh momentum into the hospitality industry. A growing preference for local destinations is reshaping the market as residents seek immersive experiences within the nation’s tourism landscape.
The Kingdom saw a 45 percent rise in domestic flight bookings in 2024, driven by expanding tourism offerings and greater connectivity through low-cost carriers, according to Almosafer’s latest travel trend report released in January.
Domestic travel has surged in recent years, with Eid Al-Fitr becoming a peak period for local tourism, said Nicolas Mayer, PwC Middle East partner and global tourism industry lead. He noted that domestic flight bookings rose 45 percent year-on-year in 2024, highlighting a growing preference for local exploration.
“There are a few key reasons behind this shift. First, the Kingdom has made huge strides in improving its tourism offerings. With more affordable flight options due to low-cost carriers, travel has become a lot more accessible,” Mayer said.
The report showed a 39 percent increase in domestic room night bookings, while combined local flight and hotel reservations accounted for over 40 percent of the travel market, up 11 percent year-on-year.
The surge in domestic travel is fueled by a broader range of destinations, accommodations, and experiences attracting leisure visitors. Family and group travel have been major drivers, with bookings in these segments soaring over 70 percent.
Saudi Arabia’s mega-projects, including NEOM, a futuristic city on the Red Sea, and The Red Sea Project, which focuses on luxury and eco-tourism, further fuel domestic tourism growth. Cultural landmarks like AlUla, known for its ancient Nabatean heritage, and Diriyah, the birthplace of the Saudi state, are undergoing significant restoration to offer visitors rich historical and cultural experiences.
“Eid Al-Fitr is a special time for families and culture, and it encourages travel and experiencing something new. There are so many great options for people to celebrate within the Kingdom — it’s a great opportunity to discover Saudi Arabia’s rich culture and hidden gems right here at home,” he added.
Mayer pointed to Saudi Arabia’s massive investment in tourism infrastructure under Vision 2030, which is making it easier for residents to explore new destinations.
The Kingdom’s Minister of Tourism Ahmed Al-Khateeb recently said that the nation’s tourism accommodation is expected to double over the next decade. The country currently has around 400,000 guest rooms, projected to reach 800,000 by 2030. Al-Khateeb reiterated Saudi Arabia’s goal of becoming one of the world’s top seven tourism destinations by the end of the decade.
At King Abdullah University of Science and Technology, officials have observed a significant rise in family and group bookings, which have grown over 70 percent across key traveler segments.
Nour El-Shikh, media and public relations specialist in global branding and communications at KAUST, said travel groups are gravitating toward destinations that offer distinctive events and experiences.
“While major cities like Makkah, Riyadh, and Jeddah remain popular, emerging spots like Abha, Al Jubail, Jizan, Tabuk, and Hail are drawing increased attention for their unique landscapes and activities,” El-Shikh said.
AlUla, a UNESCO-listed site, has also gained traction as a premier domestic and international destination, a sign of Saudi Arabia’s continued investment in diversifying its tourism appeal.
“This has fostered a renewed appreciation for the Kingdom’s rich cultural heritage and natural beauty. The combination of improved infrastructure, increased accessibility, and a growing emphasis on family-oriented activities has made exploring local destinations more appealing than ever,” El-Shikh added.
The Haramain Train, which connects Madinah, Jeddah, and Makkah, is another example of how Saudi Arabia is reducing car traffic and improving access to Islam’s two holiest cities, she added.
Nicolas Mayer, PwC Middle East partner, global tourism industry lead. Supplied.
Hotels, resorts adapt to demand
With the surge in domestic travelers, Saudi Arabia’s hospitality sector is evolving to cater to changing preferences. Mayer pointed out that hotels and resorts are focusing on personalized experiences rather than simply increasing room capacity.
“Take Eid, for example. It’s a time when families want to be together, enjoy traditions, and make memories. Operators are catching on to that and offering packages and programs that feel more meaningful — whether it’s culturally inspired dining, kids’ activities, or even small touches that reflect the spirit of the holiday,” he said.
The demand for alternative accommodations is also growing, with vacation rentals, villas, and hotel apartments gaining popularity, particularly among families. Meanwhile, digital innovation is playing a critical role in enhancing the travel experience.
“If the booking process isn’t smooth or the service isn’t responsive, people notice. Tech isn’t a nice-to-have anymore — it’s expected,” Mayer added.
El-Shikh echoed this sentiment, emphasizing that many establishments are expanding and renovating to accommodate larger groups. “They are also introducing special Eid packages with family activities, cultural events, and traditional culinary experiences,” she said.
Mobile apps, virtual tours, and seamless payment methods such as Apple Pay and buy now, pay later options are also shaping consumer behavior. Sustainability and eco-friendly practices are becoming a priority, aligning with modern travelers’ values.
Future of domestic tourism
Saudi Arabia’s domestic tourism market is set for further transformation, driven by technology and evolving consumer expectations. Mayer expects a rising demand for personalized, culturally immersive, and seamless experiences.
“On the business side, I’m seeing a lot of energy going into creating more curated, tech-enabled journeys. Travelers expect smooth bookings, helpful digital tools, and recommendations that feel relevant. It’s no longer about just having a website or an app — it’s about using tech to anticipate what people want before they even ask,” he said.
The expansion of tourism beyond the well-known urban centers is also unlocking new opportunities. “More regions across the Kingdom are starting to offer these kinds of experiences. We’re moving beyond the well-known cities, and that’s opening up a whole new set of opportunities for domestic tourism,” Mayer added.
El-Shikh highlighted a growing trend toward experiential travel, where visitors seek immersive cultural experiences. “Stakeholders are developing unique offerings that highlight the Kingdom’s diverse heritage and natural landscapes,” she said.
New infrastructure fuels demand
The Kingdom’s infrastructure expansion is proving to be a game-changer for domestic tourism. Mayer noted that investments in roads, airports, and public transport are making once-remote destinations more accessible.
“It’s not just about building new airports or roads — it’s about opening new areas of the country that people might not have explored before,” he said.
Businesses are capitalizing on this momentum by designing experiences tied to local culture. “Around Eid especially, we see more businesses take advantage of that momentum. They’re creating experiences that feel connected to a place — whether it’s a cultural festival, a family-friendly activity, or a beautifully restored heritage site that tells a local story. These touchpoints resonate with travelers because it’s not just leisure — it’s personal,” Mayer explained.
El-Shikh added that in-destination activities such as guided tours, adventure sports, and cultural experiences are central to travel, enhancing engagement with local communities. “By collaborating with local artisans, cultural institutions, and heritage sites, tourism businesses are creating unique experiences that resonate with residents and encourage them to appreciate their own cultural heritage,” she said.
As Saudi Arabia continues to develop its tourism sector, a rising emphasis on domestic travel is expected to fuel sustained growth, further embedding Eid Al-Fitr as a cornerstone of the Kingdom’s evolving travel landscape.
