Saudi Arabia to sign real estate deals with US during minister’s visit 

Saudi Arabia to sign real estate deals with US during minister’s visit 
Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail at the Saudi Cultural Mission in Virginia. X/@majedhogail
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Updated 19 August 2024
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Saudi Arabia to sign real estate deals with US during minister’s visit 

Saudi Arabia to sign real estate deals with US during minister’s visit 
  • Majid Al-Hogail began his tour on Aug. 18, engaging in high-level meetings with government officials and industry leaders
  • Visit focused on attracting leading American companies to the Saudi market

RIYADH: Multiple US-Saudi real estate agreements are set to be signed during a five-day visit by a leading official from the Kingdom to the North American country.

Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail began his tour on Aug. 18, engaging in high-level meetings with government officials and industry leaders, the Saudi Press Agency reported.

The visit is focused on attracting leading American companies to the Saudi market, particularly in real estate development, financing, and supply chains as well as modern construction technologies, and urban infrastructure.




Minister of Municipalities and Housing Majid Al-Hogail opened a housing exhibition at the Saudi Cultural Mission to be a new point of contact for our citizens in the US. X/@majedhogail

This comes as Saudi Arabia aims to improve access to affordable, quality housing through its national housing strategy, targeting a 70 percent homeownership rate by 2030.

In a post on his X account, Al-Hogail said: “In the state of Virginia, we opened a Sakani exhibit at the Saudi Cultural Mission, establishing a new point of contact for our citizens in the US to access the housing and financing options provided by the Sakani Program.”

He added that this initiative reflects their deep commitment to supporting the aspirations of younger generations and enabling them to build their futures with confidence and peace of mind.

In an additional post, the minister said he also met with Saudi students in the US who attended the housing exhibit, adding that the discussions shed light on his ministry’s empowerment initiatives in engineering, financial management, and artificial intelligence.




Minister of Municipalities and Housing Majid Al-Hogail met with Saudi students studying in the US. X/@majedhogail

He added: “I assured the students that our homeland eagerly awaits their return with pride and honor for their achievements.”

During his visit, the minister will explore successful US urban development projects and assess opportunities to implement similar initiatives in the Kingdom, as reported by SPA.

In July, Saudi Arabia’s Housing Program, part of Vision 2030, released its 2023 analysis. The report revealed that the homeownership rate among the Kingdom’s households reached 63.74 percent by the end of 2023, a 16.7 percentage point increase since 2016. This rate also surpassed the 2023 target of 63 percent.

The analysis also indicated that over 96,000 households benefited from accommodation support in 2023 through the same program, which helped cover housing costs. Additionally, more than 20,000 homes were assisted through ownership pathways via developmental housing.


Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 

Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 
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Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 

Big 5 Construct forum fuels Saudi Arabia’s $1.7tn projects’ pipeline 
  • Two-week event showcases industry-leading discussions, strategic deals and innovative technologies, showcases key innovations
  • Masdar signs partnership with Public Investment Fund; PIF acquires a 30% stake in Masdar

RIYADH: Big 5 Construct Saudi 2025 returned for its 13th edition in a groundbreaking two-week format, running from Feb. 15— 18 and 24— 27 at the Roshn Front in Riyadh.

The expansion aligns with the Kingdom’s construction boom, driven by Vision 2030 and a $1.7 trillion pipeline of mega and giga-projects. 

The event was inaugurated by Mohammed Abdulaziz Al-Ajlan, chairman of the Saudi Contractors Authority, with the new two-week format designed to meet the increasing market demand and sector-specific growth opportunities within the Kingdom’s construction industry.

In its first week, Big 5 Construct Saudi hosted the 5th edition of the International Contracting Conference, organized by the SCA and dmg events, bringing together senior government officials, industry leaders and experts to discuss the future of construction in the Kingdom

In his keynote speech at the ICC, Al-Ajlan said the event “serves as an important platform for thought leadership and strategic discussions” that will shape the future of the construction industry as Saudi Arabia accelerates toward its Vision 2030 goals. 

He added: “As a testament to the Kingdom’s leadership in construction excellence, Big 5 Construct Saudi complements our mission at the SCA to empower stakeholders, drive sustainability, and champion advancements that will propel the sector to new heights.”

Industry leaders participated in discussions on advancing sustainability and environmental, social and governance goals in Saudi Arabia. Sinan Rasheed, director of sustainability at New Murabba, highlighted the critical role of transparency and accountability through robust ESG reporting and compliance frameworks.

In its first week, the forum welcomed professionals from across the industry to explore innovations in the foundational stages of construction, spanning structural development, materials and engineering solutions, with co-located events including Heavy Saudi Arabia, Totally Concrete Saudi Arabia, and HVAC R Saudi Arabia.

“As we opened the doors to this year’s Big 5 Construct Saudi, construction industry professionals are gathering to explore key sectors such as heavy construction, concrete, HVAC, MEP technologies and building materials in the first week of the event, ” said Matt Denton, president at dmg events.

“The expanded two-week format not only enhances the attendee experience but also ensures that professionals can find the tools and technologies they need, representing every segment of the construction value chain. The first week specifically focuses on products and solutions for projects in the foundation to ground-up stages, aligning perfectly with the Kingdom’s growing construction demands,” he added.

On the sidelines of Big 5 Construct Saudi, Masdar signed a partnership with the Public Investment Fund, not long after PIF acquired a 30 percent stake in the building and construction materials company by subscribing to new shares via a capital increase.

According to Masdar, the strategic partnership strengthens the company’s position in the sector and drives growth to contribute to Vision 2030.

Faisal Majid Al-Muhaidib, CEO of Masdar, told Arab News: “We are a leading building material company, active in 29 cities in Saudi Arabia with 105 branches. Last week we announced that PIF has invested 30 percent in Masdar shares. So today they are our partners. This is a very big leap for Masdar.”

Al-Muhaidib said PIF has invested in the company as it seeks to localize the supply chain within Saudi Arabia, enhance the customer experience while shopping for building materials, and accelerate growth within the sector in the Kingdom.

He said: “We strongly believe that today we are living in the golden age of the construction industry in Saudi Arabia. We have wise leadership, a clear vision and a very supportive government. Saudi Arabia has always been a place of stability within the region. We are very much optimistic about the future.”

The CEO said in 2024 the building material sector size was around SR380 billion ($101.32 billion), and it is expected to reach SR500 billion by 2030.

“With works in progress for several mega projects, major sporting events and oil and gas there, we see many sectors open within Saudi Arabia for the building and construction material,” Al-Muhaidib said.

Abdulmajid Al-Rashoudi, governor of the SCA, described the construction sector as standing “at the heart of the Kingdom’s Vision 2030”.

He added: “At the SCA, we are committed to building an ecosystem that drives innovation, strengthens local capabilities, and attracts global expertise. 

“Our ongoing partnership with Big 5 Construct Saudi, the largest construction event in Saudi Arabia, is a testament to this vision. 

“It provides a world-class platform that connects public and private sector leaders and industry experts, showcases cutting-edge solutions, and accelerates knowledge exchange, thus playing a significant role in building a future-ready construction sector.”

Over 2,000 exhibitors from more than 60 countries are expected at Big 5 Construct Saudi across the two weeks, showcasing the latest products, services, systems and solutions.

As part of the EcoTrail feature on the opening day, one of the exhibitors, Dewalt, demonstrated its battery-powered tools that reduce carbon emissions by up to 60 percent.

Another exhibitor, LumiCon by Brickeye, presented real-time Internet of Things-based concrete strength monitoring which eliminates excess material waste and improves efficiency.


UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal
Updated 17 February 2025
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UAE, Ukraine sign comprehensive economic partnership deal

UAE, Ukraine sign comprehensive economic partnership deal

JEDDAH: The UAE and Ukraine have signed a Comprehensive Economic Partnership Agreement, removing customs duties on 99 percent of Emirati goods and 97 percent of Ukrainian exports to boost trade and investment. 

The agreement aims to unlock new trade and investment opportunities, fostering deeper economic ties between the countries, reported the Emirates News Agency. 

The signing ceremony was attended by UAE President Sheikh Mohamed bin Zayed Al-Nahyan and Ukrainian President Volodymyr Zelenskyy, marking a major step in enhancing bilateral economic cooperation. 

This follows the UAE’s signing of CEPAs since 2021 with countries like India, Indonesia, Turkiye, Israel, Malaysia, Jordan, and Morocco to boost trade, attract investments, and protect exports and intellectual property. 

The UAE president emphasized the strategic importance of the CEPA, highlighting its role in boosting bilateral trade and advancing both nations' economic ambitions. He expressed confidence that the agreement would strengthen economic relations and contribute to sustainable development. 

Zelenskyy echoed these sentiments, emphasizing that the agreement would benefit both Ukraine and the UAE, expanding economic cooperation and providing new opportunities for growth. 

The CEPA agreement was signed in a formal ceremony at Qasr Al-Shati by UAE Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi and Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko. 

The deal is projected to contribute $369 million to the UAE’s gross domestic product and $874 million to Ukraine’s by 2031. It is also expected to accelerate Ukraine’s economic recovery and create new opportunities in sectors such as infrastructure, heavy industry, and aviation, as well as aerospace, and information technology, according to WAM. 

The deal was signed after the two countries expressed their intent to negotiate a CEPA in December 2022, following over $3 billion in trade and investment commitments made during Zelenskyy’s visit to the UAE in February 2021.

Bilateral trade between the UAE and Ukraine totaled $372.4 million in 2024, down from $385.8 million in 2023. Joint foreign direct investment reached $360 million by 2022, covering sectors like logistics, infrastructure, tourism, and advanced technology. 

The CEPA aligns with the UAE’s broader strategy to expand its global trade partnerships and increase investment across various sectors. The country aims to grow its non-oil trade to 4 trillion dirhams ($1.1 trillion) by 2031, with international trade playing a central role in its economic vision.


Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266
Updated 17 February 2025
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Closing Bell: Saudi benchmark index edges down to close at 12,266

Closing Bell: Saudi benchmark index edges down to close at 12,266

RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, losing 105.61 points, or 0.85 percent, to close at 12,266.46.    

The total trading turnover of the benchmark index was SR5.4 billion ($1.2 billion), as 41 stocks advanced, while 201 retreated.      

The MSCI Tadawul Index also declined by 15.52 points, or 1.01 percent, to close at 1,521.64.  

The Kingdom’s parallel market, Nomu, lost 92.37 points, or 0.29 percent, to close at 31,644.81. This comes as 30 stocks advanced while 52 retreated.    

Arabian Internet and Communications Services Co. emerged as the best-performing stock, with its share price surging by 4.82 percent to SR355.    

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 3.90 percent to SR29.30, and Shatirah House Restaurant Co., which saw a 3.65 percent increase to SR23.26.   

Abdullah Saad Mohammed Abo Moati for Bookstores Co. rose 3.02 percent to SR42.70, while Jamjoom Pharmaceuticals Factory Co. gained 2.74 percent to SR164.80.  

Anaam International Holding Group saw the steepest decline of the day, with its share price easing 5.80 percent to close at SR24.68.  

Al Mawarid Manpower Co. fell 3.45 percent to SR134.20, while Al Majed Oud Co. dropped 3.28 percent to SR171.20.  

Middle East Healthcare Co. also faced a loss in today’s session, with its share price dipping 2.99 percent to SR81.20, while Mutakamela Insurance Co. saw a 2.77 percent to settle at SR17.52.   

On the announcements front, Dar Al Arkan Real Estate Development Co. has fully redeemed its $600 million sukuk from its 2025 Series 6 Medium-Term Note program. 

In a bourse filing, the company confirmed that the sukuk was paid in full on its due date, with the principal amount transferred to the designated account.  

The sukuk, valued at $600 million, was originally issued on Oct. 15, 2019, with a trading end date of Feb. 15. 

Dar Al Arkan utilized its internal resources to meet the obligation, ensuring a smooth redemption process. HSBC Bank served as the transaction’s paying agent and sukuk holders’ agent.  

A total of 3,000 sukuk units, each with a par value of $200,000, were redeemed, representing 100 percent of the issued amount. 

Sukuk holders are scheduled to receive their respective amounts in their accounts on Feb. 17.

The financial impact of the redemption will be reflected in the company’s first-quarter 2025 results. 

Dar Al Arkan acknowledged the role of its investors and sukuk holders in the transaction, emphasizing their continued trust in the company, its board, and its executive management. 


Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister
Updated 17 February 2025
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Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister

RIYADH: Turkiye’s efforts to tighten fiscal policy are being hampered by the financial burden of earthquake reconstruction, Finance Minister Mehmet Simsek said, as the government grapples with balancing spending and economic stability. 

Speaking during a closing panel at the AlUla Conference for Emerging Market Economies, Simsek said the country’s fiscal position remains under pressure due to ongoing rebuilding efforts. 

Turkiye was struck by a 7.8-magnitude earthquake and a powerful aftershock on Feb. 6, 2023, devastating 11 provinces, killing over 53,000, and causing $34.2 billion in damages — 4 percent of its 2021 gross domestic product, according to a World Bank rapid damage assessment report. The estimate covered direct physical damage but did not account for indirect or secondary economic impacts. 

“We have spent about $74 billion over the past two years, which is equivalent to just over 6 percent of GDP on earthquake reconstruction because we are building cities from scratch. Currently, 450,000 units are under construction; it’s the whole infrastructure,” Simsek said. 

“Last couple of years, fiscal deficit to GDP has been around 5 percent, which is relatively high by Turkish standards. This year, we aim to bring it down to about 3 percent, so fiscal adjustment is underway,” he added. 

The fiscal challenges come as Turkiye’s government pledged in March to continue tightening policy to curb inflation. The same month, Fitch Ratings upgraded Turkiye’s credit rating to “B+” from “B,” citing a more disciplined approach to monetary policy. 

Despite headwinds, Simsek said inflation expectations are improving, albeit slowly. 
 
“Inflation expectations are improving, but it’s been sluggish, in particular among households and among, you know, corporates, while markets obviously tend to have a better reading of what we are saying,” he said. 

He emphasized that there is no substitute for better policies, stressing that the key lies in sound policymaking and effective execution. “For this year, it’s a combination of tight monetary policy and tighter fiscal policy combined with a more supportive incomes policy,” he said, adding that these measures should help sustain disinflation, which is crucial for improving expectations. 

Macroeconomic stability 

During the panel, Egypt’s minister of planning, economic development, and international cooperation, Rania Al-Mashat, said investing in resilience is an investment in the future. 

“There are first principles that we all agree on, macroeconomic stability, this is a necessary condition if we want to move forward on privatization, if we want to move forward on confidence and credibility internally and externally,” Al-Mashat said. 

She pointed to recent reforms that have stabilized Egypt’s economy, particularly in the foreign exchange market, and noted a retrenchment in public investment. “Right after March, you can see the manufacturing non-oil sector moving forward. We can see more exports taking place once the intermediate inputs into production were actually pushed,” she added. 

Pakistan’s Finance Minister Muhammad Aurangzeb echoed the emphasis on fiscal responsibility, saying the country has achieved a primary surplus through disciplined management. 

“Our taxes to GDP ratio has been languishing between 9 to 10 percent. That sort of moved in the direction of 10.8 percent at the end of December. We have agreed to move it to 13.5 percent to join the committee of nations and to bring a certain level of sustainability to the primary surplus that we have,” Aurangzeb said. 

“On the other side, it’s also discussion on the expenditures and making tough policy choices with respect to what is a good cost and bad cost,” he added. 

Brazil’s economic outlook 

Brazil’s Finance Minister Fernando Haddad said the country’s central bank has played a key role in bringing inflation under control while maintaining growth. 

“We are growing in the last two years around 3.4 percent a year, contradicting all of the predictions both domestic and international,” Haddad said. 

“And we understand that the fiscal adjustment that we’re doing is not recessive because we’re guaranteeing a growth rate of 3.4 percent around a decline in inflation,” he added. 

Organized by the International Monetary Fund and Saudi Arabia, the first edition of the high-level annual conference in AlUla aimed to address global economic challenges. The two-day event brought together finance ministers, central bank governors, and policymakers, alongside leaders from the public and private sectors, international institutions, and academia. 


Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy
Updated 17 February 2025
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Emerging economies must ‘punch their weight’ in global policy

Emerging economies must ‘punch their weight’ in global policy

RIYADH: Emerging economies must play a greater role in global economic discussions, Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, said at the closing of the AlUla Conference for Emerging Market Economies. 

Organized by the Saudi Ministry of Finance and the International Monetary Fund, the forum highlighted the need for developing nations to assert their global influence, focusing on economic diversification, deregulation, and digital transformation. 

Al-Jadaan stressed that emerging markets play a crucial role in shaping international economic policies and must be confident in their contributions. 

“Emerging economies will need to punch their weight. They need to gain more confidence, they need to acknowledge, understand—even with humbleness—that they have something to say to the world,” he said. 

He also criticized the dominance of advanced economies in global decision-making forums, emphasizing that “advanced economies have a lot to say, but they cannot resolve a lot of the key global issues alone.” 

IMF Managing Director Kristalina Georgieva echoed this sentiment, highlighting that economic growth and dynamism are increasingly driven by emerging markets. 

“Where is the youth population? Where is the potential for high growth that benefits everybody? It also benefits advanced economies—it is in the emerging world,” she said. 

Georgieva outlined three critical steps for emerging markets: diversification, deregulation, and digitalization. 

“Diversify your economy, your trade relations, your engagement, your vision for how you move forward,” she urged. 

She also emphasized the role of government in facilitating economic growth by reducing unnecessary regulations. 

“The government should do that—give indication as to where, what is the direction to travel, and then get out of the way,” she said, calling for the removal of bureaucratic obstacles. 

Finally, she stressed the necessity of embracing digital transformation, particularly in artificial intelligence and financial transparency, to ensure competitiveness in a rapidly evolving global economy. 

The conference, described by Al-Jadaan as “possibly the first global forum” dedicated solely to the economic prospects of emerging markets, provided a platform for leaders to discuss pressing challenges and opportunities. 

“Bringing experts and discussing issues, challenges, and means of actually cooperating and working together to improve the lives of the people and the emerging economies and the world at large” was a core objective, he said. 

As the event concluded, Georgieva asked the audience if they would be interested in a second edition of the conference, receiving an enthusiastic applause. 

She confirmed that the IMF and the Saudi Ministry of Finance would document key takeaways and begin preparations for future discussions. 

“We will work with our regional office and the Ministry of Finance so we can publish proceedings from the conference. But also, we will start immediately on thinking about how we bring this forward,” she said, indicating prospects for another conference edition. 

Georgieva expressed optimism about the future of emerging economies, stating her vision for a world where developing nations are no longer seen as “emerging” but as equal players in the global economy. 

“My dream, by the time I finish my term, is that we retire the term ‘emerging’ because you will have fully emerged,” she said.