GAMI, GACA sign deal to enable advanced air mobility in Saudi Arabia

GAMI, GACA sign deal to enable advanced air mobility in Saudi Arabia
GAMI Governor Ahmed Al-Ohali, and Abdulaziz Al-Duailej, president of GACA. SPA
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Updated 5 min 45 sec ago
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GAMI, GACA sign deal to enable advanced air mobility in Saudi Arabia

GAMI, GACA sign deal to enable advanced air mobility in Saudi Arabia
  • Deal focuses on collaboration with the Advanced Air Mobility project to develop systems to enable advanced flight modes in the Kingdom
  • Agreement includes exchanging scientific and practical expertise between the two parties

RIYADH: Technology supporting vertical take-off and landing aircraft and unmanned planes will be developed in Saudi Arabia thanks to a new agreement between the Kingdom’s military and aviation authorities.
The General Authority for Military Industries has signed a memorandum of understanding with the General Authority of Civil Aviation to develop advanced technologies and boost industrial capabilities in these areas.

The agreement focuses on collaboration with the Advanced Air Mobility project, which aims to develop systems to enable advanced flight modes in the Kingdom, according to the Saudi Press Agency. 

The MoU was signed at GAMI’s headquarters in Riyadh by the authority’s governor, Ahmed Al-Ohali, and Abdulaziz Al-Duailej, president of GACA.

The agreement includes exchanging scientific and practical expertise between the two parties, emphasizing the development of working groups for related activities, conducting workshops, providing training, and sharing knowledge.

The partnership also covers traffic procedures for uncrewed airliners.

The collaboration aims to expand opportunities for maintenance and repair service projects to support the aviation sector, contributing to the long-term sustainability and growth of the industry.

The MoU is part of the GAMI’s ongoing efforts to regulate and support the localization and advancement of the military industries sector, with a particular focus on aerial mobility.

The move also underscores the body’s collaborative approach, working closely with supportive government entities to foster cooperation and exchange expertise, all in line with the broader goals of Saudi Vision 2030.

The agreement also aims to support the strategic goals of the aviation sector, which are spearheaded by GACA.

These objectives focus on building partnerships to provide safe, sustainable, and efficient transportation solutions within a regulatory framework that follows international best practices.

GACA is working with leading local and global manufacturers to establish a strong regulatory framework that ensures the safe and efficient operation of vertical takeoff and landing aircraft, as well as the implementation of advanced air mobility technologies.

In September, Al-Duailej said during the International Civil Aviation Organization Advanced Air Mobility Symposium that was held in Montreal, Canada, that cutting-edge aviation is on track to transform the transportation, tourism, and health care systems in Saudi Arabia and across the world,

He underlined that the Kingdom is committed to a global leadership role in the field.

In 2023, the industry’s market value reached $9.7 billion, with projections forecasting a climb to $50 billion by 2032.

This corresponds with over 200 cities in 57 countries planning to implement this technology, necessitating a unified global approach in regulation, technology, and investment.


Saudi residential transaction values surge 25% in Q3: Knight Frank

Saudi residential transaction values surge 25% in Q3: Knight Frank
Updated 3 min 4 sec ago
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Saudi residential transaction values surge 25% in Q3: Knight Frank

Saudi residential transaction values surge 25% in Q3: Knight Frank

RIYADH: Residential transaction values in Saudi Arabia surged 25 percent year on year in the third quarter of 2024, totaling SR35.4 billion ($9.4 billion), a new report showed. 

According to Knight Frank, the volume of deals also increased by 12 percent, reaching 45,924 deals, highlighting strong demand in the Kingdom’s housing market. 

Riyadh led this growth with a 16 percent increase in sale numbers and a 41 percent rise in transaction values compared to the same period of 2023. The city’s strong performance underscores its position as a central hub for real estate activity in the country. 

This comes as Saudi Arabia’s Vision 2030 aims to boost homeownership to 70 percent by 2030, driving extensive residential development. 

Many of these projects are undertaken by ROSHN, a $20 billion initiative from the Public Investment Fund aimed at delivering over 200,000 homes across the Kingdom. 

“With a current supply of 3.5 million units across the Kingdom’s five major cities, we forecast the residential supply to reach nearly 3.7 million units by the end of 2026,” stated Knight Frank. 

This anticipated increase aligns with the Kingdom’s broader urban development goals and Vision 2030 initiatives aimed at meeting housing demand driven by population growth and economic reforms.

Further supporting the market’s momentum, the report highlighted that Saudi banks issued SR55.7 billion in residential mortgage loans during the first eight months of the year, marking a 3 percent increase from the previous year. 

This growth in mortgage lending signals steady demand for homeownership and real estate investment. 

This follows a continued increase in demand over the last several quarters, as the Kingdom experiences growth in both local and expatriate populations amid efforts to attract investment and advance diversification projects. 

In a separate report in September, Jones Lang LaSalle noted that mortgage contracts in Saudi Arabia reached 24,482 in the second quarter of the year, reflecting a 12 percent year-on-year increase. 

The total value of these agreements amounted to SR18 billion, marking an 8 percent rise compared to the same period last year. 

The report emphasized that the growth in mortgage activity highlights sustained demand for residential properties and aligns with the government’s efforts to promote homeownership among citizens.


Middle East’s green bond issuances reach $16.7bn for 2024: S&P Global 

Middle East’s green bond issuances reach $16.7bn for 2024: S&P Global 
Updated 26 min 47 sec ago
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Middle East’s green bond issuances reach $16.7bn for 2024: S&P Global 

Middle East’s green bond issuances reach $16.7bn for 2024: S&P Global 

RIYADH: Saudi Arabia and the UAE are expected to continue leading the Middle East’s sustainable bond market, after posting $16.7 billion in issuances in the first nine months of 2024.

A report from US-based credit rating agency S&P Global noted that the value of sustainability bonds offered to the market from January to September fell 18 percent compared to the same period of 2023.

The analysis highlighted that while sustainable bond issuances in the region surged in the first half of this year, they dropped in the third quarter. 

This decline was attributed to higher interest rates and a normalization following the COP28 halo effect in November 2023. 

“The UAE and Saudi Arabia will likely continue leading the region’s sustainable bonds issuances, despite increased activity elsewhere. Sustainability bonds lead the share of issuance, as more banks fuel issuances,” said S&P Global. 

Saudi Arabia’s Public Investment Fund was the first sovereign wealth fund globally to issue sustainable bonds, raising $3 billion through a multi-tranche green bond in 2022 and a larger $5 billion offering in 2023. 

In its latest Allocation and Impact Report, PIF stated it allocated $5.2 billion of the $8.5 billion raised to environmentally focused projects as of June 2024. 

Reflecting on the decline in issuance in the three months to the end of September, S&P Global said:  “In the first two quarters of 2024, sustainable finance activity in the region improved better sequentially compared with global trends. However, this changed in the third quarter, where activity was muted despite continued bond issuances in the region.”

According to the report, sustainable bond issuance in the Middle East may be needed to accelerate the implementation of net-zero policies, alongside increased alignment with sustainability strategies and regulatory reforms. 

The US-based firm also noted that issuance of these financial products in the region is sensitive to economic growth, inflation, and interest rates. 

Sustainable sukuk outlook 

The report further indicated that the total volume of sustainable sukuk globally reached $7.1 billion in the first nine months of 2024, down 11 percent compared to the same period last year. 

In the Middle East, the total sustainable sukuk volume reached $6.1 billion in the same period, relatively unchanged from a year earlier. 

Green sukuk, which are Shariah-compliant investments in renewable energy and environmental assets, have gained traction as markets shift toward sustainable financing. 

S&P Global added that the share of sustainable sukuk in the region continues to increase, constituting close to 35 percent to 40 percent of sustainable bond issuances so far in 2024, compared to 25 percent to 30 percent by the end of 2023. 

In September, another report from Moody’s projected that the issuance of these sustainable Islamic finance products will accelerate in the coming months as Middle Eastern countries roll out energy transition plans and renewable targets. 

It also noted that sustainable sukuk appeal to both Islamic and conventional investors seeking to execute sustainable investing strategies. 


Dubai’s warehousing and industrial rental rates surge 13% YoY 

Dubai’s warehousing and industrial rental rates surge 13% YoY 
Updated 47 min 52 sec ago
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Dubai’s warehousing and industrial rental rates surge 13% YoY 

Dubai’s warehousing and industrial rental rates surge 13% YoY 

RIYADH: Dubai’s warehousing and industrial rental rates have increased by 13 percent year on year, underpinned by strong demand, a new report revealed.

According to the latest UAE Industrial Market 2024 analysis by Cushman and Wakefield Core, areas including Dubai Investments Park and Dubai Industrial City witnessed the highest rental increases of 25 percent and 21 percent, respectively. 

Abu Dhabi’s market has also seen a steady yet moderate rise in rental rates, particularly in areas such as Mussafah and the Industrial City of Abu Dhabi, averaging a 5 percent year-on-year surge across the city.

This comes as a significant imbalance exists between demand and supply as the requirement for warehousing and industrial facilities has consistently outstripped availability, leading to a steady absorption level and higher rental rates. 

Various factors, including the growth of e-commerce and logistics sectors, the expansion of oil and gas companies, and the entry of new firms into the market, have fueled demand.

This also aligns with the projection that the UAE residential real estate market will register a compound annual growth rate of more than 8 percent during the forecast period, 2022-2027, according to market research firm Mordor Intelligence. 

“The potential for strong returns and the opportunity to meet the increasing demand for high-quality warehousing and industrial spaces are key factors attracting institutional investors and non-industrial developers to the industrial sector,” Head of Research and Consultancy at Cushman and Wakefield Core Prathyusha Gurrapu said. 

“As warehousing and industrial assets continue to offer attractive yields and stable demand, more developers and investors are recognizing the value in diversifying their portfolios to include warehousing and industrial facilities,” Gurrapu added.


ADQ to acquire 96% stake in Turkiye’s Odeabank from Bank Audi Consortium

ADQ to acquire 96% stake in Turkiye’s Odeabank from Bank Audi Consortium
Updated 55 min 28 sec ago
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ADQ to acquire 96% stake in Turkiye’s Odeabank from Bank Audi Consortium

ADQ to acquire 96% stake in Turkiye’s Odeabank from Bank Audi Consortium
  • ADQ’s acquisition is aligned with its strategic commitment to enhancing innovation within the financial services sector
  • The deal followed a series of additional ADQ investments in Turkiye

RIYADH: Abu Dhabi’s investment and holding company, ADQ, has signed an agreement with Bank Audi to purchase 96 percent of the share capital in Odeabank, the Turkish subsidiary of the Lebanese institution.

According to a press release, the transaction involved the sale of Bank Audi’s stake in Odeabank, along with shares held by other investors, including the International Finance Corp., IFC FIG Investment Co. Sarl, and the European Bank for Reconstruction and Development.

Odeabank, established in 2012, is Turkiye’s 13th-largest private financial institute by loans and deposits, with 41 branches in 15 cities. It focuses on commercial lending and is expanding its retail and wealth management services. As of June, it had about 1,300 employees, the press statement said.

Mansour Al-Mulla, deputy group CEO at ADQ, highlighted the significance of the acquisition in advancing the institute’s broader strategy in the financial sector. 

“The acquisition of Odeabank reinforces our commitment to investing in assets that lay the foundation for the sustainable development of our portfolio companies as well as the wider economy,” Al-Mulla said. 

He emphasized the benefits Odeabank will experience as part of ADQ’s portfolio, including access to new capital and synergies within the group. 

“We are confident that this will accelerate the execution of Odeabank’s growth plans while driving technological innovation in the financial services sector,” the CEO said. 

According to the statement, ADQ’s acquisition is aligned with its strategic commitment to enhancing innovation within the financial services sector. 

The deal followed a series of additional ADQ investments in Turkiye. 

In 2022, the investment entity launched a $300 million fund in partnership with Turkiye Wealth Fund to invest in companies focused on developing or improving technologies in key sectors. That same year, ADQ acquired the Turkish pharmaceutical company Birgi Mefar Group, which was integrated into ADQ’s global life sciences holding company, Arcera. 

The sale of Odeabank is also aligned with Bank Audi’s focus on its core markets, particularly in Lebanon and Europe. 

Khalil El-Debs, CEO of Bank Audi, said: “This transaction aligns well with Bank Audi Group’s present strategic focus on its home market as well as its presence in Europe. We are pleased to have attracted the interest of a global institution like ADQ in acquiring Odea Bank A.S., our Turkish subsidiary.”

Under ADQ’s ownership, Odeabank is expected to further enhance its position in the Turkish market, leveraging the institute’s expansive portfolio, which spans “key sectors of Abu Dhabi’s rapidly diversifying economy, including energy and utilities, food and agriculture, health care and life sciences, and transport and logistics, among others,” the press statement said.

The completion of the transaction is subject to customary regulatory approvals, including clearance from the Banking Regulation and Supervision Authority and the Competition Authority in Turkiye. 

J.P. Morgan served as the sole financial adviser to Bank Audi on the transaction and provided a fairness opinion, as explained in the press release.


Saudi hotel spending rises 2.4% amid broader POS decline: SAMA

Saudi hotel spending rises 2.4% amid broader POS decline: SAMA
Updated 16 October 2024
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Saudi hotel spending rises 2.4% amid broader POS decline: SAMA

Saudi hotel spending rises 2.4% amid broader POS decline: SAMA
  • Spending on education saw the largest decline, plummeting 36% to reach SR125.9 million
  • Jewelry sector recorded the smallest decline at 0.8%, reaching SR261.4 million

RIYADH: Saudi hotel spending rose 2.4 percent in the week of Oct. 6—12 to SR270.7 million ($72.1 million), the only sector to grow amid an overall decline in point-of-sale transactions, official data showed. 

According to the latest figures from the Saudi Central Bank, POS transactions fell 10.6 percent to SR12.2 billion after a 2.6 percent rise the previous week. 

Spending on education saw the largest decline, plummeting 36 percent to reach SR125.9 million. Expenditures on furniture and electronic devices followed with declines of 21.4 percent and 16 percent, totaling SR274.6 million and SR199.8 million, respectively. 

The jewelry sector recorded the smallest decline at 0.8 percent, reaching SR261.4 million during this period. 

Saudis spent SR751.9 million on transportation, reflecting a 2.2 percent decline, and SR293 million on recreation and culture, marking a 2.7 percent decrease. Spending on construction materials and public utilities also declined by 9.3 percent and 10.3 percent, respectively. 

In terms of transaction value, the food and beverages sector maintained the largest share of POS transactions from the previous week, totaling SR1.9 billion, despite a 14.3 percent decrease in spending. 

This was followed by restaurants and cafes at SR1.8 billion and miscellaneous goods and services at SR1.5 billion. 

Spending in the top three categories accounted for approximately 43 percent, or SR5.2 billion, of this week’s total value. 

Riyadh dominated POS transactions, representing 34.9 percent of the total, with spending in the capital reaching SR4.28 billion, recording a decrease of 9 percent. 

Jeddah followed with a 9.1 percent dip to SR1.69 billion, accounting for 13.8 percent of the total, and Dammam came in third at SR627 million, down by 10 percent. 

Tabuk saw the biggest decrease in spending, down by 13.7 percent to SR238.4 million. Hail and Abha also experienced declines, with expenditures dipping 13.6 percent and 11.4 percent to SR194.1 million and SR149.4 million, respectively. 

In terms of the number of transactions, Hail recorded the highest decrease at 6.7 percent, reaching 3,776. Abha and Riyadh followed with declines at 4.7 percent and 4.4 percent, reaching 3,081 and 66,314 transactions respectively.