Saudi’s Dar Al Arkan set to make Oman debut with $1.6bn AIDA project

Dar Al Arkan, the Saudi-based real estate company, and Oman Tourism Development Company have signed an agreement to develop AIDA, one of the largest mixed-use real estate projects in the sultanate.

The project marks Dar Al Arkan’s first entry into Oman and the value of the investment from both parties will reach SR6 billion ($1.6 billion).

The project will be developed in three stages on an area of 3.5 million square metres, a statement said.

Through the partnership, Dar Al Arkan will develop a mixed-use project in Yiti and Yankat areas, as part of a large master development, situated 100m above the shores and overlooking the Sea of Oman in Muscat.

It will comprise 3,500 residential villas, townhouses, and low-rise apartments, two hotels of 450 rooms, a plaza filled with cafes and restaurants and a gated promenade with luxury retail and other amenities.

Ziad El Chaar, vice chairman of Dar Al Arkan Properties, said: “We are excited to become part of this unique project. Oman has always offered an exceptional experience for residents and tourists, and the development of Yiti and Yankat areas will further elevate the nation’s offering and position it as a world-class destination.

“AIDA sits atop one of the world’s highest peaks, a place where all the noise is quietened, composing a beautiful symphony. Overlooking one of the most breath-taking horizons in the world, will lie a place bubbling with inspiration.”

Hashil Bin Obaid Al Mahrouqi, CEO of Omran Group, added: “We are delighted to work with Dar Al Arkan on this master project that is being developed with world class expertise… The project is strategically designed as an extension to Muscat city to showcase the vision of progress and sustainable urbanisation.

“AIDA will become an attractive and sought-after destination with its many residential, entertainment, cultural, retail and recreational offerings that will put Oman on the regional and global tourism map, as well as drive foreign investment and stimulate key economic sectors that will help achieve Oman Vision 2040.”

The project is one of the largest urban developments in Oman, extending to a total area of over 11 million square kilometres.

Headquartered in Riyadh, Dar Al Arkan is fast-growing its portfolio across the kingdom and expanding its international footprint to Dubai, Qatar and Bosnia.

Source:https://www.arabianbusiness.com/industries/construction/saudis-dar-al-arkan-set-to-make-oman-debut-with-1-6bn-aida-project

New hotels pipeline remains strong as GCC countries defy pandemic impact

The construction of new hotels in prime tourism destinations such as Saudi Arabia, Qatar, Oman and the UAE remains substantial despite the pandemic headwinds over the past two years.

According to new research commissioned by Arabian Travel Market, Makkah and Doha are both expanding their hotel room inventory by 76 percent, followed by Riyadh, Madinah and Muscat with 66 percent, 60 percent and 59 percent growth respectively.

The data compiled by hospitality analysts STR also showed that in Dubai, rooms growth stands at 26 percent which is still more than double the global average.

Danielle Curtis, exhibition director ME – Arabian Travel Market (ATM), said: “With the global average sitting at 12 percent we are witnessing multiple GCC destinations growing at six times those rates.

“These figures coupled with the ongoing relaxation in travel restrictions, will undoubtedly encourage travel professionals throughout the Middle East and further afield,” she added.

According to the report, there are almost 2.5 million hotel rooms currently under contract around the world, 3.2 percent or 80,000 rooms of that supply is taking place in Saudi Arabia alone.

Although Expo 2020 Dubai is now drawing to a close, the mega event has been the catalyst for accelerated hotel room growth in the UAE with almost 50,000 rooms still due to open, it added.

The pipeline of new hotels in the Gulf shows no sign of slowing despite the pandemic. Following closely behind is Doha with final preparations for the FIFA World Cup 2022 now being put in place.

Doha is on track to deliver 23,000 hotel rooms pre- and post-World Cup 2022, adding to the country’s burgeoning hotel property portfolio.

“Whilst the actual numbers may not seem particularly significant in comparison to the global hotel room pipeline, the growth above existing supply is staggering and underlines government strategy to diversify their economies away from hydrocarbon receipts and their confidence in the growth of tourism throughout the region,” said Curtis.

In line with the UAE government’s transition to a Monday-to-Friday workweek, this year’s edition of ATM will commence on Monday May 9 and run until May 12.

source:https://www.arabianbusiness.com/industries/construction/new-hotels-pipeline-remains-strong-as-gcc-countries-defy-pandemic-impact

$1bn sustainable city project to be built in Muscat, set for 2025 completion

Diamond Developers, in partnership with the Oman Tourism Development Company (OMRAN Group), has announced the launch of The Sustainable City – Yiti in Muscat, Oman.

With an investment value of nearly $1 billion, the city will be built over an area of 1 million square metres and will be developed within the phase one of the Yiti Integrated Tourism Development Masterplan.

With sustainable innovation at its heart, the project will feature 1,657 residential units including 300 eco-friendly and energy-efficient villas in car-free districts.

The city is designed to produce 100 percent of its energy requirements from renewables which include solar panels and biogas. It will also recycle all its water and waste and use it for irrigation.

The city also aims to grow its own food through productive farm areas and greenhouses and will adopt clean mobility solutions like autonomous shuttles and electric cars, and by deploying EV charging stations.

A sustainable school that will teach important concepts of sustainability through the school curriculum while the city will also feature a number of sports facilities which include jogging and cycling tracks, an equestrian club, and a horse track.

A four-star hotel with 197 rooms, a five-star resort with 170 rooms and a range of restaurants, numerous leisure facilities, and beachfront access will also be included while the resort will also manage 132 luxury serviced apartments.

Faris Saeed, chairman of Diamond Developers, the company behind Dubai Sustainable City, said: “The Sustainable City – Yiti is not only a benchmark for sustainable urban development, it is a working model for future cities. It is a thriving community made up of thousands of residents, visitors, students, researchers, and entrepreneurs.”

He added that the project, scheduled for completion in 2025, is expected to be one of the region’s most sustainable cities and, by adopting the latest solutions in energy production, vertical farming, humidity harvesting and autonomous transportation, it aims to be net zero carbon by 2040.

Mohammed Salim Al Busaidi, chairman of OMRAN Group, said: “Our partnership with Diamond Developers is a unique milestone in our journey as we continue to invest, develop, and maximise the limitless potential of Oman’s tourism sector.

“Yiti will open avenues for numerous lucrative investment opportunities for both local and international investors in line with the directions of Oman Investment Authority.”

Source:https://www.arabianbusiness.com/industries/construction/1bn-sustainable-city-project-to-be-built-in-muscat-set-for-2025-completion

Qatar 2022 will be an affordable World Cup for fans

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Football fans coming to Qatar for the World Cup will not have to shell out huge amounts on accommodation, assured CEO of the FIFA World Cup Qatar 2022, Nasser Al Khater.

In comments to The Sun, Al Khater said that Qatar will make this World Cup as affordable as possible for everyone.

“We have always been committed to offering every fan who wants to come the opportunity to enjoy an affordable World Cup. We’ve learned from previous tournaments. We know there have been price hikes in previous tournaments to take advantage of the fans who have bought tickets,” he told Sunsport.

“That’s something we have always been determined to avoid. I completely understand the concern when fans see these prices, but we will make this World Cup as affordable as possible for everyone,” he added.

Fans with tickets can already book their accommodation through the special website launched by the organiser. The website lists many options from different categories of hotels, apartments and villas, vacation homes and two cruise ships with around 4,000 rooms.

Fans can also book accommodation through other means, such as hotel and holiday accommodation websites. But this website gives much more options and price ranges.

The organisers had earlier clarified that accommodation for FIFA Qatar 2022 fans will start from $80 and go up depending on the category one chooses.

Source:https://thepeninsulaqatar.com/article/07/04/2022/qatar-2022-will-be-an-affordable-world-cup-for-fans-official

Fragmented performance across Saudi Arabia’s real estate sector in Q1, 2022

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Saudi Arabia’s real estate sector has started the year with fragmented performance and activity levels across the Kingdom’s regions.

Looking at Saudi Arabia’s office sector figures, visitation to the workplace has since late September 2021 remained above its pre-pandemic baseline and now sits 19.7 percent above the baseline, with the majority of occupier activity continuing to be very much skewed towards Riyadh. As a result, we have seen average rents in Riyadh’s Grade A segment increase by 8.6 percent and Grade B rents by 6.0 percent in Q1 2022. These market fundamentals also mean that landlords are seldom offering incentives.

In Jeddah, despite the lack of activity and with limited availability in the Grade A segment, Grade A rents rose by 10.8 percent in the first quarter, whereas Grade B rents continued to soften and fell by 4.3 percent. Grade A rents in Dammam and Khobar increased by 4.0 percent and 2.6 percent respectively, with Grade A rents in both locations now above their pre-pandemic levels.

Residential transaction volumes in Saudi Arabia fell by 23.4 percent in Q1 2022, compared to a year earlier, while the total value of transactions fell marginally by 1.9 percent. During this period, the number of transactions totaled 60,336 and the value of transactions reached SAR40.41bn. In Riyadh, the total number of transactions in Q1 2022 fell by 21.6 percent, and it also fell in the Damam Metropolitan Area (DMA) by 31.8 percent.

Jeddah on the other hand saw transactions volumes increase by 5.4 percent in the 12 months to Q1 2022. Over the same period, average apartment prices in Saudi Arabia have increased by 9.6 percent, with prices in Riyadh, Khobar, Dammam and Jeddah increasing by 13.2 percent, 11.3 percent, 9.6 percent and 4.5 percent respectively.

Taimur Khan, Head of Research – MENA at CBRE, said: “Looking ahead, due to the easing of restrictions, particularly in relation to religious tourism, a number of planned events such as the continuation of the Saudi Seasons initiative, and returning business visitation, we expect that performance in Saudi Arabia’s hospitality sector will continue over the course of 2022. However, as other global locations also continue to open their borders for restriction-free travel, we expect that locations which have benefitted from redirected visitations over the last two years, such as Al Khobar, will see performance levels deteriorate until the second half of 2022.”

SOurce:https://thepeninsulaqatar.com/article/29/04/2022/fragmented-performance-across-saudi-arabias-real-estate-sector-in-q1-2022

Oman’s sovereign wealth fund splits into two portfolios

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The Oman Investment Authority has split its assets into local and foreign portfolios, the state news agency said on Sunday. Abdulsalam Al Murshidi head of the Omani Investment Authority said the “Generation Portfolio”, which consists of foreign assets and some local assets in various instruments including public and private markets, in addition to real estate, aims at achieving the greatest returns for future generations, the news agency reported.

The “National Development Portfolio”, is concerned with managing local assets and more than 160 Omani companies, and aims to contribute to the growth and development of the economy, in addition to supporting the state’s general budget through dividends, privatisation proceeds, and treasury management.

Oman established the Oman Investment Authority in 2020 to own and manage most of its sovereign wealth fund and finance ministry assets.

Source:https://thepeninsulaqatar.com/article/24/04/2022/omans-sovereign-wealth-fund-splits-into-two-portfolios-state-news-agency

Qatar manufacturing sector sees robust growth

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The manufacturing sector of Qatar is showing a robust growth as 18 new factories were established in the fourth quarter of the last year.

According to figures released by the Ministry of Commerce and Industry, the number of new local products registered in the last quarter of 2021 was 81. In the same period, 768 new workers were inducted in factories while factory adherence to industrial requirements remained at 75%.

As per the data of the Ministry on its official Twitter account, almost 3-day average time was required for industrial development services. The contribution of manufacturing industries to the GDP in Q3 of last year was QR15.88bn. The total exports of local origin in the fourth quarter of the last year were QR97.41m.

According to the Ministry’s data, Industrial-Manufacturing Production Index in October 2021 reached 111.7.

It is pertinent to mention that the manufacturing industry of Qatar had contributed QR12.02bn to GDP in the first quarter of 2021 thus there is almost QR3bn increase when Q1 of 2021 is compared with Q3 of the same year.

According to an earlier data of the Ministry, 12 new factories had been added to the industrial sector from April to June 2021 while the worth of total exports of local origin had reached QR68.28m in Q2 of 2021. There was an increase of 719 workers in factories in Q2 of 2021. The Ministry had earlier revealed that 32 more local products had been registered in Q2 of 2021.

The comparison of data of Q4 2021 with the first or second quarters of the same year indicate an increase in all areas showing that Qatar’s economic diversification plans are moving fast in the desired direction.

As per the data shared by the Ministry in June last year, the manufacturing industry had contributed over QR10bn to Qatar’s GDP in the fourth quarter of 2020. If Q3 2021 is compared with Q4 2020, there is an increase of around QR5bn in contribution of manufacturing industry to country’s GDP.

Qatar National Manufacturing Strategy 2018-2022 aims to accelerate growth in the sector to develop and diversify state’s economy.

According to information released by the Ministry of Commerce and industry in May 2021, the recycling industry in Qatar produces 215 products from 135 factories. Paper products and the printing industry contributes 78 products from 62 factories.

Qatar’s building materials and chemical products industry has 281 factories with 392 products. The medical products sector makes 22 products from five factories.

The metal industry with 179 factories makes 291 products.

Source:https://thepeninsulaqatar.com/article/05/03/2022/qatar-manufacturing-sector-sees-robust-growth

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges

Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges: report
Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy

UAE Egypt Investment
Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia pledged $15 billion to support Egypt, making it the latest Gulf state after the UAE and Qatar to back an economy that’s under increasing pressure from Russia’s war in Ukraine.

Qatar is putting up $5 billion for deals in the most Arab populous nation, while Abu Dhabi wealth fund ADQ made a roughly $2 billion deal to buy Egyptian state-owned stakes in publicly-listed companies.

Egypt first announced plans to sell one of three power plants co-built by Siemens AG around three years ago, and multiple international investors expressed interest in the assets.

In 2020, it targeted selling a stake in Wataniya Petroleum as the first salvo in plans to offer as much as full ownership in up to 10 companies held by Egypt’s National Service Products Organization, which is affiliated with the Defense Ministry.

Ministers are due this week to discuss which state-owned companies will be offered on the Egyptian stock market in 2022, Planning Minister Hala Elsaid said March 31.

Source:https://www.arabianbusiness.com/industries/energy/saudi-arabia-qatar-uae-vie-for-stake-in-egypt-power-plant-fuel-distribution-firm-after-investment-pledges-report

Apparel Group expands Qatar footprint with launch of 20 stores at Place Vendôme mall in Lusail City

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Global fashion and lifestyle retail conglomerate Apparel Group has expanded its footprint in Qatar, with the launch of 20 stores at the Place Vendome mall in Lusail City.

The 20 new stores includie Charles & Keith, Beverly Hills Polo Club, Rituals, LC Waikiki, Birkenstock, Molten Chocolate & Café, Skechers, R&B, R&B Kids, BBZ, Hema, Crocs, Dune London, Levis, Aldo, Inglot, Aldo Accessories, Athlete’s Co, and Calvin Klein Underwear. Tim Hortons is already operating at the new location.

Sima Ganwani Ved, the founder and chairwoman of Apparel Group, who was featured in Arabian Business’ Indian Power List 2022, said: “The retail landscape in Qatar has evolved significantly over the last few years, as customers become increasingly discerning and attentive to global shopping trends while staying true to their roots and culture.

“Continuing Apparel Group’s commitment to providing an elevated shopping experience to our loyal customers, we are proud to be partnering up with Place Vendôme and further expanding our strong retail footprint in the Qatar market.”

Apparel Group’s LC Waikiki store will be the largest in the GCC region, spanning a total floor area of 28,000 square feet.

Additionally, the global fashion and lifestyle retail conglomerate will be opening a Rituals flagship store along with R&B Kids and Calvin Klein underwear stores for the first time in Qatar.

Ved added: “Our brands’ expansion with Place Vendôme is in line with our strategy of being responsive to consumer demand. Qatar continues to be a strategic market for us and we are proud to be part of the country’s growth.”

Apparel Group offers an enhanced shopping experience, that brings a large variety of carefully selected international and regional labels to a discerning audience.

Place Vendôme is a multibillion dollar mixed-use development in Qatar’s emerging Lusail City. Place Vendôme is a project of United Developers, a group of four Qatari investors who partnered to align their expertise in retail, real estate, construction, and contracting.

The 1,150,000 square metre development will host two five-star luxury hotels, Le Royal Meridien and Palais Vendôme, a Luxury Collection Hotel, Le Royal Meridien Residences, a mall featuring up to 580 different retail outlets with an exclusively luxurious wing dedicated to top designer labels, and a central entertainment component showcasing constant attractions.

The hotels and residences will be operated by Marriott International, which is set to deliver a luxurious and authentic experience that aligns with the Place Vendôme brand.

Source:https://www.arabianbusiness.com/gcc/qatar/qatar-industries/apparel-group-expands-qatar-footprint-with-launch-of-20-stores-at-place-vendome-mall-in-lusail-city

European Commission takes step towards visa-free travel for all GCC countries

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The European Commission – which is the executive branch of the European Union – has taken another positive step towards its goal of implementing visa-free travel for all countries in the GCC.

In its latest decision, the European Commission has proposed the waiving of visa requirements for all Qatar and Kuwait nationals.

Under this proposal, once agreed, Qatar and Kuwait nationals holding biometric passports would no longer need a visa when travelling to the EU for short stays of up to 90 days in any 180-day period for business, tourism, or family purposes.

The high representative and vice president of the European Commission, Josep Borrell (below), said: “Our proposal to lift visa requirements for Qatari and Kuwaiti nationals is a first step to make it easier for people from the entire region to travel to the European Union.

“The final objective is to ensure regional coherence and ultimately achieve visa-free travel for all Gulf Cooperation Council countries. Together with our upcoming Joint Communication on the Gulf, this proposal will reinforce the overall partnership and strengthen the cooperation between the EU and the Gulf Cooperation Council.”

This proposal comes after the Commission assessed a number of criteria including irregular migration, public policy and security, economic benefits, and the union’s relations with the two countries. It will contribute to strengthening relations with Gulf countries.

The vice president for Promoting our European Way of Life, Margaritis Schinas (below), said: “Today we are proposing short-stay visa-free travel to the EU for Qatari and Kuwaiti citizens with biometric passports – facilitating people-to-people contacts and strengthening business, social and cultural ties.

“This is the result of the success of the governments of Qatar and Kuwait in achieving far-reaching reforms and reflects the increasing intensity and depth of EU relations with both countries. It is an important achievement for citizens in both regions, and I hope that the European Parliament and the Council will adopt our proposal swiftly.”

After an assessment of the criteria set in the EU rules on visa requirements, the European Commission concluded that Qatar and Kuwait present low irregular migration risks and are increasing cooperation on security issues with the EU.

They issue biometric passports, which is a pre-condition for visa-free travel to the EU. Qatar and Kuwait are also important economic partners for the Eurpean Union, in particular in the energy sector.

The commissioner for Home Affairs, Ylva Johansson (below), said: “The proposal for visa exemption for Qatar and Kuwait nationals facilitates business travels, tourism, and family visits to the EU.

“It is also a step towards stronger regional coherence in the Gulf region when it comes to visa regimes. The EU will continue engaging with the remaining visa-required Gulf countries that are interested in visa-free travel to the EU.”

Visa-free travel for GCC nationals
It is now for the European Parliament and the Council to examine the proposal and decide whether to grant visa-free travel to the EU to nationals of Qatar and Kuwait.

If the proposal is adopted by the European Parliament and the Council, the EU will negotiate a visa waiver agreement with Qatar and Kuwait, respectively, to ensure full visa reciprocity for EU citizens.

Visa-free travel to the EU for nationals of Qatar and Kuwait will start applying once the visa waiver agreement enters into force.

The Commission is monitoring the situation and may propose new visa exemptions in the future where appropriate based on an assessment against the criteria set in the EU rules on visa requirements.

In particular, the EU will continue engaging with the remaining visa-required Gulf Cooperation Council countries that are interested in visa-free travel to the EU.

The Commission will shortly launch technical discussions with these partners on the fulfilment of criteria for visa exemption under the Visa Regulation. The final objective is to achieve visa free travel for all Gulf Cooperation Council countries.

EU’s current visa-free regimes
The EU currently has visa-free regimes in place with more than 60 countries and territories.

EU law lists the non-EU countries whose nationals need visas to travel to the EU and those whose nationals are exempt from that requirement.

Under the visa-free regime, eligible non-EU nationals can enter the Schengen area for 90 days, within any 180-day period, without a visa.

Visa-exempt travellers visiting the Schengen area will be subject to the EU Entry/Exit System (EES) as of second half of 2022 and to the European Travel Information and Authorisation System (ETIAS) as of May 2023.

Exemptions from the visa requirement play a key role in facilitating people-to-people contacts and strengthening political, economic, research, educational, cultural, and societal exchanges.

The proposal for visa exemption for Qatar and Kuwait nationals is a step towards stronger regional coherence in the Gulf region, following the visa exemption granted to the United Arab Emirates in 2014.

Under the visa exemption, travellers can visit all EU Member States except for Ireland, as well as the four Schengen associated countries (Iceland, Liechtenstein, Norway and Switzerland).

The visa exemption is independent from possible work permit requirements in EU Member States.

It does not provide for the right to work in the EU, although Member States have the possibility to allow travellers to conduct a paid activity during their stay.

Source:https://www.arabianbusiness.com/industries/travel-hospitality/european-commission-takes-a-step-towards-visa-free-travel-for-all-gcc-countries-as-travel-rebounds-in-2022