Massive overhaul changes the face of Makkah

October 2, 2014

Makkah, Oct 2: As a child, Osama Al-Bar would walk from his home past Islam's holiest site, the Kaaba, to the market of spice and fabric merchants where his father owned a store. At that time, Makkah was so small, pilgrims could sit near the Kaaba and look out at the serene desert mountains where Prophet Muhammad (peace be upon him) once walked.Makkah 2

Now the market and the homes are gone. Monumental luxury hotel towers surround the Grand Mosque where the Kaaba is located. Steep rocky hills overlooking the mosque have been leveled and are now covered with cranes building more towers in row after row.

"My father and all the people who lived in Makkah wouldn't recognize it," said Al-Bar, who is now the city's mayor.

As Muslims from around the world stream into Makkah for the annual Haj pilgrimage this week, they come to a city undergoing the biggest transformation in its history.

Decades ago, this was a low-built city of centuries-old neighborhoods. Over the years, it saw piecemeal renewal projects. But in the mid-2000s, the Kingdom launched its most ambitious overhaul ever with a series of mega-projects that, though incomplete, have already reshaped Makkah. Old neighborhoods have been erased for hotel towers and malls built right up to the edge of the Grand Mosque. Next to the Kaaba soars the world's third tallest skyscraper, topped by a gigantic clock, which is splashed with colored lights at night.

The urban renewal is necessary, Saudi officials say, to accommodate Haj pilgrims whose numbers are expected to swell from around 3 million currently to nearly 7 million by 2040.

The $60-billion Grand Mosque expansion will almost double the area for pilgrims to pray at the Kaaba. Around half the cost went to buying about 5,800 homes that had to be razed for the expansion, said Al-Bar, the mayor. Domes and pillars dating back to rule by the Ottoman Empire are being pulled down to put up modern facilities.

Another mega project is Jabal Omar, a hill on the mosque's west side. The hill — a landmark in the city — was leveled and in its place, construction of around 40 towers is under way, mostly for luxury hotels providing some 11,000 rooms. The first of the Jabal Omar hotels, a Hilton Suites and the Anjum Hotel, just opened in the past few months.

On the mosque's south side stands the 1,972-foot (600-meter) clock-tower skyscraper, part of a completed seven-tower complex that was built after tearing down an Ottoman fort on the site.

Also under way is the Jabal Sharashif project, in which a slum that largely houses Burmese and African migrants is to be torn down to build a new neighborhood for Saudis, along with hotels. A four-line metro system is planned for the city along with a high-speed rail line to the port city of Jeddah, where the area's airport is located, and to Madinah.

The Grand Mosque's expansion is being headed by the Saudi Binladin Group, which also built the clock tower. The Binladin family runs major building projects around the country.

Speaking at a public forum in Jeddah in May, Nawaf Binladin, whose father is chairman of the conglomerate, said people are constantly asking if all this construction is needed.

"This can be answered in one moment in this image," he said, flashing a picture of tens of thousands of worshippers praying in the street because there was not enough room inside the Grand Mosque.

Essam Kalthoum, managing director of the government-owned Bawabat Makkah Company, which is involved in a number of projects around the city, said the main goal is to increase space for pilgrims.

Kalthoum showed a gift from a Turkish foundation he had just received: a photo of Makkah from the late 1800s.

"This is painful," he said. "For those of us who witnessed some of this (past), it brings back memories."

But he pointed to the Kaaba in the photograph. "Because of this place," he said, the old markets and buildings had to go.

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Agencies
May 28,2020

Sharjah, May 28: The Ministry of Interior has warned the public against visiting wadis during bad weather conditions, including rainy seasons, to avoid the risk of getting caught in flash floods that could endanger their lives.

A video posted on its official Instagram account depicted several such incidents involving cars being swept away by floods.

The warning comes after four people were found dead this week in Sharjah's Wadi Al Helo, an area hit by floods during heavy rains that lashed the emirate, authorities said.

The National Search and Rescue Centre (NSRC) found the bodies as it conducted an operation to look for seven people who were reported missing amid the unstable weather conditions.

In a separate incident yesterday, 20 passengers of a bus that got stuck in Wadi Hatta's Umm Al Nosor area in Dubai were also rescued by police after their vehicle was swept away by floods.

The ministry urged the public to follow the directives issued for their own safety.

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Agencies
July 28,2020

Dubai, Jul 28: Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.

The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.

In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.

“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.

The sources said the cuts would involve ADCB’s consumer business and several in top management were among those being let go. One source said the bank was looking to close 20 branches.

In March, ADCB had declared, “No employee will be made redundant during 2020 as a result of the COVID-19 pandemic.”

UAE banks have been hit by government measures to rein in the spread of the virus, forcing many businesses to shut temporarily.

Last week, Dubai’s largest bank, Emirates NBD, reported a slump of 58% in profits. In June, sources told Reuters the bank started a new round of hundreds of lay-offs.

In May, ADCB reported a fall of 84% in first-quarter net profit as it took impairments of $292 million on debt exposure to troubled hospital operator NMC Health and payments group Finablr.

It was a major lender, with an exposure of about $981 million, to NMC Health, which went into administration this year after months of turmoil following questions over financial reporting.

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News Network
May 7,2020

Dubai, May 7: Saudi Arabia will emerge as the victor of the oil price war that sent global crude markets into a spin last month, according to two experts in the energy industry.

Jason Bordoff, professor and founding director of the Center for Global Energy policy at New York’s Columbia University, said: “While 2020 will be remembered as a year of carnage for oil nations, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.”

Writing in the American publication Foreign Policy, Bordoff said that the Kingdom’s finances can weather the storm from lower oil prices as a result of the drastically reduced demand for oil in economies under pandemic lockdowns, and that it will end up with higher oil revenues and a bigger share of the global market once it stabilizes.

Bordoff’s view was reinforced by Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and one of the longest-standing directors of Saudi Aramco. In an interview with the Gulf Intelligence energy consultancy, he said that low-cost oil producers such as Saudi Arabia would emerge from the pandemic with increased market share.

“Oil is the only commodity where the lowest-cost producers have contained their production and allowed high-cost producers to benefit. When demand recovers this year or next, we will emerge from it with the lowest-cost producers having increased their market share,” Moody-Stuart said.

Bordfoff said that it would take years for the high-cost American shale industry to recover to pre-pandemic levels of output. “Depending on how long oil demand remains depressed, US oil production is projected to decline from its pre-coronavirus peak of around 13 million barrels per day.

“Shale's heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets. Many US companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One quarter of US shale oil production may have been uneconomic even before prices crashed,” he said.

Moody-Stuart said that recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were “an important step to wean the population of the Kingdom off an entitlement feeling. It means that everybody is joining in it.”

The former Shell boss said that other big oil companies would follow Shell’s recent decision to cut its dividend for the first time in more than 70 years. But he added that Aramco would stick by its commitment to pay $75 billion of dividends this year.

“When a company looks at its forecasts it looks ahead for one year, so for this year it (the dividend) is fine,” he said.

Bordoff added that Saudi Arabia’s action in cutting oil production in response to the pandemic would improve its global position.

“Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, the Kingdom’s willingness to oblige by cutting production will reverse some of the damage done when it was blamed for the oil crash after it surged production in March,” he said.

“Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the Kingdom in anything other than a strengthened position,” Bordoff said.

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