Developers urge solution to housing crisis

March 3, 2013

Developers

Jeddah, Mar 3: Top private sector developers yesterday at Cityscape Jeddah called on the government to work with them to streamline several processes that cause delays, making it nearly impossible to develop affordable housing projects to solve the housing crisis.

“Among the limits and challenges facing Saudi developers, is for example the regulations concerning the Municipality’s issuance of licenses, which must have a shorter processing time from the current minimum of at least two years up to a maximum of four years. In addition, the government should revise the mortgage law further, as we feel that the implementation of the current draft will have a negative effect on developers and financing companies,” said Riyad Ahmed Al-Thaqafi, CEO, Ewaan, said as he gave the keynote address called.

He added that there is a need for the government to appoint an agency that will regulate land prices to stop price escalation and manipulation. The government should also work to change the community culture of a majority of the population’s belief that they need a 200 or more square-meter home in order to own a house.

Al-Thaqafi also said that the two factors that would affect the housing sector through 2025 is rising population growth and decreasing income levels. In Saudi Arabia and the GCC, the main driver causing a housing crisis in major cities is urbanization or the migration of rural residents to live in the cities of Jeddah, Riyadh and Dammam.

“It is expected by 2025 that urbanization will increase the population of large cities by between 52 and 58 percent, causing more demand for housing that very few will be able to afford due to increased inflation and a lower income level,” Al-Thaqafi said.

A lack of affordable housing and the increase of unemployment are the main social instigators underlying the social unrest over the past two years in the Arab world.

Among solutions offered by Al-Thaqafi is to improve development management processes such as an increased use of construction technology, stoppage of land prices speculation and education of consumers to prefer and enjoy living in smaller and more affordable residences.

He said that another idea could be the implementation of a new governmental body for financing real estate projects backed by the Capital Market Authority (CMA) that could provide project financing in place of banks, which usually do not want to offer financing for most projects.

Overall, Al-Thaqafi reiterated that among participants to events such as Cityscape Jeddah, government regulators should be present to discuss solutions.

“The government must realize that it cannot compete with the private sector in this matter, but must work with private sector developers in finding solutions,” Al-Thaqafi said.

Ewaan is developing a residential complex, Al- Fareeda, in North Jeddah, which includes 1,800 villas with full infrastructure services and facilities.

Representing a semi- government-back project, Mohammed Bawaked, executive vice president, Jeddah Development & Urban Regeneration Company, owned by the Jeddah Municipality, spoke about their new development in Jeddah called, Salman Bay.

The mega-housing project is being developed on an inland bay about 20 kilometers north of Jeddah on about 3.2 million square meters of land as part of the city’s future development plans. It will accommodate 25,000 units of apartment buildings dedicated to affordable housing. It will cater to 95,000 residents.

“While working to develop this project, we found many obstacles such as mainly financing issues with banks not wanting to offer financing,” Bawaked said. “We ended up overcoming this by finding internal financing by proposing to the contracting company to implement the work with no down payment, in which they accepted.”

He also said that other challenges lie in choosing the appropriate design to be of a comfortable size that consumers would like and still be deemed, “affordable.”

“It was difficult. We performed the study many times and had to change the design several times before coming up with a suitable design. In addition, we have arranged deals with the Saudi Electric Company (SEC), National Water Company (NWC) and stakeholders to come up with high level, but reasonably priced housing,” he said.

said that he agrees that there are many changes that must be made in order to find solutions, the most important being the public and private sector’s mutual participation in solving the housing crisis. The second, that instead of blaming the government, all developers must realize they have a role to play in cooperating. “We are all capable of making positive changes if we all take up the responsibility,” he said.

Meanwhile, Cityscape featured more than more than 50 local and regional exhibitors displaying their projects and services to an expected 10,000 visitors.

Major real estate companies were present at the event but most visible were Saudi banks and home finance companies.

“This signals the huge demand for home financing in Saudi Arabia,” said Hussain Al-Harthi, managing director of National Exhibitions Company. “The surge of activity comes in response to the approval of the mortgage law and the three laws published by SAMA last week, which obviously triggered developers and financiers to take swift actions and get ready to provide innovative solutions in lines with the new passed laws.”

Rayadah Investment Company, the real estate arm of the Saudi Public Pension Agency, showcased its mega residential project in north Jeddah, which is expected to cover 10 percent of the total real estate market needs for the next 10 years. Located in Obhur, Al Raeda Residential project comprises 8,000 units on a 2.5 million-square-meter site.

It is divided into 10 neighborhoods, five allocated for residential buildings, and five for villas, in addition to central zone for multipurpose usages. The project also comprises 24 schools, 15 mosques, general hospital, health club and a hotel supported with commercial shops to service guests.

Maceen Capital, a specialized and dynamic investment group, is present at Cityscape Jeddah this year to promote its SR 83 million real estate fund invested in developing a residential project in north Jeddah -Villatee Residential Project consisting of 52 upscale villas in a unique location in Obhur. The villas are available in five different architectural designs and sizes catering to different tastes and lifestyles.

“The location was selected very carefully to offer a unique living experience where new Jeddah is being shaped,” said Bader Al-Hammad, CEO of Maceen Capital. “The project is scheduled to be completed in two years and all services and facilities are available in location to guarantee a quiet, flexible and successful lifestyle.”

Samoa Real Estate Company is once again the principal sponsor of Cityscape Jeddah. This year the company revealed a new and ambitious project in the Western Province, Dahiat Sumou.

“Bawabat Makkah is a visionary city to be built on the western edge of the Makkah Holy Region, adjacent to the boundary line of the Jeddah-Makkah Expressway. The area of the city will occupy approximately 1.8 square km land and will provide much needed suitable residential housing to an estimated population of 25,000 people,” Khaled Al-Telmesani, CEO of Sumou stated.

Masharef Residential Project, developed by Kinan International Real Estate Development, also grabbed visitors’ attention. The 1 million M2 project site is located north of Jeddah and offers a wide range of products such as villas, apartments and residential/commercial lands. Kinan’s project targets the mid-income segment and the first two phases of the project has already been sold. Handover of units for the first phase began at the end of 2012.

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News Network
June 12,2020

Beirut, Jun 12: Angry Lebanese protesters blocked roads across the country with burning tyres, debris and their vehicles, incensed over the local currency's depreciation by more than 25 percent in just two days.

The demonstrations from northern Akkar and Tripoli to central Zouk, the eastern Bekaa Valley, Beirut and southern Tyre and Nabatieh on Thursday were some of the most widespread in months of upheaval over a calamitous economic and financial crisis.

Protesters set ablaze a branch of the Central Bank, vandalised several private banks and clashed with security forces in several areas. At least 41 people were injured in Tripoli alone, according to the Lebanese Red Cross.

"I'm really pissed off, that's all. If politicians think they can burn our hearts like this the fire is going to reach them too," unemployed computer engineer Ali Qassem, 26, told Al Jazeera after pouring fuel onto smouldering tyres on a main Beirut thoroughfare.

Tens of thousands of Lebanese have lost jobs in the past six months and hundreds of businesses have shuttered as a dollar shortage led the Lebanese pound to slide from 1,500 to $1 last summer - where it was pegged for 23 years - to roughly 4,000 for each US dollar last month.

But the slide turned into a freefall between Wednesday and Thursday when the pound plummeted to roughly 5,000 to $1 on black markets, which have become a main source of hard currency. There was widespread speculation the rate hit 6,000 or even 7,000 pounds to the dollar, though most markets stopped trading.

Protesters began amassing on streets across the country before sunset and increased into the thousands across the country as the night fell.

Prime Minister Hassan Diab cancelled all meetings scheduled for Friday to hold an emergency cabinet session at 9:30am and another at 3pm at the presidential palace to be headed by President Michel Aoun.

The pound's collapse is the perhaps the biggest challenge yet for Diab's young cabinet, which gained confidence in February after former prime minister Saad Hariri's government was toppled by an unprecedented October uprising that had the country's economic crisis at its core.

Economy Minister Raoul Nehme told Al Jazeera that there was "disinformation" being circulated about the exchange rate on social media and said he was investigating possible currency manipulation.

"I don't understand how the exchange rate increased by so much in two days," he said.

Many protesters have pitted blame on Central Bank governor Riad Salameh, nominally in charge of  keeping the currency stable. But they have also called on the government to resign.

"If people want reform between dawn and dusk, that's not going to work, and if someone thinks they can do a better job then please come forward," Nehme said.

"But what we can't have is a power vacuum - then the exchange rate won't be 5000, it'll be a catastrophe."

'Everyone paying the price'

When protesters set a large fire in Beirut's Riad al-Solh Square, which lies at the foot of a grand Ottoman-era building that serves as the seat of government, firefighters did not intervene to extinguish it.

It later became clear why: Civil Defence told local news channel LBCI they had run out of diesel to fuel their firetrucks.

Basic imports such as fuel have been hit hard by the currency crisis, making already-weak state services increasingly feeble.

A half-dozen or so police officers with Lebanon's Internal Security Forces observed the scene unfolding in front of them in the square.

"Why do you destroy shops and things and attack us security forces - do you think we're happy? Go and f****** break that wall or go to the politicians' houses," one police officer told Al Jazeera, referring to a large concrete barrier separating protesters from the seat of government.

"In the end we are with you and we want the country to change. Don't you dare think we're happy. My salary is now worth $130," the officer said.

The currency's spectacular fall seems to have pushed many Lebanese to put common interests above their differences.

Large convoys of men on motorbikes from Shia-majority areas of southern Beirut joined the demonstrations on Thursday, though they have clashed with protesters many times before - including at a protest on Saturday.

Some chanted sectarian insults, leading to brief clashes in areas that were formerly front lines during the country's devastating 15-year civil war.

Instead, the motorbike-riding demonstrators on Thursday chanted: "Shia, Sunni, F*ck sectarianism."

"We are Shia, and Sunnis and Christian are our brothers," Hisham Houri, 39, told Al Jazeera, perched on a moped with his fiancee behind him just a few metres from a pile of burning tyres.

The blaze sent thick black smoke into the sky towards an iconic blue-domed mosque and church in downtown Beirut.

"Politicians play on these sectarian issues and sometimes succeed, but in the end, they'll fail because all the people have been hurt," he said. "The dollar isn't just worth 6,000 for Shias or for Sunnis, everyone is paying that price."

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News Network
April 16,2020

Dubai, Apr 16: Saudi Arabia reported 518 new cases of coronavirus, bringing the total number of infections in the country to 6380, the Ministry of Health announced on Thursday.

According to the ministry of health, the number of recoveries today were 59, making total of recoveries in the kingdom 990, with 71 critical cases in intensive care.

The ministry also confirmed 4 deaths, bringing the total number of deaths in the kingdom to 83.

Saudi Arabia imposed a 24-hour curfew and lockdown on the cities of Riyadh, Tabuk, Dammam, Dhahran and Hofuf and throughout the governorates of Jeddah, Taif, Qatif and Khobar. This week the curfew was extended until further notice by king Salman

Overall, Saudi Arabia has reported one of the lowest rates of infections in the region, with around 6000 cases in a population of over 30 million.

Private sector support

Saudi Arabia has allocated SR50 billion (Dhs49 billion)to support the private sector as part of its package of initiatives approved by King Salman on Wednesday aimed at mitigating economic repercussions from the coronavirus disease (COVID-19).

The package targets small and medium-sized enterprises (SMEs) and economic activities that have been most affected by the pandemic.

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Agencies
May 7,2020

Dubai, May 7: Indians in the UAE have voiced scepticism about a "massive" operation announced by New Delhi to bring home some of the hundreds of thousands of nationals stranded by coronavirus restrictions.

"It is just propaganda," said Ishan, an Indian expatriate in Dubai, one of seven emirates in the UAE and long a magnet for foreign workers.

He was reacting to his government's announcement this week that it would deploy passenger jets and naval ships to bring home citizens stuck in a host of countries.

India's consulate in Dubai said it received about 200,000 requests from nationals seeking repatriation -- mostly workers who have lost their jobs in the pandemic.

One vessel was heading to the UAE, India's government said, while two flights were scheduled to depart the UAE for India on Thursday.

But the plans drew scorn from Ishan, who was a manager at a luxury services company before he was made redundant last month.

"It's like throwing a dog a bone," the 35-year-old complained on Wednesday, dismissing the Indian government's efforts as a drop in the ocean.

"Let's say they repatriate 400 people on the first day, and about 5,000 people in 10 days, what difference has it made?"

India banned all incoming commercial flights in late March as it imposed one of the world's strictest lockdowns to tackle the spread of coronavirus.

The UAE is home to a 3.3-million-strong Indian community, who make up around 30 per cent of the Gulf state's population.

To the anger of some Indian expatriates, the evacuees will have to pay for their passage home and spend two weeks in quarantine on arrival.

"We are upset over the failure of our government," Ishan said. "What about the people with no money? How are you helping them?"

The Indian consulate could not be reached for comment.

Ibrahim Khalil, head of the Kerala Muslim Cultural Center in Dubai, said the consulate had asked him to select 100 Indian nationals for repatriation.

"We are planning to pay for the tickets of those who cannot afford it," he said, adding that the elderly, pregnant and those suffering from illnesses were a priority.

But one Indian woman, eight months pregnant in the neighbouring emirate of Sharjah, was not one of the lucky ones chosen to go back home in one of Thursday's planned departures.

"We called them but nobody would pick up," the 26-year-old, who requested anonymity, told AFP.

She arrived in the UAE a few months ago to visit her husband, who lives in a shared apartment with another family to save money.

"We have no insurance here and the medical expenses are too costly," said the woman, who was anxious to leave to give birth at home.

"I just hope that I am chosen to go back to India. I don't know why I haven't been considered."

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