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 23,2020

Riyadh, June 23: Saudi Arabia has decided to go ahead with the Hajj pilgrimage with strict health measures and protocols in an effort to prevent the spread of covid-19.

Minister of Health Dr. Tawfiq Al-Rabiah and Minister of Hajj and Umrah Dr. Muhammad Saleh Benten today addressed a joint virtual press conference today. 

Minister of Hajj expected that number of domestic pilgrims performing the pilgrimage this year will not be more than 10,000. He also confirmed that no pilgrims from outside the Kingdom will be allowed to perform Hajj this year.

Dr. Al-Rabiah said pilgrims should be less than 65 years of age and not suffering from any chronic diseases.

The Hajj pilgrimage, which is one of the five pillars of Islam and a must for able-bodied Muslims at least once in their lifetime, will this year only welcome a “limited number” of people from inside the Kingdom, authorities had said on Monday.

Every year, about 2.5 million pilgrims visit the holiest sites of Islam in Makkah and Madinah, which could make it a possible breeding ground for the disease.

To prevent COVID-19 from spreading among pilgrims, the health ministry, in collaboration with the Ministry of Hajj and Umrah, has developed the plan to ensure the safety of all visitors.

“We have worked with the Ministry of Health to develop preventative and precautionary measures and protocols that are needed to ensure a safe Hajj season,” Benten said.

Protocols:

1. No more than 10,000 people will be allowed to perform the Hajj pilgrimage.

2. All pilgrims will be tested before they reach the holy sites.

3. Only those under the age of 65 will be allowed to perform Hajj this year.

4. All pilgrims will be asked to self-quarantine after they complete the Hajj rituals.

5. All workers and volunteers will be tested before the Hajj pilgrimage begins.

6. The health status of all pilgrims will be monitored daily.

7. A hospital has been prepared for any emergency that occurs during the pilgrimage.

8. Social distancing measures will be enforced.

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SAN
 - 
Tuesday, 23 Jun 2020

Please check its 1000 or 10,000

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Agencies
April 27,2020

Riyad, Apr 27: The Saudi-led Arab Coalition supporting Yemen’s UN-recognized government on Monday urged all parties to end any escalation of hostilities and return to the status that existed before the Southern Transitional Council (STC) declared self-rule.

In a statement carried by the Saudi Press Agency (SPA), the coalition emphasized “the need to cancel any step that violates the Riyadh agreement and work to accelerate its implementation.” 

On Sunday, the United Arab Emirates-backed STC scrapped a peace deal with the internationally recognized government of President Abed Rabbo Mansour Hadi.

Accusing the government of corruption and mismanagement, the separatists said they would “self-govern” the key southern port city of Aden and other southern provinces.

Yemen’s Foreign Minister Mohammed Al-Hadhrami described the move as a “resumption of its (STC’s) armed insurgency and rejection and complete withdrawal from the Riyadh agreement.” 

Authorities in Yemen’s southern provinces of Hadramawt, Abyan, Shabwa, Al-Mahra and the remote island of Socotra also rejected the separatist group’s claim to self-rule.

The government said local and security authorities in the five provinces dismissed the move as a “clear and definite coup.” 

Some of the provinces issued their own statements condemning it.

The coalition appealed to all parties to “give priority to the interests of the Yemeni people over any other interests”. 

It also urged the parties involved not to lose their focus on working to achieve the goal of restoring the state, ending the Houthi “coup” and “countering terrorist organizations”.

“The Coalition has and will continue to undertake practical and systematic steps to implement the Riyadh Agreement between the parties to unite Yemeni ranks, restore state institutions and combat the scourge of terrorism,” the statement said. “The responsibility rests with the signatories to the Agreement to undertake national steps toward implementing its provisions, which were signed and agreed upon with a time matrix for implementation.”

The STC has been part of the coalition-backed forces fighting the Iran-backed Houthi militia, which seized control of the Yemeni capital Sanaa and other provinces in 2014.

The Houthi “coup” has led to the formation of the Saudi-led coalition, which had since driven away the Houthis from the south and other provinces. President Hadi’s government has made Aden as its temporary seat.

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News Network
May 26,2020

Dubai, May 26: Business activities will reopen from 6am to 11pm as of Wednesday, May 27, across the emirate, it was announced on Monday.

The announcement of reopening business activities followed a virtual meeting of Dubai’s Dubai’s Supreme Committee of Crisis and Disaster Management chaired by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.

The virtual meeting was also attended by Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Sheikh Mansour Bin Mohammed Bin Rashid Al Maktoum, Chairman of the committee and members of the committee.

The gradual reopening of business activities in Dubai will take place from the fourth day of Eid Al Fitr, Wednesday, May 27. Once the announcement comes into effect, there will be no restrictions on movement between 6am and 11pm.

The decision followed a comprehensive assessment of the committee’s reports, various health and socio-economic aspects and a thorough review of the COVID-19 situation. International guidelines for co-existing with COVID-19 were also taken into consideration before making the decision. The new measures are aimed at adapting to the COVID-19 situation without disrupting activity in vital sectors while strictly observing precautionary measures including wearing of face masks, observing minimum physical distancing of two metres, use of sanitisers and regular handwashing with soap and water for 20 seconds.

Sheikh Hamdan stressed on the need for Dubai authorities to further raise community awareness about precautionary measures. Highlighting Sheikh Mohammed’s statement “Everyone is responsible”, he said the community should understand the importance of strictly following preventive steps. Fully adhering to guidelines is key to restoring normal life, he added.

“We are aware of the pressures many sectors are facing because of the repercussions of the COVID-19 pandemic. The UAE society has high levels of resilience to any crises and challenges. We have been following the severe impact of the COVID-19 outbreak on countries around the world. What makes us different is our ability to deal positively with changes and our agility. We have all the elements necessary to adapt to these challenging circumstances. I am confident that all members of the society will come together to overcome this crisis as soon as possible,” Sheikh Hamdan said.

During the meeting, Sheikh Hamdan was briefed about the latest developments related to the crisis and the readiness of various sectors in Dubai, mainly the healthcare sector, to deal with any scenario in the upcoming period.

Recent proactive measures have reinforced Dubai’s ability to deal with any unforeseen situation. The emirate has enhanced its hospital capacity by joining hands with the private sector and set up a fully equipped field hospital in Dubai World Trade Centre, which can accommodate up to 3,000 beds.

Sheikh Hamdan was also briefed on the potential capacity of the field hospital at Dubai Parks and Resorts, which was built under the directives and with the generous support of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The 29,000 square metre hospital set up by the Abu Dhabi Health Services Company (SEHA) can accommodate up to 1,200 patients.

Sheikh Hamdan also reviewed preparations to gradually reopen various spheres of life while maintaining stringent precautionary and preventive measures including physical distancing, wearing of face masks, use of sanitisers and prevention of congestion and crowding. Protective measures also include guidelines on social customs and behaviour for members of the community, especially with regard to family visits.

Sheikh Hamdan was also briefed on the preparedness of key authorities in Dubai to manage the next phase, including Dubai Health Authority (DHA), COVID-19 Command and Control Centre (CCC), Dubai Police, State Security Department, Dubai Civil Defence, Dubai Ambulance, Dubai Municipality, Roads and Transport Authority (RTA), Department of Tourism and Commerce Marketing, the Department of Economic Development in Dubai (DED), Government of Dubai Media Office (GDMO) and other government entities whose efforts are key to maintaining the progress achieved in containing the COVID-19 pandemic.

Sheikh Hamdan called on all key organisations to intensify monitoring to ensure institutions, economic sectors and the public comply with all precautionary guidelines. He expressed his appreciation for the efforts of the National Emergency Crisis and Disaster Management Authority (NCEMA) and the Ministry of Health and Prevention. He also expressed his appreciation for the efforts of the Supreme Committee of Crisis and Disaster Management and all local and federal authorities to combat COVID-19. The Crown Prince affirmed that the safety and security of citizens and residents remain the highest priority of the UAE’s leadership.

The latest announcement comes as the Dubai government continues its efforts to ensure the highest level of safety for members of the community with the support of various entities. Its key recent measures have included intensified sterilisation at various areas and facilities and increased COVID-19 tests in densely populated areas to facilitate early detection of cases and isolation of people testing positive.

Dubai has deployed state-of-the-art equipment to support medical staff in conducting widespread tests. These have included tests for critical segments like people of determination and the elderly. The emirate has also enhanced monitoring of various entities to ensure compliance with precautionary measures and imposed fines on individuals and entities violating guidelines. Additionally, the Government of Dubai launched urgent economic measures to support sectors most affected by the pandemic including a Dh1.5 billion economic stimulus package introduced in March to ease the crisis’s financial impact on small and medium enterprises.

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