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Ready to explore ‘Saudi Arabia this week’ by Analytix, with the latest weekly news updates and business insights from Saudi Arabia. Here we go!
From 14th October to 22nd October 2024
25% rise in Saudi Residential Transaction value for Q3
RIYADH: Residential transaction values in Saudi Arabia rose by 25% year-on-year to SR 35.4 billion ($ 9.4 billion), according to Knight Frank. Demand in the housing market went up, with the number of deals rising by 12% to 45,924. Riyadh led the growth, seeing an increase of 16% and transaction values rising to 41% compared to Q3 2023, positioning its role as an important real estate hub.
This is driven by Vision 2030’s strategy to create more homeownership to reach 70% by 2030, causing a surge in residential projects. Specifically, ROSHN, an initiative of Public Investment Fund, is developing over 200,000 homes across the country. A total of 3.5 million housing units are present in Saudi Arabia which is projected to increase to 3.7 million by 2026.
Additionally, the report stated Saudi banks granted SR 55.7 billion in residential mortgage loans in the first eight months of 2024, 3% increase as compared to last year. This is based on the steady demand of homeownership and real estate investment, due to population growth and economic reforms.
In a report by Jones Lang LaSalle in September 2024, Saudi mortgage contracts totalled 24,482 in Q2 2024, an 8% increase from 2023 and a 12% rise year-on-year reaching a total value of SR 18 billion, an 8% increase from 2023. This rise in mortgage activity is a result of government efforts to diversify the economy and diversify the economy.
Saudi – Italy to deepen industrial ties during high-level official’s visit
RIYADH: Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Alkhorayef is visiting Italy from 14th October to 16th October 2024, to boost the industrial and mining sectors between the two countries. This visit focuses on exploring joint opportunities in sectors like automotive, food, space and marine sectors, in line with National Manufacturing Strategy of Saudi Arabia.
The minister will make stops in Rome and Milan to attract investments into key sectors in Saudi Arabia. Saudi non-oil exports to Italy accounted for SR 2.8 billion ($ 747 million) in 2023, while non-oil imports from Italy amounted to SR 21.8 billion.
During this visit, Alkhorayef will meet with government and private sector leaders like Yousef Al-Mimni from Saudi-Italian Business Council, Italian ministers Gilberto Pichetto Fratin (environment and energy) and Adolfo Urso (enterprises). The discussions aim at boosting industrial cooperation and knowledge transfer.
The minister will also hold meetings with Italian General Confederation of Industry (Confindustria), Barbara Cimmino, and business leaders from key sectors. He will also have meetings with Chairman of Piech Automotive, Toni Piech and CEO of Fincantieri, Pierroberto Folgiero.
In Milan, Alkhorayef will visit the key industrial facilities including Alessi Center and Leonardo’s Aerospace division and also meet with Attilio Fontana, regional president to explore more ways for cooperation which will align with Saudi Vision 2030. Additionally, he will hold meeting with Gianluca Di Tondo, CEO of food giant Barilla to explore further cooperation.
Saudi Arabia’s PIF increases green investment by $ 19bn in 91 projects
RIYADH: Saudi Arabia’s Public Investment Fund (PIF) has grown its green investment portfolio to $19.4 billion by investing in 91 projects in clean transportation, renewable energy, and sustainable water management. PIF’s latest report show that $ 8.5 billion has been allocated collectively from green bond issuances in 2022 and 2023 to finance these projects. Out of the ongoing initiatives, 18 projects are operating and 73 are still under development.
Among these projects is Red Sea Global, which got green financing of $ 1.7 billion for sustainable tourism developments. These projects which also include nine green buildings will predictively save 20% on energy and 36,000 tonnes of CO2 every year. Once they are all developed, they’ll cut out 600,000 tonnes of CO2 emissions every year.
PIF invested over $ 1 billion in NEOM for its water infrastructure under its Sustainable Water Management category to support water efficiency in Saudi Arabia. These investments will help the country fight off water scarcity
PIF’s green bonds will produce renewable energy for 160,000 homes and save 7.7 million MWh every year and treat 49.4 cubic meters of wastewater. The PIF’s efforts for sustainability are seen in its leadership in Global ESG Standards and role in Saudi Arabia’s Vision 2030 which focuses on net zero carbon emissions by 2050.
PIF’s green bonds issuance has become a huge success, drawing in significant global investor confidence. This strategy helps Saudi Arabia meeting its economic diversification and environment objects that are a part of Vision 2030, which will position PIF as a leading player in the fight against climate change.
Riyadh mayor meets South Korean officials to discuss about Infrastructure and Urban Planning
RIYADH: Riyadh Mayor Prince Faisal bin Abdulaziz bin Ayyaf made a recent trip to South Korea to establish international partnerships and better Urban Development in Riyadh with the help of technology. The trip focuses on boosting ties between Riyadh and South Korean cities to enhance infrastructure and smart city development.
Prince Faisal, during his visit, signed a Memorandum of Understanding (MoU) with the Seoul Metropolitan Government to work together on smart city management, sustainable urban planning and infrastructure projects. A Saudi Cabinet decision allowing the negotiations for this MOU supported this agreement.
To discuss urban planning and exchange of expertise, Prince Faisal met with South Korean officials like Prime Minister Han Duck-soo and Minister of Land, Infrastructure and Transport Sangwoo Park. He also held meetings with Seoul Mayor Oh Se-hoon to affirm MoU and with Gyeonggi Province Governor Kim Dong-yeon to discuss about sustainable urban development and municipal services.
Prince Faisal shared Riyadh’s Future urban initiatives at Global Mayors Forum, which is a part of Smart Life Week held in Seoul. During this visit, he went to explore exhibits on digital transformation and smart cities, and tour Seoul Transport Operation and Information Service to know about the intelligent transport systems in use and held meetings with some top Korean companies like Naver and Samsung. The trip also included a stop at the Samsung Museum.
Prince Faisal encouraged Saudi students in South Korea to perform well in their studies in order to contribute to the Saudi Vision 2030 initiative.
