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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 June to 20th July 2024
Kaden and DB Schenker team up to expand in Saudi market with new logistics projects
The real estate and property management firm Kaden has secured a partnership deal with the German firm DB Schenker, a logistics and transportation giant. The deal was signed at Kaden’s Riyadh office in the presence of the CEO of Kaden, Engineer Mohammad Al-Othman, and the vice president of DB Schenker, Contract Logistics and SCM Middle East and Africa, Ako Djaf.
This partnership aims to grow and diversify the logistics sector in Saudi Arabia and create custom-made warehouses for DB Schenker’s operational needs. Kaden is distinguished by its high-level projects and integrated services, one of which is the “The Logistics Park” in Riyadh, aimed at providing innovative ideas for improving operational efficiency.
Engineer Mohammad Al-Othman was excited about the partnership, as Kaden has already succeeded in setting up specific logistic areas with high-quality infrastructure. He believes that this collaboration will expand the logistics sector in Saudi Arabia.
Ako Djaf also indicated that the partnership will enhance DB Schenker’s efficiency pf logistics services through advanced facilities and to cater for Saudi Arabia’s Vision 2030. The partnership will transform Saudi Arabia into a major logistics country, increase employment, boost economic growth, and attract the world’s best firms.
This is an effort by the private sector in the kingdom to achieve Saudi Arabi’s Vision 2030’s goal of raising the status of kingdom as a logistic hub and thereby boosting economic development and employment.
New record set by Saudi Arabia in Tourism sector
Saudi Arabia recorded 60 million tourists in the first half of 2024, spending SR143 billion ($38.1 billion), according to Tourism Minister Ahmed Al-Khateeb.
During a press conference, Al-Khateeb announced the Kingdom’s tourism advancements due to various tourist attractions and favorable climate, particularly in the Aseer region which has cooler temperatures than most cities around the world.
The current third Aseer Season, lasting until September 1 has many cultural offerings where guests can visit places like Abha, Rijal Alma and Shada Palace Museum. The Soudah Peaks are the highest in Saudi Arabia at 3,015 meters and provide a very luxurious mountain experience.
Al-Khateeb attributed these to Vision 2030 especially in tourism which has been enhanced by The National Tourism Strategy launched in 2019 and a new tourist visa. He also talked about the program of Bachelor of International Hospitality Management, a collaboration by Ministry of Tourism, King Khalid University, and Hongkong Polytechnic University for the development of tourism skills.
The minister promised 10,000 training opportunities for the people who are in the Aseer region in the tourism sector. The National Tourism Strategy sets the target of 150+ million tourists by 2030, a rise from 109 million in 2023.
The Tourism Development Fund has allocated SR7.4 billion to facilitate more than 100 tourism projects worth over SR35 billion.
Real estate Pro Victor Lechman and several others eye Saudi property market
The Saudi Arabian real estate market is undoubtedly emerging and expanding its appeal to international investors like Victor Lechman. Lechman from Lekvi Group from Prague, intends to create a tech-based platform for existing local real estate agents as well as improve the market system.
Key factors that drive growth:
- Policies enforcing international firms to establish their regional headquarters.
- Relaxations in rules for buying properties overseas.
- Healthy economic development with Saudi Arabia’s GDP hitting an estimation of $2.65 trillion.
- Projects like NEOM, and the Red Sea Project, a part of Vision 2030 generating property demand.
However, the sector is faced with challenges as it’s a fragmented market, where there are many small agencies and few listings. These are areas that Lechman seeks to address by using relevant tools that can help to enhance agent productivity as well as client satisfaction.
Industry experts like Anuj Puri of Anarock Group believe Saudi Arabia is a promising market for real estate investors due to its development goals and high investment yields. Lechman’s strategy involves phased integration, focus on the community, as well as the use of advanced tech tools.
Market entry by international players is expected to improve efficiency and technological advancement, thereby positioning Saudi Arabia as a leading real estate market in the region.
Saudi Arabia’s $67 Billion Housing Project with Chinese Giant: 20,000 New Homes deal
Saudi Arabia is set to make a massive progress in its housing market with a $67 billion initiative. The Kingdom has recently entered into a massive project deal China State Construction Engineering Corporation (CSCEC) to build 20,000 new houses. This deal is a part of the broader plan of constructing 300,000 homes by the year 2025 to meet the housing requirements of the country and also to cater the Vision 2030 goal of 70% ownership for Saudi families.
The agreement was signed in the presence of Minister Majid bin Abdullah Al Hogail, CEO Mohammed bin Saleh Al Buty representing National Housing Company (NHC) and CSCEC with Gao Yu Chun, President for the Middle East and Africa Region. The project will consist of various sizes and designs of housing units and will have essential amenities like health, educational, commercial, and public service facilities. The aim is to provide residents as high a standard of living as possible.
Besides this housing project, Saudi Arabia has recently been expanding other deals with China. When Minister Al Hogail visited China, partnerships were formed for the construction of an industrial and logistics city for building materials and to construct 20,000 more homes in a partnership with China Machinery Engineering Corporation (CMEC).
This extensive housing drive may greatly influence the Saudi Arabian real estate sector in terms of housing demands and economic development. Saudi Arabia seeks to leverage the international expertise to enhance its housing goals and bring forth the Vision 2030 development agenda.
