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MENA Real Estate Market Overview September 2012

MENA Real Estate Market -

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MENA Real Estate Market September 2012

Table of Contents MENA Real Estate Market - Overview

Chapter1. Overview of GCC and MENA Real Estate Markets

Investment Profile of MENA Countries

Index ................................................................

Emerging Markets ................................

Jordan ................................................................

Political Stability ................................

Economic Policy and growth ................................

Real Estate ................................................................

Egypt ................................................................


Economic Policy and Growth ................................

Real Estate ................................................................

Lebanon ................................................................



Real Estate ................................................................

Kuwait................................................................



Bahrain ................................................................



Oman ................................................................


MENA Real Estate Market - Overview

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Overview September 2012 ................................................................

Chapter1. Overview of GCC and MENA Real Estate Markets ................................................................

Investment Profile of MENA Countries –Established and Emerging Markets- Investment Attractiveness

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Investment Attractiveness

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Real Estate ................................................................

Established Markets ................................

Saudi Arabia ................................

Qatar ................................................................

United Arab Emirates (UAE) ................................

Chapter 2.Overview of Real Estate Markets in the GCC

Introduction ................................................................

Market Size –Budget Totals for the Building Construction

GCC Projects by Stage of Construction

Regulatory and Legal Framework of the GCC Real Estate Markets

UAE ................................................................

Kingdom of Saudi Arabia ................................

Qatar ................................................................

Bahrain ................................................................

Kuwait................................................................

Oman ................................................................

Real Estate Demand and Supply in GCC Markets

Saudi Arabia Real Estate Demand Supply Analysis

Saudi Arabia Residential Sector ................................

Saudi Arabia Commercial (Office) Sector

Saudi Arabia Retail Sector ................................

UAE Real Estate Demand Supply Analysis

UAE Residential Sector ................................

UAE Commercial (Office) Sector ................................

UAE Retail (Office) Sector ................................


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Chapter 2.Overview of Real Estate Markets in the GCC ................................................................

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Budget Totals for the Building Construction Industry ................................

GCC Projects by Stage of Construction ................................................................................................

Regulatory and Legal Framework of the GCC Real Estate Markets ................................

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Real Estate Demand and Supply in GCC Markets – Analysis and Forecasts ................................

Saudi Arabia Real Estate Demand Supply Analysis ................................................................

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Saudi Arabia Commercial (Office) Sector ................................................................

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Estate Demand Supply Analysis................................................................................................

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Qatar Real Estate Demand Supply Analysis

Qatar Residential Sector ................................

Qatar Commercial (Office) Sector ................................

Qatar Retail Sector ................................

Kuwait Real Estate Demand Supply Analysis

Kuwait Residential Sector ................................

Kuwait Commercial (Office) Sector

Kuwait Retail Sector ................................

Bahrain Real Estate Demand Supply Analysis

Bahrain Residential Sector ................................

Bahrain Commercial (Office) sector

Bahrain Retail Sector ................................

Oman Real Estate Demand Supply Analysis

Oman Residential Sector ................................

Oman Commercial (Office) Sector ................................

Oman retail Sector ................................

Opportunities and Challenges ................................

Chapter 3.Future Outlook for MENA Real Estate Sector

Chapter4. GCC Real Estate Projects Profile

List of Major Projects in the GCC Real Estate Sector, 2012

Profile of the Mega GCC Projects ................................

Methodology ................................................................

Code of Ethics ................................................................

List of Figures Figure 1: Budget Totals for the GCC Real Estate Sector by Country, September 2012

Figure 2: GCC Real Estate Projects by Stage of Construction, September 2012


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Qatar Real Estate Demand Supply Analysis ................................................................

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Demand Supply Analysis ................................................................

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Estate Demand Supply Analysis ................................................................

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Bahrain Commercial (Office) sector ................................................................................................

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Estate Demand Supply Analysis ................................................................

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Chapter 3.Future Outlook for MENA Real Estate Sector ................................................................

Chapter4. GCC Real Estate Projects Profile ................................................................

List of Major Projects in the GCC Real Estate Sector, 2012 ................................................................

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Figure 1: Budget Totals for the GCC Real Estate Sector by Country, September 2012

Figure 2: GCC Real Estate Projects by Stage of Construction, September 2012 ................................

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Figure 1: Budget Totals for the GCC Real Estate Sector by Country, September 2012 ................................... 24

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Figure 3: GCC Projects by Country and Status of Construction (US$ Million), September 2012

Figure 4: Saudi Arabia Real Estate Demand and Supply by segment (Square Metres), 2011

Figure 5: UAE Real Estate Demand and Supply Estimates by Segment (Square metres), 2011

Figure 6: Qatar Real Estate Demand and Supply Estimates by Segment (Square Metres), 2011

Figure 7: Kuwait Real Estate Market Demand and Supply Estimates by segment (Square Metres), 2011

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Figure 8: Bahrain Real Estate Demand and Supply Estimates by Segment (square Metres), 2011

Figure 9: Oman Real Estate Demand and Supply Estimates across Segments (Square Metres), 2011

List of Tables Table 1: MENA Emerging Markets: Investment Attractiveness Index, 2012

Table 2: MENA Established Markets: Investment Attractiveness Index, 2012


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Figure 3: GCC Projects by Country and Status of Construction (US$ Million), September 2012

Figure 4: Saudi Arabia Real Estate Demand and Supply by segment (Square Metres), 2011

Figure 5: UAE Real Estate Demand and Supply Estimates by Segment (Square metres), 2011

Figure 6: Qatar Real Estate Demand and Supply Estimates by Segment (Square Metres), 2011

Figure 7: Kuwait Real Estate Market Demand and Supply Estimates by segment (Square Metres), 2011

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Figure 8: Bahrain Real Estate Demand and Supply Estimates by Segment (square Metres), 2011

Demand and Supply Estimates across Segments (Square Metres), 2011

rging Markets: Investment Attractiveness Index, 2012 ................................

Table 2: MENA Established Markets: Investment Attractiveness Index, 2012................................

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Figure 3: GCC Projects by Country and Status of Construction (US$ Million), September 2012 .................... 27

Figure 4: Saudi Arabia Real Estate Demand and Supply by segment (Square Metres), 2011-2015 ................ 33

Figure 5: UAE Real Estate Demand and Supply Estimates by Segment (Square metres), 2011-2014 ............ 37

Figure 6: Qatar Real Estate Demand and Supply Estimates by Segment (Square Metres), 2011-2015 .......... 43

Figure 7: Kuwait Real Estate Market Demand and Supply Estimates by segment (Square Metres), 2011-2015

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Figure 8: Bahrain Real Estate Demand and Supply Estimates by Segment (square Metres), 2011-2015 ....... 49

Demand and Supply Estimates across Segments (Square Metres), 2011-2015 . 53

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Chapter1. Overview of GCC and MENA Real Estate Market In the aftermath of the global economic slowdown, bursting property bubbles in a number of markets

the one hand and saturation of real estate markets in others, investor focus has gradually turned to

markets that have a potential both in terms of the inherent demand and growth in domestic investment

capabilities. In both these aspects, the Middle Ea

spotlight of investors as much for its influence and control over t

its emerging investment potential. These countries are a mix of varied economic statures, broadly

geographical area and common demographic traits such as a rapidly growing and urbanizing population

Some of these countries are blessed with abundance of hydrocarbon resources which gives them the

required edge to forage into new avenues of deve

while others have to rely heavily on external finance to fund their developmental ambitions.

Their young and dynamic population have attracted investors across the real estate sector segments

primarily tourism and residential segments followed by hospitality, commercial and retail segments

depending on the urgency and priority of their developmental needs. On the one hand are markets su

Saudi Arabia, Qatar, UAE that have an established real estate sec

supply anticipating future growth, yet still growing purely on the ambitions of the governments, and on the

other are markets that are being driven by strong demand with a wide supply gap continuing to exist, or

the emerging markets such as Lebanon, Egypt, Jordan, Bahrain, Oman and Kuwait. Of the latter, some are

countries that are oil importers except the GCC countries of Bahrain, Oman and Kuwait, and therefore are

not as well off as their counterparts in terms of finan

development has also increased their vulnerability to regional uprisings such as the Arab Spring that have

led to widespread political uncertainty and hindered investment in these countries in recent

affecting their real estate sector badly. However, with regional and international backing, these countries

are trying to gradually restore normalcy and resume economic progress, thus resurrecting their

construction and real estate markets for inves

With significant moves to liberalise and reform their economies,

markets of the region are not only looking to


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Overview of GCC and MENA Real Estate Markets

In the aftermath of the global economic slowdown, bursting property bubbles in a number of markets



ties. In both these aspects, the Middle East and North African (MENA) region

spotlight of investors as much for its influence and control over the world supply of hydrocarbons

. These countries are a mix of varied economic statures, broadly

geographical area and common demographic traits such as a rapidly growing and urbanizing population


required edge to forage into new avenues of development backed by their strong hydrocarbon wealth,



urism and residential segments followed by hospitality, commercial and retail segments

depending on the urgency and priority of their developmental needs. On the one hand are markets su

Saudi Arabia, Qatar, UAE that have an established real estate sector with strong demand and a massive



rging markets such as Lebanon, Egypt, Jordan, Bahrain, Oman and Kuwait. Of the latter, some are


not as well off as their counterparts in terms of financing their developmental goals. The poor state of their


led to widespread political uncertainty and hindered investment in these countries in recent



construction and real estate markets for investors in the future.

moves to liberalise and reform their economies, both the emerging and the established

are not only looking to conventional income streams such as hydrocarbons and

P a g e : 6

Overview of GCC and

In the aftermath of the global economic slowdown, bursting property bubbles in a number of markets on



st and North African (MENA) region has been in the

he world supply of hydrocarbons and for

. These countries are a mix of varied economic statures, broadly sharing a

geographical area and common demographic traits such as a rapidly growing and urbanizing population.


lopment backed by their strong hydrocarbon wealth,



urism and residential segments followed by hospitality, commercial and retail segments

depending on the urgency and priority of their developmental needs. On the one hand are markets such as

tor with strong demand and a massive



rging markets such as Lebanon, Egypt, Jordan, Bahrain, Oman and Kuwait. Of the latter, some are


cing their developmental goals. The poor state of their


led to widespread political uncertainty and hindered investment in these countries in recent times,



both the emerging and the established

income streams such as hydrocarbons and




tourism to fund their determined

advantages to build truly diversified economies. Foreign investment is seen as key to achieving these goals

and opportunities abound in the real estate

Regulatory reforms have been undertaken in a number of countries to make them more investor friendly

and accommodate the largely expatriate population of the region, while also encouraging employment of

the domestic population and building on domestic competencies.

Yet, in the region as a whole there continues to be

labour forces continue to grow. The

and inflation expectations, but also a

sector, whether through direct involvement in addressing public housing shortfalls, liquidity

stimulus or financing, or the execution

expected that the regional governments will come with further measures supportive of housing,

particularly as population growth make worse supply shortages in the most populous countries.

Investment Profile of MENA Countries

Emerging Markets- Inve

Dynamic and well established markets such as Dubai, Riyadh, Abu Dhabi and Jeddah are markets that have

attracted investors irrespective of the global economic slowdown and the regional unrests, while others

such as Bahrain, Lebanon, Jordan and Egypt to a large extent and Oman and Kuwait to a smaller extent

have been plagued by the uncertainties surrounding the regional unrest of the Arab Spring battering

investor sentiments in economies that are badly in need of investment to rea

The difference in both markets is not only in the stage of development of their real estate markets, but also

in their inherent affluence or the lack of it.

Though, countries such as Saudi Arabia, Qatar and UAE also witnesse

economic slowdown, the large scale government spending of the oil surpluses on the expansion and

diversification of these economies helped them shield themselves from the worst and prevent a spread of

unrest such as the Arab Spring to their countries. The Emerging markets on the other hand, have as yet not

realized their true potential in terms of real estate and have everything to offer for the global investor

except funds reinforcing the security of the investors’ wealt

these markets, which we have classified into the following two broad heads:


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development strategies, they are also utilising their competitive


real estate market.

undertaken in a number of countries to make them more investor friendly


the domestic population and building on domestic competencies.

as a whole there continues to be a shortage of affordable housing, as population

The increase in housing costs is not only a major contributor to inflation

and inflation expectations, but also a set off of political unrest. Government support remains vital to the

sector, whether through direct involvement in addressing public housing shortfalls, liquidity

execution of new laws to improve financing and residency status. It is

that the regional governments will come with further measures supportive of housing,


Investment Profile of MENA Countries –Established and

Investment Attractiveness Index



non, Jordan and Egypt to a large extent and Oman and Kuwait to a smaller extent


investor sentiments in economies that are badly in need of investment to reaffirm their growth potential.


in their inherent affluence or the lack of it.

Though, countries such as Saudi Arabia, Qatar and UAE also witnessed the adverse impact of the global



rab Spring to their countries. The Emerging markets on the other hand, have as yet not


except funds reinforcing the security of the investors’ wealth. The following is a brief investment profile of

which we have classified into the following two broad heads:

P a g e : 7

utilising their competitive


undertaken in a number of countries to make them more investor friendly


fordable housing, as population and

increase in housing costs is not only a major contributor to inflation

st. Government support remains vital to the

sector, whether through direct involvement in addressing public housing shortfalls, liquidity-boosting

of new laws to improve financing and residency status. It is

that the regional governments will come with further measures supportive of housing,


Established and

stment Attractiveness Index



non, Jordan and Egypt to a large extent and Oman and Kuwait to a smaller extent


ffirm their growth potential.


d the adverse impact of the global



rab Spring to their countries. The Emerging markets on the other hand, have as yet not


The following is a brief investment profile of




Emerging markets which have a small yet fast growing market namely Bahrain,

Lebanon, Egypt and Jordan and

Established markets yet growing namely Saudi Arabia, Qatar and UAE

Having reviewed the markets in 201

market in terms of three broad parameters that are the prime pillars to a growing

namely, their political stability, Economic performance and policy and the state of their construction

industry. A comparison of its absolute performance since 201

markets in its category is also provided with the help of a brief

terms of an investment attractiveness index.

Emerging Markets

The region exhibits all the characteristics of a growing market with its large and swiftly growing population,

growing economies, high regional demand and an increasing supply of premium real estate properties, the

investor sentiment . In 2010, the MENA real estate markets were clearly emerging from the slowdown with

healthy growth in commercial property and real est

However, since 2011, civil and political unrest gained ground and spread across the markets festered by

corruption, lack of affordable social infrastructure such as basic housing, sanitation and other facilities.

Pockets of dissatisfaction and unrest grouped together to be collectively called the Arab Spring, battering

investor sentiments and bringing construction industries to a complete halt. Governments were forced to

relook their policies and invest heavily in social infrastructure and meas

resulting in running vast deficits and eroded foreign reserves for the less affluent countries such as Egypt.

The subsequent year has witnessed a gradual move of most countries to better regulated regimes, stronger

government focus on the residential and infrastructure segments of construction and easing of a number

of barriers in a bid to restore international investor confidence. However, years of underdevelopment and

inefficiencies are not likely to be eliminated in a s

political situation is slow and often unsteady.

The progress of individual emerging economies is depicted


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which have a small yet fast growing market namely Bahrain,

Lebanon, Egypt and Jordan and

yet growing namely Saudi Arabia, Qatar and UAE

Having reviewed the markets in 2012, the investment profile provides the reader a brief profile of the

market in terms of three broad parameters that are the prime pillars to a growing


industry. A comparison of its absolute performance since 2011 and over 2012, as well relative to the other

s also provided with the help of a brief comparison of these three parameters in

terms of an investment attractiveness index.


owing economies, high regional demand and an increasing supply of premium real estate properties, the


healthy growth in commercial property and real estate prices.



unrest grouped together to be collectively called the Arab Spring, battering


relook their policies and invest heavily in social infrastructure and measures to curb the rebellion, often



ment focus on the residential and infrastructure segments of construction and easing of a number


inefficiencies are not likely to be eliminated in a short period and the progress amidst the tense and fragile

political situation is slow and often unsteady.

The progress of individual emerging economies is depicted in Table 1 below:

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which have a small yet fast growing market namely Bahrain, Kuwait, Oman,

, the investment profile provides the reader a brief profile of the

market in terms of three broad parameters that are the prime pillars to a growing real estate market,


as well relative to the other

comparison of these three parameters in


owing economies, high regional demand and an increasing supply of premium real estate properties, the




unrest grouped together to be collectively called the Arab Spring, battering


ures to curb the rebellion, often



ment focus on the residential and infrastructure segments of construction and easing of a number


hort period and the progress amidst the tense and fragile




Table 1: MENA Emerging Markets: Investment Attra

Countries Political Stability

Jordan Political unrests dampens growth prospects

Receding investor confidence leads to financial challenges

Egypt Stability post presidential elections witnesses protractedin few areas

Lebanon Prevailing political unrests hit investor confidence


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: MENA Emerging Markets: Investment Attractiveness Index, 2012

Political Stability Economic Policy and Growth

Emerging Markets

Political unrests dampens growth

Receding investor confidence leads to financial challenges

Encouraging Foreign investment by reducing minimum capital requirements for business start ups

One stop shop solutions for obtaining business permits reduce costs and time

Establishment of credit information system enables growth

Easing of trading barriers across borders fuels funding chances

Stability post presidential elections witnesses protracted growth in few areas

Global economic slowdown and political unrests causes extensive damage to economic growth

Prevailing political unrests hit investor confidence

Economic growth witnessing its lowest since 2006 at 1.5% in 2011

Receding balance of payments and negative investor confidence hits all sectors including tourism and real estate

P a g e : 9

ctiveness Index, 2012

Real Estate Performance

Financial worries leads to delays and cancellations

Lengthy and expensive procedures for obtaining construction permits and dispute resolutions restricts market players

Lack of transparency and legal battles restricts growth prospects

Moody’s negative outlook, vague real estate regulations dampens investor confidence

Large mismatches in healthy demand chasing limited supply provides excellent growth avenues

Despite a healthy demand chasing limited supply the market outlook remains clouded by negative investor confidence, lengthy and costly procedures for construction permits, registration of property, obtaining credit and trading across borders





Kuwait Stringent military actions to safeguard against political unrests and planned social infrastructure investment programs worth US$ 37 billion across 2010fuels growth

Bahrain Social unrests had led to severe delays and cancellations in construction sector

Oman Transparent policies and regulations boosts construction sector and tourism

Jordan

Political Stability

Domestic unrest combined with the adverse effect of the regional Arab Spring have taken a heavy toll on

Jordan’s fiscal state leading to high fiscal deficit and hampered growth on the back of prolonging political

uncertainty. The government introduced fue

of open market price mechanisms and fuel subsidies that further aggravated the fiscal position. External

deficits were also high with current account deficit standing at 9.5 percent of GDP as o


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Stringent military actions to safeguard against political unrests and planned social infrastructure investment programs worth US$ 37 billion across 2010-2014 fuels growth

Discount cuts and ease of lending facilities, permitting foreign ownerships enables growth in mixed use, retail, and tourism and leisure sector.

Social unrests had led to severe delays and cancellations in construction sector

Restrictions and procedural delays involved in starting up of business inhibits obtaining financial assistance

Procedural reforms on export and imports through electronic records paves easy trading across borders thus enabling economic growth

Transparent policies and regulations boosts construction sector and tourism

Prudent fiscal and economic policies achieves a 5 percent growth thus shielding the country from deterring effects of Arab spring



uncertainty. The government introduced fuel caps in 2011 to curb unrest, which in turn led to suspension


deficits were also high with current account deficit standing at 9.5 percent of GDP as o

P a g e : 10

Real Estate Performance

Government controls in release of land for real estate development poses supply challenges to meet growing demand

Government spending to provide social infrastructure such as affordable housing fuels slow but steady recovery

Hike in property registration fees and cumbersome procedure involved in property registrations restricts growth

Buoyant growth in residential and infrastructure segments

Oman Real Estate Association (ORA) lures private investors thus fuelling growth.

Spurt in tourism to drive growth in other related sector



l caps in 2011 to curb unrest, which in turn led to suspension


deficits were also high with current account deficit standing at 9.5 percent of GDP as of 2011.




As investor confidence eroded and tourism, one of the leading garners of foreign exchange also fell, by 18.4

percent from 7.8 million in 2010 to 6.4 million in 2011. FDI into Jordan fell by 17.7 percent during 2011 as

against previous year.

Economic Policy and growth

Amid economic slowdown and sluggish growth measured at 2.5 percent in real terms in 2011, Jordan has

continued to woo investors in a bid to restore normalcy and resume the interrupted healthy growth

pattern achieved prior to 2009, at great fiscal costs. Procedures to start a business according to the World

Bank-IFC Ease of Doing Business 2012 report, have been eased in terms of minimum capital requirements,

creating one stop shops for obtaining permits in order to reduce time and cos

improving its credit information system by setting up a regulatory framework for establishing a Private

Credit Bureau and lowering loan thresholds for reporting to the public credit registry. However, Jordan still

has a long way to go in terms of its long and costly procedures in terms of registration of property and

obtaining of construction permits and dispute resolution as well as investor protection mechanisms, all of

which form a conducive business environment, making it fall

of countries in ease of doing business.

In 2010, Jordan had taken a few significant steps such as setting up of special commercial courts and

equipping them with computer-aided case management systems. In addi

lower conciliation court is expected to result in better distribution of cases, though after that further steps

have not been taken to improve the situation. However, in terms of ease of paying taxes Jordan ranks 21

among 183 countries much above the regional average with the introduction of electronic filing of income

and sales taxes and abolishing of certain taxes.

Sops were also handed out to the real estate market in terms of waiving of transfer fees on small

properties and reduction of property taxes, which greatly benefited the real estate sector.

Jordan also scores in comparison with other economies in the region in terms of the ease of trading across

borders in terms of reduction in the documentation and time require

Jordan made trading across borders faster by introducing X

earlier in 2010 by easing clearance procedures and making documentation such as customs clearance

electronic, reducing the time involved. However, with the poor fiscal position, mounting state debt and

external deficits, there is a growing concern among the international community on the sustainability of

these incentives to uphold the economy and its fledgling industries.


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nomic Policy and growth



t great fiscal costs. Procedures to start a business according to the World

IFC Ease of Doing Business 2012 report, have been eased in terms of minimum capital requirements,

creating one stop shops for obtaining permits in order to reduce time and cos



to go in terms of its long and costly procedures in terms of registration of property and


which form a conducive business environment, making it fall below the regional average in world rankings

of countries in ease of doing business.


aided case management systems. In addition, a higher threshold for the



83 countries much above the regional average with the introduction of electronic filing of income

and sales taxes and abolishing of certain taxes.


and reduction of property taxes, which greatly benefited the real estate sector.


borders in terms of reduction in the documentation and time required to export and import. In 2012,

Jordan made trading across borders faster by introducing X-ray scanners for risk management systems and


the time involved. However, with the poor fiscal position, mounting state debt and


these incentives to uphold the economy and its fledgling industries.

P a g e : 11





t great fiscal costs. Procedures to start a business according to the World

IFC Ease of Doing Business 2012 report, have been eased in terms of minimum capital requirements,

creating one stop shops for obtaining permits in order to reduce time and costs involved in procedures,



to go in terms of its long and costly procedures in terms of registration of property and


below the regional average in world rankings


tion, a higher threshold for the



83 countries much above the regional average with the introduction of electronic filing of income


and reduction of property taxes, which greatly benefited the real estate sector.


d to export and import. In 2012,

ray scanners for risk management systems and


the time involved. However, with the poor fiscal position, mounting state debt and





Real Estate

As temporary government measures to bolster the real estate sector could not sustain growth in the

nascent real estate sector, the worsening fiscal situation of the government and the regional unrest began

translating into sluggish growth of the economy and weighing on investors and the real estate sector of

Jordan slowed down, growing by only 5.4 percent in 2011 and contribution of the sector reduced from 4.8

percent of GDP in 2010 to 4.2 % in 2011. The situation was aggravated by negative in

lower FDI and tightening credit for construction fell which fell by nearly 49.5 percent. Commercial real

estate had begun its decline in 2010 itself as industrial activity began slowing and with the sluggishness in

economic growth the situation has worsened in 2011.

Egypt

Political Stability

After political revolution of January 2011

presidential elections in 2012, some semblance of order has gradually being restored as indica

rise in tourism revenues by 19 percent in the first 8 months of 2012, according to official figures. However,

overall uncertainty remains on the future time frame and nature of restoration of a healthy investment

climate. This situation has even prompting credit rating agencies such as Moody’s to maintain its negative

outlook on the country, while upholding that the country has made significant progress toward restoring

stability such as formally seeking IMF financial help, making progress toward

macroeconomic stability by the government, as well as the stabilization in its external payments position,

retaining financial reserves at US$ 15 billion after a steep drop in 2010 by borrowing from countries like

Qatar and Saudi Arabia. However, the uncertainty on how these plans are likely to be adhered to and

progress is likely to determine its future prospects.

Economic Policy and Growth

In the aftermath of the global economic slowdown, regional unrest and the lack of trans

property markets leading to large scale legal battles involving large real estate developers, the Egyptian

economy and its real estate market took a battering in 2011 which change in regimes has not resolved .

The fiscal and external balance positions sustained extensive damage and the macroeconomic situation at

the end of 2011 showed that, most sectors were badly hit except the Suez Canal revenues and some

defensive sectors such as pharmaceuticals, fertilizers and chemicals. The economy and


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the economy and weighing on investors and the real estate sector of


percent of GDP in 2010 to 4.2 % in 2011. The situation was aggravated by negative in



uation has worsened in 2011.

olution of January 2011 and the subsequent takeover by military council followed by the

, some semblance of order has gradually being restored as indica



prompting credit rating agencies such as Moody’s to maintain its negative


stability such as formally seeking IMF financial help, making progress toward restoration of financial and



udi Arabia. However, the uncertainty on how these plans are likely to be adhered to and

progress is likely to determine its future prospects.

and Growth

In the aftermath of the global economic slowdown, regional unrest and the lack of trans



positions sustained extensive damage and the macroeconomic situation at


defensive sectors such as pharmaceuticals, fertilizers and chemicals. The economy and

P a g e : 12



the economy and weighing on investors and the real estate sector of


percent of GDP in 2010 to 4.2 % in 2011. The situation was aggravated by negative investor sentiment,



and the subsequent takeover by military council followed by the

, some semblance of order has gradually being restored as indicated by the



prompting credit rating agencies such as Moody’s to maintain its negative


restoration of financial and



udi Arabia. However, the uncertainty on how these plans are likely to be adhered to and

In the aftermath of the global economic slowdown, regional unrest and the lack of transparency in the



positions sustained extensive damage and the macroeconomic situation at


defensive sectors such as pharmaceuticals, fertilizers and chemicals. The economy and its key sectors are




desperate for external finance as the country’s fiscal and external borrowing positions have turned dismal,

following the heavy erosion in the external balances and domestic expenditure to curb the unrest and

uncertainty prevailing in 2011 and beyond. But an externally backed sustained economic readjustment

program could restore normalcy and investor confidence.

Real Estate

As lack of clear regulations and transparency in real estate markets, led to unearthing of a number of legal

upheaval in the Egyptian real estate markets, combined with the regional unrests, investor confidence was

badly eroded resulting in a sudden decline in investment into the economy and its real estate in 2011.

Nearly US$ 15 billion worth of projects suspended by

recovery in the new regime is likely to be cautious and slow, depending on the nature of the readjustment

program to set right the economic fundamentals. However, the inherent strength of the real estate mar

in terms of demand far outpacing supply when tackled with the supply demand mismatches that are

common in a number of nascent markets, are likely to restore growth momentum in the long run once

normalcy and investor confidence is restored.

Lebanon

Political Stability

Political climate remains tense after an overthrow of the ruling government in January 2012 due to unrest

among the population on perceived failure to meet the needs of development satisfactorily. The

subsequent government has also been pla

economic and social situation in the country. Pockets of sporadic unrest and violence continue to erupt in

pockets of Lebanon, especially in Tripoli and Beirut. Regional unrest caused by the Ara

with its proximity to Syria also continue to cause concern on the unrest in Syria spilling over to Lebanon

which have badly hit investor confidence in the region and bringing economic growth down sharply to the

lowest since 2006 at 1.5 % in 2011.


Economic growth fell sharply to 1.5% in 2011, the lowest since 2006, fuelled by regional and domestic

unrest and declining balance of payments as investor confidence took a battering both within the region

and globally. Tourist arrivals also declined by 7.9 percent as against a growth of 28.7 percent between


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011 and beyond. But an externally backed sustained economic readjustment

program could restore normalcy and investor confidence.


al in the Egyptian real estate markets, combined with the regional unrests, investor confidence was


Nearly US$ 15 billion worth of projects suspended by the end of 2011 and with tourism also affected,


program to set right the economic fundamentals. However, the inherent strength of the real estate mar



normalcy and investor confidence is restored.



subsequent government has also been plagued by dissatisfaction on progress achieved in resolving the


pockets of Lebanon, especially in Tripoli and Beirut. Regional unrest caused by the Ara






Tourist arrivals also declined by 7.9 percent as against a growth of 28.7 percent between

P a g e : 13



011 and beyond. But an externally backed sustained economic readjustment


al in the Egyptian real estate markets, combined with the regional unrests, investor confidence was


the end of 2011 and with tourism also affected,


program to set right the economic fundamentals. However, the inherent strength of the real estate market





gued by dissatisfaction on progress achieved in resolving the


pockets of Lebanon, especially in Tripoli and Beirut. Regional unrest caused by the Arab Spring combined





Tourist arrivals also declined by 7.9 percent as against a growth of 28.7 percent between




2007 and 2010. Property sales also witnessed a decline of 16.5% in 2011, as against a growth of 13 percent

in 2010.

In terms of business climate, Lebanon is ranked

terms of ease of doing business, well below the regional average of 93. It continues to have long and costly

procedures for starting a business and obtaining requisite permits as also in terms of

construction permits, registration of property, obtaining credit, trading across borders and other essentials

of investing and beginning a business in the country, which make it a relatively less attractive destination as

compared to its peers in the region. However, a resilient construction market backed by healthy growth in

population and demand continuing to outpace supply in residential real estate markets where 90 percent

of the market comprises locals and the remaining 10 percent other Arab

driving forces that keep the market buoyant and likely to resume a competitive growth path in the future.

Real Estate

Investors across the region and the world had recognised the potential of a new and healthy and resilient

construction sector in Lebanon with the focus on the lower tier of the market as demand for affordable

housing exploded and real estate transactions grew by 35 percent annually between 2006 and 2010 in

terms of properties sold, while the year up to April 2

transactions. However, with the political tensions and regional unrest gradually unsettling the growing

market, the real estate market in Lebanon was hit badly by erosion of investor sentiment since the end o

2010 and throughout 2011. Though property prices continue to be high, demand for new properties from

regional investors and locals have declined sharply. The number of foreign buyers stood at a meagre 2.02

percent by the end of 2011. New construction per

as against an annual increase of 16.4 percent between 2006 and 2010. Project space covered by new

permits too has declined in the first four months of 2012 by 10.5% when compared to the previous year

As the Lebanese construction sector is also predominantly dependent on imported materials for

construction which has been badly hit by the uncertain political climate, which too has indirectly affected

the construction activity in the country in 2012.

Hope is being pinned on the new projects that are likely to stem from the government and the resilient

domestic demand which has as yet not been hit badly by the upheaval, as well as the expectation that the

challenging economic climate could prompt the go


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In terms of business climate, Lebanon is ranked at 104 out of 184 countries surveyed annually by the IMF in


procedures for starting a business and obtaining requisite permits as also in terms of



the region. However, a resilient construction market backed by healthy growth in


of the market comprises locals and the remaining 10 percent other Arab nationals from the region, are





terms of properties sold, while the year up to April 2012 has recorded a decline of 6% in real estate


market, the real estate market in Lebanon was hit badly by erosion of investor sentiment since the end o



percent by the end of 2011. New construction permits also declined by nearly 6.2 percent by end of 2011


permits too has declined in the first four months of 2012 by 10.5% when compared to the previous year



the construction activity in the country in 2012.



challenging economic climate could prompt the government to introduce Public Private Partnerships (PPP)

P a g e : 14


at 104 out of 184 countries surveyed annually by the IMF in


procedures for starting a business and obtaining requisite permits as also in terms of obtaining



the region. However, a resilient construction market backed by healthy growth in


nationals from the region, are





012 has recorded a decline of 6% in real estate


market, the real estate market in Lebanon was hit badly by erosion of investor sentiment since the end of



mits also declined by nearly 6.2 percent by end of 2011


permits too has declined in the first four months of 2012 by 10.5% when compared to the previous year.





vernment to introduce Public Private Partnerships (PPP)




s in areas such as infrastructure, much awaited by the local business groups in Lebanon to participate in the

bigger projects for reconstruction and construction in the economy.

Kuwait

Political Stability

As the fourth largest exporter of oil in the world, Kuwait’s oil industry is the backbone of the economy, and

all land for exploration and that which is free for real estate development is released on a controlled basis

by the government which makes real estate development a challenge in terms of limited supply to cater to

clamouring demand especially across the residential and retail segments. The economy successfully

checked the pockets of uprisings as a part of the Arab Spring and local dissatisfact

social infrastructure through strict military action and a planned investment programme of US$ 37 billion

spread across the period 2010-2014. The programme, not only aimed at diversification from hydrocarbons

into other sectors, but also provided the required social infrastructure in terms of affordable housing,

roadways, healthcare, education and telecommunications that are likely to help revive the economy and its

construction sector from the adverse effects of the global economic sl


The Kuwait economy predominantly comprises expatriates and the contribution of the real estate sector to

the GDP averages around 7 percent of Kuwait’s GDP since the past decade. The government has ther

invested in a slew of measures to appease the growing unrest stemming from unemployment and failure to

meet the needs of this growing population and through these also helped boost construction.

In 2011 the Central bank of Kuwait had introduced

Legislations permitting foreign ownerships to development of mixed

commercial sector were also promulgated, which are gradually translating into better growth across

segments in Kuwait’s real estate sector in 2012.

Bahrain

Political Stability

Unlike the other countries in the GCC, Bahrain is among the fifth most densely populated countries in the

world and its real estate does not follow the GCC policy of building in ant


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bigger projects for reconstruction and construction in the economy.



eal estate development a challenge in terms of limited supply to cater to


checked the pockets of uprisings as a part of the Arab Spring and local dissatisfact


2014. The programme, not only aimed at diversification from hydrocarbons

lso provided the required social infrastructure in terms of affordable housing,


construction sector from the adverse effects of the global economic slowdown and regional unrest.



the GDP averages around 7 percent of Kuwait’s GDP since the past decade. The government has ther



Central bank of Kuwait had introduced discount cuts and easy lending facilities for real estate

slations permitting foreign ownerships to development of mixed-use, leisure, tourism, retail and

were also promulgated, which are gradually translating into better growth across

ments in Kuwait’s real estate sector in 2012.


world and its real estate does not follow the GCC policy of building in anticipation of a market, rather its

P a g e : 15




eal estate development a challenge in terms of limited supply to cater to


checked the pockets of uprisings as a part of the Arab Spring and local dissatisfaction with the state of


2014. The programme, not only aimed at diversification from hydrocarbons

lso provided the required social infrastructure in terms of affordable housing,


owdown and regional unrest.


the GDP averages around 7 percent of Kuwait’s GDP since the past decade. The government has therefore



unt cuts and easy lending facilities for real estate

use, leisure, tourism, retail and

were also promulgated, which are gradually translating into better growth across


icipation of a market, rather its




real estate developments are driven more by necessity than ambition. However, the country which was a

financial hub of the region and a healthily growing construction sector where demand always outpaced

supply, was hit the most badly by the social unrest of the Arab Spring in some pockets and domestic unrest

drove down investor confidence, as 2009 and 2010 witnessed a number of projects being shelved or put on

hold, while the government’s hasty plans to provide social infr

heavy government spending in a bid to appease the masses and trying to revive construction and consumer

sentiments. Recovery is slow but steady with strong government backing


In terms of ease of doing business, Bahrain has slipped drastically in world rankings from previous years, in

terms of failure to progress in opening up or easing the restrictions and procedural delays involved in

starting a business in the country. For ex

the Middle East, it continues to rank low in the region in terms of ease of obtaining credit and property

registration has been made more cumbersome and costly with the hike in the fees invol

However, the government has made significant inroads into reform on trading across the borders by

making records electronic and reducing the time involved in exporting and importing through procedural

reforms, which at a time when neighbourin

such as Qatar hosting the World cup 2022 and Saudi Arabia with its vast expansion programme, are likely

to spill over to Bahrain, helping its growth prospects. The government has also made lar

social housing schemes to pacify the masses in a bid to curb the unrest in pockets as a result of the Arab

Spring which are likely to have a slow but steady effect on the real estate market in the long run. However,

unless these issues are addressed, recovery is likely to be slow where investment inflow is concerned.

Oman

Political Stability

Oman economy has weathered the global and regional turmoil well with its economy likely to continue its

healthy growth and stable economic policies

growth. The country has also made significant progress in ushering in transparency and strengthening

regulations across the construction sector and a strong vision to diversify from hydrocarbons

Oman as a tourist destination. In a short span it has managed to attract the desired target by being cited as


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e most badly by the social unrest of the Arab Spring in some pockets and domestic unrest


hold, while the government’s hasty plans to provide social infrastructure such as affordable housing led to


sentiments. Recovery is slow but steady with strong government backing

conomic Policy and growth



starting a business in the country. For example, in spite of having been a very important financial hub of


registration has been made more cumbersome and costly with the hike in the fees invol



reforms, which at a time when neighbouring economies are wooing international investors on a large scale


to spill over to Bahrain, helping its growth prospects. The government has also made lar



e addressed, recovery is likely to be slow where investment inflow is concerned.


healthy growth and stable economic policies helping its real estate sector continue a well mapped path of


regulations across the construction sector and a strong vision to diversify from hydrocarbons


P a g e : 16



e most badly by the social unrest of the Arab Spring in some pockets and domestic unrest


astructure such as affordable housing led to




ample, in spite of having been a very important financial hub of


registration has been made more cumbersome and costly with the hike in the fees involved in 2011.



g economies are wooing international investors on a large scale


to spill over to Bahrain, helping its growth prospects. The government has also made large investments in



e addressed, recovery is likely to be slow where investment inflow is concerned.


helping its real estate sector continue a well mapped path of


regulations across the construction sector and a strong vision to diversify from hydrocarbons to focusing on





one of the most attractive destinations for tourism by leading tourism brands in the international and

regional arenas.


Prudent fiscal policy combined with strong economic fundamentals has rendered Oman less susceptible to

the regional and international turmoil. It is forecast to achieve a growth rate of over 5 percent in real terms

in 2012 with inflation at 3 percent. The government role and controls over the real estate sector though

still a deterrent is on the way to be rationalized and rendered transparent through a slew of measures to

attract tourists and private investment in the economy. Unemploymen

tackled with Omanisation to prevent unrest among the masses similar to the Arab Spring. Large

infrastructure and housing projects are keeping real estate markets buoyant

Real Estate

The Omani government has set up an

estate investment and usher in transparency in the market in the latest of its measures to spur growth

across its already buoyant real estate markets. Residential and infrastructure segmen

healthy growth while the commercial and retail segments are as yet sluggish. However, with the massive

fillip given to tourism in the Oman policy and investment programme for the decade up to 2030, these

sectors too are likely to witness a spill over effect and get over their inertia by end of 2012 and beginning of

2013.

Established Markets

There are three economies that have long been touted as the oasis of the Middle East, which have their

fast depleting hydrocarbon resources and the res

up their investment and diversification plans. These are the Kingdom of Saudi Arabia, The United Arab

Emirates and Qatar, all of which have realized the need to reduce their dependence on hydrocarb

build up competencies across other sectors using their vast oil surpluses to achieve sustained growth and

build investor confidence. Table 2 below provides a brief comparison of the investment attractiveness of

these economies as of 2012.


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Policy and Growth

combined with strong economic fundamentals has rendered Oman less susceptible to


at 3 percent. The government role and controls over the real estate sector though


attract tourists and private investment in the economy. Unemployment is another obstacle that is being


are keeping real estate markets buoyant.

The Omani government has set up an Oman Real Estate Association (ORA) in a bid to attract private real


across its already buoyant real estate markets. Residential and infrastructure segmen



a spill over effect and get over their inertia by end of 2012 and beginning of


fast depleting hydrocarbon resources and the resultant wealth resulting from the strong oil prices to back


Emirates and Qatar, all of which have realized the need to reduce their dependence on hydrocarb



P a g e : 17


combined with strong economic fundamentals has rendered Oman less susceptible to


at 3 percent. The government role and controls over the real estate sector though


t is another obstacle that is being


Oman Real Estate Association (ORA) in a bid to attract private real


across its already buoyant real estate markets. Residential and infrastructure segments are witnessing



a spill over effect and get over their inertia by end of 2012 and beginning of


ultant wealth resulting from the strong oil prices to back


Emirates and Qatar, all of which have realized the need to reduce their dependence on hydrocarbons and






Table 2: MENA Established Markets


Saudi Arabia Public spending on large scale infrastructure and residential projects shields the threat of downturn

New Mortgage law enables KSA to address growing housing shortages thus increasing the investments on affordable housing projects

Qatar Robust financial

reserves and prudent fiscal and investment policies witnesses progressive growth across all economy

UAE Government backed spending programs in infrastructure and mixed use development enables gradual recovery from the adverse impact ofglobal economic downturn

Saudi Arabia

Even in times of lingering concerns over the global economy, declining property markets and civil unrests in

the neighbouring nations, the real estate market in the Kingdom of Saudi Arabia (KSA) has continued to

preserve its allure. The continuation of lon

growth of real estate market in Saudi Arabia. KSA, the largest GCC economy, maintains its economic

diversification focus. Real estate plays an imperative role in the Kingdom’s non


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: MENA Established Markets : Investment Attractiveness Index, 2012


Established Markets

Public spending on large scale infrastructure and residential projects shields the threat of

New Mortgage law enables KSA to address growing housing shortages thus increasing the investments on affordable housing

Prudent economic policies aimed at diversification sustains the growth momentum in the largest construction market in Middle East

Robust financial reserves and prudent fiscal and investment policies witnesses progressive growth across all sectors of

"Qatar vision 2030" provides the pillar for sustainable economic development through diversification from hydrocarbon sector thus enabling growth across all sectors including construction

Government backed spending programs in infrastructure and mixed use development enables gradual recovery from the adverse impact of global economic

Despite modest economic recovery real estate property prices continue to face the strain amidst increasing supplies and limited foreign investments



preserve its allure. The continuation of long-term demand fundamentals has substantially favoured the


diversification focus. Real estate plays an imperative role in the Kingdom’s non-oil economy. KSA b

P a g e : 18

Investment Attractiveness Index, 2012

Economic Policy and Real Estate Performance

Prudent economic policies aimed at diversification sustains the growth momentum in the largest construction market in

Government plans to add over 500,000 residential units boosts growth prospects

"Qatar vision 2030" provides the pillar for sustainable economic development through diversification from hydrocarbon sector thus enabling growth across all sectors including

Successful bid to host the FIFA World Cup 2022 offers several growth opportunities across infrastructure, sports, travel, leisure, commercial and other related sectors.

Despite modest economic recovery real estate property prices continue to face the strain amidst increasing supplies and limited foreign investments

Challenges pertaining to supply exceeding demand continues to plague rentals and sales despite witnessing gradual recovery



term demand fundamentals has substantially favoured the


oil economy. KSA being one




of the largest construction markets in the Middle East is estimated to ha

trillion in various stages of development.

The country is seeing continued economic growth and is enjoying the benefits of the

its real estate environment. Government

has supported the state through the tough years and helped

boosted the real estate sector, from b

role to the Saudi economy and several

development of over 500,000 homes by th

new mortgage law, which is element

will help Saudi Arabia deal with its growing

homes also raises on the whole investm

The country’s government has spurred measures to sustain demand and the supply of housing units. With

several new airports and railways which are under construction

coming with the logistical links to support real estate construction. The government’s 2011 incentives

included 250 billion riyals to finance 500,000 new housing units over the next few years, as well as 40

billion riyals for the real estate development fund. Notwithstanding the new suppl

expected that the underlying supply shortages to keep prices rising, as new units fail to continue with

population growth and financing remains a test.

The government plans to add over 500,000 units will help ease some of the disparity

supply and demand. Given the growth of the population, and family size, the existing public housing plans

are a sheer drop in the bucket, and additional government measures holds key to prop up the market. The

planned governmental measures will ultimately filter into commercial property, in particular retail as those

moving into the new housing developments demand amenities, transport links, shopping centres and the

like.

Qatar

While the similarity of Qatar with its neighbouring GCC economi

reserves supporting its diversification plans, its construction industry too has been a victim albeit to a

smaller extent of the adverse effects of the global economic slowdown.


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of the largest construction markets in the Middle East is estimated to have projects in excess of US$ 1.2

trillion in various stages of development.

continued economic growth and is enjoying the benefits of the

Government spending on social infrastructure and other non

has supported the state through the tough years and helped resist the threat of

the real estate sector, from both demand and supply perspectives. Public

several large-scale residential plans are in progress that includes

over 500,000 homes by the government agencies. The country in recent time

element of a planned revamp of the country's house financing

growing housing shortages and the very necessary construction of new

investment in the Kingdom.


several new airports and railways which are under construction and planned

to support real estate construction. The government’s 2011 incentives


billion riyals for the real estate development fund. Notwithstanding the new suppl


population growth and financing remains a test.

The government plans to add over 500,000 units will help ease some of the disparity



will ultimately filter into commercial property, in particular retail as those


While the similarity of Qatar with its neighbouring GCC economies ends in terms of its vast oil and gas


smaller extent of the adverse effects of the global economic slowdown.

P a g e : 19

ve projects in excess of US$ 1.2

continued economic growth and is enjoying the benefits of the solid improvement in

social infrastructure and other non-oil based projects

the threat of downturn. This has then

Public spending plays pivotal

in progress that includes the

The country in recent times passed a

house financing. The new law

and the very necessary construction of new


and planned, the government is also

to support real estate construction. The government’s 2011 incentives


billion riyals for the real estate development fund. Notwithstanding the new supply and support, it is


The government plans to add over 500,000 units will help ease some of the disparity between the new



will ultimately filter into commercial property, in particular retail as those


es ends in terms of its vast oil and gas





In the case of Qatar, strong economic fundamentals, a robust reserve, prudent fiscal policy and a sustained

long term plan to diversify the economy and reduce its dependence on the hydrocarbon sector by focusing

on other areas such as infrastructure, sports, industry, tourism, hospitality, h

the economy into a quick recovery that is likely to sustain growth steadily across the segments of the

construction industry into the future.

Qatar’s successful bid to hold the FIFA World cup 2022 is set to offer many opportu

investors in the country and GCC region that has struggled since the start of the global recession in 2008.

number of infrastructure, sports, travel and leisure projects are seen coming over the next five six years

and is expected to boost construction sector while increasing overall economic activity.

the World Cup will infuse a new enthusiasm into the drive by Qatar, and the GCC region, to diversify its

economy away from its reliance on oil and gas.

guarantee that a long list of megaprojects will now go forward as the country seeks to put in place the

infrastructure needed to deliver the event. From the

stadiums, contractors in the state can hope for a golden period in the country’s construction sector. The

World Cup will also offer a boost to the rest of the GCC countries, not only in drawing more visitors to the

region, but also in showing that the Gulf is

While demand in the residential segment is likely to be sluggish longer than the other segments, retail and

tourism are likely to report the strongest growth in the industry. The high projected

the economy, making it the fastest growing economy among the GCC countries as also among the fastest in

the world, is likely to prove an extra feather in the cap of the Qatari real estate market.

United Arab Emirates (UAE)

According to official figures from the National Bureau of Statistics, the UAE’s real estate sector rebounded

into growth in 2010 after recording one of its largest falls in 2009 because of the 2008 global fiscal distress

while construction activity also sharply picked u

After declining by around 18.6 per cent in 2009 the real estate sector recovered by around 2.5 per cent in

real terms in 2010. The construction sector, one of the largest components of the country’s GDP, also

recorded strong recovery in 2010, when it expan

cent in 2009.


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c fundamentals, a robust reserve, prudent fiscal policy and a sustained


on other areas such as infrastructure, sports, industry, tourism, hospitality, healthcare and retail have led


construction industry into the future.

Qatar’s successful bid to hold the FIFA World cup 2022 is set to offer many opportu

investors in the country and GCC region that has struggled since the start of the global recession in 2008.


d to boost construction sector while increasing overall economic activity.


economy away from its reliance on oil and gas. For businesses operating in Qatar, the World Cup will


infrastructure needed to deliver the event. From the Doha metro system to a string of outstanding football

diums, contractors in the state can hope for a golden period in the country’s construction sector. The


region, but also in showing that the Gulf is world-class destination competent of holding global events.


tourism are likely to report the strongest growth in the industry. The high projected



(UAE)

fficial figures from the National Bureau of Statistics, the UAE’s real estate sector rebounded


while construction activity also sharply picked up.



recorded strong recovery in 2010, when it expanded by 8.6 per cent in real terms compared with 1.3 per

P a g e : 20

c fundamentals, a robust reserve, prudent fiscal policy and a sustained


ealthcare and retail have led


Qatar’s successful bid to hold the FIFA World cup 2022 is set to offer many opportunities to businesses and

investors in the country and GCC region that has struggled since the start of the global recession in 2008. A


d to boost construction sector while increasing overall economic activity. Building towards


es operating in Qatar, the World Cup will


to a string of outstanding football

diums, contractors in the state can hope for a golden period in the country’s construction sector. The


class destination competent of holding global events.


tourism are likely to report the strongest growth in the industry. The high projected economic growth of



fficial figures from the National Bureau of Statistics, the UAE’s real estate sector rebounded




ded by 8.6 per cent in real terms compared with 1.3 per




The real estate sector’s contribution to real GDP grew from Dh95.7 billion in 2006 to Dh111.1 billion in

2007 and Dh114 billion in 2008 before slumping to Dh92.7 billion in 2009. It reb

2010. The construction sector’s contribution to real GDP expanded from Dh86.1 billion in 2006 to Dh94.7

billion in 2007, around Dh104.4 billion in 2008, Dh105.8 billion in 2009 and nearly Dh114.9 billion in 2010.

The prevailing trend across the various segments of the building construction industry in the UAE, clearly

shows that while UAE has been the worst hit amongst the GCC nations due to the global economic

slowdown and the adverse impact of the credit crisis in 2009, it con

world’s largest construction industry with projects resuming normalcy gradually on the back of government

backed spending programs and investment in infrastructure and mixed use development on the one hand

and the gradual revival of tourism, retail and commercial activities on the other fuelling the growth of the

tourism, hospitality, leisure and retail segments on a greater scale than other segments and at a more

cautious pace than yesteryears.

Despite a modest lift up in the economic activity, the real estate

declining amidst of the increasing supplies and as foreign investments remains limited. The recent steps to

call off some unbeneficial projects and to widen the homeowners’ visa w

structural issues will keep the sector under strain. On the other hand transaction activity has picked up as

prices have dropped, with internal migration within the country and some relocation from the GCC.

Declining rents have added to housing affordability, and allowed renters and even buyers to be choosier,

even as they have reduced returns for investors and landlords who cannot depend on the same income

from their real estate investments.

House sale prices have rejuvenated more than rents, which continue to reduce modestly with some of the

largest properties suffering the most as tenants negotiate harder. This decline in rents is also dampening

price pressures for the average consumer, and allowing many global companie

packages for expatriates, reasonably reducing the cost of doing business. Likewise, more reasonable pricing

is supporting commercial property as companies shift to high

hotels in Dubai have reduced rack rates to persuade higher occupancy. To a great extent, the reduction in

Dubai International Financial Centre rents earlier in 2011 is part of this trend. The UAE’s stronger logistics

are attracting more investment, as well as more business tra

The new supply is keeping vacancy rates high and as a result UAE real estate market will remain only a

modest donor to economic growth in the medium term, but that it will no longer be a major detractor. In


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2007 and Dh114 billion in 2008 before slumping to Dh92.7 billion in 2009. It rebounded to Dh95.1 billion in



trend across the various segments of the building construction industry in the UAE, clearly


slowdown and the adverse impact of the credit crisis in 2009, it continues to hold the position as the



revival of tourism, retail and commercial activities on the other fuelling the growth of the


the economic activity, the real estate property prices in the UAE are still


call off some unbeneficial projects and to widen the homeowners’ visa will offer some support, but primary



ts have added to housing affordability, and allowed renters and even buyers to be choosier,


nated more than rents, which continue to reduce modestly with some of the


price pressures for the average consumer, and allowing many global companie


is supporting commercial property as companies shift to high-grade office space, and many of the newer

reduced rack rates to persuade higher occupancy. To a great extent, the reduction in


are attracting more investment, as well as more business travel, than other GCC countries.



P a g e : 21


ounded to Dh95.1 billion in



trend across the various segments of the building construction industry in the UAE, clearly


tinues to hold the position as the



revival of tourism, retail and commercial activities on the other fuelling the growth of the


property prices in the UAE are still


ill offer some support, but primary



ts have added to housing affordability, and allowed renters and even buyers to be choosier,


nated more than rents, which continue to reduce modestly with some of the


price pressures for the average consumer, and allowing many global companies to trim their housing


grade office space, and many of the newer

reduced rack rates to persuade higher occupancy. To a great extent, the reduction in


vel, than other GCC countries.






due course, local authorities need to follow up actions like extending the homeowners visa, with clearer

implementation of new regulations on the financial sector to get the full effect.


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authorities need to follow up actions like extending the homeowners visa, with clearer

implementation of new regulations on the financial sector to get the full effect.

P a g e : 22

authorities need to follow up actions like extending the homeowners visa, with clearer




Chapter 2.Overview of Real Estate Markets in the GCC

Introduction

Even under the prevailing global market conditions, the massive development and diversification

programmes of the government including the vast infrastructure upgrades of airports, roads, railways and

ports has succeeded in attracting a huge influx of tourists into the r

proved to have an adverse impact on markets in Bahrain and Oman to a large extent, it has diverted tourist

revenues to the neighbours, resulting in a mini hospitality boom aided by country specific factors such as

Qatar’s preparation for hosting the World Cup 2022, Saudi Arabia’s religious tourism in Mecca and Medina,

Oman focusing on tourism as a cornerstone to growth and the UAE regaining its spot as one of the top

tourist destinations of the world. While top retailer

economic gloom, the real estate sector in the GCC becomes an attractive destination for investors. The

inherent strength of a young, growing population has driven demand and investment across the ma

the GCC, helping it to remain buoyant amid the global economic turmoil

Market Size –Budget Totals for the Building Construction

Industry

The following figure presents the shares of the real estate market in the GCC as of


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Overview of Real Estate in the GCC

prevailing global market conditions, the massive development and diversification


ports has succeeded in attracting a huge influx of tourists into the region. While the political unrest has



r’s preparation for hosting the World Cup 2022, Saudi Arabia’s religious tourism in Mecca and Medina,


tourist destinations of the world. While top retailers flock to the region as the rising oasis amid the global


inherent strength of a young, growing population has driven demand and investment across the ma

the GCC, helping it to remain buoyant amid the global economic turmoil.

Budget Totals for the Building Construction

The following figure presents the shares of the real estate market in the GCC as of

P a g e : 23

Overview of Real Estate

prevailing global market conditions, the massive development and diversification


egion. While the political unrest has



r’s preparation for hosting the World Cup 2022, Saudi Arabia’s religious tourism in Mecca and Medina,


s flock to the region as the rising oasis amid the global


inherent strength of a young, growing population has driven demand and investment across the markets in

Budget Totals for the Building Construction

The following figure presents the shares of the real estate market in the GCC as of September 2012.




Figure 1: Budget Totals for the GCC Real Estate Sector by Country,

September 2012

Source: Ventures Onsite MENA Projects Database

UAE is back to becoming one of the favou

better than its earlier turbulent years. Abu Dhabi however is now treading a more cautious path with

slower progress on a number of large projects to prevent a recurrence of the real estate

neighbouring Emirate. With a global pioneering

estate sector get back on its growth path through a thorough overhaul and review of all projects, 2012 has

spelt a better year from the UAE with investors now considering it a relatively safe haven to invest in

comparison to its neighbouring regions plagued by the European slowdown and the Arab Spring.

As liquidity returns, and government

to strengthen the real estate market

recovered steadily and received fresh projects with revived vigour in 2012

residential and retail sectors have witnessed healthy growth especially in the higher grade properties,

office market continues to be sluggish and occupier consolidation and portfolio optimization remains

imminent in Dubai. Though new office supply is expected to come into the market in the latter half of

UAE48.8%

Budget Totals for GCC Real Estate Sector by Country (US$ Million), September 2012


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: Budget Totals for the GCC Real Estate Sector by Country,

Ventures Onsite MENA Projects Database, www.venturesonsite.com

UAE is back to becoming one of the favourite destinations for global realtors, with Dubai performing much


slower progress on a number of large projects to prevent a recurrence of the real estate

neighbouring Emirate. With a global pioneering Real Estate Regulatory Authority


he UAE with investors now considering it a relatively safe haven to invest in


As liquidity returns, and government efforts at revival through social infrastructur

real estate markets and make them more transparent take effect,

recovered steadily and received fresh projects with revived vigour in 2012. While markets across the



new office supply is expected to come into the market in the latter half of

Bahrain2.5%

Kuwait7.5%

Oman2.9%

Qatar6 %

Saudi Arabia32.3%

Budget Totals for GCC Real Estate Sector by Country (US$ Million), September 2012

P a g e : 24

: Budget Totals for the GCC Real Estate Sector by Country,

rite destinations for global realtors, with Dubai performing much


slower progress on a number of large projects to prevent a recurrence of the real estate catastrophe of the

Real Estate Regulatory Authority (RERA) to help the real


he UAE with investors now considering it a relatively safe haven to invest in


infrastructure spending and measures

take effect, UAE markets have

While markets across the



new office supply is expected to come into the market in the latter half of



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2012, there are still a huge number of projects that continue to be on hold and some which are delayed to

be delivered into 2013, totalling the largest number of such projects acr

The Kingdom of Saudi Arabia is fast becoming an attractive hub for real estate investment with the

sustained budget allocations toward the betterment of the residential sector, infrastructure and other

investments which provide the required

The regional unrest in other parts of the Middle East is leading to a reversal of investment flows into this

thriving market with a stable political climate.

Kuwait also has put forth ambitious developmental plans that have involved massive public sector spending

on infrastructure and social needs and have managed to quell minor unrest in certain pockets which had

put a dampener on certain sections of its real estate market.

Qatar continued at its steady pace to retain its share of

the back of the strong pipeline of projects in preparation for

with bulk of the projects for infrastructure upgrades an

of the real estate sector being awarded in 2011 and 2012

sector.

Bahrain has also begun to recover from the adverse impact of the unrest and also benefiting

over effect of Qatar’s FIFA construction

progress on the Qatar Bahrain Friendship Causeway linking the two countries. Bahrain is also likely to chip

in to bridge the needs of raw material and manpower for construction projects in Qatar and leverage the

event to revive its investor confidence and growth prospects into 2012.

Oman with its thrust on tourism likely to continue in spite of the dampener of the Arab Spring is likely to

benefit from the reverse flow of tourists and investors alike away from the slowing European economies

and the unrest plagued Arab Spring affected economies and help revival of its real estate markets which

had been hit by the property bubble and the global

The following is a bird’s eye view of the total pipeline of projects in

the GCC broken down by the stage of construction it is in namely, Planned (including projects from the

concept stage to feasibility study and tender

Construction and Under Construction.


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be delivered into 2013, totalling the largest number of such projects across the GCC.



investments which provide the required fillip to spur growth across construction and real estate markets.


thriving market with a stable political climate.

ious developmental plans that have involved massive public sector spending


put a dampener on certain sections of its real estate market.

at its steady pace to retain its share of 6 percent share of the budget totals pie

the back of the strong pipeline of projects in preparation for hosting the World Cup 2022 Football event

with bulk of the projects for infrastructure upgrades and across hospitality, commercial and retail segments

being awarded in 2011 and 2012, providing a healthy boost to the real estate

Bahrain has also begun to recover from the adverse impact of the unrest and also benefiting

over effect of Qatar’s FIFA construction and tourism boosting programmes, primarily through the healthy


material and manpower for construction projects in Qatar and leverage the

event to revive its investor confidence and growth prospects into 2012.


enefit from the reverse flow of tourists and investors alike away from the slowing European economies


had been hit by the property bubble and the global economic slowdown in 2009 and 2010.

The following is a bird’s eye view of the total pipeline of projects in the building construction industry of

broken down by the stage of construction it is in namely, Planned (including projects from the

feasibility study and tender for consultancy), Under Design, On Hold

and Under Construction.

P a g e : 25


oss the GCC.



fillip to spur growth across construction and real estate markets.


ious developmental plans that have involved massive public sector spending


6 percent share of the budget totals pie in 2012 on

hosting the World Cup 2022 Football event

d across hospitality, commercial and retail segments

, providing a healthy boost to the real estate

Bahrain has also begun to recover from the adverse impact of the unrest and also benefiting from the spill

, primarily through the healthy


material and manpower for construction projects in Qatar and leverage the


enefit from the reverse flow of tourists and investors alike away from the slowing European economies


economic slowdown in 2009 and 2010.

building construction industry of

broken down by the stage of construction it is in namely, Planned (including projects from the

for consultancy), Under Design, On Hold, Tender for




GCC Projects by Stage of Construction

Figure 2 : GCC Real Estate Projects by Stage of Construction,


On Hold43%

GCC Real Estate Projects Split by Status (US$ Million), 2012


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by Stage of Construction

: GCC Real Estate Projects by Stage of Construction,


Planned9%

Design25%

Tender for Construction

2%

Construction21%

GCC Real Estate Projects Split by Status (US$ Million), 2012

P a g e : 26

: GCC Real Estate Projects by Stage of Construction, September 2012

Tender for Construction





Figure 3: GCC Projects by Country and Status of Construction (US$

Million) , September 2012


GCC’s largest market continues to be plagued by large number of projects on hold and delays, though

recovery is apparent in the number of fresh projects that have come on board in 2012 as the clean up drive

of the Real Estate Regulatory Authority (RERA)

2011 and have improved investor sentiments reviving the real estate markets gradually into 2012.

Other markets too have continued to witness a certain amount of sluggishness in terms of projects on hold

notably Kuwait and Bahrain , owing to the international economic conditions of which slowdown in key

trading partners such as Europe and neighbouring Arab countries have adversely impacted progress

Kingdom of Saudi Arabia continues to

design, tender for construction, and construction stages,

growth across sectors. Qatar with its

0

100000

200000

300000

400000

500000

600000

700000

Bahrain Kuwait

Valu

e of

Pro

ject

s by

Stat

us o

f Con

stru

ctio

n (U

S$ M

illio

n)

GCC Value of Projects by Country and Status of Construction (US$ Million), 2012

Planned


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: GCC Projects by Country and Status of Construction (US$


to be plagued by large number of projects on hold and delays, though


Real Estate Regulatory Authority (RERA) in 2011 of UAE real estate marke



n , owing to the international economic conditions of which slowdown in key


Kingdom of Saudi Arabia continues to forge ahead with a healthy pipeline of

and construction stages, with consistent government spending fuelling

with its World Cup 2022 Football event backed plans

Kuwait Oman Qatar KSA


Design Tender for Construction Construction

P a g e : 27

: GCC Projects by Country and Status of Construction (US$

to be plagued by large number of projects on hold and delays, though


in 2011 of UAE real estate markets began to take effect in



n , owing to the international economic conditions of which slowdown in key


forge ahead with a healthy pipeline of projects at the planning

with consistent government spending fuelling

plans has witnessed a steady

KSA UAE


On Hold





growth as most of the projects in preparation for the event have been awarded and kicked off in 2011 and

2012. However, it continues its slow cautious approach in order to prevent any catastrophes such as the

cases of other countries’ overzealous construction ambitions.

Regulatory and Legal Framework of the GCC Real Estate

Markets

For GCC markets, real estate offers vast potential and forms the backbone of the region’s ambitious plans

for diversification. However, with small native population, these countries are also heavily dependent

expatriate labour and skills to implement their plans, often at a cost to their domestic employment and

dissatisfaction of the nationals and ushering in vast international funds, which if absorbed into domestic

projects without a strong legal and regula

growth trajectory as has been proved in the case of the global economic slowdown across a number of

developed and developing economies and in the case of Dubai which in its zeal faced the brunt

property bubble and need for stronger and stringent regulation on its real estate markets. Moreover,

though these markets are predominantly propped up by hydrocarbon backed government spending on a

large scale, their need for private investor part

associated innovations and global scaling of operations from many of the market participants. In the light

of the Arab Spring and the associated social unrest among the natives of the countries, maint

regulations on involvement of domestic labour are also important inclusions in the legislative framework to

strike a delicate balance between the need for foreign labour and capital and the development of the

domestic economy and its population.

A number of procedures such as a GCC common identity card required for entry into and transacting with

the government are already in place. While some countries like Qatar have allowed visa free entry to as

many as 30 countries at one end of the spectrum, the

visas for security reasons at the other.

The real estate sector in most of the GCC countries stand as a benchmark in terms of ease of doing

business, in deregulation and simplification of procedures su

construction permits, finance and so forth. GCC countries are also tax free zones when it comes to tax on

individual income and many of them offer corporate tax reductions in special economic zones to promote

activity across these areas. Real estate ownership regulations are diverse across the region, with some


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in preparation for the event have been awarded and kicked off in 2011 and

However, it continues its slow cautious approach in order to prevent any catastrophes such as the

cases of other countries’ overzealous construction ambitions.

Legal Framework of the GCC Real Estate


for diversification. However, with small native population, these countries are also heavily dependent



projects without a strong legal and regulatory framework, can often wreak havoc with the economy and its


developed and developing economies and in the case of Dubai which in its zeal faced the brunt



large scale, their need for private investor participation is growing in order to take advantage of the


of the Arab Spring and the associated social unrest among the natives of the countries, maint



domestic economy and its population.

umber of procedures such as a GCC common identity card required for entry into and transacting with


many as 30 countries at one end of the spectrum, there are those such as Kuwait and Bahrain that restrict

visas for security reasons at the other.


business, in deregulation and simplification of procedures such as time and costs involved in obtaining



vity across these areas. Real estate ownership regulations are diverse across the region, with some

P a g e : 28

in preparation for the event have been awarded and kicked off in 2011 and

However, it continues its slow cautious approach in order to prevent any catastrophes such as the

Legal Framework of the GCC Real Estate


for diversification. However, with small native population, these countries are also heavily dependent on



tory framework, can often wreak havoc with the economy and its


developed and developing economies and in the case of Dubai which in its zeal faced the brunt of the



icipation is growing in order to take advantage of the


of the Arab Spring and the associated social unrest among the natives of the countries, maintaining



umber of procedures such as a GCC common identity card required for entry into and transacting with


re are those such as Kuwait and Bahrain that restrict


ch as time and costs involved in obtaining



vity across these areas. Real estate ownership regulations are diverse across the region, with some




countries allowing foreign ownership across selected locations while others allow across all areas while

restricting visa renewal requirements. The followin

developments that are taking place in each GCC country that are likely to impact the GCC real estate sector.

UAE

After 2010, the introduction of new legislation across the Emirates has been relativel

the regulatory framework has evolved between 2002 and 2010

Between 2005 and 2010, clear cut guidelines and regulations for ownership of property and transfer of

property by UAE nationals, differentiating between the former, GCC nationals and foreign nationals, were

framed. Special investment or economic zones were created in the Emirates of Dubai and Abu Dhabi to

encourage foreign investment and allowing ownership of property to non

an incentive. The Emirate had in 2011

property in the Emirates from the prevailing three months to three years. While the details are yet to be

ironed out, this move is likely to provide a positive fillip to FDI and the UAE real estate market, especially

the residential segment. There is still ambiguity over mortgage and real estate management companies

and the related laws and conditions.

property though established on clear legal principles continue to lack the backing to enforce them with

strictness. Dubai also allowed holders of commercial and industrial land to convert it to freehold prope

in 2010, allowing them to develop it or mortgage it since then and a number of institutions to resolve

property related disputes. The Dubai Land Authority also came up with a

that it was prohibited for offshore commerc

Free Zone to own property in Dubai.

Emiratization efforts continue to appease domestic labour by trying to

though with the country’s heavy reliance

economy’s development and expansion

In 2012, a draft law on the Protection of Property Investors is also in the anvil in

investors cannot be liable to the terms of the reservation form alone while paying a deposit on a property,

but be allowed to go through the entire sale and purchase agreements and its terms and if not satisfied

back out of the deal without losing their deposit. In Abu Dhabi too, a consolidate property law for multiple

owned properties is also under consideration.


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restricting visa renewal requirements. The following is a current overview of the key legal and regulatory


After 2010, the introduction of new legislation across the Emirates has been relativel

s evolved between 2002 and 2010.


, differentiating between the former, GCC nationals and foreign nationals, were


encourage foreign investment and allowing ownership of property to non-nationals in these select areas as

had in 2011 also extended the tenure for extension of visa for expatriates owning


this move is likely to provide a positive fillip to FDI and the UAE real estate market, especially


Moreover, laws already enacted with regard to common ownership of


Dubai also allowed holders of commercial and industrial land to convert it to freehold prope


property related disputes. The Dubai Land Authority also came up with a circular in 2011, clearly

that it was prohibited for offshore commercial establishments except those incorporated in the Jebel Ali

to appease domestic labour by trying to limit expatriate employment

heavy reliance on the special skills required of expatriate labour for the

development and expansion plans, it is finding it difficult to strictly implement these stringently

In 2012, a draft law on the Protection of Property Investors is also in the anvil in



without losing their deposit. In Abu Dhabi too, a consolidate property law for multiple

owned properties is also under consideration.

P a g e : 29


he key legal and regulatory


After 2010, the introduction of new legislation across the Emirates has been relatively less, though much of


, differentiating between the former, GCC nationals and foreign nationals, were


nals in these select areas as

extended the tenure for extension of visa for expatriates owning


this move is likely to provide a positive fillip to FDI and the UAE real estate market, especially


eady enacted with regard to common ownership of


Dubai also allowed holders of commercial and industrial land to convert it to freehold property


circular in 2011, clearly stating

ial establishments except those incorporated in the Jebel Ali

limit expatriate employment

on the special skills required of expatriate labour for the

plans, it is finding it difficult to strictly implement these stringently.

In 2012, a draft law on the Protection of Property Investors is also in the anvil in Dubai that opines that



without losing their deposit. In Abu Dhabi too, a consolidate property law for multiple




Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia has consistently been ranked among the top destinations in the worl

terms of ease of doing business and for more than a decade remained the regional leader in terms of ease f

doing business. The only drawback is the heavy interference and role of the government in the country’s

economic development activities, includi

compliance for corporate bodies to encourage employment of domestic labour similar to all other GCC

economies.

Laws are clear and well laid down in terms of o

purposes and for non nationals with legal residency status and the right to ownership of residential

property for personal use, subject to the approval of the licensing authority.

The much awaited mortgage law is likely to encourage

participation, providing a fillip to the real estate across tiers in the economy, apart from the plans already

in progress for social housing schemes funded by the government.

Qatar

Qatar has already successfully reaped the benefits of opening up its real estate markets to foreign

investment for commercial and residential purposes except for freehold property, the latter being

restricted to only certain developments such as the Pearl, Al Khor, Qatar Islan

some areas classified by government as Investment district and high rise apartment buildings property is

sold as a 99 year lease only. In 2011, steps had also been taken

improve regulations beginning with making registration compulsory for its real estate agents, failure of

which is likely to attract penalty up to QAR 50,000.

An integrated financial market regulator has also been a vision to better regulate lending and trading

across its financial markets, with the latest regulation providing the Central Bank with complete authority

over its stock markets as well. Currently Qatar has a Qatar Financial Markets Authority (QFMA), a Qatar

Financial Centre Regulatory Authority (QFCRA) and the centr

financial system and the progress toward integrating them into one single regulating entity is the ultimate

goal which due to its complexity is progressing slowly. Better financial regulation is likely to enco


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Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia has consistently been ranked among the top destinations in the worl


g business. The only drawback is the heavy interference and role of the government in the country’s

tivities, including stiff Saudization measures that include stiff penalties for non


Laws are clear and well laid down in terms of ownership of property by non


property for personal use, subject to the approval of the licensing authority.

The much awaited mortgage law is likely to encourage construction in the residential segment and private


in progress for social housing schemes funded by the government.

cessfully reaped the benefits of opening up its real estate markets to foreign


restricted to only certain developments such as the Pearl, Al Khor, Qatar Island and West Bay Lagoon. In


In 2011, steps had also been taken to organize its real estate sector and

eginning with making registration compulsory for its real estate agents, failure of

which is likely to attract penalty up to QAR 50,000.


ncial markets, with the latest regulation providing the Central Bank with complete authority


Financial Centre Regulatory Authority (QFCRA) and the central bank with control different aspects of the


goal which due to its complexity is progressing slowly. Better financial regulation is likely to enco

P a g e : 30

The Kingdom of Saudi Arabia has consistently been ranked among the top destinations in the world in


g business. The only drawback is the heavy interference and role of the government in the country’s

zation measures that include stiff penalties for non


wnership of property by non-nationals for commercial


construction in the residential segment and private


cessfully reaped the benefits of opening up its real estate markets to foreign


d and West Bay Lagoon. In


to organize its real estate sector and

eginning with making registration compulsory for its real estate agents, failure of


ncial markets, with the latest regulation providing the Central Bank with complete authority


al bank with control different aspects of the


goal which due to its complexity is progressing slowly. Better financial regulation is likely to encourage real




estate development and foster a healthy growth climate and investor confidence in the run up to the

World Cup 2022 event hosted by Qatar.

Bahrain

Free ownership of freehold property is allowed to foreign citizens for commercial and residential p

subject to ownership limited to five locations in the country.

The significant change that has come about in the regulatory framework of Bahrain is to introduce into it

the norms for sustainability in construction. Beginning 2013, Bahrain has plans

changes to the regulations governing new constructions in the country, mandating the use of eco

best practices in construction. The new mandate would require new construction to adhere to

international environmental standard

natural lighting and usage of high efficiency light bulbs, heating and ventilation and air conditioning

efficiencies, noise and emission reductions and usage of green materials. The new code b

requirements such as incorporating a minimum of 50 percent gree

including planting palm trees and indigenous vegetation. Rooftops of such developments must also have a

green zone that uses at least half o

comprehensive and detailed and help reduce pollution drastically.

Kuwait

While foreign investment in certain areas of real estate is

hotels, hospitals, certain housing developments and urban development, others are

existing mortgage markets and regulations to open up the market are the dire need for a market which is

underserved in terms of financing, especially the residential market

regulations to encourage banks to lend to this sector and while there is a government housing scheme for

first time buyers of homes as well as one for widowed or divorced women

sufficient to purchase a home.

Oman

Property ownership laws already in place in Oman include allowing p

up to 70 percent and these also in

Property ownership has also been allowed to

tourism wherein all owners are granted residency visa status.


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World Cup 2022 event hosted by Qatar.

Free ownership of freehold property is allowed to foreign citizens for commercial and residential p

subject to ownership limited to five locations in the country.


the norms for sustainability in construction. Beginning 2013, Bahrain has plans

changes to the regulations governing new constructions in the country, mandating the use of eco


international environmental standards. Current requirements are restricted to making better use of


efficiencies, noise and emission reductions and usage of green materials. The new code b

requirements such as incorporating a minimum of 50 percent greenery in the total new development space


green zone that uses at least half of the available space for greenery. The law is expected to be

detailed and help reduce pollution drastically.

investment in certain areas of real estate is permitted under Kuwaiti law such as tourism,

als, certain housing developments and urban development, others are


underserved in terms of financing, especially the residential market in Kuwait. There is a need for clear


as well as one for widowed or divorced women,

Property ownership laws already in place in Oman include allowing property ownership

and these also in only select developments subject to the court approval process.

en allowed to foreign nationals in designated tourist areas

ll owners are granted residency visa status.

P a g e : 31


Free ownership of freehold property is allowed to foreign citizens for commercial and residential purposes


the norms for sustainability in construction. Beginning 2013, Bahrain has plans to introduce sweeping

changes to the regulations governing new constructions in the country, mandating the use of eco-friendly


Current requirements are restricted to making better use of


efficiencies, noise and emission reductions and usage of green materials. The new code brings in new

nery in the total new development space


The law is expected to be

permitted under Kuwaiti law such as tourism,

als, certain housing developments and urban development, others are not. Moreover,


in Kuwait. There is a need for clear


, but the amounts are not

ownership by foreign citizens

developments subject to the court approval process.

foreign nationals in designated tourist areas in a bid to boost




Real Estate Demand and Supply

Forecasts

Across all spheres of real estate sector, a common challenge that impacts the market at a large is luring

investors’ confidence in the growth prospects offered by any particular sector thus paving way for further

developments. The real estate market compr

outperform the others in terms of growth prospects and profitability. It is therefore imperative to

understand the market dynamics of demand and supply side parameters to assess the current and fut

growth developmental patterns in order to make informed investment decisions.

after a detailed study of the GCC real estate market, its key trends and key markets, stock of commercial,

residential and retail segments and the curre

of demand and supply for real estate

country:

Saudi Arabia Real Estate Demand

Boasting the largest hydrocarbon reserves

the second largest real estate market in terms of projects at all stages of construction and the largest in

terms of ongoing projects. The real estate sector in Saudi is typically characterise

with increasing purchasing power dominating the demand side and prudent government spending and

robust fiscal reserves catering to the growing demand. The Saudi Government in its avid efforts to diversify

its economy into non-oil sector, had initiated large scale investments in two phases, one to the tune of SAR

600 billion and a further fiscal stimulus of SAR 500 billion to finance developmental initiatives in the six

economic cities and provision of affordable housing units for

the negative effects of global economic slowdown.

The following figure reflects the demand

market namely, commercial, residential and retail fr


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and Supply in GCC Markets



The real estate market comprises of number of segments and sub classes off which a few


understand the market dynamics of demand and supply side parameters to assess the current and fut

growth developmental patterns in order to make informed investment decisions.


residential and retail segments and the current and past demand, has forecasted the upcoming movement

for real estate sectors across the main GCC markets which are analysed below by

Saudi Arabia Real Estate Demand Supply Analysis

Boasting the largest hydrocarbon reserves across all GCC nations, the Kingdom of Saudi Arabia is home to


terms of ongoing projects. The real estate sector in Saudi is typically characterise



sector, had initiated large scale investments in two phases, one to the tune of SAR


economic cities and provision of affordable housing units for its population thus shielding its economy from

the negative effects of global economic slowdown.

The following figure reflects the demand and supply for real estate across the three main segments of the

market namely, commercial, residential and retail from 2011 to 2015.

P a g e : 32

in GCC Markets – Analysis and



ises of number of segments and sub classes off which a few


understand the market dynamics of demand and supply side parameters to assess the current and future

growth developmental patterns in order to make informed investment decisions. The team at Ventures,


nt and past demand, has forecasted the upcoming movement

across the main GCC markets which are analysed below by

across all GCC nations, the Kingdom of Saudi Arabia is home to


terms of ongoing projects. The real estate sector in Saudi is typically characterised by a growing population



sector, had initiated large scale investments in two phases, one to the tune of SAR


its population thus shielding its economy from

for real estate across the three main segments of the




Figure 4 : Saudi Arabia Real Estate Demand

Metres) , 2011-2015

Source: Jones Lang LaSalle, Colliers International

The real estate sector in Saudi Arabia offers some of the world’s bes

the strong domestic housing demand, large scale infrastructure developments and an impressive project

pipeline. A majority of real estate projects in Saudi is concentrated on the largest cities of Riyadh and

Jeddah. The opportunities and challenges provided by the three major real estate sectors are analysed as

under

Saudi Arabia Residential Sector

The residential sector in Saudi Arabia is one of the fastest growing markets buoyed by an escalating

demand chasing limited supplies thus prompting a slew of measures taken by the Government to provide

affordable housing units to cater to the clamouring demand.

to reach 17, 34, 040 units by end of 2015 when compared to the 14,

awaited mortgage law finally witnessed its approval in the second quarter of 2012 and has made its impact

-

5,00,000

10,00,000

15,00,000

20,00,000

25,00,000

30,00,000

35,00,000

40,00,000

45,00,000

2011

Real

Esta

te d

eman

d an

d Su

pply

by

Segm

ent (

in S

quar

e M

eter

s)

Residential Demand

Commercial Supply


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: Saudi Arabia Real Estate Demand and Supply by segment (Square

Source: Jones Lang LaSalle, Colliers International

The real estate sector in Saudi Arabia offers some of the world’s best investment opportunities thanks to



opportunities and challenges provided by the three major real estate sectors are analysed as

Saudi Arabia Residential Sector


supplies thus prompting a slew of measures taken by the Government to provide

affordable housing units to cater to the clamouring demand. The demand for residential units are expected

040 units by end of 2015 when compared to the 14, 67, 340 units as of 2011.


2012 2013 2014

Residential Supply Commercial Demand

Retail Demand Retail Supply

P a g e : 33

by segment (Square

t investment opportunities thanks to



opportunities and challenges provided by the three major real estate sectors are analysed as


supplies thus prompting a slew of measures taken by the Government to provide

The demand for residential units are expected

340 units as of 2011. The long


2015




felt as early as the beginning of the third quarter with mortgage lending growing up to 50 percent to SR 48

billion in Quarter 2 of 2012.

Residential market in the capital city of Riyadh

units by end of 2012 thus bringing the total residential stock to 912,000 units by the end of the year. A

significant majority of these projects will be delivered through small projects comprising less than 20 units.

An additional 130,000 units are expected to enter the market by 2015. Most of the new supply completed

during the last quarter had been sold off with a very limited in

housing project by Ministry of Housing in Riyadh is expected to deliver 2000 units over the next five years.

Commercial banks and financing companies have relaxed their financing terms to felicitate the heal

growth in demand. Families can now submit a joint mortgage application to fulfil the salary criteria.

Following the success of Rafal tower, interest in offering branded residences for sale is increasing. With the

consistently increasing land prices, a

make inroads in future.

Residential sector in Jeddah witnessed an addition of 4000 units in quarter 1 of 2012 with most of them

being smaller projects comprising less than 30 units. Units t

sold off as soon as they were released. An additional 12000 residential units are anticipated to be released

in 2012 off which a majority are again small projects comprising less than 30 units. Government and semi

government entities are working in tandem to develop affordable housing in Jeddah as private sector is

facing challenges to provide solutions to lower income households. The Ministry of Housing has identified

two locations in Jeddah for affordable housing

announced. One of the rare private sector project aimed at the affordable sector is by the Henaki group

comprising a 1000 unit apartment project in Kandarah area thus recording the first large scale p

targeted at middle and low income household.


Growth in the commercial or office sector in Saudi Arabia, similar to other countries across GCC, faces

challenges pertaining to oversupply facing a gradually decl

the occupancy rates and consequently the rentals and sales of commercial premises though the magnitude

of such impact in Saudi is far lesser compared to the other nations in GCC

oversupply there exists demand for new and high quality space as evidenced by one of the largest ever


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Residential market in the capital city of Riyadh is expected to witness an addition of

by end of 2012 thus bringing the total residential stock to 912,000 units by the end of the year. A

f these projects will be delivered through small projects comprising less than 20 units.


during the last quarter had been sold off with a very limited inventory available for sale. The first affordable


Commercial banks and financing companies have relaxed their financing terms to felicitate the heal



consistently increasing land prices, a greater share of apartments in the compound market is expected to


being smaller projects comprising less than 30 units. Units targeted at middle income segment had been





two locations in Jeddah for affordable housing schemes the exact specifications of which are yet to be


comprising a 1000 unit apartment project in Kandarah area thus recording the first large scale p

targeted at middle and low income household.



facing a gradually declining demand thus leaving a negative impact on

occupancy rates and consequently the rentals and sales of commercial premises though the magnitude

of such impact in Saudi is far lesser compared to the other nations in GCC

ply there exists demand for new and high quality space as evidenced by one of the largest ever

P a g e : 34


is expected to witness an addition of approximately 23000

by end of 2012 thus bringing the total residential stock to 912,000 units by the end of the year. A

f these projects will be delivered through small projects comprising less than 20 units.


ventory available for sale. The first affordable


Commercial banks and financing companies have relaxed their financing terms to felicitate the healthy



greater share of apartments in the compound market is expected to


argeted at middle income segment had been





schemes the exact specifications of which are yet to be


comprising a 1000 unit apartment project in Kandarah area thus recording the first large scale project


ining demand thus leaving a negative impact on

occupancy rates and consequently the rentals and sales of commercial premises though the magnitude

of such impact in Saudi is far lesser compared to the other nations in GCC. Despite challenges on

ply there exists demand for new and high quality space as evidenced by one of the largest ever




deals in Riyadh market occurring in Quarter 1 of 2012. A large Saudi Telecom company has pre leased

80,000 square meters in the first phase of ITCC project that

Riyadh currently has a total office stock of 1.6 million square meters excluding the recent completion of

10,600 square meters of Sultan building in quarter 1 of 2012. A further 462,000 square meters is touted f

completion over the rest of 2012 which includes the first buildings in both King Abdullah Financial District

(KAFD) and ITCC. Other projects expected completion includes Granada Business Park on Eastern Ring

Road and Al-Anoud Tower II and Mount Tower o

delayed in 2013, all these projects are well under construction and are likely to result in considerable

increase in quality stock in Riyadh over the next two years. Office vacancy rates in Riyadh

in quarter 1 of 2012 with citywide and CBD vacancies at 12% and 16% respectively. However vacancy rates

are expected to increase on account of the proposed addition of new supply into the market thus resulting

in intense competition to secure large tenants.

At the end of quarter 1 of 2012, Jeddah is home to 536,000 square meters of office space with a proposed

addition of a further 134,000 square meters expected completion in the remaining 3 quarters of 2012 thus

bringing the total commercial real estate stock to around 670,000 square meters by the end of 2012. The

largest proposed delivery for 2012 is the Headquarters project on the Corniche scheduled for occupation

during quarter 4 of 2012. Although the credit situation has eased actual pro

than expected in 2012 as developers perceive the oversupply situation could worsen over the coming

years. Improvements in infrastructure in Prince Majed and King Fahad

districts for offices in competition to the increasingly congested Madinah Road.

Saudi Arabia Retail Sector

Similar to the Commercial sector, retail sector in Saudi Arabia is again witnessing greater stability with

supplies matching the growing demand and even exceeding in certai

intense competition for quality retail space whilst maintaining stability in occupancy rates and

consequently the rentals and sales of retail real estate stocks.

55,370 square meters of GLA as of 2011 and this expected to reach 21, 86,040 square meters by 2015.

Retail market in the capital city of Riyadh is witnessing increased repositioning and renovation of existing

malls. The Sadhan Mall in Sulemania has reopened their hyperma


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80,000 square meters in the first phase of ITCC project that is due to be completed by the end of 2012.


10,600 square meters of Sultan building in quarter 1 of 2012. A further 462,000 square meters is touted f



Anoud Tower II and Mount Tower on King Fahd road. While some of this space is likely to be


increase in quality stock in Riyadh over the next two years. Office vacancy rates in Riyadh



re large tenants.



l real estate stock to around 670,000 square meters by the end of 2012. The


Although the credit situation has eased actual project deliveries may be lower


years. Improvements in infrastructure in Prince Majed and King Fahad Street

mpetition to the increasingly congested Madinah Road.

Saudi Arabia Retail Sector


supplies matching the growing demand and even exceeding in certain places thus paving way for

ition for quality retail space whilst maintaining stability in occupancy rates and

consequently the rentals and sales of retail real estate stocks. Demand for retail space was estimated at 13,

ers of GLA as of 2011 and this expected to reach 21, 86,040 square meters by 2015.


malls. The Sadhan Mall in Sulemania has reopened their hypermarket and the Al Bustan

P a g e : 35


is due to be completed by the end of 2012.


10,600 square meters of Sultan building in quarter 1 of 2012. A further 462,000 square meters is touted for



n King Fahd road. While some of this space is likely to be


increase in quality stock in Riyadh over the next two years. Office vacancy rates in Riyadh remained stable





l real estate stock to around 670,000 square meters by the end of 2012. The


ject deliveries may be lower


Street will further create new


n places thus paving way for an

ition for quality retail space whilst maintaining stability in occupancy rates and

Demand for retail space was estimated at 13,

ers of GLA as of 2011 and this expected to reach 21, 86,040 square meters by 2015.


rket and the Al Bustan Centre is also




currently undergoing renovation. Outside the organised retail mall space, a major project that witnessed

completion was the Electro standalone store in Salahudin Al Ayoubi Street to the south of Riyadh. Major

super and hypermarkets expected completion is the third outlet of Lulu Supermarket/hypermarket to be

located in Bathaa in the second quarter

completion by end of 2012 and is likely to add 76,000 s

been pre leased. Total mall based retail supply is expected to reach around 1.52 million sq m by the end of

2015. Around 1, 88, 000 sq m of this additional retail space is in mixed use projects within the KAFD and

ITCC.

Jeddah witnessed the completion of Haifa Mall on Falasteen Street and the Central Park in Majed Street

anchored by a Danube hypermarket in 2011. The next

Mall on Prince Street by the end of 2012. This project is expected to add approximately 46,000 sq m and is

anchored by Carrefour. Beyond 2012 there is an average of 63,000 Sq m of retail floor space due to

complete each year representing two major projects per annum.

market with downward pressure on rental levels in less strong centres. The retail market in Jeddah is

witnessing increased repositioning activity with majo

Central Park; Carrefour’s pre-commitment to space in flamingo Mall, Hera international which previously

lost a major tenant successfully repositioning

third quarter of 2012.

Thus with its augmented focus on plugging the demand supply situation in provision of affordable housing

units in addition to provision of social infrastructure financed by prudent Government spending in addition

to luring local private and foreign investors, the Saudi real estate market is all set to ensure a sustainable

economic development with growth opportunities in both hydro carbon and non oil sectors.

UAE Real Estate Demand

UAE, construction developer’s delight had forever remained the most favourite destination despite the

challenges posed by global economic downturn, oversupply across the different sectors in the real estate,

credit crunch delaying or cancelling projects. Compared to other e

suffered the pangs of Global economic

and cancellations affecting the growth momentum for a short span

stabilised and retained its leadership position


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Outside the organised retail mall space, a major project that witnessed


hypermarkets expected completion is the third outlet of Lulu Supermarket/hypermarket to be

located in Bathaa in the second quarter of 2012. Al-Qasr mall in Sweidi area is the next major mall expected

completion by end of 2012 and is likely to add 76,000 sq m of which 60 percent of the area has already

Total mall based retail supply is expected to reach around 1.52 million sq m by the end of

, 000 sq m of this additional retail space is in mixed use projects within the KAFD and


anchored by a Danube hypermarket in 2011. The next major mall expecting completion is the Flamingo



mplete each year representing two major projects per annum. This is likely to result in a two tired


witnessing increased repositioning activity with major malls such as Danube taking up a large unit at

commitment to space in flamingo Mall, Hera international which previously

lost a major tenant successfully repositioning its image by attracting several new quality tenants duri



cal private and foreign investors, the Saudi real estate market is all set to ensure a sustainable


Real Estate Demand Supply Analysis

developer’s delight had forever remained the most favourite destination despite the


credit crunch delaying or cancelling projects. Compared to other established markets, UAE admittedly had

suffered the pangs of Global economic downturn thus witnessing a subdued year with construction

affecting the growth momentum for a short span. The country had however

retained its leadership position thus remaining the largest market

P a g e : 36

Outside the organised retail mall space, a major project that witnessed


hypermarkets expected completion is the third outlet of Lulu Supermarket/hypermarket to be

Qasr mall in Sweidi area is the next major mall expected

q m of which 60 percent of the area has already

Total mall based retail supply is expected to reach around 1.52 million sq m by the end of

, 000 sq m of this additional retail space is in mixed use projects within the KAFD and


major mall expecting completion is the Flamingo



This is likely to result in a two tired


r malls such as Danube taking up a large unit at

commitment to space in flamingo Mall, Hera international which previously

by attracting several new quality tenants during the



cal private and foreign investors, the Saudi real estate market is all set to ensure a sustainable


developer’s delight had forever remained the most favourite destination despite the


stablished markets, UAE admittedly had

a subdued year with construction delays

. The country had however gradually

thus remaining the largest market for construction projects




across GCC with construction projects worth US$ 879.991 billion across various stages of construction.

beginning of 2012 witnessed signs of improved investor

continued demand for quality, well located and income producing assets. The major real estate markets of

Dubai and Abu Dhabi are experiencing impressive signs of growth albeit treading on cautiously. The

residential market is experiencing a positive trend with markets for villas continuing to outperform the

apartment sectors across Dubai and Abu Dhabi. Prime residential buildings in well established locations

continue to see improved performance. D

super regional malls resulting in an increase of prime rents with the country experiencing a two tier market

wherein older and less popular malls are witnessing a weakened demand.

The following figure represents the estimated demand

market between 2011 and 2015.

Figure 5 : UAE Real Estate Demand

metres) , 2011-2014

Source: Jones Lang LaSalle, Colliers International, Abu

-

20,00,000

40,00,000

60,00,000

80,00,000

1,00,00,000

1,20,00,000

2011

Real

Esta

te D

eman

d an

d Su

pply

by

Segm

ent (

in S

quar

e M

eter

s)

Residential Demand

Commercial Supply


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across GCC with construction projects worth US$ 879.991 billion across various stages of construction.

beginning of 2012 witnessed signs of improved investor confidence flowing into the real estate sector with


Dubai and Abu Dhabi are experiencing impressive signs of growth albeit treading on cautiously. The



continue to see improved performance. Demand for retail sector remains buoyant in the best performing


wherein older and less popular malls are witnessing a weakened demand.

g figure represents the estimated demand and supply across the various segments of the UAE

: UAE Real Estate Demand and Supply Estimates by Segment (Square

, Colliers International, Abu Dhabi Urban Planning Council

2012 2013 2014



P a g e : 37

across GCC with construction projects worth US$ 879.991 billion across various stages of construction. The

confidence flowing into the real estate sector with


Dubai and Abu Dhabi are experiencing impressive signs of growth albeit treading on cautiously. The overall



emand for retail sector remains buoyant in the best performing


across the various segments of the UAE

Estimates by Segment (Square

2014




After three years of subdued performance with declining rates and limited sales activity, the real estate

market is on its way to recovery with established quality communities sh

higher transaction volumes in 2012.

commercial and retail sectors across the primary markets of Dubai and Abu Dhabi are described below

UAE Residential Sector

The first half of 2012 witnessed the residential real estate market bouncing back its way to recovery with

the major markets of Dubai and Abu Dhabi witnessing an increase in the rental and sales prices particularly

in the apartments and villas category.

The second quarter of 2012 saw an addition of 3,000 additional residential units in Dubai this bringing its

total residential stock to around 344,000 units with a significant majority amongst the new additions being

apartments. Notable projects handed over this qu

towers in Dubai Marina, three buildings in Dubai Silicon Oasis and a complex of 26 buildings in International

city. According to developers, a total of 24,000 additional units are currently scheduled

the second half of 2012. The main locations that are expected to see new completions in the coming six

months are Al Furjan (4,000 units expected to be delivered), Jumeirah Village (approximately 3,400 units),

Dubai Marina (2,300 units), Dubai Sports City (2,200 units) and Dubai Silicon Oasis (1,800 units). In reality,

some of the proposed projects might be delayed beyond their schedule date. The villa market began to see

some uptick towards the end of 2011 and this trend has continued i

indices have increased by 21 percent year on year

Approximately 2,900 additional residential units were delivered in

these units are in Rihan Heights and Bloom Gardens in the Grand Mosque District,

Marina Blue on Marina Square and Amaya

stock to approximately 199,800 units at the end of Q2 2012.

completion in H2 2012 but it is expected that many of these projects will experience further

final stages of approval. Approximately two thirds of the upcoming supp

majority of the upcoming villa supply being

Watani. Most of the supply for delivery in 2012 comprises additional units

developments including Reem Island, Al Reef

supplies also include Nation Towers on the Corniche, Al Bateen Park

large proportion of the residential pipeline announced

supply could still reach 238,000 units by the end of 2014.


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market is on its way to recovery with established quality communities showing increases in values and

higher transaction volumes in 2012. The developments in the three major sectors of residential,


st half of 2012 witnessed the residential real estate market bouncing back its way to recovery with


in the apartments and villas category.

nd quarter of 2012 saw an addition of 3,000 additional residential units in Dubai this bringing its


apartments. Notable projects handed over this quarter included The Villa- phase three in Dubailand, two


According to developers, a total of 24,000 additional units are currently scheduled



Dubai Sports City (2,200 units) and Dubai Silicon Oasis (1,800 units). In reality,


some uptick towards the end of 2011 and this trend has continued into 2012. As of May 2012, villa sale

percent year on year and are now 9 percent higher than early 2008 levels.

Approximately 2,900 additional residential units were delivered in Abu Dhabi during Q2. The majority of

Heights and Bloom Gardens in the Grand Mosque District,

Marina Blue on Marina Square and Amaya Towers on Shams. These deliveries bring the total residential

ly 199,800 units at the end of Q2 2012. Up to 11,000 units are scheduled for

is expected that many of these projects will experience further

Approximately two thirds of the upcoming supply comprises

majority of the upcoming villa supply being within Emirati housing communities such as Al Falah and

Most of the supply for delivery in 2012 comprises additional units

Island, Al Reef Villas, Danet, Saadiyat Island and Rawdhat.

also include Nation Towers on the Corniche, Al Bateen Park and Marasy in Bateen. Although a

large proportion of the residential pipeline announced prior to 2008 has since been

could still reach 238,000 units by the end of 2014. The completion of new high

P a g e : 38


owing increases in values and

The developments in the three major sectors of residential,


st half of 2012 witnessed the residential real estate market bouncing back its way to recovery with


nd quarter of 2012 saw an addition of 3,000 additional residential units in Dubai this bringing its


phase three in Dubailand, two


According to developers, a total of 24,000 additional units are currently scheduled to be delivered in



Dubai Sports City (2,200 units) and Dubai Silicon Oasis (1,800 units). In reality,


nto 2012. As of May 2012, villa sale

higher than early 2008 levels.

Abu Dhabi during Q2. The majority of

Heights and Bloom Gardens in the Grand Mosque District, Burooj Views and

Towers on Shams. These deliveries bring the total residential

Up to 11,000 units are scheduled for

is expected that many of these projects will experience further delays at the

ly comprises apartments, with the

within Emirati housing communities such as Al Falah and

Most of the supply for delivery in 2012 comprises additional units in master planned

Villas, Danet, Saadiyat Island and Rawdhat. Additional

and Marasy in Bateen. Although a

prior to 2008 has since been delayed, the aggregate

The completion of new high-end apartment




buildings will improve options for higher income residents and increase vacancies in

tenants upgrade. The sales market has witnessed increased activity in Q2 2012

Emirati purchasers. The number of sales transactions has increased in line with completions in

areas and improved market confidence

UAE Commercial (Office) Secto

The commercial or office sector in UAE is witnessing a

wherein demand for quality space keeps growing at a healthy pace whilst that off B grade or less popular

locations facing a downward trend with a gl

this sector proceeds at a slightly slower pace with projects slated for completion during the first half of

2012 or even earlier facing severe delays.

Dubai’s total city-wide office stock stood a

58,000 sq m was delivered in the second quarter of 2012. The major completions during the quarter were

the Platinum Towers in Jumeirah Lakes Towers (JLT) and The Annex, an office building annexed

Khalifa in Downtown. The majority of office supply remains concentrated in onshore locations (53%),

compared with a lower proportion of the existing stock located in free zones (47%) and available to

companies operating with offshore licenses. An

market in the second half of 2012 if all the projects are delivered without delays. This still represents the

lowest level of completions since 2007. In reality, not all the proposed space will comple

some projects being delayed into 2013 and beyond. In addition to this supply, there is a further 2.2 million

sq m which has been placed on hold. Prime quality buildings in areas such as TECOM, SZR and Burj

Downtown continue to be popular locations for corporate and are witnessing stabilising rents, but poorer

quality space and buildings in secondary locations continue to see rental decline. With limited supply

entering the market, vacancy rates in office sector

buildings in DIFC such as The Gate enjoy high occupancy rates, other areas still suffer high vacancy rates,

and this trend is not expected to change soon, especially with the approach of the quieter summer months.

Although prime buildings are witnessing stable rental levels, secondary locations are expected to see

further rental decline in the second half of 2012 due to the large new supply and weak tenant demand that

is further exacerbating the supply-demand imbalance and the two t


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options for higher income residents and increase vacancies in

s market has witnessed increased activity in Q2 2012 with interest primarily from

sales transactions has increased in line with completions in

areas and improved market confidence.

UAE Commercial (Office) Sector

The commercial or office sector in UAE is witnessing a gradual stability with a two tier market situation


locations facing a downward trend with a glut in supply chasing a receding demand.


2012 or even earlier facing severe delays.

wide office stock stood at approximately 6.1 million sq m at the end of Q2 2012. Only


the Platinum Towers in Jumeirah Lakes Towers (JLT) and The Annex, an office building annexed



companies operating with offshore licenses. An additional 640,000 sq m of office supply will enter the


lowest level of completions since 2007. In reality, not all the proposed space will comple



ocations for corporate and are witnessing stabilising rents, but poorer


in office sector remained stable at around 35%



ildings are witnessing stable rental levels, secondary locations are expected to see


demand imbalance and the two tier nature of the Dubai office market.

P a g e : 39

options for higher income residents and increase vacancies in lower grade assets as

with interest primarily from

sales transactions has increased in line with completions in investment

gradual stability with a two tier market situation


ut in supply chasing a receding demand. Growth prospects in


t approximately 6.1 million sq m at the end of Q2 2012. Only


the Platinum Towers in Jumeirah Lakes Towers (JLT) and The Annex, an office building annexed to Burj



additional 640,000 sq m of office supply will enter the


lowest level of completions since 2007. In reality, not all the proposed space will complete in 2012, with



ocations for corporate and are witnessing stabilising rents, but poorer


remained stable at around 35%. While well-established



ildings are witnessing stable rental levels, secondary locations are expected to see


ier nature of the Dubai office market.




The capital city of Abu Dhabi on the other hand has reached a point where tenants are able to upgrade

space without incurring a significant increase in rent or total occupancy costs.

office supply is likely to spark a wave of increased rental incentives and other inducements, as the

competition for tenants intensifies. In the current market climate, tenants remain particularly price

sensitive and are attracted to projects where landlords ado

majority of office demand in Abu Dhabi continues to come from tenants looking to upgrade from existing

premises, rather than businesses establishing new operations or major expansions. Given modest take up

rates and rising stock, vacancy rates are expected to increase and rents are expected to fall further over the

short to medium term. Recovery of the office market is largely dependent on government economic

development initiatives to drive employment growth i

rents and availability of better quality housing will have a positive impact on office demand by making Abu

Dhabi more attractive for companies to relocate or expand their offices. Demand from the priva

remains limited, with most current requirements being for relatively small areas of between 300 sq m and

400 sq m. Government entities and state

requirements. However, most of this demand i

only major new delivery to the Abu Dhabi office market in Q2

Muneera, Raha Beach. This project added around 17,600 sq m of GLA, bringing the total office stoc

approximately 2.72 million sq m. Several large

second half of 2012, including Nation Towers on the Corniche, Al Bustan Complex on 29th street, Trust

Tower at Central Market, ADIC HQ (Al Bahr Towers) and Capital Tower at Capital Centre. These projects

have the potential to add a further 345,000 sq m to the market in 2012. However, it is likely that some of

these projects will experience additional delays. The re

anticipated future supply is providing tenants with an improving standard and range of options from which

to choose.

UAE Retail (Office) Sector

Retail sector in UAE had forever led the GCC retail market with Dubai touted to remain the Global

shopper’s paradise boasting a plethora of state of art malls and other retail establishments. The shopping

festivals hosted in Dubai had remained a major tourist attraction across the

now. UAE's insistence on evolution backed by the growing economy, rising purchasing power, and strong

consumer confidence has shaped retail with a new dimension. Along with these favourable conditions,

supportive government policy frameworks and active participation by the private sector have further


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space without incurring a significant increase in rent or total occupancy costs. The expanding range of new

supply is likely to spark a wave of increased rental incentives and other inducements, as the


sensitive and are attracted to projects where landlords adopt the most flexible terms and conditions. The



es and rising stock, vacancy rates are expected to increase and rents are expected to fall further over the


development initiatives to drive employment growth in office related sectors. The decrease in residential


Dhabi more attractive for companies to relocate or expand their offices. Demand from the priva

current requirements being for relatively small areas of between 300 sq m and

400 sq m. Government entities and state-owned enterprises constitute the majority of large scale

requirements. However, most of this demand is likely to be accommodated within their HQ projects. The

only major new delivery to the Abu Dhabi office market in Q2 2012 was the Al Noor office tower at Al

Muneera, Raha Beach. This project added around 17,600 sq m of GLA, bringing the total office stoc

approximately 2.72 million sq m. Several large-scale office projects are scheduled to be delivered


Central Market, ADIC HQ (Al Bahr Towers) and Capital Tower at Capital Centre. These projects


these projects will experience additional delays. The recent handover of Grade A office space and


UAE Retail (Office) Sector

orever led the GCC retail market with Dubai touted to remain the Global


festivals hosted in Dubai had remained a major tourist attraction across the world for several years in a row

UAE's insistence on evolution backed by the growing economy, rising purchasing power, and strong


policy frameworks and active participation by the private sector have further

P a g e : 40


The expanding range of new

supply is likely to spark a wave of increased rental incentives and other inducements, as the


pt the most flexible terms and conditions. The



es and rising stock, vacancy rates are expected to increase and rents are expected to fall further over the


n office related sectors. The decrease in residential


Dhabi more attractive for companies to relocate or expand their offices. Demand from the private sector

current requirements being for relatively small areas of between 300 sq m and

owned enterprises constitute the majority of large scale

s likely to be accommodated within their HQ projects. The

2012 was the Al Noor office tower at Al

Muneera, Raha Beach. This project added around 17,600 sq m of GLA, bringing the total office stock to

scale office projects are scheduled to be delivered in the


Central Market, ADIC HQ (Al Bahr Towers) and Capital Tower at Capital Centre. These projects


cent handover of Grade A office space and


orever led the GCC retail market with Dubai touted to remain the Global


world for several years in a row

UAE's insistence on evolution backed by the growing economy, rising purchasing power, and strong


policy frameworks and active participation by the private sector have further




facilitated retail sector's growth in the country. UAE retail industry has been witnessing strong growth in

sales for the past few years and is expected to grow in the coming ye

sector consumption along with the contribution of strong industry verticals (tourism, trade, banking, etc)

are expected to help the retail industry to grow at a CAGR of more than 3% during 2012

development of modern retail infrastructure is luring consumers for convenient shopping experience and

transforming them into high-retail spending. Per capita gross leasable area (GLA) is also increasing in the

country with construction of new malls and expansion of

of foreign retailers is fuelling growth in the shopping mall retail area development. We anticipate that, this

trend will prevail in coming years and gradually boost the retail sales growth.

Retail sector in the commercial city of Dubai remains dominated by large Super Regional Centres. These

currently account for 64% of mall based retail space however this percentage is likely to decline in the

coming years as the retail market sees increased emphasis o

retail completion in the first half of 2012 was the Madina Mall in Muhaisanah 4, with Carrefour as a main

anchor tenant. In the second half of the year, around 16,000 sq m is scheduled to be delivered with the

Phase 1 of Meraas The Avenue retail project. There have been a number of new retail announcements

made during last quarter. Meraas announced two projects, the second phase of The Avenue in Satwa and a

smaller development in Dubai Marina. Nakheel revealed The

projects have been announced as part of Dubai Sports City. With the construction of Mall of Arabia

currently on hold, the next significant retail completion in Dubai is likely to be the 158,000 sq m extension

to Dragon Mart in International City which is due to be delivered to the market in 2014. The Dubai Pearl

Shopping Mall is due to complete in 2015

The capital city of Abu Dhabi witnessed a total retail GLA of 1.68 million square meters as of quarter 2 of

2012. The delivery of the retail podium in Etihad towers increased the retail stock by around 7600 square

meters in Q2, 2012. There have been major delays in the scheduled openings of retail centres, but an

additional 300,000 sq m of retail GLA could enter the

for delivery during H2 2012 include Deerfield’s Townsquare in Bahia, Emporium Mall at Central Market and

Capital Mall in Building Materials City. Danet

complete; however the opening date remains uncertain

projects (including retail offerings within mixed

more high quality retail space. These inclu

Nation Towers, The Collection at The St. Regis and The Galleria on Sowwah Square. Some community retail

space has opened on Reem Island, including a Géant supermarket in Marina Square and Waitr


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sales for the past few years and is expected to grow in the coming years as well. Surging public and private


are expected to help the retail industry to grow at a CAGR of more than 3% during 2012

t of modern retail infrastructure is luring consumers for convenient shopping experience and

retail spending. Per capita gross leasable area (GLA) is also increasing in the

country with construction of new malls and expansion of some of the existing malls. In addition, fast inflow



or in the commercial city of Dubai remains dominated by large Super Regional Centres. These


coming years as the retail market sees increased emphasis on smaller Community Centres. The only major



ase 1 of Meraas The Avenue retail project. There have been a number of new retail announcements


smaller development in Dubai Marina. Nakheel revealed The Pointe on Palm Jumeirah while other retail



Dragon Mart in International City which is due to be delivered to the market in 2014. The Dubai Pearl

Shopping Mall is due to complete in 2015


delivery of the retail podium in Etihad towers increased the retail stock by around 7600 square

There have been major delays in the scheduled openings of retail centres, but an

additional 300,000 sq m of retail GLA could enter the market during 2012. Major retail centres scheduled


Capital Mall in Building Materials City. Danet Mall could also be delivered in 2012 as construction

however the opening date remains uncertain. In addition to new malls, a number of other

projects (including retail offerings within mixed-use schemes) are expected to enter the market, adding

more high quality retail space. These include Boutik at the Sun and Sky Tower on Reem, the retail mall at


space has opened on Reem Island, including a Géant supermarket in Marina Square and Waitr

P a g e : 41


ars as well. Surging public and private


are expected to help the retail industry to grow at a CAGR of more than 3% during 2012-2015. Rapid

t of modern retail infrastructure is luring consumers for convenient shopping experience and

retail spending. Per capita gross leasable area (GLA) is also increasing in the

some of the existing malls. In addition, fast inflow



or in the commercial city of Dubai remains dominated by large Super Regional Centres. These


n smaller Community Centres. The only major



ase 1 of Meraas The Avenue retail project. There have been a number of new retail announcements


Pointe on Palm Jumeirah while other retail



Dragon Mart in International City which is due to be delivered to the market in 2014. The Dubai Pearl


delivery of the retail podium in Etihad towers increased the retail stock by around 7600 square

There have been major delays in the scheduled openings of retail centres, but an

market during 2012. Major retail centres scheduled


Mall could also be delivered in 2012 as construction is almost

In addition to new malls, a number of other

use schemes) are expected to enter the market, adding

de Boutik at the Sun and Sky Tower on Reem, the retail mall at


space has opened on Reem Island, including a Géant supermarket in Marina Square and Waitrose in Sun




and Sky Towers. Despite revisions to previous projected supply figures, total retail stock could reach

approximately 2.3 million sq m by the end of 2014.

retail market, accounting for approximatel

currently account for 38% of total space and lead the market in terms of performance. Upcoming retail

supply will increase the proportion of mall space in Abu Dhabi as multiple community and regional

are delivered. The upcoming retail supply is expected to change the retail dynamics in Abu Dhabi,

improving the quality and retail mix. The proportion of high

luxury stores in the Etihad retail podium and

Sowwah Square and the retail centre in Nation Towers. The biggest retail development currently under

construction is Yas Mall on Yas Island which is expected to be completed by late 2013. Due

supply in the pipeline, owners of existing retail centres are making more effort to reposition their malls to

attract both retailers and consumers.

Thus the real estate sector in UAE is witnessing greater stability across all platforms of res

and commercial segments thus leading its way to a steady recovery with demand for quality spaces at

prominent locations gearing up whilst those Grade B projects in lesser prominent locations suffering the

pangs of oversupply targeting a receding demand. Over the years, the market is expected to witness

greater consolidations offering promising opportunities for quality real estate properties.

Qatar Real Estate Demand

Backed by the fastest growing economy and robust fiscal reserves the

witnessed promising developments following the Qatari Government’s avid plans

Vision 2030 mandating a complete development char

economic development between its hydrocarbon and non oil sectors.

the real estate sector as banks in Qatar are now beginning to increase their lending exposure to t

estate sector in a big way after having shunned the sector as a risky one during the period of global

economic downturn. The figures indicate that credit dispensation for property sector has now more than

quadrupled, touching QR82bn in first half o

cautious approach when lending to real estate sector until 2009, when real estate was in a bad state, but,

things have changed ever-since Qatar won the coveted 2022 World Cup bid at the end of 201

The following are the estimates of real estate demand

its key segments, namely commercial, retail and residential between 2011 and 2015.


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approximately 2.3 million sq m by the end of 2014. Non-mall space currently dominates the Abu Dhabi

retail market, accounting for approximately 50% of total supply. Super Regional and Regional Malls


supply will increase the proportion of mall space in Abu Dhabi as multiple community and regional


improving the quality and retail mix. The proportion of high-end retail has increased with the opening of

luxury stores in the Etihad retail podium and is set to further increase with the delivery of The Galleria on


construction is Yas Mall on Yas Island which is expected to be completed by late 2013. Due


attract both retailers and consumers.

Thus the real estate sector in UAE is witnessing greater stability across all platforms of res



ceding demand. Over the years, the market is expected to witness



Backed by the fastest growing economy and robust fiscal reserves the Real estate sector in Qatar has

witnessed promising developments following the Qatari Government’s avid plans

Vision 2030 mandating a complete development chart for its social infrastructure to achieve a balanced

economic development between its hydrocarbon and non oil sectors. The year 2012 spells good fortune

the real estate sector as banks in Qatar are now beginning to increase their lending exposure to t



quadrupled, touching QR82bn in first half of 2012, from QR19.8bn in 2007. Although the banks adopted a


since Qatar won the coveted 2022 World Cup bid at the end of 201

The following are the estimates of real estate demand and supply for the Qatar real estate market across


P a g e : 42


mall space currently dominates the Abu Dhabi

y 50% of total supply. Super Regional and Regional Malls


supply will increase the proportion of mall space in Abu Dhabi as multiple community and regional malls


end retail has increased with the opening of

is set to further increase with the delivery of The Galleria on


construction is Yas Mall on Yas Island which is expected to be completed by late 2013. Due to the large


Thus the real estate sector in UAE is witnessing greater stability across all platforms of residential, retail



ceding demand. Over the years, the market is expected to witness


Real estate sector in Qatar has

witnessed promising developments following the Qatari Government’s avid plans as laid out in its National

social infrastructure to achieve a balanced

The year 2012 spells good fortune for

the real estate sector as banks in Qatar are now beginning to increase their lending exposure to the real



Although the banks adopted a


since Qatar won the coveted 2022 World Cup bid at the end of 2010.

for the Qatar real estate market across





Figure 6 : Qatar Real Estate Demand

Metres) , 2011-2015

Source: DTZ Research, Colliers, Asteco, Zawy

Qatar Residential Sector

Residential sector in Qatar remains greatly benefitted by the country winning the bid to host the World

Cup football Event in 2022. Qatar has plunged in a large amount of investment in upgrading its

infrastructure in preparations for hosting

witnessing increasing demand particularly in locations where infrastructure projects are planned or under

construction across various parts of the country.

by 3 percent, while non-furnished flats have seen 1.7 percent growth in demand, over the same period last

year. A similar demand has been recorded for furnished luxurious residential flats, wherein the three

bedrooms have seen 3.5 percent growth in de

increase of 0.5 percent. The strong increase in demand for single and double bedroom apartments have

-

5,00,000

10,00,000

15,00,000

20,00,000

25,00,000

30,00,000

35,00,000

40,00,000

45,00,000

50,00,000

2011

Real

Esta

te D

eman

d an

d Su

pply

by

Segm

ent (

In S

quar

e M

eter

s)

Residential Demand

Commercial Supply


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: Qatar Real Estate Demand and Supply Estimates by Segment (Square

Source: DTZ Research, Colliers, Asteco, Zawya

Qatar Residential Sector


Qatar has plunged in a large amount of investment in upgrading its

n preparations for hosting the prestigious sporting event with the residential sector is


construction across various parts of the country. Furnished residential flats have seen increase in de

furnished flats have seen 1.7 percent growth in demand, over the same period last

A similar demand has been recorded for furnished luxurious residential flats, wherein the three

bedrooms have seen 3.5 percent growth in demand, while similar non-furnished flats have seen an

The strong increase in demand for single and double bedroom apartments have

2012 2013 2014



P a g e : 43

Estimates by Segment (Square


Qatar has plunged in a large amount of investment in upgrading its

s sporting event with the residential sector is


Furnished residential flats have seen increase in demand

furnished flats have seen 1.7 percent growth in demand, over the same period last

A similar demand has been recorded for furnished luxurious residential flats, wherein the three

furnished flats have seen an

The strong increase in demand for single and double bedroom apartments have

2015




pushed up the rental rates in Qatar wherein the second quarter of 2012 witnessed an increase of 8 perc

in the rentals when compared to q1 2012.

Keeping pace with the increasing demand, the supply of residential units is also progressing at a healthy

pace with Souq Waqif Boutique hotels recent release of four triple bedroom and five single bedroom

residences into premium segment of Doha rental market.

received its first tenants with over 40 percent of total units being allocated to various Government

departments including the Ministry of Municipal Affairs

units are of various sizes and include three bedroom flats, double bedroom flats, studio apartments in two

storey, three storey and four storey buildings

by 2013 when Lusail City is anticipated to host its first tenants towards the end of next year. several

investors have begun constructing buildings, with some of them already in the commissioning stage. Lusail

City will be complete by 2020. This p

170,000 employees in its commercial area, and will welcome more than 80,000 visitors. The total

estimated population of Lusail is 450,000.

includes four exclusive islands, 19 multi

districts. In short, it is a comprehensive arena with residential buildings, commercial avenues, leisure spots,

public ports and avenues.

Qatar Commercial (Office) Sector

In a stark contrast to the residential sector, the commercial or office sector in Qatar faces oversupply

challenges with demand for office spaces in Doha remaining limited and the market continues to receive an

oversupply of commercial properties.

square meters. The majority of Grade A stock, approximately 1.2 million square meters is located in

Diplomatic City and West bay. Office buildings in these areas continue to lead the prime market,

major Government bodies, financial institutions, oil and gas companies and other multinationals and can

command a premium of up to 35 percent above average asking rents. However, despite the strong

economic growth being experienced, demand for offi

requirements being for space less than 500 square meters. Vacancies in West bay have increased

significantly as more development projects have reached completion, which has had a compressing effect

on rental levels. Government entities will continue to provide the major proportion of office demand in the

short term, however a number of construction and engineering services companies are expanding their


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pushed up the rental rates in Qatar wherein the second quarter of 2012 witnessed an increase of 8 perc

in the rentals when compared to q1 2012.



ences into premium segment of Doha rental market. Earlier in June 2012, the Barwa City complex had


departments including the Ministry of Municipal Affairs and Urban Planning Development.


storey, three storey and four storey buildings. Additional residential units are expected to reach th



City will be complete by 2020. This project has the capacity to accommodate nearly 200,000 residents and


estimated population of Lusail is 450,000. The Lusail City, spans across an area of 38 squar

includes four exclusive islands, 19 multi-purpose residential, mixed use commercial and entertainment


Qatar Commercial (Office) Sector



oversupply of commercial properties. Total city wide office stock is currently estimated at 3.4 million


Diplomatic City and West bay. Office buildings in these areas continue to lead the prime market,



economic growth being experienced, demand for office space remains at a subdued level with most


more development projects have reached completion, which has had a compressing effect

overnment entities will continue to provide the major proportion of office demand in the


P a g e : 44

pushed up the rental rates in Qatar wherein the second quarter of 2012 witnessed an increase of 8 percent



the Barwa City complex had


and Urban Planning Development. The residential


Additional residential units are expected to reach the market



roject has the capacity to accommodate nearly 200,000 residents and


area of 38 square kilometres and

purpose residential, mixed use commercial and entertainment




ty wide office stock is currently estimated at 3.4 million


Diplomatic City and West bay. Office buildings in these areas continue to lead the prime market, housing



ce space remains at a subdued level with most


more development projects have reached completion, which has had a compressing effect

overnment entities will continue to provide the major proportion of office demand in the





regional operations, setting up in Doha to service the infra

the 2022 World Cup. The government has identified the small and medium enterprises (SMEs) sector as a

future opportunity for growth with professional and financial services firms also expanding their

presence. This coupled with Qatar’s strong economic fundamentals should improve Doha’s competitive

presence in the regional and international market.

Qatar Retail Sector

Retail sector in Qatar had undergone a dramatic change over the past decade shifting from the more

traditional profile of small shops and souqs towards larger malls and dedicated shopping districts.

country’s retail real estate segment is expected to s

2012, up from 45,000 square metres in 2000. With new retail projects either under construction or in the

planning stages, Doha’s GLA is expected to top 1 million square metres by 2012, a far cry from t

square metres of 2000. This represents a 20

developed in conjunction with massive property projects such as The Pearl Qatar, which will have nearly

200,000 square metres dedicated to

square metres. The increase in supply of retail space is matched by an equally robust demand fuelled by an

expanding economy though not at the double digit rates enjoyed over the past few

Thus the real estate sector in Qatar is set to experience mixed prospects with c

to be the most benefited from the activity surrounding the World Cup event followed by the retail sector

though the frantic pace of supply that is entering the market has caused some concern for analysts who

believe will be hard to match with demand after the completion of the football event.

Kuwait Real Estate Demand

In stark contrast to the established and developing marke

real estate sector in Kuwait had witnessed a challenging year bogged by the effects of Global economic

downturn and the political unrests impacting the economic developments across GCC.

established market, Kuwait too has been plagued by oversupply

plans of expansion and diversification similar to the other GCC countries in

the real estate sector in Kuwait is expected in 20

2011.


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regional operations, setting up in Doha to service the infrastructure work being undertaken in advance of



This coupled with Qatar’s strong economic fundamentals should improve Doha’s competitive

presence in the regional and international market.


traditional profile of small shops and souqs towards larger malls and dedicated shopping districts.

country’s retail real estate segment is expected to see a gross lettable area of 1 million square metres by


planning stages, Doha’s GLA is expected to top 1 million square metres by 2012, a far cry from t

square metres of 2000. This represents a 20-fold growth in 12 years. Much of this new retail space is being


retailing, and the soon-to-open Lagoona Mall, with more than 50,000

The increase in supply of retail space is matched by an equally robust demand fuelled by an

expanding economy though not at the double digit rates enjoyed over the past few

Thus the real estate sector in Qatar is set to experience mixed prospects with commercial real estate likely


that is entering the market has caused some concern for analysts who



In stark contrast to the established and developing markets of Saudi Arabia, UAE and Qatar, the emerging


downturn and the political unrests impacting the economic developments across GCC.

Kuwait too has been plagued by oversupply challenges as it embarked on its ambitious

plans of expansion and diversification similar to the other GCC countries in 2011

the real estate sector in Kuwait is expected in 2012 after property sales increased by over 35 percent in

P a g e : 45

structure work being undertaken in advance of



This coupled with Qatar’s strong economic fundamentals should improve Doha’s competitive


traditional profile of small shops and souqs towards larger malls and dedicated shopping districts. The

ee a gross lettable area of 1 million square metres by


planning stages, Doha’s GLA is expected to top 1 million square metres by 2012, a far cry from the 45,000

fold growth in 12 years. Much of this new retail space is being


open Lagoona Mall, with more than 50,000

The increase in supply of retail space is matched by an equally robust demand fuelled by an

expanding economy though not at the double digit rates enjoyed over the past few years.

ommercial real estate likely


that is entering the market has caused some concern for analysts who


ts of Saudi Arabia, UAE and Qatar, the emerging


downturn and the political unrests impacting the economic developments across GCC. Similar to other

as it embarked on its ambitious

2011. However a recovery in

12 after property sales increased by over 35 percent in




The figure below describes the demand and supply forecast for Kuwait real estate sector across the three

major segments of residential, commercial and retail for the years 2011 to 2015

Figure 7: Kuwait Real Estate Market Demand

segment (Square Metres) , 2011

Source: Markaz, Capital Standards, NBK Capita

Kuwait Residential Sector

Residential sector in Kuwait is typically driven by the growth of expatriate population constituting the

largest component of Kuwaiti population in addition to ensuring greater transparency and maturity leading

to complete information exchange in the real

report from the National Bank of Kuwait (NBK), total value of real estate purchases reached KD 2.7 billion

as of 2011 off which residential sales accounted for 54 percent of the total sales

experienced 11 percent increase in the total number of transactions with most of these increases coming

-

2,00,000

4,00,000

6,00,000

8,00,000

10,00,000

12,00,000

2011

Real

est

ate

Dem

and

and

Supp

ly b

y Se

gmen

t (In

Squ

are

Met

ers)

Residential Demand

Commercial Supply


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major segments of residential, commercial and retail for the years 2011 to 2015

: Kuwait Real Estate Market Demand and Supply

2011-2015

Source: Markaz, Capital Standards, NBK Capital, Construction Week Online

Kuwait Residential Sector



to complete information exchange in the real estate sector. According to the latest GCC economic outlook


as of 2011 off which residential sales accounted for 54 percent of the total sales

11 percent increase in the total number of transactions with most of these increases coming

2012 2013 2014

Residential Demand Residential Supply Commercial Demand

Commercial Supply Retail Demand Retail Supply

P a g e : 46


and Supply Estimates by



According to the latest GCC economic outlook


as of 2011 off which residential sales accounted for 54 percent of the total sales. The year 2011 also

11 percent increase in the total number of transactions with most of these increases coming

2015

Commercial Demand




from the residential property transactions.

sustained interest in the investment sector, i.e. apartment buildings that generate income

sector sales were KD87.5 million for December, a 15.1% increase year on year. The investment sector,

mainly apartments and buildings intended for rental, saw KD61.3 million in transac

14% drop year on year. ‘The decline stemmed from a decrease in the number of transactions, which

dropped 13% year on year. This slow down is likely to be temporary and activity in the sector should pick

up in the months ahead, as investor interest remains high.


The Kuwait office market is primarily located with the CBD/Sharq area of Kuwait city and Kuwait Free Trade

Zone (KFTZ). Of the total stock of 1.2 million square meters approximately 30 percent

properties such as Sahab Towers housing companies such as Microsoft, BP, Shell, United Airlines, Cisco and

Arraya Tower which is the current location for National Bank of Kuwait. New supply that is currently being

pre-leased includes Al Hamra Tower in Kuwait City’s Sharq district providing a GLA of 100,000 square

meters of office space over 70 levels. Occupiers continue cost cutting and there has been increase in

second hand space entering the market as more companies consolidate their

become increasingly tenant favourable. Rent levels peaked in mid 2009 at an average of KD 12

square meter per month. Since the onset of financial crisis rents in a few areas have fallen by as much as 50

percent with modern offices quoting KD 6 per square meter per month. With demand levels still subdued

further downward pressure on rental levels is anticipated over the next 6 to 12 months. Given the level of

supply available and the significant number of buildings coming to

substantial political intervention and broadening of the economic base of Kuwait, the office oversupply will

continue to spill its negative effects over the short to medium term.

Kuwait Retail Sector

Retail sector in Kuwait remains an important contributor to the economic development despite the

absence of vibrant tourist attractions, bitter climatic conditions or stringent Muslim laws. Kuwait is a cash

rich oil exporter and remains as a key player in the region’s ret

international brands and high flying business people the world over.

to the high disposable income per capita among its population, not to mention a

economic outlook. According to estimates by the International Monetary Fund (IMF), the country is one of

the richest in the world, with a 2011 GDP per capita of over $40,700. Economically, Kuwait remains in a


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from the residential property transactions. The real estate sector recovered further in 2011, with special

tment sector, i.e. apartment buildings that generate income


mainly apartments and buildings intended for rental, saw KD61.3 million in transac



stor interest remains high.



Zone (KFTZ). Of the total stock of 1.2 million square meters approximately 30 percent



l Hamra Tower in Kuwait City’s Sharq district providing a GLA of 100,000 square


second hand space entering the market as more companies consolidate their operations. The market has

become increasingly tenant favourable. Rent levels peaked in mid 2009 at an average of KD 12


offices quoting KD 6 per square meter per month. With demand levels still subdued


supply available and the significant number of buildings coming to the market, it is likely that without


continue to spill its negative effects over the short to medium term.

an important contributor to the economic development despite the


rich oil exporter and remains as a key player in the region’s retail boom attracting the interest of

international brands and high flying business people the world over. Kuwait’s growth in this sector

to the high disposable income per capita among its population, not to mention a



P a g e : 47

The real estate sector recovered further in 2011, with special

tment sector, i.e. apartment buildings that generate income. Residential


mainly apartments and buildings intended for rental, saw KD61.3 million in transactions for December, a




Zone (KFTZ). Of the total stock of 1.2 million square meters approximately 30 percent is prominent Grade A



l Hamra Tower in Kuwait City’s Sharq district providing a GLA of 100,000 square


operations. The market has

become increasingly tenant favourable. Rent levels peaked in mid 2009 at an average of KD 12-15 per


offices quoting KD 6 per square meter per month. With demand levels still subdued


the market, it is likely that without


an important contributor to the economic development despite the


ail boom attracting the interest of

growth in this sector is down

to the high disposable income per capita among its population, not to mention a favorable long term






strong position because of its growing oil and gas sector, as well as strong government spending. Kuwaiti

consumers are sophisticated and have high levels of disposable income. They are keen to shop in large

shopping centers that provide them with a range of high

market further, is a growth in urbanization

of the population is expected to be classified as urban by 2015, surging disposable incomes among families

mean that ‘premiumisation’ is becoming a potential avenue of growth. Added to this is a rise in the number

foreign workers crossing the border from Iraq, also said to be helping increase retailers’ profits. In the next

three years, the consultancy expects the value of the ret

KWD2.27bn ($8.45bn) in 2011 to KWD3.25bn ($12.09bn).

However, this is not to say the market in Kuwait is free of challenges.

hefty consumer purchasing power were unable to protec

country’s GDP growth hard as it fell into negative territory amid years of strong growth.

with high inflation during 2008 and 2009, had an extremely negative impact on consumer confidence

spending, particularly among expats.

categories within the sector that have managed to flourish throughout the more difficult times, such as

more value products. Importantly, retaile

designed to accommodate the pre-recession market, are also bearing the brunt of the change, with the gap

between the country’s primary and secondary shopping

competition between hypermarkets is also expected to heat up, whilst the fashion market will continue to

soar as a slew of big players descend on the market. It all adds up to a bonanza for local shoppers, who are

witnessing a retail boom in the unlikeliest of areas.

Thus with the real estate sector providing mixed growth prospects in terms of encouraging developments

in the residential and retail segment whilst bearing the brunt of oversupply challenges in its commercial

arena, investors vying to enter this market are encouraged to assess the quantum and extent of

opportunities and challenges posed by these sectors prior to making informed decisions.

Bahrain Real Estate Demand

Real estate sector in Bahrain remains subdued e

country’s economic development suffered the negative effects of global economic downturn in addition to

the countrywide political unrests causing further damages to an already battering economy.


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ng oil and gas sector, as well as strong government spending. Kuwaiti


that provide them with a range of high-quality, international brand

urbanization, busy lifestyles, and working women. Whilst almost 99 percent


ation’ is becoming a potential avenue of growth. Added to this is a rise in the number


three years, the consultancy expects the value of the retail segment to rise by 43.1 percent, from

KWD2.27bn ($8.45bn) in 2011 to KWD3.25bn ($12.09bn).

However, this is not to say the market in Kuwait is free of challenges. The country’s high oil revenues and

hefty consumer purchasing power were unable to protect it from the global financial crisis, which hit the

country’s GDP growth hard as it fell into negative territory amid years of strong growth.

with high inflation during 2008 and 2009, had an extremely negative impact on consumer confidence

spending, particularly among expats. Though retail is fairly resilient within the GCC, it is only specific


more value products. Importantly, retailers are not the only ones suffering. Malls, which were originally

recession market, are also bearing the brunt of the change, with the gap

between the country’s primary and secondary shopping centers becoming ever more appare



in the unlikeliest of areas.



ying to enter this market are encouraged to assess the quantum and extent of



Real estate sector in Bahrain remains subdued experiencing a moderate recovery from 2011 where the


countrywide political unrests causing further damages to an already battering economy.

P a g e : 48

ng oil and gas sector, as well as strong government spending. Kuwaiti


quality, international brands. Boosting the retail

, busy lifestyles, and working women. Whilst almost 99 percent


ation’ is becoming a potential avenue of growth. Added to this is a rise in the number


ail segment to rise by 43.1 percent, from

he country’s high oil revenues and

t it from the global financial crisis, which hit the

country’s GDP growth hard as it fell into negative territory amid years of strong growth. This, combined

with high inflation during 2008 and 2009, had an extremely negative impact on consumer confidence and

Though retail is fairly resilient within the GCC, it is only specific


rs are not the only ones suffering. Malls, which were originally

recession market, are also bearing the brunt of the change, with the gap

becoming ever more apparent. In addition,





ying to enter this market are encouraged to assess the quantum and extent of


xperiencing a moderate recovery from 2011 where the


countrywide political unrests causing further damages to an already battering economy. The Kingdom’s




real estate sector continues to experience difficulties, with the residential, office and commercial segments

all seeing little activity in the first half 2012. However, as private developers reconsider several projects

currently on hold and government infrastructure projects get underway, there is a general sense that the

sector may be close to a turning point.

second quarter of this year, but though numbers are still modest, developers ar

residential units in targeted market segments, such as middle

The following is the estimate for Bahrain Real Estate Demand

and 2015.

Figure 8 : Bahrain Real Estate Demand

(square Metres) , 2011-2015

Source: Source: Jones Lang LaSalle, Colliers International

Despite witnessing a challenging year ahead, the real estate sector in Bahrain is experiencing

recovery with modest growth particularly in the residential sector thus presenting some opportunities as

described below

-

2,00,000

4,00,000

6,00,000

8,00,000

10,00,000

12,00,000

14,00,000

16,00,000

18,00,000

2011

Real

Esta

te D

eman

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pply

by

Segm

ent (

In S

quar

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eter

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Residential Demand

Commercial Supply


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t infrastructure projects get underway, there is a general sense that the

sector may be close to a turning point. Most segments of the real estate sector have been quiet in the

second quarter of this year, but though numbers are still modest, developers ar

residential units in targeted market segments, such as middle-income villas.

The following is the estimate for Bahrain Real Estate Demand and Supply across Segments between 2011

Real Estate Demand and Supply Estimates by Segment

aSalle, Colliers International

pite witnessing a challenging year ahead, the real estate sector in Bahrain is experiencing

th modest growth particularly in the residential sector thus presenting some opportunities as

2012 2013 2014



P a g e : 49



t infrastructure projects get underway, there is a general sense that the

sector have been quiet in the

second quarter of this year, but though numbers are still modest, developers are beginning to sell

across Segments between 2011

Estimates by Segment

pite witnessing a challenging year ahead, the real estate sector in Bahrain is experiencing a gradual

th modest growth particularly in the residential sector thus presenting some opportunities as

2015




Bahrain Residential Sector

The residential segment in Bahrain is characterised by a strong demand for low cost affordable housing

units which is yet to be met by new stocks.

a position to invest in such units even if it were available thus

inexpensive apartments. High land prices, which have

wealthy Bahrainis and corporate investment, together with the lack of infrastructure in remote areas and

high building costs, have also made it difficult for private developers to lower costs enough to mee

lower-income segment’s housing needs. As a result, they have turned their focus to the middle

segment, where some master-planned projects have revised their schemes to attract this group.

expatriates and investor/speculators remain mi

near future by the perception that the Kingdom has pressing housing needs across a variety of sectors and

locations, and current prices may well represent good value in the context of likely future move

While there have been some reports of a rise in the number of foreigners seeking rental accommodation,

mainly due to an increase in expatriates being employed in the hydrocarbons sector, this move in the

market is acutely area-specific. Also contrib

coming on to the market with the limited take

pool. However, this has only been enough to reverse the downward movement in rents but no

back into positive territory. One factor that may help stimulate activity in the sector, and the associated

construction industry, is the government’s plan to pump $550m into fast

the programme aiming to reduce at least some of the pool of more than 50,000 families waiting for state

accommodation.


In the commercial real estate sector, although the earlier political demonstrations and civil unrests

witnessed in the first half of 2011 have now subsided, their wider implications for the economy and the

real estate sector are still being felt with low levels of investment, development and occupier activity

relative to historic levels. The current supply of office space across the thre

District, Central Manama and The Diplomatic area) is approximately 650,000 square meters with an

estimated vacancy of 25 percent approximately. Although the country has reached a point of relative

stability and many future projects have been cancelled or postponed the effect of demand and supply

imbalance is not expected to improve in the immediate term and rental levels are likely to move further

down in 2012. As Bahrain strives to retain its role as a regional financial centr


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Bahrain Residential Sector


et to be met by new stocks. However, Bahrainis in the lower income group are often not in

a position to invest in such units even if it were available thus creating a rental market for relatively small,

High land prices, which have largely been the result of speculative activity by


high building costs, have also made it difficult for private developers to lower costs enough to mee

income segment’s housing needs. As a result, they have turned their focus to the middle

planned projects have revised their schemes to attract this group.

expatriates and investor/speculators remain minimal at the moment but may well be stimulated in the


locations, and current prices may well represent good value in the context of likely future move



specific. Also contributing to stabilising rental costs is the lack of new properties

coming on to the market with the limited take-up of available rental accommodation draining the supply

pool. However, this has only been enough to reverse the downward movement in rents but no


construction industry, is the government’s plan to pump $550m into fast-tracked, low

t least some of the pool of more than 50,000 families waiting for state



011 have now subsided, their wider implications for the economy and the


The current supply of office space across the three main CBD’s of Bahrain (Seef



jects have been cancelled or postponed the effect of demand and supply


down in 2012. As Bahrain strives to retain its role as a regional financial centr

P a g e : 50


Bahrainis in the lower income group are often not in

creating a rental market for relatively small,

largely been the result of speculative activity by


high building costs, have also made it difficult for private developers to lower costs enough to meet the

income segment’s housing needs. As a result, they have turned their focus to the middle-income

planned projects have revised their schemes to attract this group. Sales to

nimal at the moment but may well be stimulated in the


locations, and current prices may well represent good value in the context of likely future movements.



uting to stabilising rental costs is the lack of new properties

up of available rental accommodation draining the supply

pool. However, this has only been enough to reverse the downward movement in rents but not push them


tracked, low-cost housing, with

t least some of the pool of more than 50,000 families waiting for state


011 have now subsided, their wider implications for the economy and the


e main CBD’s of Bahrain (Seef



jects have been cancelled or postponed the effect of demand and supply


down in 2012. As Bahrain strives to retain its role as a regional financial centre, Government efforts to




support the private sector and reinstall confidence in the market will be crucial for the retention of

international companies and attracting foreign investments.

Bahrain Retail Sector

The outlook for the retail sector is mixed, with some of Bahrain’s shopping centres are facing difficulties,

while other indicators suggest that consumer sentiment remains solid and spending could be set to rise.

Intense competition between malls,

and unrest in some areas have combined to weaken the performance of several of the country’s malls.

While malls such as the City Centre and Seef Mall continued to enjoy high occupancy and strong ren

rates, others have had difficulty retaining tenants and drawing customers. The entry of the 150,000

metre City Centre mall in 2008 has had a major impact on rates and occupancy levels at other local

shopping venues. The remaining malls have been fac

tenants, and in some cases rates have fallen by almost 75% as mall management have sought to maintain

both occupancy and footfall levels. Low occupancy rates in major office complexes like Bahrain Financia

Harbour (BFH) have reduced traffic for associated retail outlets. Despite these issues, new retail projects

are moving ahead. In mid-May2012, the management of the residential and commercial project Diyar Al

Muharraq announced it had signed an agreement

shopping mall on the Bahraini company’s self

centre will begin shortly and the company has said it expects to attract 500,000 visitors a year once

completed in September 2014. The Kingdom’s retailers also look set to benefit from improving consumer

sentiment, with a number of key indicators suggesting activity should pick up in the

According to the findings of the latest regiona

firm YouGov, Bahrain’s consumer confidence remains resilient, with many shoppers indicating they could

raise their spending levels. While the majority (58%) of Bahraini respondents thought it was a

terms of business conditions, some 24% said it was a good time to make purchases. This positive news for

retailers was further bolstered by the survey’s findings, which showed Bahrain’s Propensity to

Consume/Spend Index (PCI) rose to 104.9 poin

their spending in the coming months.

Thus with its focus on gearing the real estate sector back to the pre recession levels and moving ahead with

the development reforms, Bahrain has various op

and retail developments whilst seeking optimisation in the over supplied commercial real estate arena.


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international companies and attracting foreign investments.



, increase in the number of smaller neighbourhood shopping centres


hile malls such as the City Centre and Seef Mall continued to enjoy high occupancy and strong ren

rates, others have had difficulty retaining tenants and drawing customers. The entry of the 150,000


shopping venues. The remaining malls have been faced with increasing vacancy rates and lower profile


both occupancy and footfall levels. Low occupancy rates in major office complexes like Bahrain Financia


, the management of the residential and commercial project Diyar Al

Muharraq announced it had signed an agreement with Chinese firm Chinamex to roll out a themed

shopping mall on the Bahraini company’s self-titled island. Work on the 46,000-sq



sentiment, with a number of key indicators suggesting activity should pick up in the

According to the findings of the latest regional consumer confidence survey conducted by market research


raise their spending levels. While the majority (58%) of Bahraini respondents thought it was a



Consume/Spend Index (PCI) rose to 104.9 points, meaning a majority of respondents were likely to increase

.


the development reforms, Bahrain has various opportunities to offer in terms of affordable housing units


P a g e : 51




in the number of smaller neighbourhood shopping centres


hile malls such as the City Centre and Seef Mall continued to enjoy high occupancy and strong rental

rates, others have had difficulty retaining tenants and drawing customers. The entry of the 150,000-sq-


ed with increasing vacancy rates and lower profile


both occupancy and footfall levels. Low occupancy rates in major office complexes like Bahrain Financial


, the management of the residential and commercial project Diyar Al

with Chinese firm Chinamex to roll out a themed

sq-metre Dragon City retail



sentiment, with a number of key indicators suggesting activity should pick up in the latter half of 2012.

l consumer confidence survey conducted by market research


raise their spending levels. While the majority (58%) of Bahraini respondents thought it was a bad time in



ts, meaning a majority of respondents were likely to increase


portunities to offer in terms of affordable housing units





Oman Real Estate Demand

Buoyed by high oil prices and robust economy, the real

strong in 2012 but under the constraints of a continuing oversupply market, buyers and tenants will very

much be governing the sector. The real estate sector in Oman is set for progressive developments ensur

greater professional practices and transparency with the recent launch of Oman Real Estate Association in

second half of 2012. The beginning of 2012 witnessed a steady and cautious recovery in the real estate

sector driven by Omani Government’s augment

into transforming Muscat as the most preferred Global tourist attraction. However, the impacts of global

economic downturn and the Arab spring impacting the neighbouring countries of Bahrain had inde

its lasting effects on the sector in Oman as well with oversupply challenges impacting a few sectors in a

more pronounced manner whilst others have exhibited greater resilience.

The following is the demand and supply

between 2011 and 2015.


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Buoyed by high oil prices and robust economy, the real estate property market in Oman is set to remain


The real estate sector in Oman is set for progressive developments ensur



sector driven by Omani Government’s augmented efforts to improve the tourism and hospitality sector


economic downturn and the Arab spring impacting the neighbouring countries of Bahrain had inde


more pronounced manner whilst others have exhibited greater resilience.

and supply estimate for the Oman Real Estate Market across Segments

P a g e : 52

estate property market in Oman is set to remain


The real estate sector in Oman is set for progressive developments ensuring



ed efforts to improve the tourism and hospitality sector


economic downturn and the Arab spring impacting the neighbouring countries of Bahrain had indeed left


te Market across Segments




Figure 9 : Oman Real Estate Demand

(Square Metres) , 2011-2015


Oman Residential Sector

The residential sector in Oman had exhibited strong resilience posing a gradual recovery from the effects of

global economic downturn and political unrests affecting the economy as a whole. The start of 2012

witnessed a significant increase in apartment su

established locations. Good quality apartments in prime locations will retain or even increase their value

due to strong demand and limited opportunities

residential sector is likely to witness a two tier market wherein well designed properties suited to

desires have relatively stable rental values and high occupancy rates whilst those that are poorly designed

have declining rental values and increas

-

1,00,000

2,00,000

3,00,000

4,00,000

5,00,000

6,00,000

7,00,000

8,00,000

9,00,000

2011

Real

Esta

te D

eman

d an

d Su

pply

by

Segm

ent (

in S

quar

e M

eter

s)

Residential Demand

Commercial Supply


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: Oman Real Estate Demand and Supply Estimates


Oman Residential Sector



witnessed a significant increase in apartment supply across Muscat matching a steady demand in


due to strong demand and limited opportunities for further development in the restricted areas.

sidential sector is likely to witness a two tier market wherein well designed properties suited to


have declining rental values and increasing vacancy rates. The sales market will continue to be fluid and

2012 2013 2014


Commercial Supply Retail Demand Retail Supply

P a g e : 53

Estimates across Segments



pply across Muscat matching a steady demand in


for further development in the restricted areas. The

sidential sector is likely to witness a two tier market wherein well designed properties suited to tenants’


The sales market will continue to be fluid and

2015




somewhat unpredictable with both buyers and owners playing a waiting game within the residential

property market.

Oman Commercial (Office) Sector

The Commercial real estate sector in Oman i

growth in general business and industrial sectors in Muscat over the next five to ten years. The stock of

modern purpose built office space in Muscat has increased dramatically over the last few

by economic and demographic growth and the Government’s diversification and privatisation initiatives.

Existing graded stock totals approximately 600,000 square meters the majority of which comprises Grade B

space. Buildings that meet with international company’s requirements remain limited in supply. However

this is set to change over the coming years with the expected completion of several new buildings including

Al Rawaq Building in Qurum and Tilal Complex in Al Khuwair.

between 2, 00,000 and 2, 50,000 square meters of office space to the market in the next five years. A new

energy efficient office building being opened in Muscat’s Qurum district in July 2012 with COWI Oman the

company that assisted with the design occupying the second level of the building. Although the demand

has remained relatively stable over the first half of the year, prime office rents in Muscat have declined by

33 percent year on year and now stand at OMR 8 per square

the west of the city where there is less traffic congestion. As commercial landscape transforms and new

supply is delivered to the market, the country is expected to witness further falls in rentals as landlords

begin to compete on offering quality, service and incentives to retain and attract office occupiers. Due to

lack of suitable accommodation available at present, companies are looking at the option of construction

purpose built space. This trend may result

in existing locations within Ruwi/CBD and Al Khuwair.

Oman retail Sector

Similar to other emerging markets, retail sector in Oman continues to enjoy a stable growth with a steady

influx of supply matching a healthy demand for organized retail space particularly in the capital city of

Muscat. Total retail stock in Muscat

retail centres. This figure does not include a large number of

mixed use buildings as predominant in areas such as Ruwi, Ghubrah North and Al Khuwair. Over the next

18 months, developments under construction will deliver an additional 100,000 square meters of good

quality retail mall space. Muscat City Centre will continue to dominate the retail mall sector in terms of

footfall and rental values but the Muscat Grand Mall, located in Al Khuwair, is due to open and will provide


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Oman Commercial (Office) Sector

The Commercial real estate sector in Oman is expected to remain in good health following an anticipated


modern purpose built office space in Muscat has increased dramatically over the last few



international company’s requirements remain limited in supply. However


Al Rawaq Building in Qurum and Tilal Complex in Al Khuwair. The current supply pipeline is expected to add

square meters of office space to the market in the next five years. A new


assisted with the design occupying the second level of the building. Although the demand


33 percent year on year and now stand at OMR 8 per square meter per month. Demand is now shifting to





purpose built space. This trend may result in additional downward pressure on occupancy levels and rents

in existing locations within Ruwi/CBD and Al Khuwair.


ly matching a healthy demand for organized retail space particularly in the capital city of

Muscat amounts to approximately 300,000 square meters

retail centres. This figure does not include a large number of ground floor retail units and showrooms in



ail mall space. Muscat City Centre will continue to dominate the retail mall sector in terms of

but the Muscat Grand Mall, located in Al Khuwair, is due to open and will provide

P a g e : 54


s expected to remain in good health following an anticipated


modern purpose built office space in Muscat has increased dramatically over the last few years stimulated



international company’s requirements remain limited in supply. However


ly pipeline is expected to add

square meters of office space to the market in the next five years. A new


assisted with the design occupying the second level of the building. Although the demand


meter per month. Demand is now shifting to





in additional downward pressure on occupancy levels and rents


ly matching a healthy demand for organized retail space particularly in the capital city of

mately 300,000 square meters in purpose built

ground floor retail units and showrooms in



ail mall space. Muscat City Centre will continue to dominate the retail mall sector in terms of

but the Muscat Grand Mall, located in Al Khuwair, is due to open and will provide




a similar amount of retail space as part of a major

meters of retail space, the Muscat Grand Mall is the most significant retail mall, in terms of size, to open in

the capital area since 2001. The mall will have 160 retail units anchored by a Carrefour

provide a multiplex cinema, food court and children’s entertainment area.

(Opera Galleria), which will provide around 6,500 square meters of leasable space, is now due to open

towards the middle of this year, almost a year after its initial projected opening date. The mall is aimed at

the high end of the retail market and will have around 60 retail units ranging in size from 50 to 450 square

meters in addition to a range of restaurants and cafés. The mall has

the InterContinental Hotel site which is due for major redevelopment.

There exists a continued demand for smaller retail space, in particular from the food and beverage sector,

where potential retail tenants are search

proven footfall and/or in prominent locations with ample car parking provision.

strong for established shopping malls with proven footfalls.

Thus with the economic development back on track, the Oman real estate sector is bouncing back to a

gradual recovery promising opportunities across its prime sectors of residential, commercial and retail over

the next five to ten years.

Opportunities and Challenges

Real estate sector in the GCC countries is backed by robust economic fundamentals laid on foundations of

sustainable economic developments balancing the growth in oil and non oil sectors in addition to a healthy

fiscal reserves, prudent investment policies, and inflation under control despite the heavy investments

made by the Governments to boost their construction sectors. While the established economies have

marched ahead with large scale development plans the emerging economies are gradually b

to recovery with the help of prudent Government investments. However inherent challenges in the form of

luring investors confidence in the growth prospects and procurement of finance inhibits or restricts growth

in certain markets particularly those affected by oversupply and consolidation issues. Given these

conditions, the GCC real estate sector presents certain key challenges whilst providing numerous


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a similar amount of retail space as part of a major mixed use development. Providing around 60,000 square


the capital area since 2001. The mall will have 160 retail units anchored by a Carrefour

provide a multiplex cinema, food court and children’s entertainment area. The Royal Opera House mall


, almost a year after its initial projected opening date. The mall is aimed at


meters in addition to a range of restaurants and cafés. The mall has a proposed footbridge connection to

the InterContinental Hotel site which is due for major redevelopment.

ontinued demand for smaller retail space, in particular from the food and beverage sector,

where potential retail tenants are searching for space within successful shopping destinations attracted by

proven footfall and/or in prominent locations with ample car parking provision.

strong for established shopping malls with proven footfalls.



Challenges



nt policies, and inflation under control despite the heavy investments


marched ahead with large scale development plans the emerging economies are gradually b


investors confidence in the growth prospects and procurement of finance inhibits or restricts growth

those affected by oversupply and consolidation issues. Given these


P a g e : 55

mixed use development. Providing around 60,000 square


the capital area since 2001. The mall will have 160 retail units anchored by a Carrefour Express and will also

The Royal Opera House mall


, almost a year after its initial projected opening date. The mall is aimed at


a proposed footbridge connection to

ontinued demand for smaller retail space, in particular from the food and beverage sector,

ing for space within successful shopping destinations attracted by

proven footfall and/or in prominent locations with ample car parking provision. Demand will also remain





nt policies, and inflation under control despite the heavy investments


marched ahead with large scale development plans the emerging economies are gradually bouncing back


investors confidence in the growth prospects and procurement of finance inhibits or restricts growth

those affected by oversupply and consolidation issues. Given these





opportunities for the sector which are summarised in the following figure.

A young

power

numerous

Impeding

Budget

opportunities

Strong government

estate growth

Introduction

easing

international


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young and health growth in population with increasing purchasing

driving the demand for affordable housing units offers

numerous opportunites across the established and emerging markets.

Impeding recovery from Global economic slowdown, GDP,Inflation,

Surpluses and high oil prices with good oil reserves creating

opportunities for growth of construction and real estate

government backing and economic stimulus to help boost real

growth

Introduction of legislations paving way for increased transparency and

property registeration procedures and licences lures

international investors to construction and real estate sector

The threat of oversupply particularly in less favourable real

assets inhibits investors intrests thus impeding the much

financial impetus

Receding demand in Commercial sector continues to dampen

and increase vacancy rates

Demand supply mismatches in the residential segment as

housing is the need of the hour while developers continue to

more lucrative luxury segment forcing government to step in

Regulatory reforms continue to be disjointed and incomplete

preventing foreign captial from flowing into the region

extent that would benefit its real estate sector

P a g e : 56


.

real estate

much required

dampen rentals

affordable

to flock the

in

incomplete

to the full




Chapter 3.Future Outlook for MENA Real Estate SectorWith 43 percent of the construction projects still on hold across the GCC markets on the one hand, and

heavy investment by governments across social and physical infrastructure reviving construction and real

estate activity gradually on the other, the real estate sector in the GCC has tread a

since a combination of the global economic slowdown and the Arab Spring and the burst of property

bubbles hit it in late 2009. As governments such as

on diversification and expansion programmes not only to reduce dependence on their depleting

hydrocarbon reserves, but also to shield the economies from the adverse effects of the slowdown, the real

estate sector stood to be the biggest beneficiary. Government spending on social infrastructure also

ensured that regional unrest such as the Arab Spring did not affect these economies; rather the safe haven

offered by these countries in terms of investment

effect of the Arab Spring and European slowdown into these markets.

The real estate markets of the GCC economies are already characterized by a strong demand backed by a

growing, affluent population. When governments began strengthening their regulatory framework and

ushering in greater transparency in a bid to attract investment, markets have gradually begun to look

ahead and usher in growth across the commercial, residential and retail segments, th

segments continue to be plagued by oversupply as these economies built up on a large scale in anticipation

of demand amid the boom years of 2007 to 2009, and continue to do so albeit at a more cautious pace in

2012 as well.

Some GCC countries took up focus areas to develop and base their expansion and diversification plans on

such as Qatar hosting the World Cup 2022 Football event, Oman showcasing itself as a tourist destination

for global tourism while others turned their focus inward such

introduced low cost housing schemes and financing to bridge gaps in this section of the real estate market

and counter any unrest that might arise among the population due to paucity of dwellings.

Elsewhere across the MENA region, political unrest took its toll heavily on the emerging markets such as

Egypt, Lebanon and Jordan, and to a sm

fragile political stability has emerged in 2012 albeit at th


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3.Future Outlook for Real Estate Sector

With 43 percent of the construction projects still on hold across the GCC markets on the one hand, and


ate activity gradually on the other, the real estate sector in the GCC has tread a


bubbles hit it in late 2009. As governments such as Saudi Arabia, UAE and Qatar cont



tate sector stood to be the biggest beneficiary. Government spending on social infrastructure also


offered by these countries in terms of investment and tourism drew global investors in hordes in a reverse

effect of the Arab Spring and European slowdown into these markets.


. When governments began strengthening their regulatory framework and


ahead and usher in growth across the commercial, residential and retail segments, th



es took up focus areas to develop and base their expansion and diversification plans on


for global tourism while others turned their focus inward such as Oman, Kuwait, UAE and Saudi Arabia, that



across the MENA region, political unrest took its toll heavily on the emerging markets such as

Egypt, Lebanon and Jordan, and to a smaller extent Bahrain and Kuwait. In Egypt, Lebanon and Jordan,

fragile political stability has emerged in 2012 albeit at the cost of battered fiscal and external financial

P a g e : 57

3.Future Outlook for

With 43 percent of the construction projects still on hold across the GCC markets on the one hand, and


ate activity gradually on the other, the real estate sector in the GCC has tread a tumultuous growth path


Saudi Arabia, UAE and Qatar continued to spend heavily



tate sector stood to be the biggest beneficiary. Government spending on social infrastructure also


and tourism drew global investors in hordes in a reverse


. When governments began strengthening their regulatory framework and


ahead and usher in growth across the commercial, residential and retail segments, though commercial



es took up focus areas to develop and base their expansion and diversification plans on


as Oman, Kuwait, UAE and Saudi Arabia, that



across the MENA region, political unrest took its toll heavily on the emerging markets such as

aller extent Bahrain and Kuwait. In Egypt, Lebanon and Jordan,

e cost of battered fiscal and external financial




positions of these economies and investor confidence that would take a wait and watch policy by the

global investors to resume normalcy.

economic readjustment programmes for their economies to put the

However, as government take regulatory measures as well to revive markets and woo investors and

continue to hold a robust pipeline of projects that are due for comple

growth of fresh projects is not a big concern in a predominantly oversupplied market. The real estate

markets have also witnessed a correction and transition to management services rather than

indiscriminate construction, which also add to the long run sustainability of the market and its growth

beyond 2012.


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global investors to resume normalcy. Real estate markets too would require clear cut policies and clear

nomic readjustment programmes for their economies to put them back on the path of


continue to hold a robust pipeline of projects that are due for completion in 2012 and beyond, the larger



, which also add to the long run sustainability of the market and its growth

P a g e : 58


Real estate markets too would require clear cut policies and clear

m back on the path of growth.


tion in 2012 and beyond, the larger



, which also add to the long run sustainability of the market and its growth




Chapter4. Projects Profile

List of Major Projects

Project Name

Country Client

King Abdullah City of Atomic and Renewable Energy

Saudi Arabia

King Abdullah City of Atomic and Renewable Energy (KAcare)

King Abdullah Economic City (KAEC)

Saudi Arabia

Emaar Economic City

500,000 Housing Units in Different Areas of Saudi Arabia

Saudi Arabia

Ministry of Housing; Saudi Arabia

Sudair Industrial City Phase 1

Saudi Arabia

Saudi Industrial Property Authority (Modon)

Mega Tourism Projects on Saudi Red Coast

Saudi Arabia

Supreme Commission for Tourism; Saudi Arabia

Yas Development in Al Habl Al Abbyad Island

UAE ALDAR Properties


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Chapter4. GCC Real Estate Projects Profile

List of Major Projects in the GCC Real Estate Sector, 201

Client Consultant Contractor

King Abdullah City of Atomic and Renewable Energy (KA-

Snohetta International (Norway)

-

Emaar Economic

- Multiple Contractors

Ministry of Housing; Saudi Arabia

Parsons Engineering Corp.

-

Industrial Property Authority (Modon)

Jurong International

Supreme Commission for Tourism; Saudi Arabia

- -

ALDAR Properties

Jack Rouse Associates

Multiple Contractors

P a g e : 59

GCC Real Estate

in the GCC Real Estate Sector, 2012

Value (US$

Million)

Project Status

100,250 Design

100,000 Construction

67,000 Design

40,000 Construction

40,000 Feasibility Study

40,000 Construction




Project Name

Country Client

Jazan Economic City (JEC)

Saudi Arabia

Saudi Binladin Group; MMC Corporation Berhad (Malaysia); Saudi Arabian General Investment Authority (SAGIA)

Jeddah Kingdom City

Saudi Arabia

Kingdom Holding Company; Emaar MiddEast Properties

Ras Al Khair Minerals Industrial City

Saudi Arabia

Royal Commission for Jubail and Yanbu (RCJY)

Saadiyat Island Development Project

UAE Abu Dhabi Tourism Authority (ADTA); Tourism Development & Investment Co. (TDIC)

Masdar City in Abu Dhabi

UAE Masdar (Abu Dhabi Future Energy Company)

South Obhur Project

Saudi Arabia

Rayadah Investment Company


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Binladin ; MMC

Corporation Berhad (Malaysia); Saudi Arabian General

stment Authority (SAGIA)

MMC Corporation Berhad (Malaysia)

Kingdom Holding Company; Emaar Middle

Properties

Pickard Chilton Architects; Omrania & Associates (O&A);

Saudi Binladin Group

Commission for Jubail and Yanbu (RCJY)

W. S. Atkins -

Abu Dhabi Tourism Authority (ADTA); Tourism Development & Investment Co. (TDIC)


Masdar (Abu Dhabi Future Energy Company)

Flack & Kurtz Consulting Engineers; ETA Ascon; Transsolar; WSP Group

Al Ahmadiah Contracting; Dubai; Hip Hing Construction -Hong Kong

Rayadah Investment Company

Sulaiman Al Khorashi Office

-

P a g e : 60

Value (US$

Million)

Project Status

30,000 Construction

udi Binladin 27,000 Construction

25,000 Design

23,500 Construction

Al Ahmadiah

Dubai; Hip Hing -

22,000 Construction

15,000 Tender for Construction Contract




Project Name

Country Client

King Faisal University in Al Ihsa

Saudi Arabia

King Faisal University

Madinaty Development

Egypt Talaat Moustafa Group Holding; Egypt

Qasr Khozam Saudi Arabia

Dar Al ADevelopment CompanyJeddah Development and Urban Regeneration Company

Al Ruwais Development in Jeddah

Saudi Arabia

Al Ruwais Union Company for Real Estate Development

Lulu Island Development

UAE Sorouh Real Estate

Expansion of Makkah Holy Haram

Saudi Arabia

General Presidency of Holy Mosques Affairs


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King Faisal University

Arch-Centre for Architecture & Engineering Consultant

Abdullah A. M. Al Khodari Sons Co.; AlKhobar; Al Arrab Contracting Company; APTC Trading & Contracting Company; Haif Trading & Contracting Establishment; Yuksel Construction Saudia Co. Ltd. (YISC)

Moustafa

Holding;

Helman Hurley Charvat Peacock; USA; Sasaki; USA; Simpson Weather Associates; USA

Alexandria Construction Company

Dar Al Arkan Development Company; Jeddah Development and Urban Regeneration Company

Dar Al Handasah Shair & Partners

-

Al Ruwais

Company for Real Estate Development

Rasd International Group

Saudi Binladin Group; Dallah Albaraka Group; Zenel Company

Sorouh Real

Martha Schwartz Partners (USA)

-

General Presidency of

Mosques

- Saudi Binladin Group

P a g e : 61

Value (US$

Million)

Project Status

Abdullah A. M. Al Khodari Sons Co.; AlKhobar; Al Arrab

Company; APTC Trading &

Company; Haif Trading &

Saudia Co. Ltd.

14,721 Construction

14,000 Construction

13,000 Design

udi Binladin ; Dallah

Group; Zenel

13,000 Construction

11,000 Design





Project Name

Country Client

Metropolitan Development Strategy (MEDSTAR) at Riyadh

Saudi Arabia

Arriyadh Development Authority

Nebras Aviation City

UAE Strata

Makkah Gate Cultural Oasis

Saudi Arabia

Al Balad Al Ameen Company for Urban Development; Makkah Municipality; Sumou Real Estate Company; Makkah Gate Company

Marsa Zayed Project

Jordan Al Maabar AbdounEstate Development Company; Aqaba Special Economic Zone Authority

Ghantoot Green City

UAE International Capital Trading LLC

King Abdullah Financial District (KAFD)

Saudi Arabia

Public Pension Agency (PPA); Rayadah Investment Company

New Doha International Airport

Qatar NDIA Steering Committee

Barwa Al Khor Project – Urjuan

Qatar Barwa Real Estate Company; Qatar


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Arriyadh Development Authority

Dar Al Riyadh Architecture & Engineering; Shankland Cox; Urbis

-

- -

Al Balad Al Ameen Company for

Development; Makkah Municipality; Sumou Real

Company; Makkah Gate Company

- -

Al Maabar Abdoun Real

Development Company; Aqaba Special Economic

Authority

- -

International Capital Trading LLC

KEO International Consultants

-

Pension Agency (PPA); Rayadah Investment Company


NDIA Steering Committee


Barwa Real

Company;

KEO International Consultant

-

P a g e : 62

Value (US$

Million)

Project Status

11,000 Feasibility Study

10,000 Concept Stage

10,000 Design


10,000 Design

10,000 Construction

10,000 Construction

9,600 Design




Project Name

Country Client

Festival City in Abu Dhabi

UAE Abdullah Al Futtaim Group; Al Futtaim Investments

The Shams Abu Dhabi Reem Island


Danet Abu Dhabi

UAE Al Qudra Real Estate

Marjan Island UAE Rakeen Development

Pilgrim City North of Mina City

Saudi Arabia

Ministry of Municipal & Rural Affairs (MOMRA);Saudi Arabia

Riyadh East Sub Center

Saudi Arabia

Hamed & Ahmed Mohammed Al Mozainy Real Estate Co.

Prince Abdulaziz Bin Mosaed Economic City

Saudi Arabia

Al-Mal Kuwaiti Company; Mohammed Abdulmohsin Al Kharafi & Sons; Kuwait; Saudi Arabian General Investment Authority (SAGIA); Rakisa Holding Co.


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Abdullah Al Futtaim Group; Al Futtaim Investments

- -

Sorouh Real

R.W. Armstrong and Associates Inc.


Al Qudra Real

Architectural & Engineering Consultants; Abu Dhabi (AEC); RSP (Raglan Squire and Partners ) Architects


Rakeen Development

Conser Consulting


Ministry of Municipal & Rural Affairs (MOMRA); Saudi Arabia

- -

Hamed & Ahmed Mohammed Al Mozainy Real Estate

W. S. Atkins -

Mal Kuwaiti Company; Mohammed Abdulmohsin Al Kharafi & Sons; Kuwait; Saudi Arabian General Investment Authority (SAGIA);

Holding Co.

- -

P a g e : 63

Value (US$

Million)

Project Status

9,537 Concept Stage

9,537 Construction

9,260 Construction

9,000 Construction

8,000 Concept Stage


8,000 Design




Project Name

Country Client

Najmat Abu Dhabi in Reem Island

UAE Reem Investments

Kingdom Riyadh Land

Saudi Arabia

Kingdom Holding Company

Hyde Park Egypt Damac Properties; Egypt

Knowledge Economic City in Madina (KEC)

Saudi Arabia

Seera Real Estate Development Company

Boubyan Island Development

Kuwait Ministry of Public Works (MPW); Kuwait; Mega Projects Agency (MPA)

King Abdullah Bin Abdulaziz Project For Development of Security Forces Medical Complexes

Saudi Arabia

Ministry of Interior; Riyadh; Ministry of Interior; Jeddah

Tareeq Al-Mawazee Project in Makkah

Saudi Arabia

Dallah Albaraka Group


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Investments - Multiple

Contractors

Kingdom Holding Company

Omrania & Associates (O&A); Saudi Arabia

-

Damac Properties;

Engineering Consultants Group (ECG); Egypt

The Egyptian Eng. & Trad. Co.; Al - Hazik Egyption Union For Construction

Seera Real

Development Company

Omrania & Associates (O&A); Saudi Arabia; IBI Group

-

Ministry of Public Works (MPW); Kuwait; Mega Projects Agency

Hellmuth Obata Kassabaum (HOK); Gulf Consult; Mouchel; Kuwait

-

Ministry of Interior; Riyadh; Ministry of Interior; Jeddah

Dar Al Handasah Shair & Partners

-

Albaraka

- -

P a g e : 64

Value (US$

Million)

Project Status

8,000 Construction

7,000 Design

The Egyptian Eng. & Trad.

Hazik Egyption Union

7,000 Construction

6,700 Construction

6,640 Construction


5,600 Design




Project Name

Country Client

Musheireb Development

Qatar Msheireb Properties

Al Ghadeer at Saih As Sidirah


Capital District in Abu Dhabi

UAE Urban Planning Council

The Abdali Urban Regeneration Project - Phase 1

Jordan Abdali Investment and Development Company (AIDC)

Al Maryah Island Development in Abu Dhabi

UAE Mubadala Development Company

North Bahrain New Town Project

Bahrain Ministry of Works & Housing; Bahrain

National Guard - Housing Units

Saudi Arabia

Saudi National Guard


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Msheireb Properties

Burns & McDonnell; USA

CAT International; Hyundai Engineering & Construction Company; Qatar; HBK Contracting; Qatar Building Company; Carillion Qatar; Brookfield Multiplex

Sorouh Real

Sun Jin Engineering (South Korea)

-

Planning Council

Mott MacDonald

-

Investment

Development Company

- Navayuga Engineering Company Ltd.

Mubadala Development Company

- Saudi Oger Ltd

Ministry of Works & Housing; Bahrain

- -

National

- Saudi Oger; Riyadh; Saudi Binladin Group; Rabiah and Nassar and Al Zamil Concrete Industries Company Ltd. (Ranco & Zamil)

P a g e : 65

Value (US$

Million)

Project Status

Engineering &

Qatar; HBK

Qatar Building

Carillion Qatar;

5,500 Construction

5,400 Construction

5,000 Design

5,000 Construction

5,000 Construction

4,500 Design

Saudi Oger; udi

; Rabiah and Nassar and Al Zamil Concrete

Company Ltd. (Ranco & Zamil)

4,500 Construction




Project Name

Country Client

Sharjah Marina

UAE Burooj Properties; Abu Dhabi

Al Markaz in Mussafah

UAE Waha Capital

TMG - Residential City in Jeddah

Saudi Arabia

Talaat Moustafa Group Holding; Egypt; Alexandria for Real Estate Investment Co.

Source: Ventures Onsite MENA Projects Database (


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Burooj Properties; Abu Dhabi

Khatib & Alami Consolidated Engineering Company

-

Waha Capital Arcadis Gulf -

Moustafa

Holding;

Alexandria for Real

Investment

Zuhair Fayez Partnership Consultants

Saudi Binladin Group

Source: Ventures Onsite MENA Projects Database (www.venturesonsite.com)

P a g e : 66

Value (US$

Million)

Project Status

4,087 Design

4,087 Construction




http://www.venturesonsite.com)


Profile of the Mega GCC

King Abdullah City of Atomic and renewable energy Saudi Arabia Project Value : US$ 1,00,250 million

Construction Start : Q1 2014

Client : KA-CARE, Saudi Arabia

Consultant : Snohetta International (Norway)

Scope: The project calls for the construction of King Abdullah City of Atomic and Renewable Energy, a

scientific center for nuclear and renewable power.

power together with renewable energy to be used in Sa

Abdullah City of Atomic and Renewable Energy headquarter

entity authorized to develop the city.

Schedule: Snohetta has been selected as the design consultant for the project

King Abdullah Economic City (KAEC), Saudi Arabia

Project Value : US$ 1,00,000 million


Client : Emaar Economic City, Saudi Arabia

Consultant : SAGIA, WATG, Parsons International, Dubai, Wimberley Allison Tong & Goo (WAT&G), Skidmore, Owings

& Merrill (SOM),SP Architects Planners & Engineers Pte.Ltd

Scope: The proposed mixed use development will be built over a 55 million square metres site, with a 35

kilometre beachfront and executed in various stages with have six major elements:

1. Millennium seaport, on an area of 13.8 million square meters with home to light industries and logistics

firms and will be served by an integrated transport system. The port will have a dedicated Hajj terminal,

with capacity to receive 500,000 pilgrims each seaso

metres 3. Waterside resort, including 3,500 units including hotels, apartments, towers, suites and villas,

besides shopping malls and a golf course. 4.


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GCC Projects

of Atomic and renewable energy

Status : Design

Completion : Q1 2017

Location: Riyadh Province, Saudi Arabia

Snohetta International (Norway)

The project calls for the construction of King Abdullah City of Atomic and Renewable Energy, a

scientific center for nuclear and renewable power. The facility will investigate the application of nuclear

power together with renewable energy to be used in Saudi Arabia to meet rising electricity demand.

Abdullah City of Atomic and Renewable Energy headquartered in Riyadh will be the independent legal

entity authorized to develop the city.

has been selected as the design consultant for the project and it


Status : Construction


Client : Emaar Economic City, Saudi Arabia Location: Makkah Province (Between Jeddah and

Rabeigh), Saudi Arabia


Merrill (SOM),SP Architects Planners & Engineers Pte.Ltd

: The proposed mixed use development will be built over a 55 million square metres site, with a 35


, on an area of 13.8 million square meters with home to light industries and logistics


with capacity to receive 500,000 pilgrims each season, 2. Industrial district, on an area of 8 million square

, including 3,500 units including hotels, apartments, towers, suites and villas,

besides shopping malls and a golf course. 4. Financial Island, including two 60

P a g e : 67

of Atomic and renewable energy (KA-CARE),

Province, Saudi Arabia

The project calls for the construction of King Abdullah City of Atomic and Renewable Energy, a

The facility will investigate the application of nuclear

udi Arabia to meet rising electricity demand. King

in Riyadh will be the independent legal

and it is in the design stage.


Location: Makkah Province (Between Jeddah and


: The proposed mixed use development will be built over a 55 million square metres site, with a 35


, on an area of 13.8 million square meters with home to light industries and logistics


, on an area of 8 million square

, including 3,500 units including hotels, apartments, towers, suites and villas,

, including two 60-storey and 100-storey




towers, offering a total of 500,000 square metres of office space, 5.

construction of a town centre. The property is to be built along a cornice includes a marina and yacht club

with 450 boat moorings and a souk to be built on a 350,000

universities, schools and research and development centres.

Schedule: The second Phase of the project is expected to be completed in the second quarter of 2014.

500,000 Housing Units in Different Areas of Saudi Arabia

Project Value : US$ 67,000 million


Client :Ministry of Housing, Saudi Arabia

Consultant: Parsons Engineering Corp.

Scope: The project calls for the construction of 500,000 low

Schedule: Consultant awarded first phase of contract in July 2011.

Sudair Industrial City Phase 1, Saudi Arabia


Construction Start : Q3 2013 (Estimated)

Client : Saudi Industrial Property Authority (Modon)

Consultant: Jurong International, Abu Dhabi

Scope: The project entails construction of an industrial zone in the North of Riyadh,

and will be developed on Phases, and once completed it will accommodate 1 million residents. Phase 1 will

over 15 kilometre square and will consist of commercial, warehouse, residential, industrial, technological, and leisure

facilities.

Schedule: Saudi Industrial Property Authority (SIPA) invited more than 60 developers to invest in Sudair

conceptual design of the master plan was completed in September 2008. 10 Companies were short listed to develop

Sudair Industrial City. The ITB for the BOT contract was issued in September 2009.The successful developer will be

responsible for hiring sub-developers for the project. The deadline to submit bids for the BOT contract was expected

on 24 October 2009, but delayed. Saudi Industrial Property Authority (Modon) will develop this phase, and sub

developers will be appointed to develop the rem

finishing stages.


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towers, offering a total of 500,000 square metres of office space, 5. Residential district


d a souk to be built on a 350,000-sq.m site and 6. Education zone

universities, schools and research and development centres.

The second Phase of the project is expected to be completed in the second quarter of 2014.

Housing Units in Different Areas of Saudi Arabia

Status : Design


Client :Ministry of Housing, Saudi Arabia Location: Saudi Arabia

The project calls for the construction of 500,000 low-cost housing units in different areas of Saudi Arabia.

Schedule: Consultant awarded first phase of contract in July 2011.

Sudair Industrial City Phase 1, Saudi Arabia


2013 (Estimated) Completion : Q1 2028 (Estimated)

Client : Saudi Industrial Property Authority (Modon) Location: Sudair, Riyadh Province, Saudi Arabia

International, Abu Dhabi

he project entails construction of an industrial zone in the North of Riyadh, to occupy 285 kilometres square

and will be developed on Phases, and once completed it will accommodate 1 million residents. Phase 1 will


Schedule: Saudi Industrial Property Authority (SIPA) invited more than 60 developers to invest in Sudair



developers for the project. The deadline to submit bids for the BOT contract was expected


developers will be appointed to develop the remaining phases of the Sudair City. The infrastructure package is in the

P a g e : 68

Residential district, which calls for the


Education zone, comprising

The second Phase of the project is expected to be completed in the second quarter of 2014.

Housing Units in Different Areas of Saudi Arabia

cost housing units in different areas of Saudi Arabia.

2028 (Estimated)

Location: Sudair, Riyadh Province, Saudi Arabia

occupy 285 kilometres square

and will be developed on Phases, and once completed it will accommodate 1 million residents. Phase 1 will spread


Schedule: Saudi Industrial Property Authority (SIPA) invited more than 60 developers to invest in Sudair City. The



developers for the project. The deadline to submit bids for the BOT contract was expected


The infrastructure package is in the




Mega Tourism Projects on Saudi Red Coast



Client : Supreme Commission for Tourism, Saudi Arabia

Scope: The project calls for the construction of a mega tourism projects on Saudi Red Coast, over an area of 18,000

kilometres. The new resorts will be located at Arrayes in Yanbu, Ras Muhaisen in Makkah, Haridha in Assir, Fursan in

Jizan, and Ras Humaid, Sharma, Qayyal, and Dhaffart Al

Schedule: Prince Sultan signed a contract with an international consultancy firm. Feasibility studies are ongoing

Yas Development in Al Habl Al Abbyad Island



Client : ALDAR Properties

Consultant: Jack Rouse Associates

Scope: Al Habl Al Abbyad Island located in the eastern coast of Abu Dhabi was acquired by Aldar Properties to create

a strongly-branded high quality leisure destination.

for a race track, rides and attractions, and virtual simulations. There will also be an advanced and sophisticated

circuit where tests and driving courses will be organized as well as races. Th

residential and hospitality components embracing the design ethics of Ferrari brand.

There will also be 2 major marinas and yachting facilities, a water park, 3 golf courses, a polo field and equestrian

centre. Shopping will be one of the major attractions with retail area occupying 300,000 sq

Schedule: Construction has been completed for several packages while some packages are currently under

construction and also under design.


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Mega Tourism Projects on Saudi Red Coast, Saudi Arabia

Status : Feasibility Study

Completion: Q2 2022

Supreme Commission for Tourism, Saudi Arabia Location: Arrayes in Yanbu, Ras Muhaisen in Makkah,

Haridha in Assir, Fursan in Jizan, and Ras Humaid,

Sharma, Qayyal, and Dhaffart Al

he project calls for the construction of a mega tourism projects on Saudi Red Coast, over an area of 18,000


Qayyal, and Dhaffart Al-Wajh in Tabouk.

Prince Sultan signed a contract with an international consultancy firm. Feasibility studies are ongoing

Yas Development in Al Habl Al Abbyad Island, UAE


(Estimated) Completion : Q2 2028 (Estimated)

Location: Yas Island, Abu Dhabi, UAE

Island located in the eastern coast of Abu Dhabi was acquired by Aldar Properties to create

branded high quality leisure destination. The development which will have a Ferrari concept will be home


circuit where tests and driving courses will be organized as well as races. The concept will also include hotels, retail,

residential and hospitality components embracing the design ethics of Ferrari brand.


Shopping will be one of the major attractions with retail area occupying 300,000 sq

Construction has been completed for several packages while some packages are currently under

P a g e : 69

, Saudi Arabia

Arrayes in Yanbu, Ras Muhaisen in Makkah,

Haridha in Assir, Fursan in Jizan, and Ras Humaid,

Sharma, Qayyal, and Dhaffart Al-Wajh in Tabouk

he project calls for the construction of a mega tourism projects on Saudi Red Coast, over an area of 18,000


Prince Sultan signed a contract with an international consultancy firm. Feasibility studies are ongoing.

, UAE

2028 (Estimated)

Abu Dhabi, UAE

Island located in the eastern coast of Abu Dhabi was acquired by Aldar Properties to create

The development which will have a Ferrari concept will be home


e concept will also include hotels, retail,


Shopping will be one of the major attractions with retail area occupying 300,000 square metres.

Construction has been completed for several packages while some packages are currently under




Jazan Economic City (JEC)



Client : Saudi Binladin Group; Saudi Arabia; MMC Corporation Berhad (Malaysia); Saudi Arabian General Investment Authority (SAGIA); Jeddah

Consultant: MMC Corporation Berhad (Malaysia)

Scope: Jazan Economic City (JEC) is the fourth economic city in Saudi Arabia as the country looks to attract foreign

investment and the transfer of technology. JEC is located about 725

sq. kilometres project located in Jizan on the Red Sea coast will comprise an industrial zone with a port, an

aluminium refinery with capacity of 1.2 million

650,000 (t/y), steel and copper processing plants, an oil refinery,

a 4,000-MW power and desalination plant. The remaining area will consist of a central business district, residential

areas, a marina and municipal buildings.

Schedule: A joint venture of the local Sa

license to develop the city. Contract is for 30 years.

Jeddah Kingdom City, Saudi Arabia



Client : Kingdom Holding Company; Emaar Middle East

Properties; Saudi Arabia

Consultant: Pickard Chilton Architects; Omrania & Associates (O&A); Saudi Arabia

Scope: The project entails construction and development of 23 million square meters located in northern area of

Jeddah on the Red Sea coastline, comprising a sky scraper (known as Mile High Tower or Kingdom Tower, claimed to

become the largest in the world beating the current tallest Burj Dubai) that is surrounded by residential units,

commercial space, office area, education vicinity, entertainment facilities, and hotels. The residential area will be 1.5

million square meters and the commercial area will

150,000 square meters and the area of offices will be 800,000 square meters. The remaining land will be utilized for

leisure facilities, tourism and construction of four star hotels.

Schedule: The main construction contract for the Kingdom T

quarter of 2011.


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Economic City (JEC), Saudi Arabia


Completion : Q4 2022 (Estimated)

Saudi Binladin Group; Saudi Arabia; MMC (Malaysia); Saudi Arabian General

Location: Jizan, Saudi Arabia

MMC Corporation Berhad (Malaysia)

Economic City (JEC) is the fourth economic city in Saudi Arabia as the country looks to attract foreign

investment and the transfer of technology. JEC is located about 725 kilometres south of Jeddah. Two third of the 117

Jizan on the Red Sea coast will comprise an industrial zone with a port, an

refinery with capacity of 1.2 million tonnes a year (t/y), aluminium smelter with production of about

650,000 (t/y), steel and copper processing plants, an oil refinery, a fish processing and agricultural factories including

MW power and desalination plant. The remaining area will consist of a central business district, residential

A joint venture of the local Saudi Binladin Group (SBG) and Malaysia's MMC Corporation was awarded a

license to develop the city. Contract is for 30 years.

Jeddah Kingdom City, Saudi Arabia


(Estimated) Completion : Q4 2022 (Estimated)

Kingdom Holding Company; Emaar Middle East Location: Makkah Province,

Pickard Chilton Architects; Omrania & Associates (O&A); Saudi Arabia

The project entails construction and development of 23 million square meters located in northern area of


d beating the current tallest Burj Dubai) that is surrounded by residential units,


million square meters and the commercial area will be 470,000 square meters. Educational vicinity with an area of


leisure facilities, tourism and construction of four star hotels.

construction contract for the Kingdom Tower was awarded to Saudi Binladin Group in the 3rd

P a g e : 70

2022 (Estimated)

Economic City (JEC) is the fourth economic city in Saudi Arabia as the country looks to attract foreign

south of Jeddah. Two third of the 117

Jizan on the Red Sea coast will comprise an industrial zone with a port, an

smelter with production of about

a fish processing and agricultural factories including

MW power and desalination plant. The remaining area will consist of a central business district, residential

udi Binladin Group (SBG) and Malaysia's MMC Corporation was awarded a

2022 (Estimated)

Makkah Province, Jeddah, Saudi Arabia

The project entails construction and development of 23 million square meters located in northern area of


d beating the current tallest Burj Dubai) that is surrounded by residential units,


be 470,000 square meters. Educational vicinity with an area of


ower was awarded to Saudi Binladin Group in the 3rd




Ras Al Khair Minerals Industrial City, Saudi Arabia

Project Value : US$ 25000 million

Construction Start : Q4 2014 ( Estimated )

Client : Royal Commission for Jubail and Yanbu

Consultant: W.S. Atkins, Dubai

Scope: The project calls for the construction of an industrial economic city dedicated to downstream minerals and

petrochemicals as the feedstock. It will be developed in the Eastern Province on the Gulf Coast. The city will benefit

from the export port and surrounding minerals deposits (AL Jalamid Phosphate Mines in the north and Al Zabira

Bauxite Mines in the northeast) which will be transported on rail to the city’s plants.

Schedule: In 2006, SAGIA had announced the launching of Ras Al Khair

by 2022. Royal commission for Jubail and Yanbu signed a $15.9 million consultancy contract with the consortium of

Atkins with Ali Khoder Al Harbia and Ahmed Omr Radi Engineering Consultancy Co. on 3 July 2010.

contract, the joint venture will be responsible for putting the initial master plan, the detailed master plan and the

main design of the project including roads and preparing the tenders documents. Ras Al Khair used to be known as

Ras Al Zour. In July 2011 the government change Ras Al Zour name into Ras Al Khair.

Saadiyat Island Development Project, UAE



Client : Abu Dhabi Tourism Authority (ADTA) and Tourism

Development and Investment Company (TDIC)

Consultant: Parsons International, Abu Dhabi and Hills International, Abu Dhabi

Scope: Project calls for the development of Saadiyat

Abu Dhabi city, into a major mixed use luxury development. Spread over 1,800 hectares, individual plots of land will

be developed by investors who will buy the land on long term lease agreem

individual districts with 29 hotels totalling 7,000 rooms, including a seven

cultural centres, two golf courses, civic and leisure facilities, sea

will comprise a total of 8,000 villas and 38,000 apartments. The six island districts are: Cultural District, Al Marina,

Saadiyat Beach, South Beach, Saadiyat Park and The Wetlands. Saadiyat is expected to be a home to more than

150,000 people and will be linked to Abu Dhabi via two 10


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Status : Design

( Estimated ) Completion : Q4 2022 ( Estimated )

Royal Commission for Jubail and Yanbu Location: Ras Al Zour, Eastern Province, Saudi Arabia



d surrounding minerals deposits (AL Jalamid Phosphate Mines in the north and Al Zabira

Bauxite Mines in the northeast) which will be transported on rail to the city’s plants.

Schedule: In 2006, SAGIA had announced the launching of Ras Al Khair Resource City. Project completion is expected

Royal commission for Jubail and Yanbu signed a $15.9 million consultancy contract with the consortium of

Atkins with Ali Khoder Al Harbia and Ahmed Omr Radi Engineering Consultancy Co. on 3 July 2010.



Zour. In July 2011 the government change Ras Al Zour name into Ras Al Khair.

Saadiyat Island Development Project, UAE



Tourism Authority (ADTA) and Tourism

Development and Investment Company (TDIC)

Location: Abu Dhabi, UAE

Consultant: Parsons International, Abu Dhabi and Hills International, Abu Dhabi

Project calls for the development of Saadiyat Island with an area of 27,000 hectares, located 7 km offshore of


be developed by investors who will buy the land on long term lease agreements. The master plan envisages six highly

individual districts with 29 hotels totalling 7,000 rooms, including a seven-star resort, three marinas, museums and

cultural centres, two golf courses, civic and leisure facilities, sea-view apartments and elite



,000 people and will be linked to Abu Dhabi via two 10-lane freeways and a third bridge linking with Shahama in

P a g e : 71


( Estimated )

Location: Ras Al Zour, Eastern Province, Saudi Arabia



d surrounding minerals deposits (AL Jalamid Phosphate Mines in the north and Al Zabira

Resource City. Project completion is expected

Royal commission for Jubail and Yanbu signed a $15.9 million consultancy contract with the consortium of

Atkins with Ali Khoder Al Harbia and Ahmed Omr Radi Engineering Consultancy Co. on 3 July 2010. According to the



Island with an area of 27,000 hectares, located 7 km offshore of


ents. The master plan envisages six highly

star resort, three marinas, museums and

view apartments and elite villas. The development



lane freeways and a third bridge linking with Shahama in




the East.

Schedule: Saadiyat will be developed in three phases with total completion scheduled for 2018. A public joint stock

company called Tourism Development and Investment Company (TDIC) was formed in April 2006 to manage the

project. TDIC will be responsible for the infrastructu

million.

Masdar City in Abu Dhabi, UAE



Client : Masdar (Abu Dhabi Future Energy Company)

Contractor : Al Ahmadiah Contracting, Dubai, Hip Hing

Construction - Hong Kong

Scope: MASDAR (Abu Dhabi Future Energy Company) plans to construct an energy, science, and technology

community beside Khalifa City and Abu Dhabi International Airport. The free zone development will be a unique and

integrated project which plans on using the pri

a zero carbon and zero-waste sustainable development. The 6

renewable energy with services digitally managed and providing real time

200 meters to the nearest transport link and amenities, the network of streets will encourage walking and is

complemented by personalized rapid transport system. Shaded walkways and narrow streets will create a pede

friendly environment in the context of Abu Dhabi's extreme climate. Surrounding land will contain wind, photovoltaic

farms, research fields and plantations, enabling the city to be self

centred on 2 plazas. The first stage includes the construction of a 60 megawatt photovoltaic power plant that will

supply electricity for constructing the rest of the city. This will be followed by a 130

Schedule: In July 2010, Foster + Partners announced that the revised master plan for Masdar City is almost complete.

The said revision will form part of a wider overhaul to the overall master plan design thus; further mixed

of Masdar City will soon be implemented.

South Obhur Project, Saudi Arabia



Client : Rayadah Investment Company


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will be developed in three phases with total completion scheduled for 2018. A public joint stock


project. TDIC will be responsible for the infrastructure of the island, which is estimated to be around Dhs.5, 500

Masdar City in Abu Dhabi, UAE



(Abu Dhabi Future Energy Company) Location: Abu Dhabi

Al Ahmadiah Contracting, Dubai, Hip Hing Consultant: Flack & Kurtz Consulting Engineers; ETA

Ascon; Abu Dhabi; Transsolar; WSP Group; Abu Dhabi

MASDAR (Abu Dhabi Future Energy Company) plans to construct an energy, science, and technology


integrated project which plans on using the principles of a walled city, together with existing technologies to achieve

waste sustainable development. The 6-square-kilometer city will be car

renewable energy with services digitally managed and providing real time information. With a maximum distance of


complemented by personalized rapid transport system. Shaded walkways and narrow streets will create a pede


farms, research fields and plantations, enabling the city to be self-sustaining. Masdar will be developed in phases

zas. The first stage includes the construction of a 60 megawatt photovoltaic power plant that will

supply electricity for constructing the rest of the city. This will be followed by a 130-acre main square.


The said revision will form part of a wider overhaul to the overall master plan design thus; further mixed

oon be implemented. Construction is ongoing.

South Obhur Project, Saudi Arabia

Status : Tender for Construction Contract

2012 (Estimated) Completion : Q3 2022 (Estimated)

Location: Jeddah, Makkah Province, Saudi Arabia

P a g e : 72

will be developed in three phases with total completion scheduled for 2018. A public joint stock


re of the island, which is estimated to be around Dhs.5, 500

27 (Estimated)

Flack & Kurtz Consulting Engineers; ETA

Ascon; Abu Dhabi; Transsolar; WSP Group; Abu Dhabi

MASDAR (Abu Dhabi Future Energy Company) plans to construct an energy, science, and technology


nciples of a walled city, together with existing technologies to achieve

kilometer city will be car-free, powered by

information. With a maximum distance of


complemented by personalized rapid transport system. Shaded walkways and narrow streets will create a pedestrian


sustaining. Masdar will be developed in phases

zas. The first stage includes the construction of a 60 megawatt photovoltaic power plant that will

acre main square.


The said revision will form part of a wider overhaul to the overall master plan design thus; further mixed-use phases


2022 (Estimated)

Location: Jeddah, Makkah Province, Saudi Arabia




Consultant: Sulaiman Al Khorashi Office

Scope: The project calls for the construction of a mixed use development in Jeddah, over an area of 2.6 million

square meters located close to King Abdul

residential suburbs. Apartment Buildings will cover an area of 2,800 square meters. The other five suburbs include

727 two-storey (Duplex) residential villas.

region. There will be 15 plots of land specified for the commercial investment, offices, and services as well as 2 plots

of land for the commercial leisure activities.

Schedule: Tender for the main construction contract of the 727 duplex villas worth US$250 million (estimated) has

been issued and the bid submission is in August 2012.

King Faisal University in Al Ihsa



Client : King Faisal University

Consultant: Arch-Centre for Architecture & Engineering Consultant; Saudi

Scope: The project calls for design and construction of 40, 00,000 square metre King Faisal University in Al Ihsa. The

development will include Computer Science College, Medical College, Engineering College, Economic College,

Education College, Veterinary Medical College, Agricultural College, Science and Business Colleges and infrastructure

works.

Schedule: Project commenced in July 2006 and completion

Madinaty Development, Egypt



Client : Talaat Moustafa Group Holding; Egypt

Consultant: Helman Hurley Charvat Peacock; USA; Sasaki; USA; Simpson Weather Associates; USA

Scope: The development calls for the construction of a residential, entertainment and commercial community along

33km Cairo-Suez Highway northeast of Cairo, Egypt. The project is spread over a 33.6 million sq

Madinaty will embrace 120,000 residen

branches of corporations, business, and financial institutions. Educational facilities include schools, universities, and

research & development units. Medical facilities includ


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The project calls for the construction of a mixed use development in Jeddah, over an area of 2.6 million

King Abdul-Aziz International Airport - North Terminal.

Buildings will cover an area of 2,800 square meters. The other five suburbs include

storey (Duplex) residential villas. The project will also contain an open water park in the heart of the central

There will be 15 plots of land specified for the commercial investment, offices, and services as well as 2 plots

of land for the commercial leisure activities.

main construction contract of the 727 duplex villas worth US$250 million (estimated) has

been issued and the bid submission is in August 2012.

King Faisal University in Al Ihsa, Saudi Arabia



Location: Al Ihsa, Eastern Province, Saudi Arabia

Centre for Architecture & Engineering Consultant; Saudi Arabia

The project calls for design and construction of 40, 00,000 square metre King Faisal University in Al Ihsa. The


College, Agricultural College, Science and Business Colleges and infrastructure

Project commenced in July 2006 and completion is expected by the end of 2013

Madinaty Development, Egypt



Talaat Moustafa Group Holding; Egypt Location: Cairo, Egypt


The development calls for the construction of a residential, entertainment and commercial community along

Suez Highway northeast of Cairo, Egypt. The project is spread over a 33.6 million sq

Madinaty will embrace 120,000 residential units, hotels, golf course, commercial units including business area with


research & development units. Medical facilities include medical center, hospitals, and polyclinics.

P a g e : 73

The project calls for the construction of a mixed use development in Jeddah, over an area of 2.6 million

North Terminal. The project contains 10

Buildings will cover an area of 2,800 square meters. The other five suburbs include

also contain an open water park in the heart of the central

There will be 15 plots of land specified for the commercial investment, offices, and services as well as 2 plots

main construction contract of the 727 duplex villas worth US$250 million (estimated) has

Al Ihsa, Eastern Province, Saudi Arabia

The project calls for design and construction of 40, 00,000 square metre King Faisal University in Al Ihsa. The


College, Agricultural College, Science and Business Colleges and infrastructure

is expected by the end of 2013.

2023 (Estimated)


The development calls for the construction of a residential, entertainment and commercial community along

Suez Highway northeast of Cairo, Egypt. The project is spread over a 33.6 million square meters area.

tial units, hotels, golf course, commercial units including business area with


e medical center, hospitals, and polyclinics.




City services facilities are transportation, water (for domestic use and for irrigation), electricity, sewage,

telecommunication, and roads (internal network including two ring roads and bus lines, and externa

the project with the external highways).

Schedule: Madinaty will be developed in 14 phases. Phases

include villas. The other remaining phases are still under planning.

Phase 3 is expected to be completed in Q1 2013. Phases 4, 5 and 6 are in progress and expected to be completed in

2014. The project is expected to be completed in 2023

Qasr Khozam, Saudi Arabia



Project Type : Mixed Use development

Scope: The project calls for the redevelopment of 45 square

development will have different zones.

together with walkways and public transport, including a new monorail linked to the main railway station.

include a new bridge that will improve access to the area from Jeddah International Airport.

Qasr will include skyscrapers, mosques, public parks, and public services including hospitals and clinics.

It will also include a business zone that will include office complexes, Islamic banks and buildings for hosting major

trade fairs, exhibitions, and conferences. It will also include a multi

areas. Leisure Zone will include major cultural pavilion and

Residential Zone will include mixed-use housing complexes.

Schedule: The project will be carried out in a partnership between the private and the public sector. The project

duration is expected to be 6 years. The site preparation was started on 15 March 2009.

Al Ruwais Development in Jeddah



Client : Al Ruwais Union Company for Real Estate Development Consultant: Al Awal Financial Services

Scope: The project calls for the development of 1.8 million square meters, including the center of Al Ruwais

which is cornered by Al-Andalus road from the west, King Abdullah road from the south,


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telecommunication, and roads (internal network including two ring roads and bus lines, and externa

Madinaty will be developed in 14 phases. Phases 1, 2, 3 and 6 include apartments and villas. Phases 4 & 5

The other remaining phases are still under planning.

is expected to be completed in Q1 2013. Phases 4, 5 and 6 are in progress and expected to be completed in

The project is expected to be completed in 2023.

Qasr Khozam, Saudi Arabia

Status : Design


Location: Jeddah, Saudi Arabia

The project calls for the redevelopment of 45 square kilometres of the Old City Centre in Jeddah.

The advanced tele-communications will be the key feature of

together with walkways and public transport, including a new monorail linked to the main railway station.

include a new bridge that will improve access to the area from Jeddah International Airport.


e a business zone that will include office complexes, Islamic banks and buildings for hosting major

trade fairs, exhibitions, and conferences. It will also include a multi-layer car parking that will bring accessibility to all

ude major cultural pavilion and centrepiece park, malls, hotels and supermarkets.

use housing complexes.

The project will be carried out in a partnership between the private and the public sector. The project

The site preparation was started on 15 March 2009.

Al Ruwais Development in Jeddah, Saudi Arabia



Al Ruwais Union Company for Real Estate Location: Jeddah, Saudi Arabia

The project calls for the development of 1.8 million square meters, including the center of Al Ruwais

Andalus road from the west, King Abdullah road from the south,

P a g e : 74


telecommunication, and roads (internal network including two ring roads and bus lines, and external network to link

2, 3 and 6 include apartments and villas. Phases 4 & 5

is expected to be completed in Q1 2013. Phases 4, 5 and 6 are in progress and expected to be completed in

Jeddah, Saudi Arabia

of the Old City Centre in Jeddah. The

communications will be the key feature of Qasr Khozam,

together with walkways and public transport, including a new monorail linked to the main railway station. It will also

include a new bridge that will improve access to the area from Jeddah International Airport. Districts surrounding


e a business zone that will include office complexes, Islamic banks and buildings for hosting major

layer car parking that will bring accessibility to all

park, malls, hotels and supermarkets.

The project will be carried out in a partnership between the private and the public sector. The project

, Saudi Arabia

The project calls for the development of 1.8 million square meters, including the center of Al Ruwais district

Andalus road from the west, King Abdullah road from the south,




Madina Road from the east and Palestine Street from the north.

Schedule: In June 2009, Mayor of Jeddah approved the operational summary for the development of Jeddah's

unorganized Al Ruwais District.

Lulu Island Development, UAE



Client : Sorouh Real Estate

Consultant: Martha Schwartz Partners (USA)

Scope: Lulu Island development, as per the reviewed master plan prepared by Sorouh

to Abu Dhabi Island in a prime location opposite Abu Dhabi Corniche. The island's low rise skyline will compliment

the cornice. Open spaces, greenery and resorts are at the heart of the development. There will also be cultur

centre along with extensive retailing facilities. Private marinas and waterfront residences will differentiate Lulu Island

from any other Abu Dhabi Project. Connections with the mainland could be by water taxi, monorail or an undersea

tunnel. There is also a proposal for a massive cable system to link the island with the Corniche which would provide a

wonderful view of the city and the island to cable car passengers. Project includes construction of roads, bridges,

tunnels and pedestrian walkways to link

storeys and would include residential villas, apartment buildings, seven luxurious hotels, including five and seven

hotels, resorts, offices, shopping malls, international school

approximately 20,000 people.

Schedule: Approval for the master plan is still awaited.

Expansion of Makkah Holy Haram



Client : General Presidency of Holy Mosques Affairs

Scope: The project calls for the expansion of Makkah

the external yards and the service area. The tota

Schedule: Main construction contract was awarded to Saudi Binladin


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Madina Road from the east and Palestine Street from the north.

In June 2009, Mayor of Jeddah approved the operational summary for the development of Jeddah's

Lulu Island Development, UAE

Status : Design



Consultant: Martha Schwartz Partners (USA)

Lulu Island development, as per the reviewed master plan prepared by Sorouh will offer a natural extension


the cornice. Open spaces, greenery and resorts are at the heart of the development. There will also be cultur



lso a proposal for a massive cable system to link the island with the Corniche which would provide a


tunnels and pedestrian walkways to link Abu Dhabi with the island. Buildings on the island will not exceed four

storeys and would include residential villas, apartment buildings, seven luxurious hotels, including five and seven

hotels, resorts, offices, shopping malls, international schools and various sports facilities to cater for a population of

is still awaited.

Expansion of Makkah Holy Haram, Saudi Arabia



General Presidency of Holy Mosques Affairs Location: Makkah, Saudi Arabia

The project calls for the expansion of Makkah Grand Mosque. The expansion covers the Grand Mosque itself,

the external yards and the service area. The total built-up area is 750,000 square meters.

Main construction contract was awarded to Saudi Binladin Group. Construction started in the 1st quarter

P a g e : 75

In June 2009, Mayor of Jeddah approved the operational summary for the development of Jeddah's

will offer a natural extension


the cornice. Open spaces, greenery and resorts are at the heart of the development. There will also be cultural



lso a proposal for a massive cable system to link the island with the Corniche which would provide a


Abu Dhabi with the island. Buildings on the island will not exceed four

storeys and would include residential villas, apartment buildings, seven luxurious hotels, including five and seven-star

s and various sports facilities to cater for a population of

Location: Makkah, Saudi Arabia

Grand Mosque. The expansion covers the Grand Mosque itself,

.

Group. Construction started in the 1st quarter




of 2010. Project duration is 72 months.

Metropolitan Development Strategy (MEDSTARSaudi Arabia Project Value : US$ 11,000 million


Client : Arriyadh Development Authority

Contractor: Dar Al Riyadh Architecture & Engineering; Shankland Cox; Urbis

Scope: The programme, known as the Metropolitan Development Strategy for Arriyadh (

creation of an urban network that includes two suburban cities to curb the outward sprawl of the main city and five

sub-centres located in the orbital residential corridors.

Schedule: ADA awarded several consultancy contract

selected for three of the sub centres to look at demographic trends, budgets and the various packaging strategies for

the developments. The master plan for each sub

developing the eastern sub centre; the UK's Shankland Cox was the consultant for the northern sub

Australia's Urbis was awarded the contract for the

other sub centres, while consultants were still to be selected for the two major cities, which will each house about

500,000 people. The sub centres will accommodate about 1.25 million inhabitants

term project. Project duration is expected to be 50 years.

Nebras Aviation City , UAE



Client : Strata

Scope: The project calls for the construction of an aviation city in Al Ain. Nebras will house aviation industries,

educational, and housing facilities.

Schedule: The aviation academy and related facilities is the 1st phase of the project. Completion of the

expected by 2015.


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Metropolitan Development Strategy (MEDSTAR

Status : Feasibility Study


Arriyadh Development Authority Location: Riyadh, Saudi Arabia

Dar Al Riyadh Architecture & Engineering; Shankland Cox; Urbis

The programme, known as the Metropolitan Development Strategy for Arriyadh (


centres located in the orbital residential corridors.

ADA awarded several consultancy contracts as part of its plans to develop Riyadh. Consultants were

to look at demographic trends, budgets and the various packaging strategies for

for each sub center was two months. The Saudi

centre; the UK's Shankland Cox was the consultant for the northern sub

Australia's Urbis was awarded the contract for the south-western part of the city. An award was pending for the two

, while consultants were still to be selected for the two major cities, which will each house about

will accommodate about 1.25 million inhabitants. MEDSTAR project is a very long

s expected to be 50 years.

, UAE

Status : Concept Stage


Location: Al Ain, Abu Dhabi

The project calls for the construction of an aviation city in Al Ain. Nebras will house aviation industries,

The aviation academy and related facilities is the 1st phase of the project. Completion of the

P a g e : 76

Metropolitan Development Strategy (MEDSTAR) at Riyadh,

, Saudi Arabia

The programme, known as the Metropolitan Development Strategy for Arriyadh (Medstar), will centre on the


s as part of its plans to develop Riyadh. Consultants were

to look at demographic trends, budgets and the various packaging strategies for

The Saudi Dar al-Riyadh worked on

centre; the UK's Shankland Cox was the consultant for the northern sub centre; and

An award was pending for the two

, while consultants were still to be selected for the two major cities, which will each house about

MEDSTAR project is a very long

The project calls for the construction of an aviation city in Al Ain. Nebras will house aviation industries,

The aviation academy and related facilities is the 1st phase of the project. Completion of the 1st phase is




Makkah Gate Cultural Oasis



Client : Al Balad Al Ameen Company for Urban

Development; Makkah Municipality; Sumou Real Estate

Company; Makkah Gate Company

Scope: The project calls for the construction of a mixed use development outside the haram area of Makkah. The

development is to be spread over 83 square

and apartments. The scope of work will also include residential districts, government buildings, a university called

Hudaibiya University and recreational centres

district.

Schedule: The developer appointed Design Worldwide Partnership (DWP) and Sidel Gibson Architecture as the

concept design consultants. The project will be completed in 15 years and in several phases.

Marsa Zayed Project , Jorda


Client : Al Maabar Abdoun Real Estate Development

Company; Aqaba Special Economic Zone Authority

Scope: Marsa Zayed, which was named in memory of the Late Sheikh Zayed Bin Sultan Al Nahyan, is a 3.2 Km²

development including 2 Km of waterfront and is the biggest real estate and tourism project to take place in the

history of Jordan. It is also one of the most

project, including high-rise residential towers, retail, recreational, entertainment, business and financial districts and

several branded hotels. Several marinas will add to the cur

premier yachting destination; in addition to a state

touristic landmarks and a welcoming gateway to Aqaba. On completion, the total

m. The development will consist of 7 hotels including around 3,000 hotel rooms, more than 20,000 residential units

of premium villas, villas, townhouses and apartments, and at least 350 marina berths.

Schedule: The project will be implemented in several phases once the transfer of land ownership is complete

first phase of the project was to begin by the first half of 2010 following the completion of the land survey and a

series of technical studies which are cu

Authority (ASEZA). In 2008, Al Maabar signed an agreement with the government under which the company acquired


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Makkah Gate Cultural Oasis , Saudi Arabia

Status : Design


Al Balad Al Ameen Company for Urban

Municipality; Sumou Real Estate

Location: Makkah, Saudi Arabia

The project calls for the construction of a mixed use development outside the haram area of Makkah. The

development is to be spread over 83 square kilometers and includes museums, convention centers, shops, hotels,

The scope of work will also include residential districts, government buildings, a university called

centres. The project also will include a medical city and an administrative

The developer appointed Design Worldwide Partnership (DWP) and Sidel Gibson Architecture as the


Jordan


Al Maabar Abdoun Real Estate Development

Company; Aqaba Special Economic Zone Authority

Location: Aqaba, Jordon

, which was named in memory of the Late Sheikh Zayed Bin Sultan Al Nahyan, is a 3.2 Km²


It is also one of the most significant developments in the region. It is a mega mixed

rise residential towers, retail, recreational, entertainment, business and financial districts and

several branded hotels. Several marinas will add to the current berthing capacity, which will transform Aqaba into a

premier yachting destination; in addition to a state-of-the-art cruise ship terminal, which will become one of Jordan's

touristic landmarks and a welcoming gateway to Aqaba. On completion, the total built-up area will be 6.4 million sq


of premium villas, villas, townhouses and apartments, and at least 350 marina berths.

project will be implemented in several phases once the transfer of land ownership is complete


series of technical studies which are currently taking place in coordination with the Aqaba Special Economic Zone


P a g e : 77

Saudi Arabia

The project calls for the construction of a mixed use development outside the haram area of Makkah. The

kilometers and includes museums, convention centers, shops, hotels,

The scope of work will also include residential districts, government buildings, a university called

include a medical city and an administrative

The developer appointed Design Worldwide Partnership (DWP) and Sidel Gibson Architecture as the


Tender for Construction Contract

, which was named in memory of the Late Sheikh Zayed Bin Sultan Al Nahyan, is a 3.2 Km²


It is a mega mixed-use waterfront

rise residential towers, retail, recreational, entertainment, business and financial districts and

rent berthing capacity, which will transform Aqaba into a

art cruise ship terminal, which will become one of Jordan's

up area will be 6.4 million sq


project will be implemented in several phases once the transfer of land ownership is complete. The


rrently taking place in coordination with the Aqaba Special Economic Zone





the land in Aqaba for $500 million for the development and establishmen

plan to relocate the current port, moving it from the city centre to the southern tip of the district. The government's

handover of the land will be carried out in 3 phases

September, while the third and final phase by March 2013 once the new port is built

Economic Zone Authority (ASEZA) approved the final "conceptual master plan" submitted by Al Maabar Jordan Real

Estate for Marsa Zayed Project. The project's engineering and technical studies are complete, in addition to the

environmental impact assessment and the roads and traffic effect surveys.

Ghantoot Green City, UAE



Client : International Capital Trading LLC

Scope: The development in Ghantoot will include a commercial center, hotels, office blocks, residential

developments, warehousing and light industrial areas. The project is understood to cover 60 sq. km

development will be split into 12 phases, with

for phase 1 will be about 18.5 million square metres

along the coast.

Schedule: Master plan for the project was prepared by US

phases which includes the development of a six

development of the Marina District. Phases 2 and 3 will concentrate on the residential portion of the

King Abdullah Financial District (KAFD)



Client : Public Pension Agency (PPA); Rayadah

Investment Company

Contractor: Saudi Oger; Riyadh; Saudi Binladin Group; Saudi Arabia; Saudi Constructioneers Establishment; El Seif

Engineering Contracting Company; Saudi Arabia

Scope: The project calls for the construction of 42 plots of

facilities and extensive landscaping. The location is on King Fahd Road and Olaya Street in Al Aqiq Avenue (South of

Riyadh). The development covers an area of about 1.6 million square metres. KAFD will also


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the land in Aqaba for $500 million for the development and establishment of the project. ASEZA is implementing a


handover of the land will be carried out in 3 phases - the first will take place by June of th

September, while the third and final phase by March 2013 once the new port is built.


The project's engineering and technical studies are complete, in addition to the

environmental impact assessment and the roads and traffic effect surveys.

, UAE

Status : Design


Location: Ghantoot, UAE

The development in Ghantoot will include a commercial center, hotels, office blocks, residential

warehousing and light industrial areas. The project is understood to cover 60 sq. km

development will be split into 12 phases, with the 1st phase covering 6.2 square kilometres

will be about 18.5 million square metres, and it is understood to include residential properties and hotels

Master plan for the project was prepared by US-based RNL. Project has to be implemented in three major

cludes the development of a six-star resort - the Al Jurf Palace Resort and Golf Club, as well as the

development of the Marina District. Phases 2 and 3 will concentrate on the residential portion of the

King Abdullah Financial District (KAFD) , Saudi Arabia



Public Pension Agency (PPA); Rayadah Location: Hail Province, Saudi Arabia

; Riyadh; Saudi Binladin Group; Saudi Arabia; Saudi Constructioneers Establishment; El Seif

Engineering Contracting Company; Saudi Arabia

The project calls for the construction of 42 plots of land that will include several commercial towers, retail


Riyadh). The development covers an area of about 1.6 million square metres. KAFD will also

P a g e : 78

t of the project. ASEZA is implementing a


the first will take place by June of this year and the second in

. In Dec 2009, Aqaba Special


The project's engineering and technical studies are complete, in addition to the

The development in Ghantoot will include a commercial center, hotels, office blocks, residential

warehousing and light industrial areas. The project is understood to cover 60 sq. km. The

the 1st phase covering 6.2 square kilometres. The total built-up area

, and it is understood to include residential properties and hotels

based RNL. Project has to be implemented in three major

the Al Jurf Palace Resort and Golf Club, as well as the

development of the Marina District. Phases 2 and 3 will concentrate on the residential portion of the project.

Saudi Arabia

Location: Hail Province, Saudi Arabia

; Riyadh; Saudi Binladin Group; Saudi Arabia; Saudi Constructioneers Establishment; El Seif

will include several commercial towers, retail


Riyadh). The development covers an area of about 1.6 million square metres. KAFD will also include Saudi Financial




Market (Tadawal), the Capital Market Authority (CMA) and the Commodity Market headquarters, besides the

Financial Academy, bank headquarters, companies related to Saudi stock market, residential complex, mosque, and

all luxury facilities such as hotels. The project is divided into three parts: The Leaf, North West Area, and South Area.

The Leaf area is divided into 5 areas and includes 23% residential, 5% retail, and 72% offices, it also includes public

facilities, aquariums, museums, hotels, exhibition centers, conference centers, and mosques. The North West area

includes support services, utilities, and car parking for 40,000 cars.

The South Area includes residential buildings and offices.

monorail system and skywalks bridges (bridges connecting two buildings

Schedule: The project will be built in phases.

of 15 towers, a hotel and a mosque. While phase

and the capital Market Authority. Feasibility study & design phase of the project was completed by the end of 2006.

Public Pension Agency (PPA) awarded the project management contract

October 2007. The contract duration is 5 years and the contract covers supervision of the design and construction of

the project. The project completion is expected by mid

with the remaining land developed over time according to the demand.

New Doha International Airport


Client: NDIA Steering Committee

Contractor: Multiple Contractors

Scope: Project calls for the construction of a new international airport in Doha. To the first end, the airport will be

able to handle 24 million annual passengers, three times as many as the current airport capacity. Upon final

completion in 2015, it will be able to handle 50 million passengers

Schedule: Construction is completed for most of the packages while are underway for some.

Barwa Al Khor Project Project Value : US$ 9600 million

Client : Barwa Real Estate Company; Qatar

Scope: The Al Khor city project covers an area totalling 5, 459,168 square metres approximately. The built up area of

the project is 3,621,458 square metres. The project will feature villas, town houses, terraces, flats and mixed use

areas, 2 sprawling hotels; one being a f


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ities such as hotels. The project is divided into three parts: The Leaf, North West Area, and South Area.


, hotels, exhibition centers, conference centers, and mosques. The North West area


The South Area includes residential buildings and offices. The transportation within the development

monorail system and skywalks bridges (bridges connecting two buildings).

The project will be built in phases. Phase 1 covers 10 plots from the 42 plots, and include the construction

of 15 towers, a hotel and a mosque. While phase 2 covers 30 plots and include the construction of 20 towers, a plaza,

Feasibility study & design phase of the project was completed by the end of 2006.

Public Pension Agency (PPA) awarded the project management contract (PMC) to the US


The project completion is expected by mid-2012, on completion around 70% of KAFD w

with the remaining land developed over time according to the demand.

New Doha International Airport , Qatar


Location: Qatar

Project calls for the construction of a new international airport in Doha. To the first end, the airport will be


in 2015, it will be able to handle 50 million passengers.

Construction is completed for most of the packages while are underway for some.

Barwa Al Khor Project – Urjuan, Qatar

Status : Design

Barwa Real Estate Company; Qatar Consultant: KEO International Consultants; Qatar

city project covers an area totalling 5, 459,168 square metres approximately. The built up area of


areas, 2 sprawling hotels; one being a five star and the other four stars, a superior shopping mall, 4 top schools,

P a g e : 79



ities such as hotels. The project is divided into three parts: The Leaf, North West Area, and South Area.


, hotels, exhibition centers, conference centers, and mosques. The North West area


The transportation within the development will be via a

Phase 1 covers 10 plots from the 42 plots, and include the construction

2 covers 30 plots and include the construction of 20 towers, a plaza,

Feasibility study & design phase of the project was completed by the end of 2006.

(PMC) to the US-based Hill International in


2012, on completion around 70% of KAFD will be built out,

Project calls for the construction of a new international airport in Doha. To the first end, the airport will be


Construction is completed for most of the packages while are underway for some.

KEO International Consultants; Qatar

city project covers an area totalling 5, 459,168 square metres approximately. The built up area of


ive star and the other four stars, a superior shopping mall, 4 top schools,




250,000 sq m space for offices, a mosque and an international golf course. The project anticipates offering 24,114

units as homes to the elite with 5 star quality services to surro

information center, public and private beaches. The developing homes are set to accommodate a massive population

of 60,000 people. Project will be executed in three phases

Schedule: Cansult was appointed as the consultant for the project on 11th July 2006. The initial installation work

includes fencing the 15 Km project land and the building of an on

2,500 square meters.

Festival City in Abu Dhabi



Client: Abdullah Al Futtaim Group; Al Futtaim

Investments

Scope: The mixed-use development will, like its counterpart in Dubai, occupy more than 1 million square meters of

land. It will have a major commercial complex, hotels, and residential and office towers. The exact location of the

project is not confirmed yet, though it is already understood to be on Reem island and will overlook the new stock

exchange building that will be built on Suwwa island

Schedule: Project is in the early stage.

The Shams Abu Dhabi Reem Island , UAE




Consultant: R.W. Armstrong and Associates Inc. Abu Dhabi

Scope: The project entails the construction of more than 100 buildings which will offer 22,000 residential units on Al

Reem Island. The buildings will be from 3

park, a 4-kilometre long canal network, and two road bridges connecting the island of Abu Dhabi. The Gate

development will comprise of 8 towers with the Sky Tower being the signature property. Sorouh Real Estate and

Sharjah-based Tameer Real Estate signed a memorandum of understand

joint venture companies that will develop Dhs.13,000 million of tower projects at the Shams. One joint venture will


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units as homes to the elite with 5 star quality services to surround them. The added amenities include a clinic, library,


of 60,000 people. Project will be executed in three phases.

was appointed as the consultant for the project on 11th July 2006. The initial installation work

includes fencing the 15 Km project land and the building of an on-site office for the project, measuring approximately

n Abu Dhabi, UAE



Abdullah Al Futtaim Group; Al Futtaim Location: Abu Dhabi, UAE

use development will, like its counterpart in Dubai, occupy more than 1 million square meters of


ugh it is already understood to be on Reem island and will overlook the new stock

exchange building that will be built on Suwwa island.

The Shams Abu Dhabi Reem Island , UAE




R.W. Armstrong and Associates Inc. Abu Dhabi

The project entails the construction of more than 100 buildings which will offer 22,000 residential units on Al

Reem Island. The buildings will be from 3-storey to 83-storey in height. It will also include a 100,000 sq.m central

anal network, and two road bridges connecting the island of Abu Dhabi. The Gate


based Tameer Real Estate signed a memorandum of understanding (MoU) in September 2006 to establish 2


P a g e : 80


und them. The added amenities include a clinic, library,


was appointed as the consultant for the project on 11th July 2006. The initial installation work

site office for the project, measuring approximately

use development will, like its counterpart in Dubai, occupy more than 1 million square meters of


ugh it is already understood to be on Reem island and will overlook the new stock

The project entails the construction of more than 100 buildings which will offer 22,000 residential units on Al

storey in height. It will also include a 100,000 sq.m central

anal network, and two road bridges connecting the island of Abu Dhabi. The Gate


ing (MoU) in September 2006 to establish 2





build 6 towers of the Gate district, and the other will develop Abu Dhabi Towers in the Central P

Schedule: Arquitectonica is the lead consultant for the Gate project. Aedas was appointed as the lead design

architects for the Upper Village. Perkins and Will is

supported by Otak as the prime consultant on the project. Hill International (US) with 3D International (US), Projacs

International (Bahrain) and Al Qudra Holdings (Local) was appointed to

Construction is underway for some of the packages while some are already completed.

Danet Abu Dhabi, UAE



Client : Al Qudra Real Estate

Scope: The project is located on Airport Road, at an a

expansive green areas, residential and commercial towers, hotels, shopping malls and entertainment facilities for the

region's inhabitants. The mixed use project comprises of 34 towers ranging from 15 to 23 floors, as well as a four

hotel, a fully equipped social center, a sports center for all residents and a medium

region's residents. The project has been split into five districts

Schedule: RSP Architects, Architectural & Engineering Consultants (AEC) (Design) and Maunsell Consultancy Services

with US AECOM Group (Infrastructure) did the master plan for the development.

buildings within the development while some are stil

Marjan Island , UAE

Project Value : US$ 9, 000 million


Client : Rakeen Development

Contractor : Multiple Contractors

Scope: The project, which involves an area of about 380 hectares, calls for the construction of tourism and

residential district in Ras Al Khaimah. Extending at about two km into the Gulf, the reclaimed land will have 13 hotels,

a marina, luxury villas, and a lagoon. The project also includes floating chalets, a water park, a theme park and an

aquarium. It is the first man-made island project in the emirate

Schedule: UK's Halcrow did the master plan for the project. Dredging International (Belgium) was awarded in January

2007 the 1st phase of dredging package for the project. Land reclamation by Dredging In


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build 6 towers of the Gate district, and the other will develop Abu Dhabi Towers in the Central P

Arquitectonica is the lead consultant for the Gate project. Aedas was appointed as the lead design

architects for the Upper Village. Perkins and Will is the appointed lead design architects for a third development plot


International (Bahrain) and Al Qudra Holdings (Local) was appointed to provide Project Management Services.

Construction is underway for some of the packages while some are already completed.




The project is located on Airport Road, at an approximate area of 210,000 square kilometres


region's inhabitants. The mixed use project comprises of 34 towers ranging from 15 to 23 floors, as well as a four

hotel, a fully equipped social center, a sports center for all residents and a medium-sized shopping mall servicing the

region's residents. The project has been split into five districts - Jumana, Doora, LouLou, Giwan and Gemash

, Architectural & Engineering Consultants (AEC) (Design) and Maunsell Consultancy Services

with US AECOM Group (Infrastructure) did the master plan for the development. Construction is completed for many

buildings within the development while some are still under construction.



Location: Ras Al Khaimah

The project, which involves an area of about 380 hectares, calls for the construction of tourism and


oon. The project also includes floating chalets, a water park, a theme park and an

made island project in the emirate.

did the master plan for the project. Dredging International (Belgium) was awarded in January

2007 the 1st phase of dredging package for the project. Land reclamation by Dredging In

P a g e : 81

build 6 towers of the Gate district, and the other will develop Abu Dhabi Towers in the Central Park District project.

Arquitectonica is the lead consultant for the Gate project. Aedas was appointed as the lead design

the appointed lead design architects for a third development plot


provide Project Management Services.

pproximate area of 210,000 square kilometres and will include


region's inhabitants. The mixed use project comprises of 34 towers ranging from 15 to 23 floors, as well as a four-star

sized shopping mall servicing the

Jumana, Doora, LouLou, Giwan and Gemash.

, Architectural & Engineering Consultants (AEC) (Design) and Maunsell Consultancy Services

Construction is completed for many

The project, which involves an area of about 380 hectares, calls for the construction of tourism and


oon. The project also includes floating chalets, a water park, a theme park and an

did the master plan for the project. Dredging International (Belgium) was awarded in January

2007 the 1st phase of dredging package for the project. Land reclamation by Dredging International was completed




in March 2009. Kumho Industrial Co. was awarded t

August 2008. Construction is underway on various packages on the development.

Pilgrim City North of Mina City



Client : Ministry of Municipal & Rural Affairs (MOMRA);

Saudi Arabia

Scope: The project calls for the construction of a pilgrim city north of Mina City, which is located east of Makkah

Province. The city will accommodate 1.5 million pilgrims. The city will be constructed either as multi

buildings or set up tents with modern designs. This is yet to be decided.

Schedule: The Project is still in concept stage

Riyadh East Sub Center



Client: Hamed & Ahmed Mohammed Al Mozainy Real

Estate Co.

Contractor : Atkins; Saudi Arabia

Scope: The project calls for the construction of 12,500 residential units in Riyadh

two million square metre area at the crossing of King Abdullah Road with Sheikh Jaber Road to the east of Riyadh.

The project's total built-up area is 7.2 million m2 with a maximum building height of 300m. The

includes 4 mosques, 13 schools, 2 hospit

Schedule: The High Commission for the Development of Riyadh City has approved the project in November 2011.

Infrastructure works (SIS907) contractor was expected to be appointed in the 1st quarter of 2012 and to be

completed in the 1st quarter of 2015.

Prince Abdulaziz Bin Mosaed Economic City



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in March 2009. Kumho Industrial Co. was awarded the contract for the 1st phase of infrastructure development in

Construction is underway on various packages on the development.

Pilgrim City North of Mina City, Saudi Arabia



Ministry of Municipal & Rural Affairs (MOMRA); Location: Mina City, Saudi Arabia

The project calls for the construction of a pilgrim city north of Mina City, which is located east of Makkah

Province. The city will accommodate 1.5 million pilgrims. The city will be constructed either as multi

th modern designs. This is yet to be decided.

The Project is still in concept stage.

Riyadh East Sub Center , Saudi Arabia



Hamed & Ahmed Mohammed Al Mozainy Real

The project calls for the construction of 12,500 residential units in Riyadh. The project would be located on a

at the crossing of King Abdullah Road with Sheikh Jaber Road to the east of Riyadh.

up area is 7.2 million m2 with a maximum building height of 300m. The

schools, 2 hospitals, a cultural center, an administrative building and government facilities.

The High Commission for the Development of Riyadh City has approved the project in November 2011.


ulaziz Bin Mosaed Economic City, Saudi Arabia

Status : Design

P a g e : 82

he contract for the 1st phase of infrastructure development in

Mina City, Saudi Arabia

The project calls for the construction of a pilgrim city north of Mina City, which is located east of Makkah

Province. The city will accommodate 1.5 million pilgrims. The city will be constructed either as multi-storey concrete

Tender for Construction Contract

The project would be located on a

at the crossing of King Abdullah Road with Sheikh Jaber Road to the east of Riyadh.

up area is 7.2 million m2 with a maximum building height of 300m. The scope of works also

als, a cultural center, an administrative building and government facilities.

The High Commission for the Development of Riyadh City has approved the project in November 2011.


Saudi Arabia





Client : Al-Mal Kuwaiti Company; Mohammed

Abdulmohsin Al Kharafi & Sons; Kuwait; Saudi Arabian

General Investment Authority (SAGIA); Rakisa Holding Co.

Scope: The project calls for the construction of a new city over a 156 million sq.m

carried out in several stages. The project will have six core districts. The transportation hub is to include an

international airport, dry port, supply chain centre, a logistics Center, and multi

education district to be built over 10 million square metres with colleges, research centers, schools and universities

serving about 40,000 students. An agricultural district, to host a number of factories and research centres. A mining

and industrial area is to utilize the region's natural resources and build various secondary industries. An

entertainment district will include construction of hotels, shopping malls and associated tourist attractions. A

residential district will provide 30,000 housing uni

Schedule: Construction was scheduled to start in September 2006. The project duration will be 10 years.

Najmat Abu Dhabi in Reem Island



Client : Reem Investments


Scope: The project involves construction of a mixed

to the bridge, connecting Al Reem to Abu Dhabi, the project will serve as a gateway to the island. The 1.9 million

square metre development centers on 3 districts: business, art, and village. The total built

square meters. The central business district will include a range of 40 and 50

surround the retail and entertainment district with 2 icon

There will be 3 marinas in the development: the Bay Centre Marina (250

metre in diametre), and Resort Marina (180

spine of the development from northwest to southeast.

Schedule: Construction is underway for various packages.


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Mal Kuwaiti Company; Mohammed

Sons; Kuwait; Saudi Arabian

General Investment Authority (SAGIA); Rakisa Holding Co.

Location: Hail Province, Saudi Arabia

The project calls for the construction of a new city over a 156 million sq.m land. The construction will be


international airport, dry port, supply chain centre, a logistics Center, and multi-model passenger stations. A



ea is to utilize the region's natural resources and build various secondary industries. An


residential district will provide 30,000 housing units to cater to 140,000 residents.

Construction was scheduled to start in September 2006. The project duration will be 10 years.

Najmat Abu Dhabi in Reem Island, UAE



Location: Reem Island, Abu Dhabi

The project involves construction of a mixed-use development at the Reem Island, Abu Dhabi. Located next


3 districts: business, art, and village. The total built

square meters. The central business district will include a range of 40 and 50-storey mixed

surround the retail and entertainment district with 2 iconic 80-storey buildings in the centre.

There will be 3 marinas in the development: the Bay Centre Marina (250-meter in diametre), Residential Marina (200

metre in diametre), and Resort Marina (180-metre diametre). They will all be linked by a canal which t

spine of the development from northwest to southeast.

Construction is underway for various packages.

P a g e : 83

Hail Province, Saudi Arabia

land. The construction will be


model passenger stations. An



ea is to utilize the region's natural resources and build various secondary industries. An


Construction was scheduled to start in September 2006. The project duration will be 10 years.

Reem Island, Abu Dhabi

use development at the Reem Island, Abu Dhabi. Located next


3 districts: business, art, and village. The total built-up area will be 7.5 million

storey mixed-use towers that will

storey buildings in the centre.

meter in diametre), Residential Marina (200-

metre diametre). They will all be linked by a canal which transverses the




Kingdom Riyadh land



Client : Kingdom Holding Company

Scope: The scope of work includes the construction of a mixed use residential and commercial buildings, hotels,

retail spaces, parks, car parks, and private leisure & equestrian clubs,

Schedule: Design is underway, construction is expected to commence during late 2013.

Hyde Park, Egypt



Client : Damac Properties

Scope: The project entails 4.7 million sq.m community development located in New Cairo City, consisting of 3,000

villas of 14 different styles including Italian country and neo

Schedule: Construction is underway for various phases, project completion is scheduled in 2018.

Knowledge Economic City in Madina



Client : Seera Real Estate Development Company

Scope: The project will be constructed on a 4.8 million sq.m. site.The

include 30,000 residential units. It will target investment in knowledge

technology and life sciences. The City will include a museum on the life of the Prophet Mohammed an

10,000 worshipers and will be linked by monorail to Madina's Grand Mosque.


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Kingdom Riyadh land, Saudi Arabia

Status : Design


Location: Riyadh

The scope of work includes the construction of a mixed use residential and commercial buildings, hotels,

retail spaces, parks, car parks, and private leisure & equestrian clubs, serviced bungalows

Design is underway, construction is expected to commence during late 2013.



Location: New Cairo City

The project entails 4.7 million sq.m community development located in New Cairo City, consisting of 3,000

villas of 14 different styles including Italian country and neo-classical Spanish-Californian style.

Construction is underway for various phases, project completion is scheduled in 2018.

Knowledge Economic City in Madina, Saudi Arabia



Seera Real Estate Development Company Location: Madina

The project will be constructed on a 4.8 million sq.m. site.The City will house about 200,000 residents and

include 30,000 residential units. It will target investment in knowledge-based industries including information

The City will include a museum on the life of the Prophet Mohammed an

10,000 worshipers and will be linked by monorail to Madina's Grand Mosque.

P a g e : 84

The scope of work includes the construction of a mixed use residential and commercial buildings, hotels,

serviced bungalows.

The project entails 4.7 million sq.m community development located in New Cairo City, consisting of 3,000

Californian style.


, Saudi Arabia

City will house about 200,000 residents and

based industries including information

The City will include a museum on the life of the Prophet Mohammed and a mosque for




Schedule: Construction is underway for various phases, project completion is scheduled in 20

Boubyan Island Development



Client : Ministry of Public Works / Mega Projects Agency

Scope: The first phase is to be divided in three parts. Part One includes the building of the island's infrastructure,

port and railroad system that will link Boubyan to Subiya. Part Two will build a port with the capacity for 16 berths.

Part Three includes marine drilling for work that will include widening Boubyan's channel while also constructing

buildings and providing other service facilities.

Schedule: Construction is underway for the first phase

King Abdullah Bin Abdulaziz Project for Development of Security Forces Medical ComplexesProject Value : US$ 6,000 million


Client : Ministry of Interior, Riyadh/Ministry of Interior

Jeddah

Scope: The scope of work includes construction of 3 hospitals and all related medical and residential facilities, with a

total built-up area of 1.3 million sq m in each location.

Schedule: Main construction contract is expected to be awarded in October 2012.

Tareeq Al-Mawazee Project in Makkah



Client : Dallah Albaraka Group


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Construction is underway for various phases, project completion is scheduled in 20

Boubyan Island Development, Kuwait



Ministry of Public Works / Mega Projects Agency Location: Boubyan Island

The first phase is to be divided in three parts. Part One includes the building of the island's infrastructure,


e drilling for work that will include widening Boubyan's channel while also constructing

buildings and providing other service facilities. The project is to be executed in 3 phases.

Construction is underway for the first phase – two stages.

King Abdullah Bin Abdulaziz Project for Development of Security Forces Medical Complexes, Saudi Arabia



Interior, Riyadh/Ministry of Interior Location: Jeddah / Riyadh

The scope of work includes construction of 3 hospitals and all related medical and residential facilities, with a

up area of 1.3 million sq m in each location.

Main construction contract is expected to be awarded in October 2012.

Mawazee Project in Makkah, Saudi Arabia

Status : Design


Location: Makkah

P a g e : 85


The first phase is to be divided in three parts. Part One includes the building of the island's infrastructure,


e drilling for work that will include widening Boubyan's channel while also constructing

King Abdullah Bin Abdulaziz Project for Development of , Saudi Arabia

Construction Contract

The scope of work includes construction of 3 hospitals and all related medical and residential facilities, with a

, Saudi Arabia




Scope: The project calls for the construction of a residential and commercial project which will be located in

Makkah. The project will develop a four lane highway into the city which will be 3 kilometers

width.

Schedule: The project is in its design stage.

Musheireb Development



Client : Msheireb Properties


Scope: Project covers approximately 35 hectares within Mohamed Bin Jassim District in central Doha. Project will

comprise of housing units, a theatre auditorium, three types of hotels, a pr

civic amenities and infrastructure facilities. There will be 226 buildings between 3 and 30

Heart of Doha will be able to accommodate a population of more than 27,000. The modern amenitie

centralised district cooling, gas network, vacuum waste disposal system, a dedicated cycle

security. A tramway to move residents and visitors has also been planned. Connectivity to Souq Wakif is under study.

Project will be executed in 5 phases.

Schedule: Construction is underway for various packages.

Al Ghadeer At Saih As Sidirah




Contractor : Construction General Contracting


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The project calls for the construction of a residential and commercial project which will be located in

Makkah. The project will develop a four lane highway into the city which will be 3 kilometers

The project is in its design stage.

Musheireb Development, Qatar



Location: Mohamed Bin Jassim District

Project covers approximately 35 hectares within Mohamed Bin Jassim District in central Doha. Project will

comprise of housing units, a theatre auditorium, three types of hotels, a primary school, a heritage quarter, modern

civic amenities and infrastructure facilities. There will be 226 buildings between 3 and 30

Heart of Doha will be able to accommodate a population of more than 27,000. The modern amenitie

centralised district cooling, gas network, vacuum waste disposal system, a dedicated cycle


Construction is underway for various packages. Project is expected to be completed in 2016.

Al Ghadeer At Saih As Sidirah, UAE



Location: Saih As Sidirah

Construction General Contracting

P a g e : 86

The project calls for the construction of a residential and commercial project which will be located in

Makkah. The project will develop a four lane highway into the city which will be 3 kilometers long and 80 meters

Mohamed Bin Jassim District

Project covers approximately 35 hectares within Mohamed Bin Jassim District in central Doha. Project will

imary school, a heritage quarter, modern

civic amenities and infrastructure facilities. There will be 226 buildings between 3 and 30-storey high. On completion,

Heart of Doha will be able to accommodate a population of more than 27,000. The modern amenities include

centralised district cooling, gas network, vacuum waste disposal system, a dedicated cycle-way and centralised


Project is expected to be completed in 2016.




Scope: The project will be located near the Ghantoot Bridge on Abu Dhabi

cover 3 million sq.m. There will be more than 6,000 residential units providing affordable luxury housing. It will also

include shopping centers, offices, clinics, business parks, 3 schools and hotels. The project will comprise of six villages

Baraha, Liwa, Falaj, Khaleej, Buhayra and Khubaira. Alghadeer will also contain a Goodman Sorouh Business park and

a hotel with conference facilities overlooking Alghadeer Lake.

Schedule: Main construction works for the Phase 1 of the residential development has commenced in October 2

Construction General Contracting is the main contractor for the Phase 1.

Capital District in Abu Dhabi



Client : Urban Planning Council

Scope: The new development located 15 km from Abu Dhabi City and spanning an area of 4,900 hectares, will be

implemented in several phases. It will be the headquarters of all federal authorities, ministries, and local governmen

offices. The city will also include office space and residential units housing 350,000 residents across an area of 4,500

hectares. It would be able to accommodate 3 million people in less than 25 years.

the construction of houses, universities, offices, federal government offices, town centers, a sports city, Emirati

housing, the headquarters for Zayed University and Khalifa University, an exhibition center, and a convention center.

The project will be divided in 5 precincts. The Federal Precinct, The City Center Precinct, The Sports Hub Precinct, The

Palace District, and The Emirati Neighborhood.

Schedule: Construction works has not commenced on the development. Completion is set for 2028.

The Abdali Urban Regeneration Project



Client : Abdali Investment & Development Company

Contractor : Navayuga Engineering Company


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The project will be located near the Ghantoot Bridge on Abu Dhabi-Dubai highway. The development will

. There will be more than 6,000 residential units providing affordable luxury housing. It will also

include shopping centers, offices, clinics, business parks, 3 schools and hotels. The project will comprise of six villages

uhayra and Khubaira. Alghadeer will also contain a Goodman Sorouh Business park and

a hotel with conference facilities overlooking Alghadeer Lake.

Main construction works for the Phase 1 of the residential development has commenced in October 2

Construction General Contracting is the main contractor for the Phase 1.

Capital District in Abu Dhabi, uae

Status : Design


Location: Capital District

The new development located 15 km from Abu Dhabi City and spanning an area of 4,900 hectares, will be

implemented in several phases. It will be the headquarters of all federal authorities, ministries, and local governmen


hectares. It would be able to accommodate 3 million people in less than 25 years. Phase 1 of the project will cover

of houses, universities, offices, federal government offices, town centers, a sports city, Emirati


cts. The Federal Precinct, The City Center Precinct, The Sports Hub Precinct, The

Palace District, and The Emirati Neighborhood.

Construction works has not commenced on the development. Completion is set for 2028.

Urban Regeneration Project – Phase 1



Abdali Investment & Development Company Location: Abdali

Engineering Company

P a g e : 87

Dubai highway. The development will

. There will be more than 6,000 residential units providing affordable luxury housing. It will also

include shopping centers, offices, clinics, business parks, 3 schools and hotels. The project will comprise of six villages-

uhayra and Khubaira. Alghadeer will also contain a Goodman Sorouh Business park and

Main construction works for the Phase 1 of the residential development has commenced in October 2010.

The new development located 15 km from Abu Dhabi City and spanning an area of 4,900 hectares, will be

implemented in several phases. It will be the headquarters of all federal authorities, ministries, and local government


Phase 1 of the project will cover

of houses, universities, offices, federal government offices, town centers, a sports city, Emirati


cts. The Federal Precinct, The City Center Precinct, The Sports Hub Precinct, The

Construction works has not commenced on the development. Completion is set for 2028.

Phase 1, Jordan




Scope: The Abdali Urban Regeneration project is the largest mixed

heart of Amman. To be developed on 350,000m² of land, the project will comprise of a total built

than 1,500,000m² consisting of residential apartments, office space, commercial and retail outlets as well as

entertainment. Envisioned as the business and commercial center of Amman, the Phase I of Abdali is a highly

efficient and planned pedestrian oriented mi

Schedule: Main construction works for the Phase 1

Al Maryah Island Development in Abu Dhabi



Client : Mubadala Development Company


Scope: The project calls for the development of Al Maryah

Abu Dhabi Island. The development will include a new stock exchange building, financial buildings, and a new

Cleveland hospital. The island will be connected to Abu Dhabi island by two bridges. Th

next to Abu Dhabi Mall and the second to the Mina area. A third smaller bridge will provide access to Reem island.

Schedule: Construction is underway on various packages under Phase 1.

North Bahrain New Town Project



Client : Ministry of Works & Housing


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The Abdali Urban Regeneration project is the largest mixed-use development project ever encountered in the

heart of Amman. To be developed on 350,000m² of land, the project will comprise of a total built

,500,000m² consisting of residential apartments, office space, commercial and retail outlets as well as

Envisioned as the business and commercial center of Amman, the Phase I of Abdali is a highly

oriented mixed-use community with a total built up area of 1,034,000

Main construction works for the Phase 1 are underway with completion scheduled in 2015.

Al Maryah Island Development in Abu Dhabi, UAE



evelopment Company Location: Al Maryah Island

The project calls for the development of Al Maryah Island. It is located between Reem island and Mina area of


The island will be connected to Abu Dhabi island by two bridges. The first will connect Falah street


Construction is underway on various packages under Phase 1. Phase 2 and 3 are still under planning stage.

North Bahrain New Town Project, Bahrain

Status : Design


Location: Budaiya

P a g e : 88

use development project ever encountered in the

heart of Amman. To be developed on 350,000m² of land, the project will comprise of a total built-up area of more

,500,000m² consisting of residential apartments, office space, commercial and retail outlets as well as

Envisioned as the business and commercial center of Amman, the Phase I of Abdali is a highly-

otal built up area of 1,034,000sq m.

are underway with completion scheduled in 2015.

, UAE

Island. It is located between Reem island and Mina area of


e first will connect Falah street


Phase 2 and 3 are still under planning stage.




Scope: Project calls for the construction of a 10 million square meters community development located in Budaiya on

the northern coast of Bahrain. It comprises of 17 man

residential and commercial buildings, hotels, schools, universities, hospitals, malls, a port, a water museum, clubs,

and other facilities. Project is to be developed in three phases: Phases 1 covers 1,500 houses. Phase 2 covers the

construction of 122 houses and 15,000 housing units.

a later stage. Phase 3 covers the construction of three residential areas and 13,000 housing units.

Schedule: Construction is expected to commence during late 2013

National Guard – Housing Units in Saudi Arabia



Client : Saudi National Guard

Contractor : Saudi Oger / Saudi Binladin Group

Scope: The project calls for the construction of 17,000 housing units at eleven locations in Saudi, including Khashm Al

Aan, Al Hasa, Al Qassim, Al Madina, Taif, Jeddah, Dammam, Yanbu, Hail, Dirab and King Khalid Military Academy in

the northeast of Saudi.

Schedule: Saudi Oger was awarded the main construction contract of 5,000 housing units in R

Binladin was awarded the rest 12,000 housing units by the end of February 2010.

intent from Saudi Binladin Group to carry out the construction of 5000 housing units in the Eastern province.

Sharjah Marina, UAE



Client : Burooj Properties


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Project calls for the construction of a 10 million square meters community development located in Budaiya on

the northern coast of Bahrain. It comprises of 17 man-made islands interconnected with bridges and includes

ings, hotels, schools, universities, hospitals, malls, a port, a water museum, clubs,

Project is to be developed in three phases: Phases 1 covers 1,500 houses. Phase 2 covers the

construction of 122 houses and 15,000 housing units. Phase 3 is the extension of the project and will be developed at


Construction is expected to commence during late 2013.

Housing Units in Saudi Arabia



Location: Various Locations

Saudi Oger / Saudi Binladin Group

The project calls for the construction of 17,000 housing units at eleven locations in Saudi, including Khashm Al


Saudi Oger was awarded the main construction contract of 5,000 housing units in R

was awarded the rest 12,000 housing units by the end of February 2010. Arabtec Saudi received a letter of

p to carry out the construction of 5000 housing units in the Eastern province.

Status : Design


Location: Al Khan

P a g e : 89

Project calls for the construction of a 10 million square meters community development located in Budaiya on

made islands interconnected with bridges and includes

ings, hotels, schools, universities, hospitals, malls, a port, a water museum, clubs,

Project is to be developed in three phases: Phases 1 covers 1,500 houses. Phase 2 covers the

Phase 3 is the extension of the project and will be developed at


Housing Units in Saudi Arabia

The project calls for the construction of 17,000 housing units at eleven locations in Saudi, including Khashm Al-


Saudi Oger was awarded the main construction contract of 5,000 housing units in Riyadh, while Saudi

Arabtec Saudi received a letter of

p to carry out the construction of 5000 housing units in the Eastern province.




Scope: The development will include 11 residential buildings, office towers, 4 hotels, an amphitheater, and a

shopping mall. The 10 million square feet project will be located on Sharjah's Al Khan Peninsula. There will be a 2,000

meter by 60-meter water canal surrounded by low

an Ottoman mosque, a public beach, a family

Schedule: The project, currently in the re

Al Markaz in Mussafah, UAE



Client : Waha Capital

Scope: The development in Mussafah will consist of a business park, industrial park for warehousing and logistics

facilities, housing for lower and middle classes apart from labor accommodation. The project will be located at Al

Hameem area on the Tareef-Abu Dhabi road on a 6 sq.km block o

warehouse and storage, 775,000 sq.m for light industries and 180,000 sq.m for small industries.

Schedule: Construction is underway on the infrastructure as well as light industrial buildings package.

Residential City in Jeddah, Saudi Arabia



Client : Talaat Moustafa Group Holding

Contractor : Saudi Binladin Group

Scope: The project calls for the construction of a fully integrated residential city following the Al Rehab City model. It

will be over an area of 3.8 million square meters located in Jeddah.

Schedule: Construction started in the 2nd quarter of 2011 is


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The development will include 11 residential buildings, office towers, 4 hotels, an amphitheater, and a

shopping mall. The 10 million square feet project will be located on Sharjah's Al Khan Peninsula. There will be a 2,000

nal surrounded by low-rise buildings specifically modelled in Arab design. It also includes

an Ottoman mosque, a public beach, a family-oriented park, food courts, spas and offices.

The project, currently in the re-design phase, will be implemented in 2 phases.

Al Markaz in Mussafah, UAE



Location: Al Hameem, Mussafah

will consist of a business park, industrial park for warehousing and logistics


Abu Dhabi road on a 6 sq.km block of land. The client will allocate 1.4 million sq.m for


Construction is underway on the infrastructure as well as light industrial buildings package.

Residential City in Jeddah, Saudi Arabia



Talaat Moustafa Group Holding Location: Jeddah

The project calls for the construction of a fully integrated residential city following the Al Rehab City model. It

will be over an area of 3.8 million square meters located in Jeddah.

Construction started in the 2nd quarter of 2011 is progressing as per schedule.

P a g e : 90

The development will include 11 residential buildings, office towers, 4 hotels, an amphitheater, and a

shopping mall. The 10 million square feet project will be located on Sharjah's Al Khan Peninsula. There will be a 2,000-

ed in Arab design. It also includes

oriented park, food courts, spas and offices.

implemented in 2 phases.

Al Hameem, Mussafah

will consist of a business park, industrial park for warehousing and logistics


The client will allocate 1.4 million sq.m for


Construction is underway on the infrastructure as well as light industrial buildings package.

The project calls for the construction of a fully integrated residential city following the Al Rehab City model. It

progressing as per schedule.




Methodology

1. All estimations made for contra

2. All projects announced and on drawing boards as entered in Ventures Onsite

(www.venturesonsite.com) MENA Proj

compiling the charts.

3. Projects which have a project value less than US$5 million are not taken into account fo

calculations.

4. The projects considered for the purpose of

including projects on hold, but exclude completed and cancelled projects.

Code of Ethics

Ventures Middle East and its employees adher

American Marketing Association (AMA), Charter Institute of Marketing (CIM), and the Society of

Competitive Intelligence Professionals (SCIP). The firm and its employees abide by the applicable law

the jurisdiction of the research, Ventures Middle East, and the client organization. Additionally, any

request or requirements are incorporated into the practices of Ventures Middle East for the client’s

engagement.


www.ventures-me.com


All estimations made for contract awards are based on the project schedule as of September 2012

All projects announced and on drawing boards as entered in Ventures Onsite

) MENA Projects Database as of September 2012 are taken into consideration for

Projects which have a project value less than US$5 million are not taken into account fo

4. The projects considered for the purpose of analysis include projects in all stages of construction

including projects on hold, but exclude completed and cancelled projects.

Ventures Middle East and its employees adhere to the practices and ethical standards established by the


Competitive Intelligence Professionals (SCIP). The firm and its employees abide by the applicable law



END OF REPORT

P a g e : 91

ject schedule as of September 2012.

All projects announced and on drawing boards as entered in Ventures Onsite

are taken into consideration for

Projects which have a project value less than US$5 million are not taken into account for the

include projects in all stages of construction

e to the practices and ethical standards established by the


Competitive Intelligence Professionals (SCIP). The firm and its employees abide by the applicable laws for



http://www.venturesonsite.com)




Ventures Onsite MENA Projects DatabaseVentures MENA Projects Database provides detailed, reliable and current project information on more

than 12,000 current / future projects in the Middle East and North African Countries (UAE, Qatar, Saudi

Arabia, Kuwait, Bahrain, Oman, Syria, Jordan, Lebanon, Yemen, Egypt, Libya, Algeria, Iran, Iraq, Tunisia,

Sudan and Morocco) each over US $ 2.5 million in the following industry sectors; Oil & Gas, Pipeline,

Industrial, Buildings, Power & Water, Marine and Infrastructure & Sewe

Projects are identified from the concept or preliminary study stage, and followed through the var

phases of the project such as tender for the design consultancy, design, tender /contract award of

consultant / main contractor through to commissi

Our projects information typically includes the project scope, overall project value, project schedule

when tenders where issued/closed for consultancy/main contractor and schedule for appointment of

consultant/main contractor etc. and key con

contractor at a later stage all with project manager names/contact details. MEP (Mechanical, Electrical

and plumbing) contractor when appointed is also included for all building projects in the da

Please see website: www.venturesonsite.com

If you would like to subscribe to our MENA Projects Database, please do not hesitate to contact us.

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Tel: 009712 6222 455

Fax: 009712 6222 404

Email: [email protected]


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Onsite MENA Projects Database Ventures MENA Projects Database provides detailed, reliable and current project information on more

00 current / future projects in the Middle East and North African Countries (UAE, Qatar, Saudi

n, Oman, Syria, Jordan, Lebanon, Yemen, Egypt, Libya, Algeria, Iran, Iraq, Tunisia,


Industrial, Buildings, Power & Water, Marine and Infrastructure & Sewerage.

Projects are identified from the concept or preliminary study stage, and followed through the var

tender for the design consultancy, design, tender /contract award of

consultant / main contractor through to commissioning.

Our projects information typically includes the project scope, overall project value, project schedule


consultant/main contractor etc. and key contacts like client/developer/architectural consultant/ main


and plumbing) contractor when appointed is also included for all building projects in the da

www.venturesonsite.com


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Ventures MENA Projects Database provides detailed, reliable and current project information on more

00 current / future projects in the Middle East and North African Countries (UAE, Qatar, Saudi

n, Oman, Syria, Jordan, Lebanon, Yemen, Egypt, Libya, Algeria, Iran, Iraq, Tunisia,


Projects are identified from the concept or preliminary study stage, and followed through the various

tender for the design consultancy, design, tender /contract award of

Our projects information typically includes the project scope, overall project value, project schedule i.e.


tacts like client/developer/architectural consultant/ main


and plumbing) contractor when appointed is also included for all building projects in the database.



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