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JEDDAH – Syrias economic outlook is viewed with “high optimism” as a result of “remarkable reformational and economic performance.”

Oxford Business Group (OBG) noted in its just published annual report ” Syria 2010″ the steady progress Syria has made in liberalizing its economy while also carving out a key role for itself on the international stage.

The report highlighted the Syrian government efforts to build strong public-private partnerships, particularly in the oil industry, and tap investors for key projects earmarked for the transport sector.

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JEDDAH – Nabatt, an exhibition of over 130 works by 23 Saudi contemporary artists will be held from Sept. 11 to Oct. 31 in Shanghai sponsored by the Saudi Arabian Pavilion at Shanghai 2010, the King Abdulaziz Center for World Culture at Saudi Aramco and supported by the Saudi Ministry of Culture and Information.

The grand opening of the exhibition will be held on Sept. 10 at the Shanghai Duolun Museum of Modern Art, the first professional modern museum of contemporary art in China, which serves as a platform for the international exchange of contemporary art.

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JEDDAH – The equity funds registered for sale in the GCC region lost momentum during Q2, recording a fall of nine percent, mainly due to market conditions across the region, the Second Quarter 2010 GCC Fund Market Insight Report from Lipper showed on Wednesday.

Of the 73 equity categories, just 13 ended the second quarter in positive territory. Funds invested in Asia topped the semiannual rankings for the first half of 2010, with Equity Indonesia gaining 18.12 percent during the period, while Equity Saudi Arabia rose 2.34 percent. Gold and precious metals performed well, posting a 9.48 percent return.

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RIYADH – There has been a rise in real estate prices in the northern parts of Riyadh and Jeddah, according to a recent study conducted by the Oxford Business Group (OBG).
OBG is a global publishing, research and consultancy firm, which publishes economic and political intelligence on the markets of the Middle East, Africa, Asia, Eastern Europe and the Caribbean.
Saudi Arabia’s growing population is the reason for escalating prices in the Kingdom’s two key real estate markets of Riyadh and Jeddah, the study found.
The growing population is driving up demand for residential properties, said Rakesh Kunhiraman, Director of OBG’s Consulting Division. He said the growth witnessed in prime and emerging localities of the cities marked a turnaround for the Kingdom’s two key real estate markets.
The economic downturn had pushed down prices, while Jeddah also had to contend with further fallout from the flash floods, which hit the city late last year.
“Figures indicate that both cities are earmarked for tremendous growth, especially in prime residential districts and new growth areas in the north of Riyadh and Jeddah,” he said.
Low-cost housing units will gain prominence over the next few years as population growth pushes up demand. “We expect the low and mid-income section of the population to be the primary demand driver for the residential sector, with affordability playing a key part in growth. “We also expect low-cost housing, such as multi-storey apartments, to gain prominence during the coming years as the Kingdom’s rapidly growing population stretches demand to an estimated 1.5 million new units by 2015,” Kunhiraman said.
He said that the districts of Al-Masiaf, Al-Muruj, Al-Mursalat and Al-Ghadir, located in the north of Riyadh’s Central Business District (CBD), were generating interest among buyers, while the localities to the north of Jeddah, including the corridor close to the Corniche, were earmarked for growth. “Riyadh’s development has shifted towards the northern district due to high land prices coupled with limited availability in the core CBD areas of the city,” he said.
He said the market is now showing gradual signs of recovery, particularly in prime residential districts, which have witnessed a rise of three percent in sale prices over the past 12 months.
Kunhiraman said that prices in Jeddah’s sought-after Corniche were being kept steady following the construction of a number of high-rise luxury apartments in the area.
“Thanks to their proximity to the Corniche the northern districts in Jeddah such as Al-Andalus, Al-Basateen, Al-Hamra, Al-Khalidiyah, Al-Mohammediyah, Al-Nahda, Al-Nayeem, Al-Rawdah, Al-Salamah, Al-Shatee and Al-Zahra are proving popular. This trend is extending toward the northern corridor,” he said. – SG

RIYADH – The Kingdom will host Cityscape Riyadh Exhibition, the first of its kind event, as the demand for retail space is rapidly growing in the Saudi capital. The retail space in Riyadh is expected to reach 2.9 million square meters by 2014.
Deep Marwaha, Director of Cityscape Riyadh, said there has been 22 percent increase in retail property point-of-sales transaction in April this year, a reflection of Kingdom’s robust economic growth.
“Retail property sales in Riyadh are being driven up by improving consumer confidence. The point-of-sale transactions were up 22 percent in April 2010 and the Kingdom’s robust economy will help sustain this trend within the next few years,” Marwaha said.
Cityscape Riyadh 2010 starting from Dec. 12 to 14, 2010 will offer a clearer picture for investment opportunities and what strategies the developers and investors should adopt as Riyadh, under its ‘New Riyadh” vision is overhauling its local infrastructure, said Marwaha.
He said the retail space is expected to reach 2.9 million sqm by 2014 from the current 2.3 million sq. meters. This will complement the development of new suburban districts and support the emergence of a ‘New Riyadh,’ he said.
The demand for office space is also on the rise, with over one million square feet of new office space set to be introduced by 2015.
He said housing remained as Riyadh’s main property segment though, with total local inventory currently estimated at 900,000 units and prices expected to increase by around five to 10 percent over the next two years.
Apartment rates throughout the city are up by around six percent over the second half of 2009, while villas are fetching prices around 3.9 percent higher.
These and other key industry trends will be highlighted during Cityscape Riyadh 2010, the first-ever local edition of Saudi Arabia’s premier real estate investment and development event at Four Seasons Hotel in Riyadh.
During the three-day event, Cityscape Riyadh Exhibition will also host a roundtable for investors and Cityscape Riyadh Conference and Cityscape Riyadh leaders in real estate.
Emaar Middle East, a premier real estate developer has confirmed its participation at Cityscape Riyadh 2010 as Principal Sponsor.
The Asian Public Real Estate Association (APREA), the leading professional body of real estate practitioners in Asia, has also signed up for the event.
Over 50 domestic and international real estate firms are expected to exhibit at Cityscape Riyadh 2010 and tap the extensive market reach of the Cityscape network, which comprises more than 350,000 global investors and real estate professionals. – SG

JEDDAH – The International Islamic Relief Organization-Saudi Arabia (IIROSA) is sponsoring more than 133,000 male and female orphans in Saudi Arabia and more than 92,000 in several other countries, Dr. Adnan Khalil Basha, Secretary General of the organization, said on Sunday.

“We are exerting efforts to raise this number to a quarter of a million,” he told Saudi Gazette.

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SEOUL, South Korea – Talk of the global economic recovery fizzling doesnt faze Cho Byung-cheol, president of a small South Korean technology company that has already set up a branch in China and plans one soon in the United States.

The company, which designs and makes semiconductor-based high-speed data storage and processing equipment, is planning to boost its South Korean workforce of nearly 60 by half, says Cho, who founded Seoul-based Taejin Infotech Co. in 1996. Sales, which totaled only 8.4 billion won ($7 million) last year, could swell fourfold this year and reach 100 billion won next year, he predicts.

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LONDON – The Organization of Petroleum Exporting Countries will reduce crude shipments by 0.3 percent to the middle of next month as refiners cut imports while they conduct maintenance, tanker-tracker Oil Movements said.

OPEC, which supplies about 40 percent of the worlds crude oil, will ship 23.38 million barrels a day in the four weeks to Sept. 11, down from 23.45 million barrels a day in the month to Aug. 14, the Halifax, England-based consultant said on Friday in a report. The data exclude Ecuador and Angola.

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SEOUL – South Koreas crude imports in July went up 5.5 percent year on year to 68.96 million barrels (2.22 million b/d) despite a marginal rise in demand and crude throughput and a drop in exports, data released this week by state-run Korea National Oil Corp. showed.

Crude imports were up 2 percent from Junes 67.61 million barrels. The South Koreans paid an average $75.37/barrel on a CIF basis for their crude imports in July, compared with $68.71/b in July 2009 and 77.30/b in June this year.

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JEDDAH/KUALA LUMPUR – The Islamic Development Bank (IDB) plans to sell $1 billion of Islamic bonds to fund development projects in its member countries, Vice President Abdul Aziz Al Hinai said on Tuesday.

The five-, seven- and 10-year Sukuk, part of the IDBs $3.5 billion Medium-Term Note program, will be issued in the fourth quarter and listed in London and Kuala Lumpur, Al Hinai told reporters in the Malaysian capital after registering a separate ringgit issuance on the local exchange. CIMB Group Holdings Bhd. and four international banks will manage the sale, he said.

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