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Hussain AlHarithy[/caption]THE Jeddah Urban Development & Real Estate Investment Event, powered by Cityscape, will take place from Nov. 2-4 at the Jeddah Centre for Forums and Events. In the lead up to the Event, Hussein AlHarithy, vice chairman and exhibition manager of National Exhibition Co., organizers of the Jeddah Urban Development & Real Estate Investment event, revealed this year’s game-changing project launches, and discussed how the event will support Saudi Arabia’s position as a real estate investment destination.
Q. What distinguishes this event from previous years?
AH: Earlier this year, the Kingdom released a set of strategic objectives and key performance indicators aimed at expanding its non-oil economy. The National Transformation Program (NTP) identifies the property sector as a key player in diversifying the Kingdom’s economy and reducing its dependence on oil. It’s a plan that forms the basis of the Kingdom’s Vision 2030. As a result, this marks a significant moment for the country as it prepares its economy for a post-oil era, and it is under this encouraging climate that the event will be held. More than ever, the event in 2016 will illustrate the pivotal role that the real estate sector plays in contributing to a diversified economy and a thriving country.
Vision 2030 marks the transformation of the Kingdom from an emerging economy to one that’s maturing in the face of the oil price situation. We are proud and excited to partner with developers and real estate professionals who are working towards this shared goal, in order to stimulate development and investment throughout the Kingdom.
Q. What can visitors expect from this year’s Event in terms of projects and new launches?
AH: This year our show will include exciting project launches and project updates that speak directly to the demands of the market in KSA and across the GCC. These projects illustrate the evolving range of real estate opportunities in the country’s emerging market, in light of the recent reforms and regulations introduced in the country. One of our major exhibitors this year is King Abdullah Economic City (KAEC), a megacity of the future located on the Red Sea, north of Jeddah. At approximately 70 sq miles, KAEC will eventually transform into a metropolis slightly larger than Washington DC.
KAEC is expected to change the landscape of the city and introduce a new type of living, in line with the country’s under-35 population, a figure which sits at 65%. Visitors and participants to the show will get an exclusive look into the dynamic and diverse opportunities across commercial, logistics, manufacturing, shipping, residential and educational fields available KAEC.
In addition, exhibitor Sloanes KSA will launch the third tower in the Bayat series of developments, which will comprise 40 stories of hotel and commercial space in Jeddah.
Jabal Omar Development Company plans to highlight its Jabal Omar project, an iconic development within walking distance from the Grand Mosque in Makkah Al Mukarramah. The phases in development are nearing completion with four hotels from Phase 1 operational.
Looking at the wider GCC, Kleindienst, Select Global Development and Banke International will showcase some of its luxury residential and hospitality UAE-based projects.
Finally, the Real Estate Awards Jeddah 2016 will honor and celebrate excellence in real estate development and architecture. The Awards offer international architects and leading real estate developers, with projects based in Saudi Arabia, a prestigious platform from which to communicate a shared vision for the future.
Q. What are the expectations for this year’s Jeddah Urban Development and Real Estate & Investment Event and how has the show grown over the last few years?
AH: With just under a month to go, the show has grown in size and scope over the last seven years. The show has witnessed a 20% increase in exhibition space from last year, a testament to its progress. In fact, the event has been a reflection of the opportunities available in the country and is a driving reason for our commitment to the market.
Q. How will this year’s workshop create a discourse around the emerging real estate trends in the country at the moment?
AH: Our one-day workshop, taking place on Nov. 2, will offer unrivalled insight into the government’s strategic objectives and will consist of intense debates from leading developers, investors, architects, financiers and government officials. Kicking off the workshop, National Director and Country Head of KSA, JLL, Jamil Ghaznawi, will provide an update on the supply and performance of the four main asset classes in Jeddah, in relation to recent announcements in the real estate sector.
Our regulatory panel will discuss and deliberate on the impact of White Land Tax and its impact on the residential sector, focusing on what it means for landowners and developers. The regulation is a hot topic in the country and according to experts is likely to institutionalise the real estate market and attract foreign investments into commercial property such as office buildings, retail centres and hotels, which in turn will provide diversity, long-term growth and stability.
In addition, the panel will tackle the upcoming Public-Private Partnership (PPP) schemes and its impact on real estate development, and will address home financing issues and its effect on sales activity. Our future outlook panel will reveal how Saudi Arabia’s Vision 2030 will impact the real estate industry. The panel will explore the opportunities for foreign investors in Jeddah, building a tourism hub, updates on Makkah developments, and innovation in mixed-use and leisure developments.
Q. How will the exhibition support the Kingdom of Saudi Arabia’s position as a real estate investment destination?
AH: Over the last seven years, the Jeddah Urban Development & Real Estate Investment event, powered by Cityscape, has been the barometer for the real estate industry in the country. Responsible for fostering partnerships that drive development and investment across the country, the event is a confidence booster for the market. Giving a platform to almost 50 exhibitors, who are committed to strengthening the country’s pipeline and aligning with the government’s vision, the event is ideally positioned to aid in the Kingdom’s real estate objectives.
For example, the government aims to increase the property’s sector’s contribution to the GDP from 5% to 10% by 2020, the equivalent of $74.8 billion. The Ministry of Housing also recently announced plans to create its own property development company and start a mortgage-guarantee fund to boost the rate of lending growth. Property advisor, Knight Frank, notes that this new entity will provide plots of lands to businesses planning to develop homes, and also help them secure financing.
In addition, the Kingdom has pledged 1.5 million residential units in seven years, and $3.6 billion over the next five years to develop state lands and large-scale residential projects. Along with our exhibitors participating this year, we are excited to be part of a time when the country is on the threshold of transforming their economy and placing a heavier emphasis on real estate. These new reforms will no doubt provide an added incentive for visitors and real estate professionals to attend the Event this year.
