Rotana opens the Al Marwa Rayhaan

The prominent hotel in Saudi Arabia is the first hotel to open under the new ‘Rayhaan Hotels & Resorts by Rotana’ brand
Rotana, the leading hotel management company in the Middle East and North Africa, has officially opened the Al Marwa Rayhaan by Rotana, Makkah (Mecca), Saudi Arabia. The launch took place on Saturday 22 August 2009.
The new hotel is the first to open under the brand ‘Rayhaan Hotels & Resorts by Rotana’ - An Arabic name that refers to an aromatic plant mentioned in the sayings of prophet in the Holy Quran. Rayhaan reflects Rotana’s respect for the culture and beliefs of its guests.
Mr. Imad Elias, Executive Vice President & COO of Rotana, commented, “To our valued patrons, Rayhaan offers an uncompromising alternative that upholds the world-class standards synonymous with the Rotana name. An entirely new concept in the region and on the market, the alcohol-free option has an inherent appeal to guests in the Middle East.”
The Al Marwa Rayhaan by Rotana, Makkah is situated on the right side of the Al Bayt Towers project, which faces King Abdul Aziz Gate and has an overview of the Holy Mosque and the Ka’aba. The new hotel is part of the Al Bayt Towers complex, one of the ongoing King Abdul Aziz Endowment (Waqf) projects in Saudi Arabia, which are aimed at developing the areas surrounding the Holy Mosque in Makkah. The project is comprised of seven towers which will be built on an area of 6.15 million square metres.
The Al Marwa Rayhaan by Rotana offers 400 luxurious rooms and suites, designed to be modern and stylish, while complementing the values of Arabian culture. There is a choice of three restaurants at the hotel offering breakfast, lunch and dinner buffets in addition to an à la carte menu, as well as 24 hour in-room dining.
Makkah is widely known as being the centre of the Islamic world. The city is located in Saudi Arabia’s Makkah Province, in the historic Hejaz region. With a population of approximately 1.7 million people, the city is located 45 miles inland from Jeddah.
The city is modern, cosmopolitan and ethnically diverse, with a thriving business community. The Al Marwa Rayhaan by Rotana will attract a range of business travellers, as well as guests making the Hajj and Umrah pilgrimage.
“We are proud to manage this unique property, our first to open in Saudi Arabia, under Rotana’s new ‘Rayhaan Hotels & Resorts by Rotana’ brand,” Mr. Elias, commented. “Our team is very excited about this unique opportunity to expand into Saudi Arabia. We are certain that we will be able to introduce new standards in the tourism sector in Makkah.”

Source: BTN

Saudi families battle over $20 billion ‘fraud’

LAHORE: The Algosaibis, one of Saudi Arabia’s most powerful families, have accused Maan Al Sanea, the boss of the Saad Group, of embezzling $9.2 billion from them, in a case that could have repercussions for the Saad global empire of property and finance, the Telegraph reported on Sunday.The Algosaibis, currently being sued in New York by the Dubai-based Mashreq Bank for the alleged non-payment of $150 million, have claimed in their defence claims the missing money was borrowed by Al Sanea without their knowledge. They have alleged that it is merely one example of how Al Sanea borrowed money using their name without their knowledge or permission. Not true: Al Sanea, who is married to an Algosaibi, denies all the allegations. He claims he is being used as a scapegoat for a wider financial malaise in Ahmed Hamad Algosaibi and Brothers Company (AHAB). Forensic accountants estimate that Al Sanea has at least another $10 billion of loans with international banks, including Barclays, JP Morgan, Deutsche Bank and Commerzbank, which he used to buy both business and personal assets. On Tuesday, the Supreme Court of New York will hear arguments from both sides over the $150 million default that led to the discovery of the alleged fraud. Court documents, seen by The Sunday Telegraph, show that AHAB has named Al Sanea as a “third party plaintiff”, arguing that it “was not aware of the transaction” until it received legal notice from Mashreq Bank. It has claimed that any liability to Mashreq Bank is Saad’s, not theirs. Mashreq Bank is expected to argue that its quarrel is with AHAB, not Al Sanea.This weekend, Saad told The Sunday Telegraph that Al Sanea has not had any involvement in Algosaibi business dealings since 2006, when he quit as head of their money exchange unit. The highly-contentious spat between the two power bases is said to have almost paralysed lending to the private sector. Together the conglomerates could owe a raft of Saudi and international banks as much as $20 billion, analysts estimate.

Source: The National

Mortgages set to rise on Saudi construction boom

Property funding in Saudi Arabia is expected to surge in the coming years as housing demand is rapidly growing and the world's largest oil exporter is pursuing plans to issue a mortgage law, the largest Saudi bank said yesterday.Given the rapid growth in its population, the kingdom needs to construct nearly 158,000 houses every year between 2010 and 2020, a total 1.58 million new housing units, the National Commercial Bank (NCB) said.In a study sent to Emirates Business, the bank estimated investments required for these projects at nearly SR79 billion (Dh78.2bn) annually."For establishing long-term supply-demand equilibrium in the housing market, Saudi Arabia is required to build about 158,000 new housing units with an estimated investment need of SR79bn each year between 2010 and 2020. The conventional funding sources are the Real Estate Development Fund (Redf), commercial banks' consumer loans for real estate and individual's own savings," the study said, referring to a steady increase in the population and expansion in the non-oil economy, mainly industry.Its figures showed that in the past three years, REDF's disbursements of new housing loans averaged SR4.2bn annually, while those from the commercial bank averaged SR600 million a year. Funding from the traditional sources were nearly six per cent of the aggregate cost of building new housing facilities and the remaining 94 per cent were mobilised from personal savings, said NCB."The substantial gap between funding needs and the available resources points towards the existence of a huge potential market for mortgage financing in the kingdom. Saudi Arabian Monetary Agency (Sama) is in the process of drafting regulations for mortgage financing in the light of a cabinet decision whereby a developer will be required to register with authorities and deposit development finance and off-plan sales receivable into an escrow account," said the study."The implementation of regulations will create secure mortgage businesses for Saudi banks and act as a catalyst to boost confidence of investors." The study expected housing investments to support growth in the non-oil economy and ally with the planned enforcement of a mortgage law to give a strong push to one of the largest property sectors in the Middle East."The real estate and construction sector in Saudi Arabia is on the threshold of significant growth and we believe it presents one of the most attractive investment opportunities in the region," it said. The report noted that rents in Saudi Arabia had sharply increased over the past few years to become one of the main drivers of high inflation in the kingdom, where it peaked at nearly 10 per cent in 2008.Commercial rents also soared by nearly 15.2 per cent annually over the past five years but the report noted that they remained low compared with rentals for prime office space in neighbouring Dubai or Doha. "We expect that the government will expedite the proposed mortgage law, which will unlock significant demand. By 2012, we estimate the mortgage market could grow five fold to SR86.5 billion – a mortgage to GDP ratio of just 4.4 per cent in 2012 compared with one per cent at present," said NCB.In a previous study, NCB said plans to build six large economic cities constituted another major factor in the kingdom's construction boom. It said these cities would require an overall investment of SR260bn.The report said the construction boom and the surge in rents because of strong demand in 2008 had prompted the government to expedite the issuing of the long-awaited mortgage law, which is expected to further boost the sector, ensure market discipline and provide better protection for dealers."We believe the government will not delay on the announcement and implementation of the legislation given that it has highlighted the passing of the mortgage law as one of the key items in its inflation mitigation plan."Figures released by Sama showed the kingdom's population had increased by at least 500,000 people annually over the past few years, a growth of 2.3 per cent. The rate is higher than many other countries but is far lower than the seven per cent growth in the UAE.

Source: Business 24/7

UAE projects lead the way in GCC

Dubai: The UAE is leading the GCC countries in terms of construction activity with the country having 45 per cent of the total amount of projects in the region, a recent study shows.
Projects under way in the UAE amount to around $930 billion (Dh3,1 trillion), said the study done by Kuwait National Bank.
Project activity in the GCC region amounts to around $2.1 trillion.
The value of property construction is also four times higher than what had been estimated four years ago and reflects an annual growth rate of almost 50 per cent.
Also, some 81 per cent of the UAE projects are in the construction sector alone which indicates that the country has overtaken all GCC states in terms of total value of projects.
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However, Saudi Arabia has a much larger pipeline of non-construction related projects with a value of $224 billion. There are many strategic industrial projects on the way in Saudi Arabia as the country tries to diversify, such as the Jubail Export Refinery.
Recent reports in the UAE have shown that recovery after the global slowdown is in sight, especially for the real estate and construction sectors.
Memon Investments, for one, has continued construction of its projects, despite the economic climate.
These projects include their Dh1.34 billion project portfolio, such as the Champions Towers series, Gardenia I and II and also Frankfurt Sports Tower I, in addition to a commercial project, the Cambridge Business Centre.
"The strong standing of the UAE in the construction market is an indicator of the capacity of developers of locally-based projects to proceed with the construction of launched projects amidst the challenges presented by the economic slump," said Ahmad Shaikhani, managing director of Memon Investments.

Source: Gulf News

Saudi Arabia- $26.6bln project to attract FDI

(MENAFN - Arab News) �Saudi Arabia has embarked
on a major SR100 billion ($26.6 billion) project
to attract foreign direct investment (FDI) and
transform the Saudi economy into a global
economic powerhouse.

Last December, Custodian of the Two Holy Mosques
King Abdullah laid the foundation stone of King
Abdullah Economic City (KAEC) on a greenfield
site in Rabigh, 200 km north of Jeddah. The
largest of the four new economic cities planned
in different parts of the Kingdom and designed
to attract overseas investments and create job
opportunities for Saudis, it also is the biggest
construction project in the GCC � and is getting
bigger all the time. Initial designs were
recently substantially redrawn � to create a
city five times the original plan. Reports now
say that the project will cost not SR100 billion
but SR200 billion. Even before it was expanded,
the project was described as a "jewel in the
crown of Saudi Arabia" by Dubai's ruler and UAE
Vice President and Prime Minister Sheikh
Mohammed bin Rashid Al-Maktoum. It is now the
largest construction project in the Middle East,
probably the largest in the world.

One of the major objectives behind the economic
cities is the creation of new,
strategically-planned industrial centers which
have the capacity to develop and expand and be a
magnet for overseas investors. When completed,
the KAEC will house at least two million people
and, according to latest projection, create
nearly a million jobs. The talk is that it will
rival Jeddah, becoming not merely an industrial
city but, with its brand new infrastructure, a
commercial center as well.

King Abdullah toured the site of the project,
inspecting progress. Among work under way or
already finished in this multistage project are
the city's first boulevard � a 15 km stretch
that will be lined with over 3,000 palm trees �
and the excavation of the first canal to run
through the Red Sea Village, a component of
KAEC. Geo-technical investigations are under way
for residential units and designs have been
drawn up for one of the main entry gates. The
first Corniche Park and marina have also been
completed.

Work began on the project the very day King
Abdullah launched the KAEC at the headquarters
of Saudi Arabian General Investment Authority
(SAGIA), the project's prime facilitator, in
Riyadh on Dec. 20, 2005. Less than a year later
the king was given an overview of the
considerable progress that has been made.

"We're extremely thankful to King Abdullah for
his generous patronage of the project and his
keen interest in developing KAEC as a beacon of
the Kingdom's future development," says Mohamed
Ali Alabbar, chairman of Emaar Economic City
(EEC), the company which was given the contract
to build the KAEC. It was set up by Dubai-based
Emaar Properties (the world's largest real
estate company with over $40 billion worth of
projects) in a joint venture with Saudi
companies Aseer Trading, Tourism & Manufacturing
and the Binladin Group.

King Abdullah's visit followed the completion of
EEC's record-breaking initial public offering
(IPO) of SR2.55 billion, 30 percent of the SR8.5
billion total capital, to which more than half
of the Saudi national population subscribed.

This immense project, a new-age city built today
for tomorrow's generation of Saudi citizens,
will integrate itself into the Kingdom's ongoing
drive to expand and diversify the economy and
act as a hub for foreign investors, global
trade, commerce and industry. It will include a
new international airport.

EEC's Alabbar explains: "The six components �
seaport, industrial district, educational zone,
financial island, resorts and the residential
areas � will work seamlessly together. They will
make KAEC an important global destination and a
focus for the development of both heavy and
light industry and a range of services. These
will bring in a greater level of local
investment as well as regional and international
foreign direct investment into the Kingdom."

Central to the mega project is the new seaport.
"Covering 13.8 million square meters, a major
increase of 11.2 million square meters from the
original project, the seaport will be the
largest in the region with a capacity of over 10
million containers per year," says Alabbar.
"This is significantly higher than all other
regional ports. The port will have facilities to
handle cargo and dry bulk and will be equipped
to receive the world's largest vessels."

With its strategic location on the Red Sea and
easy access to key cities within Saudi Arabia,
the port will have a designated zone for light
industry and logistics. It is designed to serve
as a transshipment center for onward movement of
goods to Europe, Africa, Asia and beyond. It
will boast an integrated transport system with
seamless high-speed transition from sea to rail,
road and air, making the city the main gateway
to the Central and Eastern Provinces.

Being so close to the holy cities of Makkah and
Madinah, it will also have a dedicated Haj
terminal that can receive over 500,000 pilgrims
every season. To cater to this flow of visitors
there will be adjoining hotels, medical centers
and other world-class amenities.

The educational zone will consist of a
university, colleges and schools. There will
also be research and development centers, a
luxury holiday resort as well as residential and
commercial centers.

The major modification of the KAEC master plan
with substantial additions to its six major
components will generate even more employment
opportunities for Saudis. It now has the
potential to generate one million jobs, twice
the original target. The breakdown of jobs to be
created is: Industrial and light industries
330,000; research and development 150,000;
commerce 200,000; services 115,000; hospitality
60,000 and education and community services
145,000.

"We're creating a new nerve center for global
businesses that look at the investment
opportunities provided by the Kingdom," says
Alabbar. "This aligns with the vision outlined
by King Abdullah to make the Kingdom among the
Top 10 most competitive nations in the world by
2010."

"This expansion is a landmark move for EEC,
which has gained the trust of the Saudi
citizens," affirms EEC CEO Nidal Jamjoom. "Every
component of the project is being scaled up
corresponding to the additional land. This
expansion will eventually translate into more
business opportunities for Saudis as well as
overseas investors."

RSP Architects, principle planners of King
Abdullah Economic City, revised the overall
master plan of the project. Additional detailed
planning was provided by WATG for the resorts
and residential zones, by SOM for the city
center and by Parsons International for the
industrial zone.

Following the expansion, the Industrial District
will now cover 40 million square meters, five
times more than previously envisaged. There will
be room for 2,700 industrial tenants. The
industrial district will have specific start-up
initiatives to encourage and attract local
entrepreneurs. International experts have been
consulted to ensure that the zone's development
follows best environmental practices.

The Central Business District (CBD) will offer
3.8 million square meters of office space,
hotels and mixed-use commercial space. The
financial district, within the CBD, has now been
doubled in area to cover 14 hectares. It will
offer the largest regional financial nerve
center to the world's leading banks, investment
houses and insurance groups. The expectation is
that new banks and financial institutions coming
to the Kingdom will set up their headquarters
there.

The retail component of KAEC takes a quantum
jump following the project's expansion. From an
area of 3.3 million square meters, the total
retail space will now spread to 8.7 million
square meters to house over 50,000 shops, nearly
three times the earlier estimate.

The hospitality zone has seen the number of
hotel rooms and suites increased from 12,000 in
60 hotels to 25,000 in more than 120 hotels. An
ideal place to work and live, the KAEC will now
have 250,000 apartments and 25,000 villas, a
leap from 110,000 apartments and 16,000 villas.
Foreigners will be able to buy property in KAEC.

Building on the socio-cultural environment
demanded of living environments, KAEC will be
provided with 550 mosques including several
grand mosques in the residential zones. Schools
will be opened to cater to the educational needs
of children in each community in addition to a
university campus for 18,000 students. A sports
stadium with 45,000 seats is also part of the
development.

All these figures are massive. It is like
building a new capital city. EEC's Alabbar has
reaffirmed that the company will meet its
deadline to build the city on time. During this
year's Jeddah Economic Forum, Alabbar promised
that within two to three years the first people
would start living in the city.

Source: MENAFN