DUBAI - Saudi companies have strengthened their presence at Cityscape 2006, the region's premier international property investment and development event, which will be held at the Dubai International Exhibition Centreon on Dec. 4-6.
"Saudi companies have increased their presence at this year's show, booking 70% more exhibition space than in 2005," said an IIR Middle East official, the organizer of the show. The total size of this year's event is over 16,000 square meters, of which over 80% has already been sold.
Over $27 billion worth of new projects were announced during Cityscape 2005 and Saudi Arabian companies accounted for more than 25% of that figure.
One of the most spectacular announcements was made by Al-Hanoo, which within a few hours of the opening ceremony, had sold half of the AED18 billion Nujoom Islands development project.
Rohan Marwaha, exhibition director, Cityscape Dubai, commented, "Representation from the Kingdom has grown steadily at Cityscape year after year.
However, due to the amazing amount of new projects that were announced at Cityscape 2005, they have now committed to this year's event in a big way. With eight months still to go, we are confident of further gains from the Saudi market."
Leading the way to Dubai are major Saudi organizations such as Tanmiyat Group and Dar Al-Arkan, which between them have confirmed over 650 square meters of exhibition space, whilst Al-Hanoo Holding, Saudi Oger, Jiwar, SNASCO, Diyar Najed, Al-Suwadani, Osus and Saudi Amjad make up a total currently exceeding 2,400 square meters.
"The award-winning Saudi Oger Group, one of the Kingdom's premier construction companies have increased the size of their stand to 120 square meters" the official added. Due to booming oil prices, the Saudi British Bank has estimated that Saudi Arabia's budget surplus this year will be almost $30 billion.
The Saudi stock market index finished 2004 with a massive 76.23% increase and market capitalization was up 110.14% year on year at $157.3 billion, the region's largest stock market by far.
However, it remains to be seen just how much of these surplus funds will be committed to real estate projects and where. Traditionally, Saudi investments are diverse, covering projects not only in the Middle East, but in USA, Western Europe and throughout Asia.
Record oil revenue has also provided the Saudi government with the means to fulfill their pledge to provide every Saudi citizen with a home. Currently it has one of the fastest growing populations in the region, now estimated to be over 26 million, of which 77% are now Saudi nationals.
Analysts expect development plans for family sized houses alone will be worth approximately $85 billion over the next ten years, other estimates put the number of new dwellings required to meet the projected housing demand over the next 15 years at almost five million, whilst the Jeddah Chamber of Commerce has estimated that the Kingdom requires at least a million new homes within the next five years.
By K.T. Abdurabb
© Arab News 2006
