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Aug 30 2010 12:00AM
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Work has started on the construction of five new museums and plans for the renovation of six others is underway throughout Saudi Arabia.
Prince Sultan bin Salman, chairman of the Saudi Commission for Tourism and Antiquities (SCTA), said that building work on regional museums in Dammam, Abha, Hail, Tabuk and Baha had started, while studies in to the renovation of museums in Jundal, Taima, Al-Ula, Hufouf, Sabya and Najran have been completed.
While the total budget for the projects was not released, the announcement follows news last year that the CTA had signed contracts worth around US $38 million (SR145 million) for the construction of four new provincial museums in Baha, Tabuk, Hail, and Dammam.
Saudi Arabia has centered it efforts on creating a series of new museums to help preserve its past – and support from private organizations has helped secure funding for the projects.
Prince Sultan commended Mohammed Jameel, president of Abdul Latif Jameel Group, for donating SR10 million to develop the Fed Heritage City in Hail.
“An agreement has been signed to build an international museum in Fed Heritage City on the location of the Haj route famous as Darb Zobayda,” he said.
Another accord has been signed to promote cooperation and coordination between the Higher Commission for Hail Development and the SCTA.
The prince said preserving Saudi Arabia’s past was of utmost importance for the Kingdom. A number of important artifacts had been uncovered during recent excavations, and that the government was making efforts to retrieve national antiquities from other countries.
“We have given priority to the protection and development of antiquities and heritage sites and to enhancing public awareness about their historical importance,” he told reporters.
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Aug 29 2010 12:00AM
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Saudi Arabia’s economic outlook remains broadly positive as it was well prepared in confronting the global crisis, reflecting lessons learned from the mid-1980s when oil prices collapsed and the country experienced a severe banking crisis, according to the International Monetary Fund, or IMF.
The IMF said that the Kingdom’s non-oil GDP is projected to increase to 4.25 per cent in 2010, with continued support from an expansionary fiscal stance and a pick-up in credit.
The report, prepared by the executive board of IMF, said inflation should remain around five per cent in 2010, reflecting persistence in rent and food inflation, and an expansionary fiscal and accommodative monetary stance.
Beyond 2010, inflation would gradually decline in line with the expected rise in global interest rates and the gradual exit from the fiscal stimulus.
Inflation fell substantially from its peak in 2008 (11.1 per cent) reflecting lower import prices despite the large fiscal stimulus and accommodative monetary conditions.
“Undoubtedly the Saudi economy has remained on solid foundation of sound macroeconomic performance during the worst financial crisis since the 1930s and the IMF’s report is a testament,” said John Sfakianakis, chief economist at Banque Saudi Fransi.
“At the core of its stability is Sama’s [Saudi Arabian Monetary Agency’s] prudent banking regulation which many central banks should draw important lessons, in terms of capital adequacy, and the Ministry of Finances counter-cyclical fiscal spending which came before most G-20 member states,” he added.
He said the inflationary pressures are rightly noted by the IMF and can be addressed by supply measures and not by monetary changes. All in all, the Saudi economy is on the road to verifiable and concrete growth.
Jarmo T. Kotilaine, chief economist of NCB Capital, said the Saudi authorities can take a great deal of comfort and satisfaction in the assessment of the IMF directors. Not only has the Kingdom’s economy weathered an extraordinary economic storm with considerable resilience but also successfully continued to forge ahead with its strategic investment priorities. After the crisis, the Saudi economy is on the whole better positioned for further growth than before. Not many of its peers can claim the same.
He said particularly encouraging is the IMF’s positive assessment of the non-oil economy, supported both by the aggressive stimulus measures and the success of the authorities in pursuing credible and sustainable regulatory standards.
“This track record is critically important for the Kingdom’s unavoidable transition toward its post-hydrocarbons future as well as for increasing its ability to create real jobs,” Kotilaine said.
He added that another concern with the strong growth record is persistent inflationary pressures. This highlights the urgency of continuing with GCC integration toward the ultimate goal of greater monetary policy autonomy.
The IMF report said sizeable fiscal stimulus supported economic activity and had positive spillovers as remittances increased by 20 per cent to $25 billion. Non-oil growth held up remarkably well at 3.8 per cent in 2009, only half-a-percentage-point lower than in 2008 despite global headwinds.
Khaleej Times
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Aug 29 2010 12:00AM
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Automotive sales in the Kingdom of Saudi Arabia (KSA) is expected to reach over SAR 69.4 billion in 2010, while there will be a 30 per cent growth in the number of vehicles sold from 676,000 to 880,000 within the next three years, according to a recent BMI report.
A factor in the robust market growth is increased availability of lending facilities, with car loans expected to account for up to 70 per cent of car sales, up from 50 per cent.
Taking advantage of the industry’s robust growth forecast, Riyadh Motor Show 2010 – The 28th International Exhibition for Motor Vehicles, and Saudi Autoshop 2010 – The 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories, will showcase the latest models, accessories and specialised automotive services from leading international brands. Riyadh Motor Show and Saudi Autoshop will be concurrently held from December 5 to 9, 2010 (29 Dhu al Hijjah 1431 till 3 Muharram 1432) at the Riyadh International Convention & Exhibition Centre, expecting to attract over 85,000 visitors from all over the world.
Kamil Al Jawhari, Project Manager of Riyadh Motor Show at Riyadh Exhibitions Company, said: “The favourable economic conditions have helped consolidate Saudi Arabia’s reputation as a highly attractive automotive market. Moreover, there were several other factors that contributed to the encouraging auto sales growth in 2010, including the imposed restrictions on the age of imported used vehicles and the population growth in the country, which has helped spark the increase in demand for vehicles and auto parts and services. In addition, the local weather condition, which can be harsh on vehicles, has also been a factor in the steady demand for auto maintenance services.”
Industry pundits expect Saudi Arabia to remain generally impervious to the effects of the global downturn as a range of demographic factors and the country’s financial stability help cushion any negative impact on the automotive sector. Factors such as strong population growth of up to 3 per cent annually, high disposable income, low tariffs on imported cars and low fuel cost are boosting the automotive sector’s growth prospects, even as up to 60 per cent of the country’s population comprise the 16 to 64 age bracket, which is within the industry’s market range.
Riyadh Motor Show 2010 will showcase the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4x4 vehicles. It will also include automobile financing and insurance services.
Saudi Autoshop 2010, which is held concurrently, will feature the latest automobile accessories and repair service equipment gas station equipment automobile parts tires, exhausts and batteries and automobile care products.
Press release
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Aug 29 2010 12:00AM
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Automotive sales in the Kingdom of Saudi Arabia (KSA) is expected to reach over SAR 69.4 billion in 2010, while there will be a 30 per cent growth in the number of vehicles sold from 676,000 to 880,000 within the next three years, according to a recent BMI report.
A factor in the robust market growth is increased availability of lending facilities, with car loans expected to account for up to 70 per cent of car sales, up from 50 per cent.
Taking advantage of the industry’s robust growth forecast, Riyadh Motor Show 2010 – The 28th International Exhibition for Motor Vehicles, and Saudi Autoshop 2010 – The 14th International Exhibition for Auto Repair Equipment, Tools, Parts and Accessories, will showcase the latest models, accessories and specialised automotive services from leading international brands. Riyadh Motor Show and Saudi Autoshop will be concurrently held from December 5 to 9, 2010 (29 Dhu al Hijjah 1431 till 3 Muharram 1432) at the Riyadh International Convention & Exhibition Centre, expecting to attract over 85,000 visitors from all over the world.
Kamil Al Jawhari, Project Manager of Riyadh Motor Show at Riyadh Exhibitions Company, said: “The favourable economic conditions have helped consolidate Saudi Arabia’s reputation as a highly attractive automotive market. Moreover, there were several other factors that contributed to the encouraging auto sales growth in 2010, including the imposed restrictions on the age of imported used vehicles and the population growth in the country, which has helped spark the increase in demand for vehicles and auto parts and services. In addition, the local weather condition, which can be harsh on vehicles, has also been a factor in the steady demand for auto maintenance services.”
Industry pundits expect Saudi Arabia to remain generally impervious to the effects of the global downturn as a range of demographic factors and the country’s financial stability help cushion any negative impact on the automotive sector. Factors such as strong population growth of up to 3 per cent annually, high disposable income, low tariffs on imported cars and low fuel cost are boosting the automotive sector’s growth prospects, even as up to 60 per cent of the country’s population comprise the 16 to 64 age bracket, which is within the industry’s market range.
Riyadh Motor Show 2010 will showcase the latest models of passenger cars, station wagons, Sports Utility Vehicles (SUV), pick-up trucks, motorcycles, Special Purpose Vehicles, and 4x4 vehicles. It will also include automobile financing and insurance services.
Saudi Autoshop 2010, which is held concurrently, will feature the latest automobile accessories and repair service equipment gas station equipment automobile parts tires, exhausts and batteries and automobile care products.
Press release
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Aug 25 2010 12:00AM
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According to the organizers of Saudi Build 2010 and Saudi Stone-Tech, two major construction exhibitions in the Kingdom, Smart Buildings, the term used to describe buildings distinguished by one central system that operates by communicating amongst components to control the task of the home, are planned to go up all over the country at a total cost of SR150 billion.
The source also said that the construction of the buildings was expected to be fully completed by 2018. The Kingdom, suffering from a rapidly growing population and demand for housing must construct at least 2.9 million housing units by 2015 and 4 million housing units by 2020 to satisfy market needs.
Saudi Arabia, according to organizers has decided to invest in Smart or Green Building Technology as a means of promoting long-term sustainability and energy efficiency in the country.
Studies have shown that smart buildings can reduce energy consumption by 30 percent, cut emissions and water consumption by 50 percent as well as reduce building waste by 90 percent when compared to their conventional counterparts.
“Building owners are increasingly becoming interested in making their facilities more energy efficient to save money and decrease operating costs,” Shahid Bhatti, project manager of Saudi Build 2010 of Riyadh Exhibition Company said.
He added that smart building solutions provide a convenient way to improve energy efficiency and optimize the performance of buildings.
Smart buildings have become such a popular alternative to conventional buildings that many companies are expected to network at the two events scheduled for Oct. 18-21 at the Riyadh International Convention and Exhibition Center.
The events are scheduled to provide contractors, real estate developers and building owners with direct access to thousands of opportunities to incorporate Smart Technology into their businesses.
On the regulatory side, reports last month have said that regulations governing smart building construction and maintenance are expected to become a mandatory part of building codes in Saudi Arabia by the end of 2010.
“We should have binding regulation by the end of this year,” Ali Nazzal, sales and operations manager at ABB Smart Home and Intelligent Building Controls in Riyadh said.
In addition, there has already been talk that the smart building industry not only in the Kingdom but also in the GCC is expected to reach new heights in the next couple of years. Currently the Smart Building industry in the GCC is estimated to be worth 1.2 trillion riyals. Companies from India, China, Singapore, among others have already forged tie-ups with several Saudi firms to provide, smart, building materials to supply the local market.
Arab News
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Aug 25 2010 12:00AM
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Saudi Arabia’s approval of a $385bn government development plan in early August bodes well for the future of the construction sector, with hundreds of new schools and hospitals planned and some 1m homes to be built over the next five years as the Kingdom strives to improve its infrastructure.
The construction segment was resilient during the global financial crisis, growing by 4.71% in 2009, according to figures from the Saudi Arabian Monetary Agency, the country’s central bank. Business Monitor International has predicted an average annual growth rate of 4.13% for 2010-14 while the sector’s value is expected to rise from SR92.2bn ($25.6bn) to SR122.48bn ($32.7bn) in the same period.
“Companies are managing much better than they were two years ago. Mortgage lending, even without an official law, has pushed a lot of construction and helped the industry,” Mu’taz Sawwaf, chief executive of Construction Products Holding Company (CPC), one of the country’s largest players in construction, told OBG.
The government of the biggest Arab economy plans a number of building projects as part of its ninth Five-Year Development Plan (FDP), which was approved by the Council of Ministers on August 9. It has already begun providing contractors with guarantees to ensure they receive the necessary support from banks.
“Around $200bn worth of projects have been issued this year and many are under construction. These projects go to major contractors but they subcontract to smaller players, so the work gets spread around the sector,” said Sawwaf.
Officials have told local media that the key priorities of the ninth plan, which covers spending for 2010 to 2014, are improving living standards, increasing employment, distributing development across all regions and enhancing economic competitiveness. Its total value of SR1.4trn ($385bn) represents a 67% rise from the last FDP.
According to the Ministry of Economy and Planning, 50.6% or $195bn has been allocated to human-resource development, 19% or $73bn to social and health care, 15.7% or $60.7bn to economic resource development, 7.7% or $29.6bn to transportation and communication, and 7% or $26.8bn to municipal and housing services.
Broad details of some larger projects have been announced. For example, some 25 technology colleges, 28 technical institutes and 50 industrial training centres are planned for the education sector. Health care development targets require the construction of 117 hospitals, 750 primary health care centres and 400 emergency centres. New facilities will also be needed for plans to increase electricity production and double desalination capacity.
The large number of government-backed projects has raised doubts among business leaders that there will be enough capacity to deliver on all of the plans.
“We have seen the government play a more prominent role in financing mega-projects through vehicles such as the Public Investment Fund. The capital markets will have to play an even bigger role, resuming IPO [initial public offering] activity and issuing debt to support the projects,” said National Commercial Bank chief executive, Abdulkareem Abu Alnasr.
Saudi banks have already gone or are planning to go to the international markets to raise medium- and long-term money, said Abu Alnasr.
“Through government vehicles, the capital markets and banks diversifying their funding sources, there is a way to keep these projects going on. However, there will have to be some prioritization of projects because even if funding and financing were resolved, there would be execution issues due to the sheer number and magnitude,” he added.
Perhaps the most interesting of the plan’s aims is addressing the housing shortage. Estimates for the number of new homes required in the Kingdom range from 1.5m by 2015 to 4.5m over the next 15 years. Whatever the actual figure, the scale of the housing shortfall is substantial. The ninth FDP aims to address a share of this supply gap, with a target of 1m new residential units to be built by 2014.
CPC’s Sawwaf is confident the industry can deliver on this housing target. “Capacity and capabilities are sufficient among Saudi contractors to build the new units that are going to be required over the next 15 years. Moreover, many international firms have entered the market so covering the upcoming demand is possible,” he told OBG.
While meeting the plan’s aims will be challenging, it is doubtful that many players in the construction industry are troubled at the prospect of an excess of projects. The sector looks certain, therefore, to enjoy a busy period as a result of the Kingdom’s continued development drive.
Oxford Business Group
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Aug 23 2010 12:00AM
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State-controlled Saudi Electricity (SEC) said it approved the award of 14.7 billion riyals worth ($3.92 billion) of power projects to meet rising demand.
The award includes expansion of the Rabigh power plant and other power transmission and generation projects, the company said in a statement on the Saudi bourse website. The plant, Rabigh 6 would have a capacity of 2,400 megawatt (MW) to 2,800 MW, about 12-14 percent of the 20,000 MW the SEC plans to add through 2018, at an estimated total cost of $80 billion.
SEC would finance the projects through loans and its own resources, it said in the statement without providing further details.
South Korea’s Doosan Heavy Industries & Construction (034020.KS) submitted the lowest bid of 12.7 billion riyals to build the plant in Rabigh on the western coast of Saudi Arabia, industry sources said last week.
Power demand in the world’s largest oil exporter is rising at an annual 8 percent and is expected to triple to 121,000 megawatts from 40,000 MW currently, government officials say.
In April, Saudi Electricity secured a 15 billion riyal ($4 billion) soft loan from the government.
The bulk of the loan will finance the construction of the plant in Rabigh where the giant King Abdullah Economic City is under construction.
Reuters
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Aug 22 2010 12:00AM
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Saudi Arabia is planning to spend $27bn on transforming the city of Makkah via a model that will be the development for other urban centres in the country.
Arab News reported that the Holy Makkah Comprehensive Plan is being drafted by the Commission for the Development of Makkah and the Holy Sites and should be ready “by the beginning of next year”.
Four consulting and planning groups are currently working on the draft. The groups include local entities, such as government bodies that have a direct link to Makkah services, international planning experts and consultative companies.
Although the draft plan is not yet complete, some work is already being carried out.
“One of the important ones is the Fourth Ring Road project that will link the city’s main areas with a surrounding road. On that road, two projects are being executed to connect Makkah’s southern and western areas to the Jeddah highway,” Osama Al Bar, Makkah’s mayor, told the paper.
Other current work includes the construction of new municipal buildings and pedestrian bridges.
Makkah will also be the first Saudi city to have a metro system. Construction work on this project is already in progress, and is expected to be completed by the first quarter of 2011.
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Aug 19 2010 12:00AM
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Siemens has won a contract from Hanwha Engineering Construction of Korea, to supply demineralization equipment and condensate polishing systems for a power plant in Yanbu, Saudi Arabia.
Hanwa is in charge of the expansion project of the state-controlled Power and Water Utility Company for Jubail and Yanbu (Marafiq) at its generating complex in Yanbu. The SR 2.7 billion ($720 million) turnkey project contract covers supply of two 250MW steam turbine plants on a relatively fast-track basis. The new plant will help Marafiq boost its power generation capacity to better serve industries in the cities of Yanbu and Jubail. The multi-million dollar water treatment systems are scheduled for start-up in 2011, it said. Hanwha said the company had selected Siemens’ Fullsep external regeneration system as it offers minimum cross- contamination levels of the anion and cation resin, and thus ensures efficient resin regeneration for consistent water quality.
Saudi Economic Survey
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Aug 18 2010 12:00AM
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Saudi Arabia earned $116 billion from oil production in the first seven months of 2010, according to the Energy Information Administration (EIA) of the US Department of Energy.
The Kingdom, which pumped nearly one third of Opec’s production during the period, remained the biggest gainer as the 12-nation OPEC, which contributes to nearly 40 per cent of the world’s oil supply, earned $429 billion.
EIA said Saudi Arabia, which controls nearly a quarter of recoverable global oil resources, saw its income jump by 64 per cent to $100 billion in the first half of this year from $61 billion during the corresponding period of 2009.
Iran, which controls the world’s second largest oil deposits after Saudi Arabia, continued to retain its spot, with an income of about $41 billion in the first seven months of 2010. It was followed by the UAE and Nigeria, which recorded earnings of $38 billion each during the period.
While Kuwait and Angola recorded earnings of about $33 billion each, the income of Algeria was put at $31 billion, Iraq $28 billion, Libya $25 billion, Venezuela $22 billion, Qatar $20 billion and the smallest Opec producer Ecuador $4 billion.
The data showed that UAE’s oil export revenue surged to about $33 billion in the first half of 2010 from around $21 billion during the corresponding period last year. The earnings of Kuwait, another major Gulf oil producer, also increased to $29 billion from $20 billion in the same period.
The income of the other Gulf oil producers jumped from $10 billion to $17 billion in Qatar, to $35 billion from $22 billion in Iran and to $24 billion from $16 billion in Iraq, which is not included in Opec’s quota system.
According to the EIA report, OPEC net oil export earnings on a per capita basis reached $1.54 trillion in 2009.
It was predicted that globally, higher oil prices may boost the OPEC’s income by more than $180 billion in 2010 and earnings may surge further next year. The income of the group, which stood at about $571 billion in 2009, is projected to rise to nearly $752 billion this year, an increase of $181 billion, according to the statistics arm of the US Department of Energy.
The earnings are expected to increase to $821 billion in 2011 on the back of high crude prices and OPEC’s plan to hike output to meet higher global demand, said the ‘EIA August 2010 Short-Term Energy Outlook’ report.
However, 2008 has remained by far the best year in terms of earnings for OPEC with the income touching about $966 billion as prices hit an all-time high of $147 a barrel.
Khaleej Times
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