FOCUS ON SAUDI ARABIA
Real Estate Sector
The real estate sector looks set to soar as the implementation of Saudi Vision 2030 boosts both the housing and hotel markets.
As the Saudi Arabian economy diversifies, the oil sector continues to offer significant investment potential, while leading players are also moving into new sectors, like water.
SAUDI ARABIA SECTOR ANALYSIS - REAL ESTATE
Real estate set to double
If the Saudi Vision 2030 plan achieves its aims, it will mean a "doubling of the contribution of the real estate sector to gross domestic product from 5 to 10 percent in just three years," says Abdulrahman Abdulkader Bajunaid, CEO of Rafal Real Estate Development Company, a developer of integrated high-end residential communities in Saudi Arabia. Saudi Arabia has a housing shortage, with a shortfall of 100,000 to 200,000 homes a year. Minister of Housing, Majed Al-Hogail, says the government plans to deliver 1 million residential units to satisfy demand. It also wants to increase home ownership from 48 to 52 percent by 2020. Bajunaid is certain that these are "key drivers for real estate development, which we believe represent a major opportunity for developers and investors."
Increasing tourist numbers is another major focus of Saudi Vision 2030. The kingdom's travel and tourism sector was the world's 24th largest in 2015, according to the World Travel and Tourism Council, but it should go up the list as reforms take place. For example, airports and a high-speed railway are being built or expanded, coastal areas are being invested in, and resorts and attractions are being developed — all of which means that new hotels are needed. The government is encouraging home ownership by making buying more affordable, with the Saudi Arabian Monetary Agency announcing that it will allow specialized mortgage companies to increase their home financing contribution to 85 percent. Bajunaid thinks this is a "wonderful move. This is definitely going to open up the market and make it more dynamic." He reveals that Rafal "will also be launching some unique products to help make the Saudi real estate consumer's aspiration of owning their own property a reality, without much hassle."
The REIT move
To encourage investors and developers, in all real estate sectors, a number of new real estate investment trusts (REITs) are about to be listed on the capital market. Bajunaid sees these as being an important stimulant to enable the diversification of funding sources for projects. "Early on, we would have key investors come in with us on projects, then the capital companies or Capital Market Authority started investing with us. And now, even the individual investor can invest in our yielding projects. We are very excited about this," he says, adding that the ultimate goal for Saudi Arabia's real estate market is for REITs to be buying in to a development before it starts.
He is confident that Rafal is in a very good position to benefit from REITs, in comparison with other developers, because, "we have yielding assets like hotel buildings and commercial offices, and we are evaluating proposals to use REITs as an exit for our projects." Rafal is a fast-growing company that is set to gain from the booms in both housing and tourism. It has been developing innovative, integrated high-end residential communities, increasingly in partnership with world-renowned hotel brands, since 2007. It is a closed joint-stock company and was, according to Bajunaid, "specifically developed to attract Japanese institutional investors."
Increasing tourist numbers is another major focus of Saudi Vision 2030. The kingdom's travel and tourism sector was the world's 24th largest in 2015, according to the World Travel and Tourism Council, but it should go up the list as reforms take place. For example, airports and a high-speed railway are being built or expanded, coastal areas are being invested in, and resorts and attractions are being developed — all of which means that new hotels are needed. The government is encouraging home ownership by making buying more affordable, with the Saudi Arabian Monetary Agency announcing that it will allow specialized mortgage companies to increase their home financing contribution to 85 percent. Bajunaid thinks this is a "wonderful move. This is definitely going to open up the market and make it more dynamic." He reveals that Rafal "will also be launching some unique products to help make the Saudi real estate consumer's aspiration of owning their own property a reality, without much hassle."
The REIT move
To encourage investors and developers, in all real estate sectors, a number of new real estate investment trusts (REITs) are about to be listed on the capital market. Bajunaid sees these as being an important stimulant to enable the diversification of funding sources for projects. "Early on, we would have key investors come in with us on projects, then the capital companies or Capital Market Authority started investing with us. And now, even the individual investor can invest in our yielding projects. We are very excited about this," he says, adding that the ultimate goal for Saudi Arabia's real estate market is for REITs to be buying in to a development before it starts.
He is confident that Rafal is in a very good position to benefit from REITs, in comparison with other developers, because, "we have yielding assets like hotel buildings and commercial offices, and we are evaluating proposals to use REITs as an exit for our projects." Rafal is a fast-growing company that is set to gain from the booms in both housing and tourism. It has been developing innovative, integrated high-end residential communities, increasingly in partnership with world-renowned hotel brands, since 2007. It is a closed joint-stock company and was, according to Bajunaid, "specifically developed to attract Japanese institutional investors."
"A guaranteed, attractive return on investment, that probably no other developer can match."
Abdulrahman Abdulkader Bajunaid
CEO, Rafal Real Estate Development Company
Abdulrahman Abdulkader Bajunaid
CEO, Rafal Real Estate Development Company
Its most prestigious project to date is probably the Burj Royal, a luxury vertical residential and self-contained community, built on 70 floors in a 20,000 square-meter plot and opened in 2014. Right in the center of Riyadh, it includes the five-star Burj Rafal Hotel Kempinski, recipient of many awards, including "Saudi Arabia's Leading Hotel 2016" and "Middle East's Leading New Hotel 2015" from World Travel Awards. Bajunaid puts the success down to "our efforts to make Rafal a top-notch player in the luxury properties landscape.
"It is a reflection of our pioneering innovation, not just from a development perspective, but also from the hospitality we provide our clientele and the innovative techniques we adopt in marketing, facilities and asset management." Since its inception, Rafal has aimed to be creative, with projects that change the horizon. Burj Rafal, for example, "is designed within the context of Saudi culture, but it offers an integrated lifestyle. People visiting the hotel will enjoy adjacent high-end shopping and fine dining in eight restaurants, while the hotel facilities are also available to residents," Bajunaid explains.
Future development
In 2017, Rafal inaugurated another luxury integrated community, the 27-floor Rafal Residence, just minutes from the King Abdullah Financial District. The tower will include 172 apartments, most already sold, and 234 five-star hotel apartments, operated by Ascott.
Next year, says Bajunaid, "We will launch Rafal Sky Garden, a residential project managed by Kempinski, which will have an urban design, a sanctuary feel, and which will introduce pool rental as a concept." Rafal's successful, pioneering record, which has attracted a wide range of local and regional investors, including ones from Japan, strongly suggests it would be a good partner for future Japanese investors interested in Saudi Arabian real estate development.
"We are open to Japanese investors in both existing and upcoming projects. We are able to deliver, not just consistent quality, but also a guaranteed, attractive return on investment (ROI), that probably no other developer can match," asserts Bajunaid. In our business, gaining trust from the investor is critical and this is developed from delivery — in terms of timing, quality and, most importantly, ROI and yield."
As well as intending to partner with more carefully selected hotel operators to further penetrate the branded service residences sector, Rafal is also looking at moving into food and beverages, to increase its vertical hospitality chain. "We believe that if we align with the right partners, the sky is the limit when it comes to gaining market share. We have seen some amazing brands from Japan, such as the Nikko group, and we would be really interested in partnering with Japanese businesses, especially in the areas of hospitality and sustainable developments."
Sustainability is part of the company's ethos and it gives top priority to conserving energy, design materials and waste management, which will be a key facet of its new projects. "Our primary vision is to help create a meaningful difference in the lives of all our stakeholders," says Bajunaid, "we would be proud to associate with individual or institutional investors who are aligned with our vision."
"It is a reflection of our pioneering innovation, not just from a development perspective, but also from the hospitality we provide our clientele and the innovative techniques we adopt in marketing, facilities and asset management." Since its inception, Rafal has aimed to be creative, with projects that change the horizon. Burj Rafal, for example, "is designed within the context of Saudi culture, but it offers an integrated lifestyle. People visiting the hotel will enjoy adjacent high-end shopping and fine dining in eight restaurants, while the hotel facilities are also available to residents," Bajunaid explains.
Future development
In 2017, Rafal inaugurated another luxury integrated community, the 27-floor Rafal Residence, just minutes from the King Abdullah Financial District. The tower will include 172 apartments, most already sold, and 234 five-star hotel apartments, operated by Ascott.
Next year, says Bajunaid, "We will launch Rafal Sky Garden, a residential project managed by Kempinski, which will have an urban design, a sanctuary feel, and which will introduce pool rental as a concept." Rafal's successful, pioneering record, which has attracted a wide range of local and regional investors, including ones from Japan, strongly suggests it would be a good partner for future Japanese investors interested in Saudi Arabian real estate development.
"We are open to Japanese investors in both existing and upcoming projects. We are able to deliver, not just consistent quality, but also a guaranteed, attractive return on investment (ROI), that probably no other developer can match," asserts Bajunaid. In our business, gaining trust from the investor is critical and this is developed from delivery — in terms of timing, quality and, most importantly, ROI and yield."
As well as intending to partner with more carefully selected hotel operators to further penetrate the branded service residences sector, Rafal is also looking at moving into food and beverages, to increase its vertical hospitality chain. "We believe that if we align with the right partners, the sky is the limit when it comes to gaining market share. We have seen some amazing brands from Japan, such as the Nikko group, and we would be really interested in partnering with Japanese businesses, especially in the areas of hospitality and sustainable developments."
Sustainability is part of the company's ethos and it gives top priority to conserving energy, design materials and waste management, which will be a key facet of its new projects. "Our primary vision is to help create a meaningful difference in the lives of all our stakeholders," says Bajunaid, "we would be proud to associate with individual or institutional investors who are aligned with our vision."
REAL estate SECTOR
Developing the future
As all sectors of real estate see growth, one developer discusses their portfolio, synergies with transportation and a need for technology.
The HAKA Group, a well-established and diversified group of companies based in Saudi Arabia, operates in many sectors, including real estate, transportation and logistics. Its real estate portfolio covers residential, commercial, retail and hospitality projects all over the kingdom, and it has a strong pipeline of current and future developments. Here, Khalid H. A. Al Gahtani, president and CEO of HAKA Group, explains some of the group's projects, many of which he sees as providing opportunities to investors and to Japanese businesses that form partnerships with HAKA.
Can you describe HAKA's activities in Saudi Arabia's housing, office and hotel real estate sectors? Would any of these activities offer opportunities to Japanese investors?
The HAKA Group has been active since 1967 and has built its reputation and progress on quality partnerships. We are headquartered in Al Khobar, right at the heart of Saudi Arabia's petrochemical industry and work daily with the market leaders in the oil and gas industry, that are clustered around Saudi Aramco. In conjunction with a real estate investment fund, being managed in accordance with the Capital Markets Authority of Saudi Arabia's regulations, HAKA has an ongoing hotel development — a four-star hotel in Al Khobar in the Azizia area, which will be operated by an internationally recognized hotel brand.
HAKA has also developed over 40 million square meters of land projects and has an ongoing development subsidiary plan to build and operate high-quality Grade A offices that will be pre-leased to the oil and gas industry. This project is at the advanced planning stage and we would welcome equity partners in this exciting new venture. In terms of residential real estate, HAKA is involved in, and is committed to, the development of housing in Saudi Arabia. For example, our Wahat Al-Sharqiya Project is a development of 2 million square meters in the eastern province and it is expected to be finished very soon.
The kingdom's housing requirements are large, immediate and challenging. In addition, these requirements are often in remote regions, that are vulnerable to climatic and seismic activity. But one of the advantages we have in this area is that GH Transport is also part of the HAKA Group. It has 50 years of experience in transporting large units to remote areas of the kingdom and is currently developing construction techniques in flexible steel-framed buildings. Partnership in the development of housing, particularly in locations far from the metropolitan cities of Saudi Arabia, is something that would be particularly welcomed.
The HAKA Group is also a major player in Saudi Arabia's transportation and logistics sector — how important is this area to the group?
Logistics is at the heart of the HAKA Group's long-term success and one of our companies, Gahtani International Maritime Agency, has been providing logistics, speedy custom clearance and associated services for over 28 years. We have an impressive array of long-term partners who we service and they continuously reward us with ongoing repeat business. GH Transport has been successfully supplying transport services to the oil and gas, and construction industries for 50 years and was the first business startup success of our founder, the late Sheikh Hasan Al Gahtani.
Can you describe HAKA's activities in Saudi Arabia's housing, office and hotel real estate sectors? Would any of these activities offer opportunities to Japanese investors?
The HAKA Group has been active since 1967 and has built its reputation and progress on quality partnerships. We are headquartered in Al Khobar, right at the heart of Saudi Arabia's petrochemical industry and work daily with the market leaders in the oil and gas industry, that are clustered around Saudi Aramco. In conjunction with a real estate investment fund, being managed in accordance with the Capital Markets Authority of Saudi Arabia's regulations, HAKA has an ongoing hotel development — a four-star hotel in Al Khobar in the Azizia area, which will be operated by an internationally recognized hotel brand.
HAKA has also developed over 40 million square meters of land projects and has an ongoing development subsidiary plan to build and operate high-quality Grade A offices that will be pre-leased to the oil and gas industry. This project is at the advanced planning stage and we would welcome equity partners in this exciting new venture. In terms of residential real estate, HAKA is involved in, and is committed to, the development of housing in Saudi Arabia. For example, our Wahat Al-Sharqiya Project is a development of 2 million square meters in the eastern province and it is expected to be finished very soon.
The kingdom's housing requirements are large, immediate and challenging. In addition, these requirements are often in remote regions, that are vulnerable to climatic and seismic activity. But one of the advantages we have in this area is that GH Transport is also part of the HAKA Group. It has 50 years of experience in transporting large units to remote areas of the kingdom and is currently developing construction techniques in flexible steel-framed buildings. Partnership in the development of housing, particularly in locations far from the metropolitan cities of Saudi Arabia, is something that would be particularly welcomed.
The HAKA Group is also a major player in Saudi Arabia's transportation and logistics sector — how important is this area to the group?
Logistics is at the heart of the HAKA Group's long-term success and one of our companies, Gahtani International Maritime Agency, has been providing logistics, speedy custom clearance and associated services for over 28 years. We have an impressive array of long-term partners who we service and they continuously reward us with ongoing repeat business. GH Transport has been successfully supplying transport services to the oil and gas, and construction industries for 50 years and was the first business startup success of our founder, the late Sheikh Hasan Al Gahtani.
"HAKA is involved in, and is committed to, the development of housing in Saudi Arabia. The kingdom's housing requirements are large, immediate and challenging."
Khalid H. A. Al Gahtani
President and CEO, HAKA Group
Khalid H. A. Al Gahtani
President and CEO, HAKA Group
Your group is known for the importance it puts on state-of-the-art technologies. Are there particular technologies of interest to you now that Japanese expertise could provide?
The HAKA Group is extremely focused on progress in new technologies. We would be particularly interested in discussing the subject of automated robotic parking systems, which we see as a major opportunity in the development of urban infrastructure. Through another of our subsidiaries, RADIAN, we are very active in sustainable energy saving developments and products. We have also established an educational development company, Inodias, that is successfully providing e-learning solutions and new technologies.
Why do you think Japanese businesses should invest in Saudi Arabia now? And if they do, why should they partner with the HAKA Group?
Saudi Arabia is a rapidly growing country with a population now exceeding 30 million. The future of our country and its success will be in our youthful development and the creation of a modern, innovative economy — and the kingdom has an ambitious plan to achieve this, Saudi Vision 2030. The HAKA Group is a close, family-orientated firm, we are very proud of our history and the future prospects for our young people, and we advocate Saudi Vision 2030. If Japanese companies want to invest and build a long-term partnership in Saudi Arabia with the HAKA Group, I can assure them that the group has made a commitment to progress — and to lasting partnerships.
The HAKA Group is extremely focused on progress in new technologies. We would be particularly interested in discussing the subject of automated robotic parking systems, which we see as a major opportunity in the development of urban infrastructure. Through another of our subsidiaries, RADIAN, we are very active in sustainable energy saving developments and products. We have also established an educational development company, Inodias, that is successfully providing e-learning solutions and new technologies.
Why do you think Japanese businesses should invest in Saudi Arabia now? And if they do, why should they partner with the HAKA Group?
Saudi Arabia is a rapidly growing country with a population now exceeding 30 million. The future of our country and its success will be in our youthful development and the creation of a modern, innovative economy — and the kingdom has an ambitious plan to achieve this, Saudi Vision 2030. The HAKA Group is a close, family-orientated firm, we are very proud of our history and the future prospects for our young people, and we advocate Saudi Vision 2030. If Japanese companies want to invest and build a long-term partnership in Saudi Arabia with the HAKA Group, I can assure them that the group has made a commitment to progress — and to lasting partnerships.
REAL estate SECTOR
Closing the housing gap through rapid expansion
Real estate is one of the main drivers of Saudi Vision 2030. Opportunities worth $100-billion exist in the Saudi housing market for the private sector and foreign investors.
Right now, the Saudi Arabian housing market is in an ideal position to attract major investment. And space is not a problem — up to half of the land in Riyadh, Jeddah and Dammam is not developed and is completely untapped.
This, combined with the fact that the kingdom has made key changes to the business environment for developers and investors, as part of a program to create more housing and increase home ownership, means that there are abundant investment opportunities.
Ultimately, the government's housing program aims to contribute to an improving lifestyle in Saudi Arabia for the current, as well as future, generations — and that is also what Al Akaria (Saudi Real Estate Development Company) is aiming at, when developing major projects in line with Saudi Vision 2030.
With a history dating back to 1976, Al Akaria (Saudi Real Estate Development Company) is a trusted name in Saudi Arabian real estate. It has put its mark on the capital city of the kingdom, Riyadh, and intends to keep on steering innovation and growth in the future.
With a new groundbreaking project, Al-Wedyan, announced earlier this year, Abdulrahman M. Almofadhi, chairman of Al Akaria (Saudi Real Estate Development Company), talks about his firm's contribution to and vision of the kingdom's real estate sector, now that Saudi Vision 2030 has been announced to the public.
With the recent launch of the Saudi Vision 2030 manifesto, how is Al Akaria (Saudi Real Estate Development Company) actively participating in the change program across the Kingdom?
It certainly is an exciting time in the Kingdom of Saudi Arabia, a time of great change and transition. The recent announcement of Saudi Vision 2030 signals the intent of the nation to undertake historic and significant transformation which focuses on the development of new economies, human capital and market competitiveness beyond the comfort and rising prosperity of the oil boom from 2003 to 2013.
The changing face of the global energy market, the emergence of a growing cluster of working-age Saudi nationals and the continued evolution of strong competitive country propositions within the region and neighboring countries has forced the kingdom to reevaluate its economic growth model, with the focus on integrating Saudi Arabia's economic, labor market and fiscal perspectives to create a productivity-led economic transformation beyond oil.
To enable this transformation, Saudi Arabia will need to shift from the historically government-led economic model to a more market-based approach.
This needs greater participation from Saudi nationals (male and female) to drive higher household income; better business regulation and openness to competition, trade and investment to improve ease of doing business and attract foreign direct investment; and finally, more efficient government spending and new economy revenue sources to help fiscal sustainability.
The team at Al Akaria (Saudi Real Estate Development Company) is committed to pioneer, lead and sustain the new generation of real estate concepts, systems, practices and developments across the kingdom of Saudi Arabia.
This will involve a fundamental shift from the "business as usual" operating models and practices; the recruitment, training and development of high-potential Saudi nationals throughout our organization; and the timely delivery of our projects, which aim at enhancing the lifestyle experiences for individuals, their families and for the community in general.
What are the major challenges facing Al Akaria (Saudi Real Estate Development Company)?
Change is never comfortable. The quality of our change management program, both internally within our organization and externally among our key stakeholders, will represent our major challenge.
Aligning all the forces for success will require our organization to assess whether our operating model is fit for purpose; our team to gain insight and find the appropriate means of crafting world-class communication to be fit for growth; and for the leadership team to recruit, train, develop and incubate the emerging young Saudi talent to create a sustainable, regenerative organization which is fit for life to 2030 and beyond.
What are the major opportunities for Al Akaria (Saudi Real Estate Development Company)?
With change comes the opportunity to create a legacy organization which not only aspires to be the pioneer and leader within the greater real estate sector, but has reshaped its organization to meet the demands of the Saudi population.
The development of high-quality, integrated residential communities, surrounded by world-class retail environments, health care and educational facilities, leisure, entertainment and hospitality venues, and beautifully manicured and orchestrated public spaces, coupled with cutting-edge, future-focused infrastructure provisions for energy, water, waste, transportation and connectivity is a powerful and compelling value proposition.
At Al Akaria (Saudi Real Estate Development Company), we are combining the very best of our local management talent with premier thought leadership, and global best-of-breed consultants and corporations to conceptualize and deliver these emerging new economies through our master-planned communities.
This, combined with the fact that the kingdom has made key changes to the business environment for developers and investors, as part of a program to create more housing and increase home ownership, means that there are abundant investment opportunities.
Ultimately, the government's housing program aims to contribute to an improving lifestyle in Saudi Arabia for the current, as well as future, generations — and that is also what Al Akaria (Saudi Real Estate Development Company) is aiming at, when developing major projects in line with Saudi Vision 2030.
With a history dating back to 1976, Al Akaria (Saudi Real Estate Development Company) is a trusted name in Saudi Arabian real estate. It has put its mark on the capital city of the kingdom, Riyadh, and intends to keep on steering innovation and growth in the future.
With a new groundbreaking project, Al-Wedyan, announced earlier this year, Abdulrahman M. Almofadhi, chairman of Al Akaria (Saudi Real Estate Development Company), talks about his firm's contribution to and vision of the kingdom's real estate sector, now that Saudi Vision 2030 has been announced to the public.
With the recent launch of the Saudi Vision 2030 manifesto, how is Al Akaria (Saudi Real Estate Development Company) actively participating in the change program across the Kingdom?
It certainly is an exciting time in the Kingdom of Saudi Arabia, a time of great change and transition. The recent announcement of Saudi Vision 2030 signals the intent of the nation to undertake historic and significant transformation which focuses on the development of new economies, human capital and market competitiveness beyond the comfort and rising prosperity of the oil boom from 2003 to 2013.
The changing face of the global energy market, the emergence of a growing cluster of working-age Saudi nationals and the continued evolution of strong competitive country propositions within the region and neighboring countries has forced the kingdom to reevaluate its economic growth model, with the focus on integrating Saudi Arabia's economic, labor market and fiscal perspectives to create a productivity-led economic transformation beyond oil.
To enable this transformation, Saudi Arabia will need to shift from the historically government-led economic model to a more market-based approach.
This needs greater participation from Saudi nationals (male and female) to drive higher household income; better business regulation and openness to competition, trade and investment to improve ease of doing business and attract foreign direct investment; and finally, more efficient government spending and new economy revenue sources to help fiscal sustainability.
The team at Al Akaria (Saudi Real Estate Development Company) is committed to pioneer, lead and sustain the new generation of real estate concepts, systems, practices and developments across the kingdom of Saudi Arabia.
This will involve a fundamental shift from the "business as usual" operating models and practices; the recruitment, training and development of high-potential Saudi nationals throughout our organization; and the timely delivery of our projects, which aim at enhancing the lifestyle experiences for individuals, their families and for the community in general.
What are the major challenges facing Al Akaria (Saudi Real Estate Development Company)?
Change is never comfortable. The quality of our change management program, both internally within our organization and externally among our key stakeholders, will represent our major challenge.
Aligning all the forces for success will require our organization to assess whether our operating model is fit for purpose; our team to gain insight and find the appropriate means of crafting world-class communication to be fit for growth; and for the leadership team to recruit, train, develop and incubate the emerging young Saudi talent to create a sustainable, regenerative organization which is fit for life to 2030 and beyond.
What are the major opportunities for Al Akaria (Saudi Real Estate Development Company)?
With change comes the opportunity to create a legacy organization which not only aspires to be the pioneer and leader within the greater real estate sector, but has reshaped its organization to meet the demands of the Saudi population.
The development of high-quality, integrated residential communities, surrounded by world-class retail environments, health care and educational facilities, leisure, entertainment and hospitality venues, and beautifully manicured and orchestrated public spaces, coupled with cutting-edge, future-focused infrastructure provisions for energy, water, waste, transportation and connectivity is a powerful and compelling value proposition.
At Al Akaria (Saudi Real Estate Development Company), we are combining the very best of our local management talent with premier thought leadership, and global best-of-breed consultants and corporations to conceptualize and deliver these emerging new economies through our master-planned communities.
"The team at Al Akaria (Saudi Real Estate Development Company) is committed to pioneer, lead and sustain the new generation of real estate concepts, systems, practices and developments across the kingdom of Saudi Arabia."
Abdulrahman M. Almofadhi
Chairman, Al Akaria (Saudi Real Estate Development Company)
Abdulrahman M. Almofadhi
Chairman, Al Akaria (Saudi Real Estate Development Company)
How is Al Akaria (Saudi Real Estate Development Company) reshaping its business to meet the demands of Saudi Vision 2030?
Our team has commenced a review of our operating model, with the intent of crafting our short, medium and long-term corporate strategic thrusts and key initiatives to deliver against our vision.
Once we have defined the strategic plan, the next step to reshape our business to meet the demands of Saudi Vision 2030 will be to restructure our organization, allowing us the visibility to understand the talent required through an integrated approach of recruitment, retraining and partnerships to gain the skills and capabilities needed to meet the challenges within our development program.
Developing the strategy is 5 percent of our challenge, execution and implementation represents the core 95 percent of this effort, and this is where our resources of time, people and money will be focused.
What differentiates Al Akaria (Saudi Real Estate Development Company) from other real estate developers across the kingdom?
We are proud of our 40-year operating history in the kingdom of Saudi Arabia and understand our role in the ongoing future development of our nation. Our pride extends from our Saudi Arabian roots, culture, leadership and customers, yet it is not enough to bring success in what we have planned to achieve across the organization.
We incubate and promote the spirit of innovation and entrepreneurship, and sense of shared ownership among our entire ecosystem of employees, partners and consultants. We openly seek the support and embrace the role of our governing bodies in legislating and providing overall guidance to the future direction of our cities and society.
And we recognize the impact we will have in the economic, social, cultural, religious and professional lives of our stakeholders.
For Saudi Arabia to deliver against the three major objectives of Saudi Vision 2030 of creating a vibrant society; delivering a thriving economy; and pride in the nation, we continue to work alongside and in collaboration with our peers to create the Saudi Arabia that our people deserve — a nation that is globally competitive, with a diversified revenue stream from the emerging new economies and employment opportunities for our young population.
Finally, what are your major projects for 2017?
Our major projects for 2017 include both greenfield projects and regeneration-based projects. Our major projects include:
1. The signature, destination-based, 7-million-square-meter Al Wedyan project along the emerging northern corridor of Riyadh, where we are currently finalizing our groundbreaking master plan which will incorporate the "best-in-class" concepts for residential, leisure and entertainment, retail, hotels and hospitality, health care, education and public space.
The project both celebrates the beauty of our land and topography, and weaves a lifestyle enhancement found nowhere else in the kingdom.
2. The mixed-use, semi-gated Al Dhahia community located in the dynamic and emerging Al Remal district of northwest Riyadh, where we have master-planned and commenced construction of 580 villas and duplexes around a central spine of public space; a community which will also be served by retail and educational facilities for young Saudi Arabian families.
3. The regeneration of our historic Akaria Mall and Plaza within the heart of Riyadh along Olaya Street.
2017 will be a defining year for all of us at Al Akaria (Saudi Real Estate Development Company), and one which I am very proud to be part of.
Our team has commenced a review of our operating model, with the intent of crafting our short, medium and long-term corporate strategic thrusts and key initiatives to deliver against our vision.
Once we have defined the strategic plan, the next step to reshape our business to meet the demands of Saudi Vision 2030 will be to restructure our organization, allowing us the visibility to understand the talent required through an integrated approach of recruitment, retraining and partnerships to gain the skills and capabilities needed to meet the challenges within our development program.
Developing the strategy is 5 percent of our challenge, execution and implementation represents the core 95 percent of this effort, and this is where our resources of time, people and money will be focused.
What differentiates Al Akaria (Saudi Real Estate Development Company) from other real estate developers across the kingdom?
We are proud of our 40-year operating history in the kingdom of Saudi Arabia and understand our role in the ongoing future development of our nation. Our pride extends from our Saudi Arabian roots, culture, leadership and customers, yet it is not enough to bring success in what we have planned to achieve across the organization.
We incubate and promote the spirit of innovation and entrepreneurship, and sense of shared ownership among our entire ecosystem of employees, partners and consultants. We openly seek the support and embrace the role of our governing bodies in legislating and providing overall guidance to the future direction of our cities and society.
And we recognize the impact we will have in the economic, social, cultural, religious and professional lives of our stakeholders.
For Saudi Arabia to deliver against the three major objectives of Saudi Vision 2030 of creating a vibrant society; delivering a thriving economy; and pride in the nation, we continue to work alongside and in collaboration with our peers to create the Saudi Arabia that our people deserve — a nation that is globally competitive, with a diversified revenue stream from the emerging new economies and employment opportunities for our young population.
Finally, what are your major projects for 2017?
Our major projects for 2017 include both greenfield projects and regeneration-based projects. Our major projects include:
1. The signature, destination-based, 7-million-square-meter Al Wedyan project along the emerging northern corridor of Riyadh, where we are currently finalizing our groundbreaking master plan which will incorporate the "best-in-class" concepts for residential, leisure and entertainment, retail, hotels and hospitality, health care, education and public space.
The project both celebrates the beauty of our land and topography, and weaves a lifestyle enhancement found nowhere else in the kingdom.
2. The mixed-use, semi-gated Al Dhahia community located in the dynamic and emerging Al Remal district of northwest Riyadh, where we have master-planned and commenced construction of 580 villas and duplexes around a central spine of public space; a community which will also be served by retail and educational facilities for young Saudi Arabian families.
3. The regeneration of our historic Akaria Mall and Plaza within the heart of Riyadh along Olaya Street.
2017 will be a defining year for all of us at Al Akaria (Saudi Real Estate Development Company), and one which I am very proud to be part of.
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