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Saudi Arabia

Intel Saudi Arabia

  • Dubai rents may be bottoming out as ‘green shoots’ appear

    Mon, 2020-01-20 00:12

    LONDON: Confidence may be returning to Dubai property despite a bloated market for off-plan homes, according to a report from Chestertons, the real estate broker.

    Although apartment and villa sales prices were down 2 percent and 3 percent respectively in the fourth quarter of 2019 compared to the previous quarter, rental rates are stabilizing.

    But supply issues continue to represent the biggest challenge facing the market, with 45,000 new units completed in 2019 and that expected to double this year.

    “The Dubai residential market in Q4 2019 is alluding to a more positive outlook for 2020 thanks to the slowdown of sales price declines and the leveling of rental rates,” said Chris Hobden, of Chestertons MENA. “This does, however, have to be tempered by the volume of new units scheduled for delivery in 2020, which makes the short-term recovery of prices in the emirate unlikely.”

    In the rental market, no movement was witnessed in the fourth quarter with the market supported by a draft law which would fix rental rates for three years upon the signing of a contract. 

    “To ensure high occupancy in 2020, landlords will have to be realistic in the face of tough market conditions. The incentives previously offered to tenants, such as rent-free periods, multiple cheques and short-term leases, will continue, with an increase in tenant demand for monthly direct debit payments also likely” added Hobden.

    Main category: 

    Dubai property giant Emaar reports 20% bump in profitsSaudi real estate showcase at Dubai property show

    Posted: by Arab News

  • Gulf carriers fly over Iraq, Iran after military action deters others

    Sun, 2020-01-19 23:59

    KUWAIT CITY: Gulf airlines still fly in Iraqi and Iranian airspace and to cities in both countries, even as other international carriers have rerouted planes since the US and Iran traded military strikes.

    Executives and analysts said carriers in the Gulf, a major transit stop between European and Asian destinations, have few alternative routes to choose from in an area where much of the airspace is kept clear of civilian aircraft for military use.

    In the latest flare up, a US drone strike killed a top general in Iraq on Jan. 3 and Iran fired missiles at US targets in Iraq on Jan. 8. In the tense aftermath, Iran’s air defenses accidentally shot down a Ukrainian airliner.

    Gulf carriers have grown into major airlines even as regional tensions in recent decades erupted into conflict. Rerouting flights hurts profits, they say, although they also insist that they take every precaution to keep passengers safe.

    “Iranian airspace is important for all carriers in this region,” said Adil Al-Ghaith, Emirates’ senior vice president, commercial operations, Gulf, Middle East and Iran.

    Dubai-based Emirates and sister carrier flydubai together serve 10 cities in Iran and Iraq, and have continued to use the airspace of both countries for other flights.

    Kuwait Airways and Abu Dhabi-based Etihad Airways have continued using Iranian and Iraqi airspace.

    At the same time, other international carriers have rerouted flights to avoid Iraq and Iran, including Lufthansa, Air France, Singapore Airlines and Qantas.

    Some regional carriers have also rerouted changed their routes. Bahrain’s Gulf Air has redirected European flights away from Iraqi airspace and now flies longer, more fuel consuming routes over Saudi Arabia and Egypt.

    “We want to take the safest option even if it costs us a little bit more for a period of time. We can live with that,” Gulf Air Deputy Chief Executive Waleed Abdulhameed Al-Alawi told Reuters.

    The UAE told  Emirates, Etihad, flydubai and Air Arabia this month to “evaluate flight path risks” although it said it was up to the airlines to make the final decision on the routes they chose.

    “Gulf carriers face a big challenge but that doesn’t mean that risks can be taken — even if that inflicts damage on the business model,” independent aviation consultant John Strickland said.

    Ukrainian International Airlines flight 752 was shot down in error after taking off from Tehran on Jan. 8, killing all 176 people aboard. Iran said on Saturday it was sending the flight’s black boxes to Ukraine.

    Main category: 

    Gulf Air, Royal Jordanian Airlines suspend flights to Iraqi citiesQatar Airways is the main loser among Gulf carriers in boycott

    Posted: by Arab News

  • Hungry Davos attendees to sample Saudi delicacies at Misk cafe

    daniel fountain
    Mon, 2020-01-20 20:36

    LONDON: Davos delegates will get to sample a taste of Saudi Arabia at a cafe in the event venue in Switzerland this week.
    It is one of a series of initiatives organized by the Misk Foundation, a non-profit philanthropic foundation established by Saudi Crown Prince Mohammed bin Salman. It aims to empower Saudi youth to become active participants in the Kingdom’s future economy.
    “The Saudi Café – operated by a Saudi chef, will introduce a piece of Saudi culture to the WEF,” the Misk Global Foundation said in a statement on the eve of the gathering.
    Some 3,000 leaders from the worlds of business, public policy, culture and technology are due to arrive in the Alpine town of Davos for the annual meeting of the World Economic Forum (WEF), which begins on Tuesday.
    Positioned at Promenade 80 and open daily to all, the Saudi Café will also offer networking and working spaces alongside coffee and traditional Saudi delicacies.
    Misk also plans to release research at Davos highlighting how some of the biggest challenges facing attendees can be addressed by youth-led solutions.

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    Ahead of Davos, WEF sees world riskier than everSAGIA chief to lead delegation to WEF meeting in Davos as number of overseas firms starting business in Saudi Arabia breaks record

    Posted: by Arab News

  • IMF: Low rates and reduced trade tension to aid world growth

    Mon, 2020-01-20 13:24

    WASHINGTON: Low interest rates and reduced trade tensions will likely buoy the global economy over the next two years and help nurture steady if modest growth.
    That’s the view of the International Monetary Fund, which foresees world economic growth accelerating from 2.9% last year to 3.3% in 2020 and 3.4% in 2021. The international economy is receiving a significant boost — 0.5 percentage point of growth last year and this year — from central banks’ low-rate policies, the lending organization says in a global outlook report out Monday. The US Federal Reserve, for instance, cut rates three times last year and expects to keep rates low for the foreseeable future.
    And an interim trade deal signed last week by the United States and China — the world’s two biggest economies — is expected to add 0.2 percentage point to global growth this year by lowering tariffs and improving business confidence. The global economy is rebounding from some temporary stumbles, including a lull in the launch of new technology products and new emissions standards that disrupted car production.

    Still, the IMF warns that the global economy continues to face an array of risks, including the possibility that trade tensions will escalate again. And many countries aren’t benefiting from the modest upswing in growth.
    Presenting the report at a news conference in Davos, Switzerland, IMF chief Kristalina Georgieva said that after a slowdown in 2019 there should be “a moderate pickup in global growth this year and next.”
    “We already see some tentative signs of stabilization,” she said. “But we have not reached a turning point yet.”
    Even in the United States, the IMF foresees growth slowing from 2.3% in 2019 to 2% this year and 1.7% in 2021, partly because the boost that the economy received from President Donald Trump’s 2017 tax cuts has been fading.

    China’s economy will also continue to decelerate, the IMF predicts — from 6.1% last year to 6% in 2020 and 5.8% next year. Though China’s economy will likely benefit from the truce with the United States, Beijing continues to manage a difficult transition away from speedy economic growth based on often-wasteful and debt-fueled investments to slower but steadier growth built on spending by the country’s growing middle class.
    Likewise, Japan’s economic growth, hobbled by an aging workforce, is expected to decelerate from 1% last year to 0.7% this year to 0.5% next year.
    Collective growth in the 19 countries that use the euro currency is expected to gradually pick up: 1.2% in 2019, 1.3% in 2020 and 1.4% in 2021.
    The IMF’s global forecast is slightly bleaker than the previous one it issued in October, mainly because of an expected sharp slowdown in India: The world’s seventh-biggest economy is expected to grow 5.8% this year, down from the 7% the IMF had expected in October, and 6.5% in 2021, down from a previously forecast 7.4%. In addition, problems in the financial sector have reduced credit, crimping consumer spending in India.


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    SAGIA chief to lead delegation to WEF meeting in Davos as number of overseas firms starting business in Saudi Arabia breaks recordIran says Zarif not attending Davos as its organizers “changed its agenda“

    Posted: by Arab News

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