Latest news with #Vision2030
Middle East Eye
3 hours ago
- Business
- Middle East Eye
Saudi Arabia asks consultants to review feasibility of 'The Line' megaproject: Report
Saudi Arabia has asked consulting firms to review its plans to build a futuristic, 170km long city on its Red Sea coast called "The Line", a key pillar of Saudi Arabia's Neom gigaproject. The kingdom's public investment fund (PIF) asked the consultants to determine whether its plans to build the car-free city are feasible, Bloomberg reported on Monday. The report is likely to pile on more scepticism about The Line's future. In April, The Financial Times reported that the CEO of Neom had launched a 'comprehensive review' of the kingdom's megaproject. Neom, along with luxury Red Sea hotels and a ski resort, is the flagship project of Crown Prince Mohammed bin Salman's Vision 2030 plan to transform the kingdom's economy and reduce its dependence on oil revenue. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Bloomberg reported in 2024 that Saudi Arabia was cutting back plans for The Line. Instead of 1.5 million people living there by 2030, Saudi officials were said to anticipate fewer than 300,000 residents. Meanwhile, only 2.4km of the city is expected to be completed by 2030. The Line was unveiled with much fanfare by Saudi Crown Prince Mohammed bin Salman in 2021, with a short clip displaying some of human history's biggest technological advancements over the last century, including the moon landing and the creation of the internet. It then asked, 'What's next?' and the answer came in the form of a televised address from the crown prince. He said that the 170km city would have 'zero cars, zero streets and zero carbon emissions' and that its one million inhabitants could fulfil all their daily requirements, including education and leisure, within a five-minute walk of home. The crown prince also said it would be possible to travel from one end of The Line to the other in 20 minutes, implying that a very high-speed rail service would be built. At the time, Saudi Arabia said it expected the city to contribute $48bn to the kingdom's economy and create 380,000 jobs. Why Saudi Arabia can spend more money than it makes, even as oil prices drop Read More » The kingdom has pushed through liberalising social reforms, even as it cracks down on dissent. It has also opened up its economy, including recently legalising real estate purchases for foreigners. However, the more grandiose megaprojects have faced setbacks due to their high cost and falling oil prices. Oil still accounts for roughly 61 percent of Saudi Arabia's revenue, according to its 2025 budget. Brent crude, the international benchmark, has been trading for under $70 per barrel for most of this year. For years, Saudi Arabia was the main proponent of restricting supply in an alliance alongside Russia dubbed Opec+. The kingdom absorbed most of the production cuts within Opec+, while Iraq, the United Arab Emirates, and Kazakhstan boosted production. In April, Saudi Arabia led Opec+ in a surprise move to boost production, in what energy analysts said was a move designed to punish 'cheaters' exceeding production limits. The new supply has put more downward pressure on prices. In April, Goldman Sachs painted a bleak picture for Saudi Arabia's projects in a note to clients, projecting 'pretty significant' budget deficits and more scaling back of megaprojects. Neom has already faced internal challenges. Nadhmi al-Nasr, who managed Neom's construction from 2018 to 2024, departed from his post in November. Nasr earned a chilling reputation managing Neom. He bragged that he put everyone to work 'like a slave', adding, 'When they drop down dead, I celebrate. That's how I do my projects.' Two other foreign executives also left Neom at the end of 2024, according to The Wall Street Journal. One reportedly disparaged Islam, made lewd references about sexual positions and said women from the Arabian Gulf looked like 'transvestites'. Aiman al-Mudaifer was appointed CEO of Neom in November after overseeing a real estate division of the kingdom's nearly $1 trillion PIF.
Arab News
6 hours ago
- Automotive
- Arab News
FlyNow eCopters to take flight in Saudi Arabia soon
In a major step toward integrating flying taxis into daily transportation, Saudi Arabia is all set to produce thousands of eCopters, FlyNow Aviation's electric air vehicles, all of which will carry the 'Saudi Made' label, according to FlyNow Aviation's Co-founder and Chief Operating Officer Yvonne Winter. The Austria-based FlyNow Aviation is working to set up the assembly plant and will start the production of the cargo version in 2027. Officially, FlyNow's eCopters are expected to transport the public during Riyadh Expo 2030. 'Additionally, test operations (sandbox flights) are planned for 2025 in Saudi Arabia to adapt the technology to local conditions,' Winter told Arab News. Speaking about the future of mobility in Saudi Arabia, she said: 'Saudi Arabia is not only transforming its economy — it is shaping the future of mobility for the entire world.' She added: 'Under the leadership of Crown Prince Mohammed bin Salman and Vision 2030, the Kingdom is proving that bold ideas, advanced technology, and national pride can work hand in hand. We are honored to be part of this historic journey and proud to contribute to building Saudi-made solutions for global air mobility.' In May 2024, FlyNow Aviation signed a memorandum of understanding with the General Authority of Civil Aviation, the National Industrial Development Center, and the Sky Alliance for Automated Air Mobility. 'The cooperation aims to support the development of electric air mobility in Saudi Arabia, including regulations, airspace integration, vertiport infrastructure, and operational guidelines for unmanned air taxis,' Winter explained. In late 2024, FlyNow Aviation established a new company, FlyNow Arabia Ltd., in Riyadh, as part of its expansion strategy. The company plans to set up local production facilities to serve both domestic and international markets. FlyNow is an alumnus of the Destination Deep Tech program at the King Abdullah University of Science and Technology, and Winter has been invited to share insights with the participants of the follow-up program called KAUST ScaleX, which has been designed to support innovative global tech startups in expanding their operations into the Kingdom's market. Recently, Flynow achieved a significant milestone in the development of its modular eCopter family: the first untethered test flights were successfully completed at the newly secured testing site in Eastern Austria. This location enables unrestricted flight operations and accelerates its technical progress.
Daily News Egypt
6 hours ago
- Business
- Daily News Egypt
Egypt, EU, and Italy launch €24m integrated rural development project
Egypt's Minister of Agriculture and Land Reclamation, Alaa Farouk, inaugurated the first technical committee meeting of the Integrated Rural Development Project, joined by European Union Ambassador to Cairo Angelina Eichhorst, Italian Ambassador Michele Quaroni, and Head of Italian Development Cooperation Tibario Chiari. Funded through a €24m grant from the European Union, the project is implemented by the Italian Agency for Development Cooperation (AICS) and focuses on improving the livelihoods of smallholder farmers in the governorates of Sohag, Assiut, and Beni Suef. Its scope includes strengthening agricultural extension services, livestock production, plant health, and field irrigation systems. Minister Farouk highlighted the project as a significant step towards sustainable development in Upper Egypt, reflecting the government's commitment to social justice and better living standards in rural areas. He noted that by widening access to economic opportunities and essential services, the project aims to empower local communities and enhance resilience. Farouk described the initiative as a comprehensive development model that combines targeted interventions to bolster agricultural cooperatives and improve the efficiency of agricultural value chains. These measures, he explained, will help increase productivity and incomes, reduce losses, and raise the competitiveness of Egyptian agricultural products both locally and internationally. The minister also emphasised the project's role in creating new opportunities for rural women and youth through dedicated programmes that provide training, technical support, and access to finance—enabling them to become active contributors to economic and social development within their communities. Farouk further praised the initiative as an example of strategic partnership between Egypt and the European Union, aligning with Egypt's Vision 2030, which calls for integrated rural development balancing economic, social, and environmental priorities. He affirmed Egypt's openness to expanding cooperation with the EU in areas such as plant and livestock production, export market access, and attracting European investment to the agricultural sector. EU Ambassador Angelina Eichhorst welcomed the collaboration, describing Egypt as a 'key strategic partner for the EU.' She affirmed the EU's readiness to work with Egypt in rural development, agriculture, and technology transfer, while stressing the importance of maximising the impact of the grant through effective implementation. Italian Ambassador Michele Quaroni commended the partnership and the joint efforts to support agricultural development in the project's target governorates. He also invited Minister Farouk and a technical delegation from the Ministry of Agriculture to visit Italy to explore cooperative models as part of Egypt's broader strategy to modernise its agricultural cooperative system.
Arabian Business
7 hours ago
- Business
- Arabian Business
Saudi real estate: Thriving non-oil GDP boosts property market in multiple sectors in Q2 2025
Saudi Arabia's robust economic growth, driven by a 4.9 per cent expansion in non-oil GDP, is fuelling strong performance across the real estate market, according to CBRE Middle East's Q2 2025 Real Estate Market Review. Real GDP in Q1 2025 expanded by a robust 3.4 per cent, though the full-year forecast has been adjusted to approximately 3.5 per cent due to a more conservative outlook for the oil sector. The Kingdom remains committed to its Vision 2030 initiatives and fostering sustainable economic growth. The second quarter of 2025 witnessed a dynamic and evolving real estate landscape in Saudi Arabia, driven by a combination of policy adjustments and strategic initiatives. The implementation of the Real Estate Transaction Tax (RETT) and strategic realignments within the construction sector shaped the market dynamics. Moreover, the Kingdom's logistical prowess improved, with a rise in the Agility Emerging Markets Logistics Index. The Hail region attracted substantial investment, demonstrating its strategic importance, while several major mixed-use developments, such as OSUS EYE in Riyadh, the Pulse Wadi District, and the ongoing advancement of the Dar Al Hijra project in Madinah, underscored the Kingdom's commitment to economic diversification and urban growth. Residential real estate in Saudi Arabia Looking at the residential real estate market in Saudi Arabia significant growth and investment were witnessed in Q2 2025, particularly in Riyadh. Driven by strong demand, transaction volumes were substantial, with land sales leading the way. Government support and initiatives are actively promoting development and attracting both local and international investors. New project launches, such as Azure's Lamara project and ROSHN Group's ALDANAH community, alongside new investment funds, are fuelling the sector's expansion and commitment to addressing the Kingdom's housing goals. Office real estate in Saudi Arabia The office market in Saudi Arabia thrived in Q2 2025, characterised by key trends. The demand for office space, especially Grade A properties in Riyadh, remains high, leading to rising rental rates and exceptionally high occupancy levels. The government's Regional Headquarters (RHQ) Program continues to drive demand, attracting international companies. The rise in the flex sector and the preference for smaller, efficient office spaces are also notable. Although a limited new supply in 2025 is expected to exacerbate the market dynamics, the outlook is positive, with increased supply anticipated in the coming years, along with strong performance in Jeddah. Retail real estate in Saudi Arabia Q2 2025 saw a dynamic retail sector in Saudi Arabia, marked by the rise of 'Retailtainment' and the expansion of entertainment hubs. The increasing integration of entertainment into malls and the substantial investments by Saudi Entertainment Ventures (SEVEN) are key drivers of this transformation. Despite a slight dip in sales during the Eid holiday, the sector is navigating challenges like oversupply and e-commerce through innovative projects and strategic adaptations. Stable rents and occupancy rates in super-regional malls and the addition of new developments are adding to the evolving retail landscape. Hospitality real estate in Saudi Arabia The hospitality sector in Saudi Arabia experienced remarkable growth in the second quarter of the year, solidifying its position as a leading global travel destination. Driven by a combination of leisure, cultural, and religious tourism, the sector saw a 48 per cent increase in international visitors compared to Q2 2024. The upcoming mega-events, including major sporting tournaments and Expo 2030, are poised to generate substantial demand for accommodation. The pipeline of new hotel projects is also expanding, particularly in Riyadh, and new brand debuts, such as IHG's EVEN Hotel, are adding to the diversity and appeal of the sector, creating a strong outlook for sustained growth. Industrial real estate in Saudi Arabia Significant developments in Saudi Arabia's industrial and logistics sector supported the country's economic diversification efforts in Q2 2025. Robust demand for warehousing continues, despite challenges in finding immediately available, high-quality facilities. A major investment in a $7bn cross-country rail corridor will enhance logistics capabilities. Average warehouse rents are increasing, reflecting strong demand. The launch of the Advanced Manufacturing and Production Centre and collaborations like the one between Saudi Aramco Technologies and BYD are driving industrial transformation and innovation. Matthew Green, Head of Research MENA, said: 'This groundbreaking regulation marks a pivotal moment for Saudi Arabia's real estate market. By welcoming foreign investment, we anticipate a transformative shift, driving substantial growth in inbound capital over the next five years. 'This will not only support the ambitious FDI targets but also stimulate private sector development, further diversify the non-oil economy, and generate wealth for landowners. 'Furthermore, it will foster long-term population growth and economic stability by enabling foreign residents to participate in homeownership, a significant social milestone'.
Al Etihad
8 hours ago
- Business
- Al Etihad
Saudi Arabia and UAE dominate MENA sustainable bond issuance in H1 2025: Bloomberg
14 July 2025 21:19 ABU DHABI (ALETIHAD)Saudi Arabia and the UAE together dominated the issuance of green, social, sustainable, and sustainability-linked (GSSS) bonds in the Middle East and North Africa (MENA) region during the first half of 2025, according to data from Bloomberg's Capital Markets League GSSS bond issuances across the region reached $9.47 billion in the first six months of 2025, only slightly lower than the $9.91 billion raised during the same period last year. While higher global interest rates and a pause in issuances from Egypt and Qatar impacted the overall figure, strong volumes from Saudi Arabia and the UAE maintained the region's Arabia accounted for a commanding 66% of total regional issuances, raising $6.25 billion — a 25% increase compared to the first half of 2024. The surge was driven by infrastructure financing under the kingdom's Vision 2030. The largest single transaction came from the Saudi government with a $1.58 billion issuance. Other notable issuers included Al Rajhi Bank with two sustainable sukuks ($1.5 billion and $200 million), Saudi Electricity ($1.25 billion), Alinma Bank ($500 million), and SAB with a $650 million AT1 UAE followed with $3.22 billion, representing 34% of total regional GSSS bond activity. Debut transactions from National Central Cooling Company (Tabreed) at $700 million, and Omniyat at $500 million, were key finance instruments dominated the MENA sustainable debt landscape, comprising $6.8 billion of the total. This marks a 17% year-on-year increase, reflecting the region's growing influence as a hub for Islamic was also a notable increase in AT1 issuances, which reached $3.15 billion, the highest level in five years. These hybrid instruments, used by banks to meet Basel III regulatory requirements ahead of 2026 implementation, saw strong investor interest, particularly in the on the trends, Venty Mulani, Data Specialist for Sustainable Fixed Income at Bloomberg LP, said: 'The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve. As reporting improves, with Bloomberg data suggesting nearly 68% of issuances over the past three years have either an impact or allocation report, we look forward to seeing more transparency through innovations such as green digital bonds.' Stock Markets Continue full coverage
