Startup wrap — Saudi firms commit investment in regional funds, sportstech sees notable activity

RIYADH: Saudi Arabia’s Asir region is working on securing a further SR20 billion ($5.3 billion) in private investments as part of its transformation into a year-round tourism destination, with significant projects already underway. 

With 7.8 million visitors recorded in 2024, the region is rapidly approaching its formal target of 9.1 million annual tourists by the end of the decade, revealed a senior official. 

In an interview with Arab News at the Real Estate Future Forum in Riyadh, Hashem Al-Dabbagh, CEO of the Asir Region Development Authority, said that private sector investments in the region have already exceeded SR7 billion ($1.87 billion).

“Aside from that SR7 billion of investments from the private sector, we also have another SR20 billion or so that we are working on, and it’s in the pipeline, but it’s not yet realized,” said Al-Dabbagh. 

He added: “So hopefully, between the investments that are realized and the ones in the pipeline, we have from the private sector somewhere around SR27 billion that hopefully is going to happen in Asir.”  

Al-Dabbagh noted that while some of the projects currently in the pipeline are expected to be finalized this year, others are slated for completion in 2026 or 2027, with certain long-term initiatives extending beyond 2030.  

He expressed optimism about the progress of investments in Asir, noting that the region has been “moving full speed ahead” in this area.  

Al-Dabbagh emphasized that the ongoing projects in Asir are primarily driven by private sector investments, while also highlighting significant initiatives led by the Public Investment Fund. 

Among these, he pointed to the Alwadi project, a SR14 billion waterway development located in the heart of Abha.  

The project will include commercial, cultural, residential, and agricultural spaces on both banks, all designed with pedestrians in mind and catering to both locals and visitors.  

“I claim that with that investment, Abha is going to be the most livable and beautiful city in the Arab world as a whole,” Al-Dabbagh added.  

He also highlighted the Al Soudah Development Project, another mega initiative with an investment of SR14 billion.  

“This is in the forest-covered mountains of Asir, where there’s going to be, again, development of hotels and residences, high-end for the most part, in six different areas within Al Soudah,” he said. 

Both projects are expected to remain under development through 2030. 

Al-Dabbagh noted that smaller-scale projects are also in the pipeline which some slated for completion by 2025.  

He further discussed the role of the Asir Investment Co. in spearheading mega developments across the region.  

“AIC has a number of iconic projects in a number of areas, not just within Abha, but in other regions on the coast, in the north, on the mountain ridge, and of course, in Abha as well,” he said, adding that these projects “are going to be announced formally in the next months, in 2025.”  

Al-Dabbagh highlighted that the region’s strategy is focused on transforming Asir into a year-round destination for visitors. 

“The formal target for Asir is 9.1 million annual visitors by the year 2030. I expect this target to be raised,” he said, explaining that the unofficial number of visitors to Asir in 2024 already neared 7.8 million.  

Additionally, he pointed to the broader national tourism target for Saudi Arabia, which was recently increased from 100 million to 150 million visitors, suggesting that regional goals, including Asir’s, are likely to be adjusted upward.  

“Without a doubt, this is going to have an impact on the economic development in the region and on the number of jobs,” Al-Dabbagh added.  

He noted that Asir has traditionally been an exporter of workforce to other parts of Saudi Arabia, such as Riyadh, Jeddah, and Eastern Province, due to limited job opportunities in the region. 

However, he emphasized that the tide is turning. “Now with everything that is happening in Asir, we find that there is a reverse migration, if you like,” he said.  

Al-Dabbagh added that he has observed this shift firsthand within the Asir Development Authority and through reports from larger investment projects, as more local residents are choosing to return to Asir to work on the new developments.   

He noted that Saudi Arabia only opened its doors to international tourism a few years ago, meaning that due to the country’s prior restrictions, “the vast, vast majority” of tourists in Asir were domestic visitors, along with some travelers from Gulf countries, he said.  

Al-Dabbagh added that, while the majority of tourists to Asir are expected to be from Saudi and the Gulf region, the proportion of international visitors is anticipated to grow significantly — from around 1 percent to approximately 10 percent, even as the total number continues to rise.  

RIYADH: Oil-dependent countries in the Gulf Cooperation Council should focus on strengthening sectors such as real estate and tourism to ensure sustainable development, according to a Qatari official. 

Speaking at the Real Estate Future Forum in Riyadh on Jan.27, the president of the Real Estate Regulatory Authority-Aqarat, Khaled Al-Obaidli, said that Saudi Arabia’s success in the property sector exemplifies the growth of the entire GCC region in developing a thriving market. 

These comments regarding the Kingdom’s expanding property sector come just days after the nation reported a 3.6 percent year-on-year increase in its real estate price index.

Saudi Arabia’s Real Estate General Authority expects the country’s property market to reach $101.62 billion by 2029, with an expected compound annual growth rate of 8 percent from 2024. 

“The success of Saudi Arabia in the real estate sector is the success of all GCC countries because we see them as one,” said Al-Obaidli. 

He added: “Most of our countries are oil-based economies. It is very important to diversify the resources across sectors like real estate and tourism. We (Qatar) are not just a country that depends only on oil, we are now trying to affirm our presence in sports, and tourism, and we are also developing high-level universities.” 

Aligned with its Vision 2030 program, Qatar established the Real Estate Regulatory Authority-Aqarat in 2023 to enhance transparency and clarity of information as well as encourage investment in the country’s property sector. 

“The Real Estate Authority in Qatar was created to enhance the sector and we also try to make it more attractive to generate more investments,” said Al-Obaidli. 

Regarding the Real Estate Strategy launched by the authority in December, Al-Obaidli said that the initiative has five pillars, with the first one being developing a comprehensive national real estate plan and introducing policies that promote sustainable development. 

The second focuses on strengthening Qatar’s regulatory frameworks to support the sector, while the third aims to improve industry standards by enhancing real estate valuation governance.

The fourth pillar focuses on driving digital transformation in the industry, while the fifth aims to boost real estate investment and position Qatar as a global destination for family living.

“Technology is one of the most important tools to develop the real estate sector. Technologies like artificial intelligence and virtual reality can be used to enhance the customer experience. The experience of customers should be easy and seamless,“ said Al-Obaidli. 

He added: “In our countries, most of our doors are open. People get inside here without feeling uneasy. This is part of the real estate. If you want to retire, so, you have the regulations, health systems, and service products.” 

The Qatari official added that the country now hosts nearly all major international universities, allowing students to pursue higher education without traveling to Western countries.

Al-Obaidli also hinted at the plans to establish an institute of real estate in close cooperation with national universities.

“We are about to establish an institute for real estate in close cooperation with the private sector and some universities. So, it gives you the ability to get engaged in the sector, and you will also get a license specialized in this,” said Al-Obaidli. 

He added that people who receive real estate licenses from the institute can pursue part-time jobs in the property sector after completing their day jobs, which could boost the market. 

Al-Obaidli further said that both citizens from the GCC nations and foreign countries have sufficient opportunities to own residencies in Qatar. 

“The GCC citizens have privileges such as they can own a piece of land up to 3,000 sq. meters for residential and housing purposes in Qatar. Also, they can own their own land for their own entities or establishments for other businesses or factories. There are some regulations where we can increase these privileges for GCC citizens,” said the Qatari official. 

He added: “For foreigners, if you have $1 million, you can have a permanent residence and it will also have some features. This can be done through the Real Estate Authority.” 

According to the Aqarat website, permanent residency benefits are available for properties valued at $1 million or more, covering areas such as health, education, and investment.

Al-Obaidli further said that Qatar is not just trying to promote its own real estate sector, but it is also trying to accelerate the growth of the industry in other GCC nations. 

“We want our countries to be the best, as one of the good destinations for real estate development. Our ambition is to come to a stage that is very much high. We are promoting GCC countries, not just Qatar. We want to be integrated, where opportunities will be ample,” concluded Al-Obaidli. 

In November, a report released by Statista projected that the real estate sector in Qatar is expected to grow at a compound annual growth rate of 1.96 percent from 2024 to 2029, reaching a market value of $492.10 billion. 

Earlier this month, another report released by Qatar’s Ministry of Justice revealed that the country’s real estate sector recorded sale contracts worth $284.6 million in December. 

The ministry data added that 283 real estate transactions were recorded during December, with the number of properties sold recording an increase of 12 percent compared to November.