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A REMARKABLE TRANSFORMATION IS UNDERWAY THAT ECHOES THE KINGDOM'S RICH HISTORY OF AMBITION AND INNOVATION. SAUDI ARABIA, WITH ITS VAST LANDSCAPES, ANCIENT HERITAGE, AND BURGEONING ASPIRATIONS, IS REDEFINING THE MODERN ART OF CONSTRUCTION, AND THIS ISSUE OF SAUDI PROJECTS TAKES YOU ON A JOURNEY THROUGH SOME OF THE NATION’S MOST DYNAMIC DEVELOPMENTS, WHERE VISION MEETS ENGINEERING PROWESS, AND TRADITION INTERTWINES WITH STATE-OF-THE-ART TECHNOLOGY.
Vision 2030, a comprehensive roadmap for diversification and development, has propelled the Kingdom into an era of multifaceted growth. From the gleaming towers of Riyadh to the ambitious NEOM project on the shores of the Red Sea, it is erecting symbols of progress that resonate with its historical significance. Our cover story focuses on one such project, Amaala, which is more than a destination; it is a statement. It signifies Saudi Arabia's determination to offer the world a space where luxury, sustainability, and innovation coexist harmoniously.
The Kingdom is not merely constructing buildings; it is erecting marvels that harmonize with the environment and honor its cultural heritage. And nowhere is this more true than at Sheybarah, one of Red Sea Global’s most ambitious islands, with futuristic stainless steel villas that float over the water, reflecting the sea, sky, and reef below. We speak to those clever people behind the thermal cycling tests that ensured that these villas are ready to receive their first visitors.
As modern architectural wonders rise against the desert backdrop, there is, of course, also a need for exceptional interior design, so we sat down with Talar Bardakjian, Creative Director at altavia.odg, an award-winning spatial design and branding consultancy that has particular expertise within the retail sector.
One cannot discuss construction in Saudi Arabia without acknowledging the many changes taking place in the work environment, including the rise of women in an industry that has been traditionally male-dominated. Emma Burdett, Founder of WILD Women Collective, speaks to Maryam Telmesani, Sustainability and Change Management Consultant and Board Chair of Global Compact Network Saudi Arabia, about how things are changing in the industry and what challenges are still to be faced.
So embark on this journey with us, as we delve into the evolving story of 21st century Saudi Arabia - a story that encapsulates ambition, progress, and the relentless pursuit of a brighter tomorrow.
Rod Millington EDITOR
Heidrick & Struggles has released its second Board Monitor report in Saudi Arabia. With Vision 2030 driving accelerated growth for companies in the country, the composition of Saudi boards is evolving to meet the demands of this era of innovation, diversification, and growth.
Fifty new board appointments were made in 2022, a slight dip from 53 in 2021. Overall, there is a growing preference for members with previous board experience, with the number of first-time board members dropping from 43% in 2021 to 36% in 2022. Meanwhile, CEOs continue to dominate boards in the Kingdom with almost half (48%) of the new board members in 2022 having prior CEO experience.
On behalf of the consortium partners of EMC Subsea Cable Company Ltd (EMC Company) and Alcatel Submarine Networks (ASN), center3, owned by stc group, has announced the signing of the Supplier's Contract for the construction of two subsea and terrestrial data cables (EMC West) that will connect Saudi Arabia with Europe.
The EMC project allows KSA, Greece, and Cyprus to capitalize on their geographical advantages. It establishes a much-needed new data corridor, putting the three countries at the hub of a digital connection infrastructure that will be a cornerstone of the digital transformation age.
The EMC cable is designed to realize KSA's Vision 2030 and Greece 2.0 by transforming the Kingdom of Saudi Arabia into a ‘Digital Hub’ that connects Asia with Europe and Africa and establishing Greece and Cyprus as the ‘European Union's East Data Gateway’.
ASN will start building EMC West, which will connect Haql (Saudi Arabia) to Genova (Italy) and Marseille (France) via Cyprus and Greece. The two cables will have branches in Cyprus, Crete, and Athens, and will be made up of several Fibre Pairs. The EMC system is expected to be operational in the first quarter of 2026.
The EMC project allows KSA, Greece, and Cyprus to capitalize on their geographical advantages
Fifty new board appointments were made
Saudi Contractors Authority (SCA) and Ventures Onsite, a division of Ventures Middle East, have joined forces to launch SCAVO, an innovative and comprehensive Construction Intelligence Platform for the Kingdom of Saudi Arabia. This collaboration marks a pivotal milestone in the Saudi construction industry, signaling a new era of advancement and excellence.
During the Future Projects Forum held in Riyadh, the partnership between SCA and Ventures Onsite was solidified through the official signing of a Memorandum of Understanding (MOU), representing a significant step forward in the industry.
Abdulmajeed Alrashoudi, Governor of SCA, signed the MoU and stood alongside Ahmad Kabra, CEO of Ventures Middle East, and Mibu John, Partner and Managing Director of Ventures Onsite, during the signing ceremony. SCAVO represents a breakthrough in construction intelligence, providing industry professionals with unparalleled insights and real-time project data. Leveraging the combined expertise, resources, and leadership of both entities, this powerful partnership underscores a shared commitment to driving innovation, excellence, and progress within the Saudi construction sector.
Ahmad Kabra, CEO of Ventures Middle East, highlighted the profound impact of this collaboration, stating: “The partnership between Ventures Onsite and SCA signifies our unwavering dedication to the advancing Saudi construction industry.”
Mibu John, Partner and Managing Director of Ventures Onsite, echoed the sentiment, expressing enthusiasm: “We are excited
to embark on this partnership with SCA to introduce SCAVO. Together, Ventures Onsite and SCA will empower the industry, its participants, and stakeholders with transformative solutions from SCAVO.”
The launch of SCAVO marks a significant milestone in Ventures Onsite's steadfast commitment to providing cuttingedge intelligence solutions to the region’s construction industry. This collaboration with SCA further reinforces the shared vision of both entities to support the growth and advancement of the Saudi construction industry.
SCAVO represents a breakthrough in construction intelligence, providing industry professionals with unparalleled insights and realtime project data
IGH® Hotels & Resorts, one of the world’s leading hospitality companies, has signed a management agreement with Almuhaysin Group to open the first Regent Hotel in the Middle East, in Saudi Arabia. Set to open by mid-2024 in one of the most prestigious waterfront locations in Jeddah, Regent Jeddah will provide uninterrupted views of the Corniche and Jeddah’s Formula 1 racetrack, setting a new standard for modern ultra-luxury in Saudi Arabia.
A subsidiary part of the Saudi conglomerate Alfanar Group, Alfanar Construction has unveiled a new brand design and website. The name of the company has been formally changed to ‘Alfanar Projects’ to better reflect its metamorphosis into a full-service worldwide project developer providing engineering, construction, and technology solutions.
Sabah Al Mutlaq, Managing Director of Alfanar Projects and Vice Chairman of Alfanar Group, commented: “From our humble beginnings as a local contractor in the Kingdom of Saudi Arabia more than four decades ago, we have evolved into a global force with an overall estimated portfolio size of $25 billion. This rebrand underscores our growth and solidifies our business plans to further acquire new technologies and expand into new markets.”
“This rebrand underscores our growth and solidifies our business plans”
The upcoming Saudi feature film ‘Hobal,’ directed by acclaimed director Abdulaziz Alshlahei, will begin filming in NEOM this September. The film will make use of the striking Bajdah Studios and its expansive vistas to produce an epic cinematic experience.
The film will benefit from production support provided by NEOM, which is assisting with crew, location scouting, logistics, and on-theground production expertise.
Alshlahei explained: “Since 2018, we have been thinking about unique locations to shoot our film. We decided on NEOM, and specifically Bajdah, where the captivating landscapes will be an influential and integral part of the narrative.”
The National Housing Company (NHC) has launched its pioneering integrated living project ‘Sadayem’ in North Obhur in Jeddah. The Sadayem neighborhood covers a total area of over 3.8 million square meters and accommodates in excess of 8,000 residential units, including villas, apartments, and townhouses. Its interconnected structures feature architectural concepts influenced by the Hijazi region’s distinctive characteristics, providing a comfortable and luxurious living environment
for approximately 40,000 residents. NHC’s most recent ultra-luxurious home development is strategically placed east of Al Buhairat city, close to the Red Sea coast, and accessible to a variety of important facilities and significant future developments.
Sadayem is an extension of the numerous residential communities and suburbs previously established, which has been created to increase the real estate supply in line with the aspirations of the Housing Program and Vision 2030.
The film will make use of the striking Bajdah Studios
The Sadayem neighborhood covers a total area of over 3.8 million square meters
dmg events, the leading international organizer of events in the Kingdom of Saudi Arabia, is set to launch the Jeddah Construct Expo in 2024 as part of its phased expansion plan.
The event, catering to the Kingdom’s Western Province, will run for three days from 29 September to 1 October 2024 at the Jeddah International Exhibition & Convention Centre. The launch of the Jeddah Construct Expo (powered by Big 5 Construct Saudi, the largest construction event in the country running for the past 10 years), follows the successful introduction of other targeted shows in the Kingdom by dmg events.
The first phase of the ambitious Diriyah Gate project has been awarded Platinum Level LEED for Cities Certification by the US Green Building Council (USGBC) – the first time a project in the Middle East has received such an accolade.
USGBC President and CEO Peter Templeton said: “ “As the first community in the Middle East to earn Platinum certification on LEED v4.1 for Cities: Plan and Design, the first phase of Diriyah’s masterplan is leading the way to a better world and helping USGBC continue toward our goal of sustainability by prioritizing issues such as resilience and green infrastructure for all.”shows in the Kingdom by dmg events.
Will run for three days from 29 September to 1 October 2024
The first phase of Diriyah’s masterplan is leading the way to a better world
At the time of writing, the Eden Project in Cornwall, England, is possibly the largest and most well-known greenhouse facility in the world, consisting of multiple biomes, which are large, geodesic domes that house different ecosystems and plant species from around the world. It will, though, soon have competition in the form of the latest NEOM venture – a horticultural haven spanning an area equivalent to 15 soccer fields.
Enlisting the expertise of the Dutch greenhouse firm, Van Der Hoeven, to establish an ‘artificial climate’ conducive to cultivating crops in regions unsuitable for traditional agriculture, the project will help NEOM to redefine the ways in which food is produced, distributed, and consumed.
Drone video has divulged construction progress on Red Sea International Airport, which is being designed by British studio Foster + Partners. Shared by developer Red Sea Global (RSG), the video presents a construction update on the airport. Red Sea International Airport commenced construction in 2021, 15 kilometers inland from the Red Sea coast. It is being designed by Foster + Partners as a gateway to the wider development. Its curved form and plan are meant to imitate the desert backdrop and will be characterized by a quintet of dune-like pods assembled around a central drop-off and pick-up space.
An ‘artificial climate’ conducive to cultivating crops in regions unsuitable for traditional agriculture
IHG® Hotels & Resorts has signed a franchise agreement that will see a Hotel Indigo property open in Oxagon, a coastal industrial city in NEOM. The 250-key Hotel Indigo property will be situated in Oxagon’s first residential community and will open its doors in 2026. Designed to seamlessly integrate work, life, and play, Oxagon’s neighborhoods will be fully walkable, with sustainable on-demand mass transit and micro-mobility solutions.
Hotel Indigo will be designed as a lifestyle destination offering exciting retail and dining concepts including cafés, a pool lounge, and a specialty restaurant. Additionally, residents and visitors will have access to a range of leisure and wellness facilities including a spa and 24-hour fitness center.
Chris Newman, Executive Director, Hotel Development at NEOM, commented: “With this property, we want to capture the true essence of Oxagon’s innovative approach to the industry, its remarkable people, and the cutting-edge technology that defines it.”
The ‘H1 2023 Saudi Arabia Venture Capital Report’ revealed that Saudi Arabia was the most funded country in the MENA region in terms of the amount of venture capital (VC) funding in H1 2023, which witnessed a total VC deployment of $446 million.
Commenting on the report, Dr Nabeel Koshak, CEO and Board Member at SVC, said: “The Kingdom’s leading position in the VC scene in the region comes as a result of the many governmental initiatives launched to stimulate the VC and startups ecosystem within the Saudi Vision 2030 programs, in addition to the emergence of active investors from the private sector as well as innovative entrepreneurs.”
A total VC deployment of $446 million
Manara Minerals Investment Company, a joint venture between the Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund (PIF), under which Manara Minerals will make an equity investment in Vale Base Metals Limited (VBM), the holding entity of Vale’s Energy Transition Metals business. Concurrently, Vale signed an investment agreement with Engine No. 1 under the same economic terms.
Under the agreements, Manara Minerals and Engine No.1 will hold a 10% and 3% equity interest, respectively, in VBM, at an implied enterprise value of $26.0 billion. Through this transaction, Manara Minerals will gain access to high-quality supply chains across strategic minerals, including nickel, copper, and cobalt, which will support the growth of Saudi Arabia’s mining sector. This is in line with Vision 2030, the national blueprint for economic reform, which positions mining as a third pillar of the Saudi economy. Manara Minerals aims to contribute to the resilience of global supply chains and accelerate the global energy transition.
Vale Base Metals has projects in world-leading mining jurisdictions, including Canada, Brazil,
and Indonesia. Manara Minerals’ investment into VBM will play a pivotal role in helping it to expand the production of copper and nickel across its asset portfolio, which is critical to the development of new technologies that will benefit the global energy transition.
Robert Wilt, Executive Director of Manara Minerals and CEO of Ma’aden, said: “This investment is an important milestone for Manara Minerals. Through our investment in VBM, we are increasing the supply of strategic minerals and enabling Saudi Arabia to play a growing role in the global energy transition supply chains. Our proactive approach is a step further toward Saudi Vision 2030. It will support local industrial development, create jobs across the Kingdom, and strengthen the position of the mining sector as the third pillar of the economy.”
Eduardo Bartolomeo, Vale’s CEO, said:
“We see these strategic investments as a major milestone in our path to accelerate accretive growth in our Energy Transition Metals business platform, creating significant long-term value to all of our stakeholders. With our high-quality portfolio, we are uniquely positioned to meet the growing demand for green metals essential for the global energy transition, while remaining committed to strong social and environmental practices and sustainable mining.”
Manara Minerals, a joint venture between Ma’aden and PIF, sign an agreement with Vale to support the growth of Saudi Arabia’s mining industry
The partnership aligns with Vision 2030, which places mining as a third pillar of the Saudi economy
SAUDI ENTERTAINMENT VENTURES (SEVEN), A WHOLLY-OWNED SUBSIDIARY OF THE PUBLIC INVESTMENT FUND (PIF), HAS ANNOUNCED ITS CONSTRUCTION WORK ON ITS NEW ENTERTAINMENT DESTINATION IN ALMADINAH. CONSTRUCTION IS UNDERWAY WITH BUJV, A JOINT VENTURE BY AL BAWANI CO. LTD., AND URBACON TRADING & CONTRACTING, APPOINTED TO CARRY OUT THE CONSTRUCTION WORKS.
Abdullah Al Dawood, Chairman, SEVEN, said: “Our entertainment destination in Almadinah will transform the entertainment landscape of the region and bring new, unique, and exciting experiences to the people of Almadinah supporting SEVEN’s aims to enrich the quality of life for millions of Saudis."
SEVEN’s entertainment destination in Almadinah is located next to King Fahad Central Park and is set on a development area of over 100,000m2 with a total built-up area of over 84,000m2. The park seamlessly weaves itself into the development, blending the park’s picturesque trails with the destination’s
carefully curated open paths and gardens, enabling visitors to discover an entertainment oasis with enhanced choices and quality offerings to enrich the region’s communities. SEVEN is investing more than SAR 50 billion to build 21 entertainment destinations, which will provide unique and innovative world-class entertainment experiences and global partnerships from within the sector. The upcoming projects are located in 14 cities across the Kingdom: Riyadh, Kharj, Makkah, Jeddah, Taif, Dammam, Khobar, Al Ahsa, Almadinah, Yanbu, Abha, Jizan, Buraidah, and Tabuk.
SEVEN Almadinah has been designed with a wide range of entertainment attractions set to captivate and provide fun-filled experiences
The construction of SEVEN’s entertainment destination in Almadinah has been awarded to a joint venture by AL BAWANI CO. LTD and UrbaCon Trading & Contracting
The Public Investment Fund (PIF) has announced the founding of the Saudi Tourism Investment Company (Asfar) to support the growth of the Kingdom’s tourism sector. This new entity will invest in up-to-the-minute tourism projects and develop eye-catching destinations within hospitality, retail, food and beverage, and other areas in various cities, as well as investing in the local tourism value chain.
Asfar will support the private sector through co-investment opportunities, and by generating an appealing environment for local suppliers, contractors, and small and medium-sized enterprises (SMEs) to develop tourism projects and destinations.
Mishary Alibraheem, Head of the Entertainment, Leisure, and Sports sector at MENA Investments at PIF, explained: “Asfar will activate the role that Saudi Arabia’s cities play in supporting the national economy. It will enable each city to make the most of its unique tourism offering, further diversifying and enriching the tourism and entertainment experience in Saudi Arabia.”
The unveiling of Asfar is in line with PIF’s strategy to reveal and act upon opportunities in the tourism sector, while also reinforcing strategic partnership opportunities with the private sector, creating jobs and diversifying sources of income for the local economy in line with Saudi Vision 2030.
“Asfar will activate the role that Saudi Arabia’s cities play in supporting the national economy”
Saudi Arabia has opened talks about investing in the United Cup, the first tennis event of the season, which currently takes place in Australia. It would be its first incursion into the elite end of tennis.
Representatives of the Public Investment Fund (PIF) held discussions with Tennis Australia officials at Wimbledon in July about making an investment that would involve moving the joint ATP and WTA event to Saudi Arabia.
The tournament is understood to be especially appealing to PIF
as it is a showpiece event that opens the season and features the world’s top players.
The NextGen finals, the end-ofyear competition for the world’s eight best under-21 players, is set to be moved to Jeddah, and the United Cup is seen as a way of gaining traction in both the men’s and women’s tours.
Many of the world’s top men played an exhibition event, the Diriyah Cup, last December, but the United Cup would be the first tournament on Saudi soil with world ranking points available.
The Public Investment Fund has inked a preliminary agreement with Oman's sovereign wealth fund, Oman Investment Authority (OIA), to investigate investment opportunities in the Sultanate worth up to $5 billion.
The agreement provides for increased collaboration between the two funds and will aid in broadening the scope of investment in Oman's rapidly rising economy, while also building on the recent establishment of Saudi Omani Investment Company (SOIC), a company wholly owned by the PIF.
Yazeed Al Humied, Deputy Governor and Head of Middle East and North Africa Investments at PIF, commented: “This MoU (Memorandum of Understanding) is an important step in further strengthening the relationship between PIF and OIA to expand investment and cooperation in the fast-growing Omani economy.
“PIF aims to create long-term strategic partnerships in the region that support the creation of sustainable returns, deliver value to local economies, maximize PIF’s assets, and diversify the Saudi Arabian economy in line with Vision 2030.”
In October last year, PIF announced that it was setting up a quintet of investment companies following the launch of the Saudi Egyptian Investment Company in August 2022. These investment companies will pursue opportunities in Bahrain, Iraq, Jordan, Oman, and Sudan. Together, the six companies will invest in a number of important sectors, including infrastructure, property development, mining, healthcare, financial services, food and agriculture, manufacturing, telecoms, and technology.
A showpiece event that opens the season and features the world’s top players
The agreement provides for increased collaboration between the two funds
Nortal, the global digital transformation powerhouse, has appointed Hani Al Khiary as the Country Leader for Saudi Arabia. As a Saudi national with over 15 years of experience in digital transformation and technology advisory, Al Khiary brings deep industry knowledge and expertise to further strengthen Nortal's presence and commitment to the Kingdom's Vision 2030 economic diversification strategy.
In his new role, Al Khiary will be responsible for overseeing and driving commercial relationships in Saudi Arabia, as well as managing Nortal’s operations in Riyadh, one of the firm's three offices in the GCC alongside Oman and the UAE. His appointment signifies Nortal's dedication to growth in Saudi Arabia and ongoing investment in expanding its team of experts, uniquely positioned to help clients make a meaningful contribution to the country's digital transformation journey.
Egis, a global player in consultancy, construction engineering, and mobility, has announced two key appointments for the Middle East and South Asia, demonstrating its commitment to hiring top talent and increasing capabilities in the region.
Dr Ali Amiri, an industry veteran with more than two decades of experience, has been appointed as the new Director of Sustainability
and Specialist Engineering, while Dr Muhammad Mustafa, a specialist in transport, planning, and mobility solutions, has been appointed as the Director of Mobility and Planning.
These significant hires, according to Egis, will strengthen the company's commitment to furthering its low-carbon future strategy and harnessing intelligence to drive innovation in cities and communities.
Six Senses Southern Dunes, the first property set to open in Saudi Arabia’s Red Sea Project, will open its doors in late 2023 with Sherif Marei as Director of Sales & Marketing.
With a career spanning 17 years in the luxury hospitality sector, Marei’s career started with the Accor Group, working at a number of renowned properties including Fairmont Heliopolis and Fairmont Nile City. His extensive expertise in luxury hotel inaugurations includes high-profile launches such as The Ritz-Carlton, Jeddah, and most recently the Banyan Tree AlUla. His notable honors include the globally recognized Director of Sales of the Year and Fairmont Masters, in addition to the Fairmont
President Circle Awards, the brand’s top accolade in sales.
Expressing his enthusiasm for his new role, Marei said: “I am thrilled to join the Six Senses Southern Dunes team. The company’s ethos and values align perfectly with my own. As pioneers in sustainability and wellness, we define our brand by these principles. It isn’t simply what we do, it embodies who we are. The unique location and distinctive holistic approach to every element and experience offered to our guests at Six Senses Southern Dunes make my role in promoting the resort a true privilege.”
Swisslog, leaders in data-driven and robotic solutions for logistics automation, have announced the appointment of Rami Younes as the new General Manager and Head of Sales for Swisslog Middle East.
In his new position, Rami will be responsible for leading Swisslog's business in the Middle East, with a primary focus on warehouse logistics. Working closely with Swisslog's local and global senior management teams,
he will identify and pursue new growth opportunities, while also delivering industryspecific automation solutions to companies in the region to help improve their operational efficiencies.
Prior to joining Swisslog Middle East, Rami was the Chief Operating Officer at ALS Logistic Solutions and also successfully led a 4PL Logistics start-up, Integrated Logistics Services in Saudi Arabia.
He will identify and pursue new growth opportunities
BEING DEVELOPED AS PART OF SAUDI ARABIA'S VISION 2030, WHICH AIMS TO DIVERSIFY THE COUNTRY'S ECONOMY AND PROMOTE TOURISM AND LEISURE ACTIVITIES, AMAALA IS TO BE AN ULTRA-LUXURY DESTINATION THAT WILL OFFER UNIQUE EXPERIENCES, WORLD-CLASS RESORTS, AND CULTURAL AND ENTERTAINMENT OFFERINGS. INCORPORATING RENEWABLE ENERGY SOURCES, ENVIRONMENTALLY FRIENDLY PRACTICES, AND ENVIRONMENTAL AND SOCIAL REGENERATION EFFORTS, IT IS ANTICIPATED THAT, ONCE FULLY OPERATIONAL, AMAALA WILL CONTRIBUTE SIGNIFICANTLY TO THE GROWTH OF THE KINGDOM’S TOURISM SECTOR AND POSITION THE COUNTRY AS A PREMIER LUXURY TRAVEL DESTINATION IN THE REGION.
audi Projects caught up with three senior figures from Amaala and its parent company Red Sea Global (RSG) to check in on progress and how one of the world’s most ambitious projects is developing.
“Despite the challenges we've faced, Amaala has achieved remarkable success, a testament to our unwavering determination and the relentless efforts of our dedicated team. We are proud to be creating a world-class destination that will redefine the boundaries of luxury living,” begins Fahad Al Balawi, Head of Construction, Amaala.
Melisa Pezuk - Executive Director, Assets Development on Amaala at RSG, adds: “Our masterplan at Amaala has a unique proposition dedicated to Health, Wellness, and Lifestyle offerings, incorporating a residential component that links together the values of community with sustainability. Steering our vision is an ambition to create a reference point for Wellness tourism using a regenerative approach and a lifestyle that people can call home.” Of course, a project of this scale and ambition comes with a unique set of challenges, not least in the area of procurement, as Ben
Edwards, Group Head of Cost, Commercial and Procurement at Red Sea Global, explains: “Supply chain and market capacity is a continuous challenge. The Kingdom is a hotbed of activity today, with tourism, entertainment leisure, residential and urban development happening at pace. We’ve probably been slightly privileged on The Red Sea Phase 1 because we began before other developments. But now we’re having to work harder to try and balance out the workload between the supply chain and make sure we’re not overstretching people.
“We’ve also run a series of regional roadshows to identify companies: we did one in Qatar and one in Cairo, which were very successful for us in identifying and registering new vendors. And then separately from that, the PIF itself has also realized the challenge that the gigaprojects are all facing, and they’ve come up with a supply chain engagement program and we’ve participated in part of it. They’ve activated a plan to target the supply chain in Europe and the Far East and then North America in that order, and we joined them for three out of four roadshow events in Europe,
so we were in London, Berlin, and Istanbul with the PIF. And certainly, the Istanbul leg of that was particularly successful - we registered 50 or 60 new vendors from it, and we’re going to do our event in Istanbul later in the year.
“Our primary approach is to go down the construction management route, so we’re going down tier two and tier three supply chains, dealing directly with the specialist suppliers, whereas the PIF focuses more on big main contractors on the one hand and on the site manufacturer on the other hand.”
“We want to build something that no one’s built before to a quality standard that hasn’t been seen before”
The design work at Amaala is quite distinctive, underlining its ambition to be a world-class luxury tourism destination. “Our signature design style is reflective of coastal living; a timeless yet contemporary design that draws in architectural elements encompassing a sense of place while respecting the natural landscapes and typography,” Melisa says. “At Amaala we have been thoughtful in our design approach, working with architects who are world-renowned in luxury hospitality and have a proven track record of excellence in design. John Head has successfully designed two of our properties, including Clinic La Prairie and Jayasom, with the level of luxury combined with intricate detail allowing us to effortlessly achieve a simple, elegant design experience.”
“With the nature of our projects, we’ve got a lot of very bespoke architectural designs, because of the Wow! factor we are trying to create in the resorts,” Ben adds. “We want to build something that no one’s built before to a quality standard that hasn’t been seen before in order to deliver a really spectacular end-user experience to everything that we are building.”
It’s fair to say, though, that the interior design and finishes are proving to be something of a challenge with regard to procurement, with Ben continuing: “It’s true that we’re struggling with the supply chain that currently exists in the Kingdom.
Because of this, we’re not only looking for companies outside the Kingdom who can help us, we’re also looking at how we can develop the ability and capacity within the Kingdom. And there are a couple of PFI-led initiatives around that, one of which is called ‘Shareek’, which is providing companies with support to invest in manufacturing capabilities in Saudi Arabia.
“So we’ve given them a long list of things we frequently have to buy overseas that we shouldn’t have to buy overseas, and we’re working closely with them to try and push that agenda forwards because it’s a win/win for everybody.”
CABANAS
“We are proud to be creating a world-class destination that will redefine the boundaries of luxury living”
The environment plays a crucial role in the tourism sector. It is not only a key factor in attracting tourists but also in ensuring the sustainability and longterm viability of the industry.
“Environmental consciousness is foundational to our approach at a site level,” says Melisa. We work with world-renowned environmental and conservation specialists from across the globe to drive our vision of regenerative tourism protecting the environment and those who inhabit it.
“Working with a pristine and untouched coastline our greatest learnings came from respecting nature while ensuring that our considerations for the local heritage are preserved and serve as a continuing education for our visitors’ experiences. Our aim is to create a journey that is connected and immersive for all ages, providing a sense of discovery at a destination level. This incorporates ongoing research from our specialists that help to further develop the resilience of nature's capital in other areas of the world.”
“Amaala remains committed to sustainability, implementing innovative practices to minimize environmental impact,” agrees Fahad.
In addition to its environmental commitment, Amaala offers a rare seasonality in that it has moderate temperatures year-round, as Melisa explains: Amaala provides an outdoor lifestyle, making it the perfect destination for wellbeing and sport. Our masterplan intentionally incorporates all components of the destination, promising an integrated resort experience. The development strategy supports a comprehensive offer that caters to lifestyle, arts, culture and heritage, family wellness, medical and integrative wellness as well as sports, activities, and education. We want visitors to feel like there is something for everyone and have partnered with the best operators in the business to achieve this.”
“We’re doing quite a lot of offsite manufacturing ourselves, and we’re not using that many main contractors”
Progress on Amaala Phase 1 has significantly ramped up during 2023. “That is now enabling up to open up the construction work front on every asset across the Amaala program, so when you go up there it is now a real hive of activity and has obviously stepped up a gear,” Ben says.
“We’re doing quite a lot of off-site manufacturing ourselves, and we’re not using that many main contractors. That is why Istanbul was so good for us because we met some companies that have got multiple trading businesses, which big construction conglomerates tend to have. They have large contracting divisions, a facades division, a steel frame factory, a joinery factory etc., but it wasn’t perhaps as targeted as if we’d arranged it ourselves. That’s why we are going to go back.
“We’d already planned to do something in the Far East too, and we’re trying to get there before the rest of the giga-projects! It’s like a constant challenge for us, but it’s a good challenge.” Indeed, Ben is confident that everything is and will continue to be on schedule, answering the question “Will Amaala open when planned” with “Of course!”
Luxury holiday destinations are continually evolving to meet the changing preferences and demands of affluent travelers, and, as sustainability becomes a top priority, destinations are increasingly focusing on eco-friendly practices. This is certainly true of Amaala, which will also offer unique and immersive experiences that go beyond the traditional amenities. With a blend of exclusivity, sustainability, personalization, and distinctive experiences, it is set to become one of the world’s most soughtafter and popular vacation spots.
“AMAALA” is destined to be a sanctuary of unrivaled luxury, where every detail has been meticulously crafted to provide an extraordinary experience beyond imagination,” Fahad concludes.
“Our aim is to create a journey that is connected and immersive for all ages, providing a sense of discovery at a destination level”
STEP INSIDE THE NEW KOHLER SHOWROOM IN JEDDAH AND YOU'LL FIND YOURSELF SURROUNDED BY 150 YEARS OF CREATION AND INNOVATION. FROM THE FIRST ENAMELED CAST IRON BATHTUB TO THE LATEST IN DIGITAL SHOWERING TECHNOLOGY, KOHLER HAS BEEN ONE OF THE LEADERS IN KITCHEN AND BATH DESIGN FOR OVER A CENTURY.
Now, as the company celebrates its 150th anniversary, it is proud to announce its new partnership with Bayt Alebaa, a leading dealer in tiles and sanitary ware. Together, Kohler and Bayt Alebaa will bring the future of kitchen and bath design to Jeddah and the ever-growing and ambitious market of KSA.
“We are thrilled to be celebrating 150 years of creation and innovation,” said Mr Alan Orchard, Commercial Director Middle East & Sub-Saharan Africa, Kohler. “At Kohler, we are always looking to push the boundaries of what is possible in kitchen and bath design. Our new partnership with Bayt Alebaa will allow us to continue this legacy and bring the latest design and technology to our customers in KSA.”
The Kohler showroom in Jeddah is a testament to the company's commitment to innovation and sustainability. From water-saving faucets to energy-efficient toilets, every product in the showroom is designed with the future in mind.
The showroom is also home to the Kohler Archives, which offer a glimpse into the company's history and the many creators who have helped shape it over the years. A series of showrooms in KSA with Bayt Alebaa will be in addition to Kohler’s exclusive showrooms with existing partners Technical Agencies Commission in Jeddah and Ibrahim Al Najran in Riyadh and Khobar.
Kohler, which started in Wisconsin, USA, also hosted a panel discussion on the topic of ‘Integrating Design & Diversity for a Sustainable Future’ in collaboration with Saudi Projects and Women in Leadership Deliver. The discussion brought together four speakers from the hospitality and interior design industry to explore the role of diversity, equity and inclusion in creating a sustainable future.
“At Bayt Alebaa, we share Kohler's commitment to creation and innovation,” said Mr Mohamad Shujaa Al Sibai, Commercial Director Sanitary Ware category, Bayt Alebaa. “We are excited to join forces with Kohler and bring innovative products of kitchen and bath design to the Kingdom of Saudi Arabia while starting the journey from Jeddah. Together, we can create a better future for our customers and the world around us.”
The Kohler showroom in Jeddah is just the beginning of what promises to be an exciting new partnership between Kohler and Bayt Alebaa. As the KSA continues to evolve, Kohler plans to stay at the forefront of kitchen and bath design, creating products that are not only beautiful and functional but also sustainable and innovative.
DMG EVENTS, THE LARGEST TRADE EXHIBITION AND EVENT ORGANIZER IN THE KINGDOM, AS PART OF ITS PHASED EXPANSION PLAN HAS ANNOUNCED THE LAUNCH OF THE NEWEST ADDITION TO ITS LINEUP OF TRADE EXHIBITIONS - SAUDI WOOD EXPO, ANOTHER IMPORTANT STEP IN HELPING THE COUNTRY DELIVER THE 2030 VISION.
The new event will serve the woodworking, wood processing, and wood product manufacturing market segment in Saudi Arabia, running as part of a cluster of events at the Riyadh International Convention & Exhibition Centre (RICEC) from 2-4 September 2024, alongside the Saudi Warehousing and Logistics Expo, bringing several aspects of factory machinery and manufacturing together under one roof.
The event is being launched amidst a significant rise in the demand for wood across various sectors such as building, packaging, furnishings, and transportation. According to Data Bridge Market Research, the wood and woodworking market in the Kingdom is expected to reach a value of $4.1 billion by 2029.
The launch of the Saudi Wood Expo follows the successful introduction of other
targeted shows in the Kingdom by dmg events such as the Saudi Signage Expo and Saudi Hospital Design & Build Expo.
“Encouraging the development of local wood industries can contribute to economic diversification by creating jobs, attracting investment, and fostering entrepreneurship,” commented Ben Greenish, Senior Vice President, dmg events. “The Saudi Wood Expo will give local wood businesses
The launch of the Saudi Wood Expo is due to the rising demand from the building, packaging, furnishings, and transportation sectors
This new event will run from 2-4 September 2024 at the
The event will draw prominent players, including manufacturers, suppliers, and service providers from the industry. These industry leaders will present the latest trends, technological advancements, and a wide array of products. Exhibits will encompass timber and woodworking products and services, such as woodworking machinery, adhesives, coatings, wood composites, treatments, flooring, decking, doors, windows, power tools, and more.
The three-day event will be co-located and cluster with the recently launched Saudi Warehousing & Logistics Expo.
“These new trade shows will together provide a myriad of professionals with opportunities to seek out associated product knowledge and innovation in one place. Both inextricably linked shows are aligned to the development ambitions within Saudi Arabia’s Vision 2030 and in meeting consistently growing market demands,” Greenish concluded.
invaluable exposure and networking opportunities, connect them with potential customers, suppliers, and investors, enable them to explore international collaborations, establish trade relationships, and expand their geographic reach. It will also be a platform for foreign companies to enter the Saudi market and display their wood products or technologies.”
Anticipated to attract over 4,000 attendees and 75+ exhibitors, the Saudi Wood Expo will be a gathering place for wood and woodworking professionals such as contractors, builders and developers, consultants, architects, interior designers and decorators, furniture manufacturers, timber traders, distributors, and dealers, among others.
“Saudi Wood Expo will present an opportunity for Saudi Arabian businesses to explore international collaborations, establish trade relationships, and expand their reach beyond the domestic market,” Greenish added.
The launch of the Saudi Wood Expo represents a significant milestone for dmg events, which has offices in Riyadh and Jeddah. With a broad portfolio of more than 20 events, the new event highlights the group’s remarkable progress and solid foothold in Saudi Arabia. Furthermore, this event contributes to the development of a diversified economy, promoting sustainable practices and innovation within the wood sector in the Kingdom in line with Vision 2030.
FOR MORE INFORMATION ON THE EVENT, CLICK THIS LINK
Riyadh International Convention & Exhibition Centre
SUSTAINABILITY IS A FUNDAMENTAL ASPECT OF VISION 2030, AND SAUDI ARABIA IS COMMITTED TO ACHIEVING ITS NET-ZERO TARGET BY 2060; HOWEVER, THE ADOPTION OF SUSTAINABILITY CONSIDERATIONS REMAINS IN ITS INITIAL STAGES IN THE KINGDOM.
As the concept of Environmental, Social, and Governance (ESG) gains momentum in the region, Saudi Arabia has implemented various initiatives to promote sustainable practices. These efforts are outlined in Knight Frank’s recently published report, ‘Sustainable Saudi: Exploring the ESG Vision’.
Faisal Durrani, Head of Middle East Research, says: “As we witness the transformative power of sustainable initiatives in Saudi Arabia, it is evident that the Kingdom is embracing the path to a greener and more responsible future. With an ambitious target to generate 50% of energy from renewable sources by 2030, coupled with significant investments in largescale solar and wind farms, the renewable energy transition is quickly unfolding.”
Furthermore, Knight Frank says, the commitment to mitigating climate change is demonstrated by the government’s Green Initiative and the Middle East Green Initiative, solidifying the authorities’ dedication to combating climate-related challenges.
Knight Frank also highlights the increased focus on sustainable investing, as reflected in the ESG disclosure guidelines introduced by the Saudi Stock Exchange, which demonstrates the Kingdom’s commitment to aligning
financial decisions with environmental, social, and governance considerations. Separately, addressing water scarcity challenges through the National Water Strategy and adopting advanced technologies for water conservation and management further underscores the country’s dedication to responsible resource utilization. The increasing prevalence of social responsibility programs, such as the SAR 25 million donation by the ROSHN group, showcases the commitment of businesses to uplift communities and address societal needs. Investors too are increasingly recognizing the long-term benefits of ESG investments.
Durrani continued: “ESG-rated assets tend to exhibit lower operating costs, reduced energy consumption, and enhanced resilience to climate-related risks, leading to improved financial performance and asset value over time. Consequently, investors are willing to pay a premium for ESG-rated assets, expecting higher returns and lower risks in the long run. Occupiers too are being drawn to such offices, which is why we see Grade A occupancy levels standing at 98%.”
In light of these trends, international bluechip businesses with extensive sustainability initiatives are particularly interested in ESG-rated assets. Occupying such buildings
allows them to showcase their commitment to sustainability, fulfil corporate social responsibility, and attract and retain top talent. In Riyadh, developments like Business Front, King Abdullah Financial District, Laysen Valley, and Business Gate command the highest rental rates, reflecting the growing demand for new or modern developments with a strong focus on community living and ESG aspects.
Durrani adds: “In Riyadh and Jeddah, the abundance of aging office stock presents a unique opportunity for developers and landlords to breathe new life into their properties while aligning with sustainability goals. Renovation and modernization, adaptive reuse with green principles, and even demolition and reconstruction are options to be considered, albeit the latter options come with a higher carbon footprint than refurbishing.”
Knight Frank estimates that Riyadh has an estimated office stock of 5.1 million square meters, with 2.15 million square meters comprising Grade A office stock built before 2015, highlighting the growing challenge for landlords of older buildings.
“The shortage of office space is driving some occupiers to consider purpose building their own HQs, which is growing in popularity. This allows businesses to prioritize employee wellbeing, productivity, and engagement. Companies like Arabian Oud, Jarir, Alinma Bank, STC, the Ministry of Civil Service, and SDAIA are leading by example, constructing their own headquarters with a focus on comfortable and ergonomic workspaces that foster collaboration and creativity,” Durrani said.
These planned headquarters in Riyadh are estimated at 1.4 million
square meters, reflecting the growing popularity of this option as prime Grade A space availability dwindles.
While Saudi Arabia's 58.4% success rate in LEED certification highlights the proportion of projects meeting stringent requirements for sustainable design, construction, and operation set by LEED, the United Arab Emirates (UAE) leads among Middle Eastern countries with 2,072 LEED registered projects.
Andrew Love, Partner - Head of ME Capital Markets & OLSS, says: “As our business world embraces a heightened awareness of sustainability, the integration of ESG considerations into real estate operations has shifted from choice to a resolute strategic imperative. Riyadh's Grade A office spaces, boasting an impressive 98% occupancy rate, bear witness to the allure of ESG-rated assets, attracting international blue-chip businesses committed to sustainability.”
The launch of ESG disclosure guidelines by the Saudi Stock Exchange in 2021 further reinforces the importance of ESG reporting and awareness in the local market. In this dynamic landscape, forward-thinking developers recognize that to captivate large multinational or international tenants, green building principles and ESG must lie at the heart of their designs. While the local market may not currently demand these features, the evolving tide reveals a growing number of
The shortage of office space is driving some occupiers to consider purpose building their own HQs FAISAL DURRANI, HEAD OF MIDDLE EAST RESEARCH
tenants seeking buildings with robust ESG credentials. To secure a resilient future over the next 5-10 years, developers must prioritize these guiding ESG principles, embedding them into their projects."
Sustainable financing is also on the rise in Saudi Arabia, with a growing demand for environmental and socially responsible initiatives. The Public Investment Fund's successful completion of two international green bond issuances, totaling $8.5 billion, and NEOM's planned $80 billion IPO, highlighting its commitment to sustainable development, are driving positive change and reinforcing Saudi Arabia's dedication to sustainability.
Harmen De Jong, Partner - Real Estate Strategy & Consulting, KSA concludes: “Green financing in Saudi Arabia signifies a profound shift towards a more sustainable and responsible future. As the demand for environmentally and socially conscious initiatives grows, we witness a remarkable transformation taking place. Through visionary actions such as the successful completion of international green bond issuances and the commitment to sustainable development demonstrated by NEOM's planned IPO, Saudi Arabia is at the forefront of driving positive change. This steadfast dedication to sustainability not only fuels progress but also serves as a powerful reminder that green financing holds the key to shaping a greener and more prosperous world.”
ESG-rated assets tend to exhibit lower operating costs and reduced energy consumptionKHIGHT FRANK +966 11 289 0700
SAUDI ARABIA’S REAL ESTATE MARKET STARTED THE YEAR WITH FRAGMENTED PERFORMANCE ACROSS CITIES AND ASSET CLASSES, WITH LIMITED STOCK AND AFFORDABILITY CONSTRAINTS.
ooking at Saudi Arabia’s office sector figures, occupier demand remained strong, despite extremely limited levels of available stock. Grade A offices in Riyadh saw average rental rates increase by 9.3% year-on-year increase in Q1 2023, while Grade B rents rose by 14.0%. As for average occupancy rates in the capital, both Grades A and B stock saw occupancy levels improve slightly to 99.8% and 99.0%, marking annual increases of 1.8 and 2.1 percentage points
respectively. In Jeddah, Grade A office rents increased by 13.8% in the 12 months to March 2023, whereas Grade B rents slightly rose by 1.0%. Occupancy rates for both Grade A and Grade B offices rose to reach 91.8% and 79.3%. In the Eastern Province, Dammam and Khobar’s office markets saw Grade A rents increase by 9.7% and 8.0% respectively over the year to Q1 2023. Grade A occupancy levels in Dammam and Khobar at the end of the first quarter stood at 82.2% and 81.0% respectively.
1.6%
3.0%
Rate of inflation in March 2023
13.1%
Total employment increase in Q4 2022 over the same quarter in 2021
in
‒ Saudi Arabia’s GDP is projected to record a growth rate of 1 6% in 2023
‒ Saudi Arabia’s GDP grew by 8 7% in 2022
‒ Oil-related GDP grew by 15 4% and non-oil GDP grew by 5 4% in the 2022
According to Oxford Economics, Saudi Arabia’s GDP is expected by 1 6% in 2023, down from 8.7% a year earlier, this slower rate of growth is amidst a more challenging global economic backdrop, due to which we are expecting lower levels of oil production and prices for the year, which in turn has led to forecast for oil sector GDP falling by 1.9% in 2023. The non-oil sector, on the other hand, is expected to grow by 4.6% over the same period.
In the residential sector,the total number of mortgage contracts issued by banks continued to trend down with a total of 30,213 contracts, marking a decline of 35.8% compared to the same period in 2022. In terms of new loans issued by property type over the first quarter, houses retained the majority share with 68.8%, apartments accounted for 25.8% and land represented the remaining 5.4%. Average villa prices across major cities in Saudi Arabia saw mostly positive performances in the year through to Q1 2023, with prices improving
in Dammam, Jeddah, and Riyadh by 28.1%, 10.2%, and 6.0% respectively. Khobar’s villa market was the only one to record a fall in prices, with a decline of 6.1% in the year to Q1 2023. In the apartment market segment, Riyadh was the only city where the average apartment price increased on an annual basis, with average prices increasing by 17.3%. In Jeddah, Dammam, and Khobar, apartment prices dropped by 0.7%, 2.5%, and 1.6% respectively.
Looking at the hospitality sector, Saudi Arabia has seen relatively strong performance levels all around, with average occupancy increasing by 11.5 percentage points and ADR and RevPAR rising by 32.3% and 58.6% respectively, year-onyear in the year to date to March 2023.
Despite a slight softening month-on-month, Saudi Arabia’s Purchasing Managers’ Index (PMI) continue to expand at a strong rate in March 2023 with a reading of 58.7. The headline figure receded slightly due to softer, although once again very strong, readings in the new orders and output subindices during the month. The index’s employment sub- index also registered strong readings as firms in Saudi Arabia’s non-oil private sector continue to increase staffing levels.
On a city level, with the removal of visitation restrictions and the start of the month of Ramadan, the holy cities of Makkah and Medinah saw a sharp increase in occupancy levels of 21.2 and 18.5 percentage points respectively over the same period. Their ADRs also rose significantly by 91.5% and 62.0%, which underpinned RevPARs increasing by 166.2% and 108.9% respectively. In Jeddah, over the same period, the average occupancy rate and ADR rose by 7.9 percentage points and 4.8%, which led to a 21.5% increase in its RevPAR. In Riyadh, despite a marginal decline in occupancy of 0.4 percentage points, a 12.0% increase in ADR has meant that the capital’s RevPAR increased by 11.3%. Finally, the Eastern Province’s hospitality market largely recorded lackluster performance year-onyear in the year to date to March 2023, with
A offices in Riyadh saw average rental rates increase by 9.3% year-on-year increase in Q1 2023
77.6%
Increase in hotel RevPAR in the YoY to March 2023
9.3%
Growth in average Grade A office rents in Riyadh year-on-year in Q1 2023
58.7
PMI reading in March 2023, down from 59.8 a month earlier
RevPARs in Al Khobar increasing by only 1.6% and falling by 8.0% in Dammam.
the focal point for occupier activity in the Kingdom, with the Damam Metropolitan Area (DMA) remaining relatively both existing and new occupiers has continued to grow is extremely limited levels of occupiable stock available occupiers, demand continues to stem from mainly government, institutional occupiers, with the former two sectors accounting for space within the market
in Riyadh exhibited strong performance in the both Grade
In the Grade A segment, the average rental rate saw an reaching SAR 1,767 per square metre in Q1 2023. In the Grade B by 14 0% to SAR 1,450 in terms of occupancy rates, both average occupancy rates increase with Grade A segment percentage point annual increase, and Grade B segment improvement of 2 1 percentage point year-on-year
seen a uniform increase in average rental rates across all for Grade A offices reached SAR 942 per square metre in 9 7% growth rate, and average rents for Grade B offices metre reflecting an annual rise of 1 6% In Khobar’s Grade A 080 per square metre, an increase of 8 0% in the year to Q1 average occupancy rates in Dammam and Khobar’s Grade A points and 6 0 percentage points to reach 82 2% and 81 0% Grade B occupancy stood at 67 6% increasing marginally by
offices have risen by 13 8% in the year to Q1 2023, reaching Moreover, Grade B offices average rental rate averaged SAR 707 growth of 1 0% Average occupancy rates for Grade A and 3% respectively, up 4 3 and 4 7 percentage points
In Q1 2023, the industrial and logistics landscape in Saudi Arabia continued to take shape through the development plans set by the government, a core part of which will include increased levels of contribution from both the local and international private sector firms. One key initiative of such strategies has been the launch of four Special Economic Zones (SEZ) offering incentivized opportunities for global and local entities across multiple sectors. These zones will be located in Riyadh, King Abdullah Economic City in Jeddah, Ras AlKhair, and Jazan. Across Dammam, Khobar, Jeddah, and Riyadh, average industrial and logistics rents saw annual increases in all but one city in the year to Q1 2023. In Riyadh, Dammam, and Khobar, average rents rose by 18.1%, 5.8%, and 12.2% respectively. In Jeddah. rents in the industrial and logistics market fell by 9.8% in the 12 months to March 2023. This is the same rate that was registered a quarter earlier.
mortgage contracts issued by banks continued to trend down. registered at 30,213, which equates to a total value of SAR 22 8 period in 2022, the total number of contracts issued shows a total value of these contracts has fallen by 37 1% when period in 2022 In terms of new loans issued by property type retained the majority share with 68.8%, apartments accounted for remaining 5 4%
performance, average villa prices across major cities in Saudi Arabia the year through to Q1 2023 Over this period, average villa Jeddah and Riyadh by 28 1%, 10 2% and 6 0% to reach SAR square metre respectively. Khobar’s villa market was the which saw average prices falling to SAR 3,518 per square Q1 2023
segment, Riyadh was the only city where average apartment with average prices increasing by 17 3% to reach SAR 4,555 apartment prices declined by 0 7% to reach SAR 3,997 per square % settling at SAR 2,789 per square metre, while Khobar’s 1 6% to SAR 3,383 per square metre
Taimur Khan, Head of Research MENA at CBRE, comments: “Activity in Saudi Arabia’s real estate sector has showcased fragmented performance in the first quarter of 2023, much of which can be underpinned by a shortage of suitable stock. Despite heightened levels of demand from occupiers, which continues to be centered towards Riyadh, there is a considerable lack of Grade A stock available for immediate occupation. This is driving strong performance in this segment of the market across the Kingdom. In the residential market, due to higher costs of financing and a lack of suitably affordable options, we have seen a marked decrease in transaction activity and fragmented price performance, with Riyadh being the only location to continue to see price growth in both the apartment and villa segments of the market.”
Source: CBRE Research
Source: CBRE Research
In the residential sector,the total number of mortgage contracts issued by banks continued to trend down with a total of 30,213 contracts, marking a decline of 35.8%
DEVELOPERS AROUND THE WORLD ARE INCREASINGLY TURNING TO MODULAR CONSTRUCTION TO MEET THE DEMAND FOR NEW BUILDINGS; A DEMAND CAUSED BY MORE PEOPLE LIVING IN ESTABLISHED CITIES AND NEW MEGA AND GIGA-PROJECTS THAT SEEK SHORTER CONSTRUCTION TIMES AND ACCELERATED PROJECT COMMERCIALIZATION.
n Saudi Arabia, the industry has been exploring a variety of innovative construction methods, with modular building being seen by many as a viable solution to address the Kingdom’s growing requirement for a range of building types and its ambitious infrastructure projects.
In recent years, Saudi Arabia has witnessed tremendous urbanization, resulting in increasing demand for housing, commercial buildings, and infrastructure. Modular building provides a more effective and speedier approach to address this need, with off-site manufacturing and assembly potentially reducing construction time and labor costs quite significantly.
This approach is ideal for the wide array of giga-projects currently in development, such as NEOM, The Red Sea, and Qiddiya. These projects often require a large volume of buildings and infrastructure to be constructed quickly, making modular construction an attractive option.
Similar to many other countries, Saudi Arabia also faces a shortage of affordable housing, and modular construction can play a pivotal role by providing cost-effective and efficient solutions.
And of course, modular construction aligns perfectly with the Kingdom’s growing focus on sustainability and green buildings, as it helps to reduce waste, conserve energy, and encourage eco-friendly materials.
The Saudi government, construction companies, and developers in the Kingdom are constantly exploring new, innovative, and advanced construction methods, including 3D printing for buildings, an area that could become of increasing interest to one of the fast-growing and most ambitious countries in the world.
The saying is that necessity is the mother of invention, and this could be nowhere more true than in Saudi Arabia.
Back in 2021, Dar Al Arkan, the leading real estate company in the Kingdom, announced the introduction of 3D Construction Printing (3DCP) technology in Saudi Arabia. Partnering with the Construction of Buildings on Demand (COBOD), a leading manufacturer of construction 3D printers, for this initiative, the company pioneered the transition of the industry toward advanced and sustainable building practices, and in doing so, complemented the goals of Saudi Vision 2030 to support economic diversification and digitization.
Unlike traditional building methods, 3DCP can cut the construction time by more than half, as well as requiring less manpower, since it takes only three workers to build an entire house. Naturally, this then contributes to decreased lost time injuries, creating a safer workplace. In addition, less concrete is needed to complete a building, thus making the technology more sustainable and a practical solution for the low-carbon construction industry of the future.
Dar al Arkan produced the first villa printed directly on-site, too. This was achieved without any cooling equipment or shade, denoting that the technology can be used to erect homes right through the year regardless of weather conditions. The villa, built in Shams Al Riyadh, made use of locally made materials, including cement, sand, rocks, and stones, with varying degrees of concentration, to ensure the structure was up to four times stronger than conventional construction.
Amongst its many features, the villa incorporates nine solar panels to power its heating and lighting and a series of IoT/smart tools for doors, locks, air conditioning, and more. Heatreflecting ‘nano-technology’ was used to coat the exterior of the structure, rendering it up to 40% more heat-resistant than traditional buildings. It is the world’s largest on-site 3D printed building and took just 26 days to build. It is compliant with all relevant building codes.
This project did not go unnoticed by the local authorities, with the Ministry of Housing commenting: “In Saudi, we are
rapidly developing in the construction sector through our Building Technology Initiative and implementing new technologies to enable 70% of the Saudi population to own their homes by 2030. Our strategy is to revolutionize the way people think about home through smart futuristic methods.”
In spite of the countless advantages of 3D construction, there are still certain challenges, for example, the cost of 3D printing technology is still quite high, making it less accessible to many construction companies. However, although still an emerging technology, with further development and investment, it has the potential to revolutionize the construction industry, offering various benefits and exciting possibilities, including
When compared to traditional methods, 3D printing for buildings can dramatically reduce construction time. It allows for the rapid fabrication of building components, which shortens the entire timeframe.
While the initial investment in 3D printing technology can be significant, the reduced labor and construction time can result in long-term cost reductions.
3D printing enables stylish and unique architectural designs that would be impossible or too costly to realize using standard construction methods.
A number of 3D printing materials are manufactured from recycled or environmentally friendly resources, lowering the environmental impact of construction projects. Furthermore, precision material installation helps reduce waste during the construction process.
This approach is ideal for the wide array of gigaprojects currently in development, such as NEOM, The Red Sea, and Qiddiya
Much of the construction work can be automated with 3D printing, decreasing the need for human labor in dangerous locales.
The actual process itself involves placing layers of construction materials on top of each other, progressively building up the desired structure. Subject to the particular 3D printing technique, an assortment of materials can be used, including concrete, cement mixtures, polymers, and even recycled materials. Sophisticated 3D printers can extrude these materials in accurate shapes and patterns according to digital blueprints, permitting multifaceted and customized designs.
There are several different applications for 3D printing within the construction industry, in addition to building entire structures. 3D printing is, for instance, ideal for creating prototypes and scale models, allowing architects and engineers to visualize their designs before constructing the final building. It is also perfect for fabricating complex and non-standard building components, allowing for the creation of complicated structures that would be challenging using conventional methods.
3D printing can assist in generating custom components for building renovations and retrofitting projects too, and in the aftermath of natural disasters, it can be used to rapidly construct temporary shelters and emergency housing.
Indeed, as the technology continues to advance and gain wider acceptance, 3D printing for buildings has the potential to reshape the construction industry, making it more efficient, sustainable, and adaptable to assorted architectural designs and housing needs.
Not just 3D printing either, but modular buildings in general, which are created in a factory-controlled environment. This allows for greater precision, efficiency, and quality control during the manufacturing process, as well as being up to 50% or more faster than traditional
construction. And as for cost, although the upfront costs are a little higher due to the need for specialized factories and transportation, the overall cost of modular construction can be lower than conventional construction due to reduced labor, less waste, and faster completion.
Add this to the fact that factory-based construction ensures better quality control, as each module is built to exact specifications and undergoes rigorous inspections before leaving the factory, and reduced site disruption since most of the construction occurs off-site, and modular buildings are most definitely a solution to future needs.
Contrary to the misconception that modular buildings are all the same, they can be customized to meet the specific needs and design preferences of clients, resulting in the most stylish and unique villas, schools, commercial spaces, and social housing.
On a global scale, with the world’s population growing faster than ever and the housing industry being unable to keep up with demand, modular construction could be the remedy we’ve all been looking for. House prices are going through the ceiling, and people on low wages find it hard to pay their rent, let alone save a downpayment for a house. Modular construction may well have the ability to change this. By making house construction much more economical without sacrificing quality, house prices could shrink, transforming the market and providing more people with their own homes.
With modular construction, we have a blank canvas to make environmentally friendly, attractive buildings at a much lower cost. For developers and general contractors, there is swifter project execution, higher margins, and greater competitiveness. Meanwhile, the industry can take advantage of modular practices to create more reasonably priced housing on safer, smaller construction sites. And that could deliver good jobs for a wider skill base than traditional projects can accommodate. It’s a win-win for everyone!
It is the world’s largest on-site 3D printed building and took just 26 days to build
A number of 3D printing materials are manufactured from recycled or environmentally friendly resources
WITH A DIVERSE ROLLCALL OF CLIENTS AND OFFERING A RANGE OF SERVICES, INCLUDING HOSPITALITY, GOVERNMENTAL, COMMERCIAL, AND INDUSTRIAL CONSTRUCTION, PLUS INFRASTRUCTURE AND ARCHITECTURAL FIT-OUT, MOHAMED AL RASHID CONTRACTING COMPANY (MARCO) IS ONE OF THE KINGDOM’S MOST TRUSTED AND RESPECTED FIRMS. WE CAUGHT UP WITH CEO HAMAD BIN YOUSEF, ONE THE INDUSTRY’S MOST FORWARD-LOOKING PROFESSIONALS, AND A MAN WHO HAS ELEVATED THE COMPANY PORTFOLIO OF PROJECTS BY SECURING CONTRACTS IN NEW AREAS OF HIGH-END FIT-OUT, INFRASTRUCTURE PROJECTS, AND HOSPITALITY.
"When a successful project is imperative, there’s no room for failure. When you work with MARCO, you get more than just another contractor, you get a hands-on approach and focused attention to every detail, so you can complete your project with competence and confidence."
MR HAMAD BIN YOUSEF, CEO, MARCO
Saudi Projects: Can you give us an overview of MARCO?
Hamad bin Yousef: MARCO was founded by Mohamed Al Rashid in 1982. Al Rashid was a civil engineer who had served the government in his early career, working with the Ministry of Transport and running a construction company in the 1970s. MARCO is a contractor that serves government initiatives, following CAPEX, which is deployed by the government.
MARCO has seen many cycles, from the Gulf War to the 2008 economic crisis and, most recently, Covid-19. Despite the challenges faced, MARCO has remained in a strong position, and I hope that the second generation will keep the company alive for many more cycles to come.
SP: The real estate and construction sector in the region is extremely dynamic. How do you cope with such dynamism?
HY: As the real estate and construction
In the last 10 years, the company has concluded many education projects, such as building universities
KNOW - HAMAD BIN YOUSEF, GENERAL MANAGER, MARCO
sector in the region is extremely dynamic, MARCO adapts to change by taking on government initiatives in different sectors. In the last 10 years, the company has concluded many education projects, such as building universities.
Recently, the government has shifted its focus to leisure, entertainment, and tourism projects, and MARCO is taking on those accordingly. The company is investing heavily in pre-
construction engagement to be prepared for projects with whatever it takes from resources and talents, which is key to success. We are also known to be selective when choosing our projects and partners, since we are committed to excellence and we do prioritize the project.
When you work with MARCO, you’re also getting attention to detail and hands-on leadership that is second to none. And we’re so committed to seeing through each project successfully that, if we don’t think we’re the right choice for your project, we won’t take it on. It’s that simple. You deserve the best team for your job, and if that’s not us, we’ll let you know.
SP: How do you keep up with the increasing demand for these sectors?
HY: These projects require a great deal of talent, and Saudi Arabia has improved on upskilling its talent across the board. While working with people from multiple countries, the challenge is executing the job with all the different backgrounds and methods that people are not used to. Everyone has a learning curve, including clients who are dealing with this challenge. To address this, MARCO has increased its capacity of manpower and equipment to meet the demand. They are also investing heavily in pre-construction engagement, which involves being engaged with the client early and being prepared for the project. This is a key factor in MARCO's continued success.
SP: We have witnessed a significant shift toward sustainability and green buildings in Saudi Arabia. How is MARCO applying this mindset in its projects?
HY: You’re making Saudi a better place. So are we. Our commitment to sustainability is helping to create a greener Kingdom, one that our children’s children can enjoy for decades to come. MARCO has been a part of green initiatives in Saudi Arabia since 2009, including the King Saud University facilities. MARCO meets international standards of sustainability in ongoing projects and continues to focus on sustainability and green buildings.
SP: What are your main objectives for the rest of this year?
HY: At MARCO, the focus is on delivering results and taking on projects that can be delivered. The company is currently focused on the hospitality sector and infrastructure, with projects including NEOM, The Red Sea, KAFD, and all the initiatives in Riyadh. MARCO is working on the first heritage hotel destination project developed in one of Riyadh’s prime districts, which is expected to be opened to the public by 2024. Internally, we are looking after attracting the best talent in the industry besides being the best in technical proposals, which highlights our attention to detail and commitment to clients’ specific requirements.
MARCO has increased its capacity of manpower and equipment to meet the demand
The company is investing heavily in pre-construction engagement to be prepared for projects
Our commitment to sustainability is helping to create a greener Kingdom
WILD FOUNDER & CEO, EMMA BURDETT TALKS TO MARYAM TELMESANI
THIS IS THE FIRST IN A SERIES OF INTERVIEWS BY EMMA BURDETT, FOUNDER OF WILD: WOMEN IN LEADERSHIP DELIVER, THE ONLY WOMEN’S NETWORK TO CONNECT WOMEN ACROSS THE MIDDLE EAST REGION CAUGHT UP WITH MARYAM, FIRST ASKING ABOUT HER CORPORATE BACKGROUND AND HER OWN PERSONAL JOURNEY TO THE WILD SIDE OF LIFE.
WILD is the first and only women's network to launch in KSA and offers a suite of solutions for females to rise as leaders in the pursuit of gender equality. This includes leadership training programs, leadership coaching and memberships as well as impactful events across the region.
“I feel privileged to be immersed in the female leadership landscape in KSA. I am impressed by the level of intelligence, ambition and talent of the women I have had the pleasure of engaging with. This is the beginning for WILD KSA. I am proud to be at the helm, providing a platform for women’s voices, whilst offering unique and invaluable learning experiences.”
Saudi Projects and WILD have partnered to bring you a series of interviews: A Talk on the WILD Side, with inspiring women from across the KSA region.
MARYAM: My journey wasn’t a typical one! It has lots of shifts and twists guided by my passion. I started in the fashion industry as one of the first young Saudi designers after studying Business and Fashion Design.
WILD: WOMEN IN LEADERSHIP DELIVER
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My career as a designer was short but successful, and during this time I began to enjoy tutoring young designers, helping to grow talent in the Saudi Market. From there, things escalated from a lecturer to the head of the department to the Vice Dean, Dean, and then the Institute Manager. Moreover, I’ve always had the urge to start something new and challenging, so I asked my father if I could join his consulting business. He gave me one chance to prove myself since I’m a ‘fashion grad’, and that chance ended up being the start of years of experience in consulting and leading country-scale projects with global companies.
In parallel, I decided to do my EMBA with Hult
International Business School, which introduced me to the path of my current specialty, sustainability. Since then I’ve been driven to introduce the proper concept and application of sustainability, and have been lucky enough to work across different sectors to transform companies in the Kingdom.
The journey was full of challenges and obstacles, but, personally, challenges drive me to put on my A game and prove myself and deliver! I’m now leading the Saudi Chapter of the UNGC, driving sustainability in the private sector through a global framework and initiating a lot of programs that help build the right eco-system for sustainability in KSA to help achieve Vision 2030 goals.
EMMA: What inspired you to pursue a career in a male-dominated industry?
MARYAM: I think one of the main reasons behind
Emma Burdett Founder and CEO of WILD - Women in Leadership Deliver, keynote speaker, leadership coach and gender equality specialist.my success is that I never look into industries from that gender angle. For me, it’s a new challenge - a career in an industry that’s globally contributing to the pollution we all suffer from. Construction in KSA is yet to improve in sustainability areas, whether it’s social or environmental, and my aim is to change the face of construction in the Kingdom so that it becomes a pioneer in sustainability applications. This requires a lot of work, including changing the mindsets of CEOS, project directors, and labor so that they work in a way they’ve never considered! Moreover, one of the main areas I’m keen on improving is having more females present in construction, doing more than just HR work.
EMMA: What has been your biggest career achievement to date?
MARYAM: My biggest achievement is when people refer to me as the ‘Sustainability Guru’ -
when people reach out to me saying that I’ve inspired a shift in their careers, or drove the successful transformation of their entity. I am driven by impact; so to be able to create an actual impact on people and businesses is what keeps me motivated to do more. To be able to set the foundation for sustainable fashion in KSA was a highlight in my career. To participate and contribute to the development of startups is another triumph in my career.
EMMA: What changes have you seen for women in KSA over the past five years?
MARYAM: Vision 2030, under the leadership of HRH Prince Mohammed Bin Salman, has not only paved the way for women’s empowerment, but made sure targets around that topic are achieved. This has affected our personal lives as well as our careers We now enjoy the same rights as any Muslim community elsewhere; we drive, we work in different fields, we occupy government positions, we have regulations that protect our rights, and much more besides. This drastic change has enabled each and every ambitious Saudi woman to make her dreams a reality.
EMMA: What notable changes have you seen in the workplace for women?
MARYAM: The fact that conversations around women empowerment and how to make the workplace achieve inclusivity for all regardless of gender is a notable change. The female leadership programs and KPIs instilled for SDG5 (Gender Equality) are another notable change, as it influences tracking numbers of females in the governance body as well as other divisions. I participated in more than five talks last year in KSA in major conferences around this topic, which shows the significance of this issue in our country.
EMMA: What challenges do women still face in the workplace?
Maryam: I think we have two different levels of challenge. The first is within the persona of the females, believing in their capacity and amazing potential, while the second is more relevant to how businesses accommodate that transition
towards a more inclusive work environment, by building capacity and preparing adequate talent to lead as successors to male leaders.
EMMA: How do you suggest companies in KSA attract and retain the best female talent?
MARYAM: They have to be intentional about the gender equality topic, recruiting females with the actual intention of making them future leaders rather than ticking boxes for females per department.
They also need to ensure the presence of a role model, a mentor, and an atmosphere in which women are allowed to speak and be heard.
EMMA: Have you seen any benefits of crossfunctional teams working together, such as men and women and different races and ethnicities? If so, do you have an example?
MARYAM: Of course! Psychologically, men and women are built differently and each come with their own traits and strengths, and you have to add to that the effect of exposure to different cultures and backgrounds in terms of race and ethnicity. So, whenever a team is well-balanced with diversity the outcome is way stronger compared to a group of similar mentalities and backgrounds.
I’m witnessing that in my daily life, whether it’s a family decision or a project at work. One recent example at MBL is when I joined its site team for a mega project and my detail-oriented approach helped organize the work and put a clear plan for the team to deliver it in a timely manner. Also, HSE at the site was overlooked by expats and I took a decision to bring in local talent and hired Ms Hadeel Banjar as the Environmental Manager. The performance of the environmental team escalated with collective efforts, as locals were able to understand better the requirements of local authorities and bring in a passion to change construction in Saudi. The nurturing compassionate nature of the female made the team more open to communicating and keeping their passion
"I’m now leading the Saudi Chapter of the UNGC, driving sustainability in the private sector through a global framework"
EMMA: Do you see differences in generations, and are older generations more resistant to change?
Maryam: I think it’s more relevant to mindsets than generations! We have male leaders from older generations that have a growth mindset that supports change. However, we can’t deny the fact that the younger generation is exposed to globalization and are having new sets of values in their DNA of thinking.
EMMA: KSA has a high percentage of young people, with 65% of the population being under 35. Do you see a different mentality in this generation?
MARYAM: The younger generation is living in a new culture that’s open to globalization and raised in the era of Vision 2030 so they’re developing a different mentality. The younger generation is more open and is considering career paths in music, art, and other amazing fields that were never an option before. But I just hope that our new generation doesn’t lose its core cultural values and character as it’s crucial to find the right balance and to have a unique identity.
EMMA: What is your personal intention and motivation?
MARYAM: To make a positive impact and, as a single mother, I am eager to be a role model for my three daughters, showing them that females can be successful at whatever they put their minds to while taking care of their families.
EMMA: What has been the biggest challenge for you and how have you overcome this?
MARYAM: My biggest challenge was being doubted by decision-makers early in my career. But I took that as a challenge to prove to them that I can deliver beyond their expectations, and now people say: “You want to get things done, bring in Maryam”. Another moment of challenge that I’ll never forget was when my father told me: “Maryam, your problem is that you dream big, lower your ceiling”, but now I smile every time I see how proud he is of my accomplishments.
EMMA: What advice would you give to a younger Saudi female starting out in their career?
MARYAM: My advice to all young people starting their careers is: You are your biggest investment, so invest in yourself and develop your capacity to the max, work with passion, have an aim to achieve, and finally never stop exploring because you’ll never know as a fresh graduate what your career path is.
For young females, please remove the gender barriers from your brain and treat males as colleagues with different physiques; as you’re both human and each is blessed with abilities. It’s what you deliver that distinguishes you at work not what your gender is.
EMMA: How important do you feel the WILD network is for women in the region and why?
MARYAM: Extremely important and that’s why we’re working in partnership with WILD to achieve SDG 5! We need female experts to speak to females with a relevant empowering voice, and we need to share stories to let them know they’re not alone and whatever they face isn’t something linked to geography. Instead, it’s a global challenge that we are all working to overcome.
EMMA: What single piece of advice would you give to all WILD women?
MARYAM: Believe in your potential, chase your dream, speak out, and be the change you want future females to witness.
"One of the main areas I’m keen on improving is having more females present in construction, doing more than just HR work"
A Talk on the WILD Side has been created in partnership with Saudi Projects to help amplify women’s voices, providing meaningful insight and candid conversation with diverse women from across the Kingdom. It provides a platform for women to have a voice, deep diving into all things pertaining to leadership, presenting untamed ideas and inspiration, and paving the way for a sustainable future for women across the region.
DO YOU LIVE AND WORK IN KSA? WOULD YOU LIKE TO BE INTERVIEWED BY EMMA BURDETT FROM WILD FOR A TALK ON THE WILD SIDE? REACH OUT AND TALK TO US NOW AT:
SaudiProjects@tpg.media LET’S GET THE CONVERSATION STARTED!
UPCOMING EVENTS:
WILD Riyadh: 27th September 2023
WILD Jeddah launch: 8th November 2023
CUNDALL, THE GLOBAL MULTI-DISCIPLINARY ENGINEERING CONSULTANCY, HAS ANNOUNCED SIGNIFICANT PROMOTIONS WITHIN ITS MENA LEADERSHIP TEAM, SIGNALING A STRONG COMMITMENT TO REGIONAL GROWTH.
ee French, formerly Partner & Operations Director, will assume the role of Partner & Managing Director MENA. With a 22-year tenure at Cundall, Lee has been instrumental in driving the regional business forward and securing a series of notable victories. He is a Chartered Civil Engineer and Chartered Construction Manager and has been recognized as one of the key leaders of the Middle Eastern business for the company. Lee sits on the International Management Board for Europe & MENA and is a passionate champion of Zero Carbon Design, spearheading efforts to integrate sustainable practices throughout the region.
Another key promotion sees Scott McKeever taking up the position of Country DirectorUAE in addition to his existing responsibilities as MENA Head of Building Services. Scott has played a pivotal role in the recent growth and success of Cundall's regional building services team. In his new role, he will focus on the continued development and growth of the UAE business.
Faiyad Peterson moves into the role of Country Director – KSA, recognizing his significant contribution to the business and office setup since he re-joined Cundall in 2022. Faiyad’s new appointment will see him lead the firm’s expansion across Saudi Arabia, bolstering the company's presence and influence in the region. Faiyad is a Chartered Engineer and holds a bachelor's degree in structural engineering.
Olga Litkovets has been promoted to Global Director of Business Development and Marketing. Over her six years at Cundall, Olga has consistently demonstrated a strong passion for the business and has been instrumental in driving client and brand success. She chairs Cundall’s EMENA board, further driving the region’s strategic focus and growth.
In her new role, Olga will focus on elevating the marketing and client care strategies for the global business, while continuing to contribute to the MENA region’s growth.
Commenting on the promotions, Richard Stratton, Partner & Managing Director EMENA, said: “I am very excited by the expanded capabilities these appointments bring to our senior regional leadership, including of course
Gary Dodds our Country Director - Qatar. We are very proud and lucky to have such extremely talented individuals, who work hard to inspire and lead our teams, and I look forward to seeing the opportunities they will generate. This transition allows me to dedicate even more focus to my broader global business management responsibilities, facilitating the strategic growth of our global practice and strengthening our incredible brand.”
Lee sits
and is a passionate
Faiyad’s new appointment will see him lead the firm’s expansion across Saudi Arabia
MARCO, ONE OF SAUDI ARABIA’S LEADING TURNKEY CONTRACTING COMPANIES, WAS COMMISSIONED BY THE MINISTRY OF HIGHER EDUCATION TO TAKE ON A LARGE-SCALE CONSTRUCTION PROJECT AT IMAM UNIVERSITY. THIS INVOLVED CONSTRUCTING EIGHT INDEPENDENT AND LINKED RECTANGULAR BUILDINGS FOR THE SUPPORTING ACADEMIC AREA AND CAR PARKING, AS WELL AS SEVERAL OTHER ACADEMIC AND ADMINISTRATIVE BUILDINGS.
WHEN SUCCESS IS IMPERATIVE, MARCO DELIVERS
Notably, the project featured a unique pentagon-shaped academic building and student lobby in the male academic area.
The SAAC package was composed of eight buildings, each with six floors above ground level and three underground levels, with a total built-up area of 321,889m2. The other packages comprised large auditoriums, classrooms, faculty offices, and other supporting facilities. The student lobby, a complex structure designed using a PTFE fabric tensioned membrane and a steel supporting frame, posed a significant challenge to the client.
The client was concerned about the safety of completing a construction project within the area of the university, as well as the visual impact of having an active construction zone
within academic areas. Moreover, due to the lack of local experience and resources, the client was uncertain that there was a contractor in the region with the ability to deliver a structure as complicated as the student lobby.
MARCO's 40-year record of successfully delivering complex projects, along with its financial capabilities in funding mega projects, were the key reasons that the client chose to work with the company. The client was impressed with MARCO's commitment to success, loyalty, talented employees, and dedication to innovation and emerging technologies.
MARCO prioritized the project, adhered to the employer's requirements, and ensured that the project could be delivered without significant design changes.
MARCO prioritized the project, adhered to the employer's requirements, and ensured that the project could be delivered without significant design changes
The company's leadership worked closely with the project team to allocate the necessary resources from human power and equipment.
As a result of MARCO's successful delivery of the turnkey construction project for Imam University, the company has established a reputation as one of the top turnkey contracting companies in Saudi Arabia, specializing in the construction of buildings, particularly educational, commercial, and residential.
Today, the university hosts over 90,000 students who use the facilities delivered by MARCO, developing their careers in a highly
appealing environment. MARCO's success in completing the Imam University project is a testament to its commitment to excellence, innovation, and emerging technologies. The company's clean record, financial capabilities, and ability to prioritize the project and comply with the employer's requirements played a vital role in securing the client's trust. Consequently, whenever the client requires construction work, MARCO is the first contractor to be invited for engagement.
The SAAC package was composed of eight buildings, each with six floors above ground level and three underground levels
RED SEA GLOBAL (RSG) HAS RELEASED A COMPREHENSIVE UPDATE ON CONSTRUCTION PROGRESS ACROSS PHASE ONE OF THE RED SEA DESTINATION.
July marked six years since The Red Sea was first announced as an international tourist destination as part of the Kingdom's 2030 Vision. Now, with the first three hotels and phase one of the international airport on track to open later this year, its latest construction update reveals the remarkable progress achieved across the destination, including at a further 13 hotels and on the supporting infrastructure.
“We stand at the brink of an extraordinary moment as we prepare to unveil The Red Sea destination to the world. In six years, we have made exceptional progress, creating exquisite resorts and best-in-class, sustainable infrastructure in a remote location, demonstrating innovation in line with our regenerative approach and commitment to responsible development,” said John Pagano, Group CEO at Red Sea Global.
“While the anticipation builds for the opening of our first hotels and the initial phase of our solar-powered airport, we are busy working on the rest of phase one. We are ready to deliver countless more extraordinary moments on our journey to positioning Saudi Arabia proudly on the world stage as a must-visit destination.”
Desert Rock, a unique mountain resort being built into the rockface, is more than 50% complete
Desert Rock, a unique mountain resort being built into the rockface, is more than 50% complete overall. RSG has fully excavated and formed the 10 rooms integrated into the mountainside, as well as all 195m of tunneling. Major structural and infrastructure works are well advanced, including the construction of the wadi villas, guest hubs, back of house, and other structures.
Work is ongoing on all 11 resorts and infrastructure across Shura Island. Over 100 construction contracts are in place, with a similar number out in the market for tender. RSG continues to maximize the use of offsite manufacturing with precast structures progressing rapidly, bathroom pod deliveries underway, and the prefabricated timber structure on the Golf Clubhouse nearing completion. The developer is moving onto beach formation and beautification works, which includes the creation of new mangrove habitats in the coming months.
On Sheybarah Island, RSG has now installed all 38 stainless steel overwater villas. While the first overwater villa took nine hours to install, the developer perfected this process so that it now requires less than two hours. The first beach villas have arrived at the island, one of which has successfully been installed. The developer is also making substantial progress on other front and back-of-house structures and infrastructure, including foundation work on the spa and two specialized restaurants.
“While the anticipation builds for the opening of our first hotels and the initial phase of our solarpowered airport, we are busy working on the rest of phase one."RED SEA GLOBAL - PROJECT UPDATE, PHASE ONE 77
Over 100 construction contracts are in place, with a similar number out in the market for tender
The Start-Up Distribution Center and StartUp Transportation Hub are being completed to provide operational logistic facilities ahead of the opening of the first hotels. Already, more than 150 trucks of materials and 2,000 people are transported to the various offshore projects each day.
The Red Sea International Airport is progressing as planned and is on track to start receiving its first domestic flights later this year.
RSG has also announced that it has now fully installed more than 760,000 photovoltaic panels, needed to power phase one of The Red Sea. One of its five solar farms is located near Six Senses Southern Dunes, The Red Sea, which will be the first hotel to open at The Red Sea in the coming months. The utilities at the resort are already being powered by the solar farm.
There are now more than 25,000 personnel working at the destination, delivering at pace across The Red Sea.
Upon full completion in 2030, the destination will comprise 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include luxury marinas, golf courses, entertainment, F&B, and leisure facilities.
RSG has also announced that it has now fully installed more than 760,000 photovoltaic panels
RED SEA GLOBAL, THE DEVELOPER BEHIND THE WORLD’S MOST AMBITIOUS REGENERATIVE TOURISM PROJECTS, THE RED SEA AND AMAALA, HAS RELEASED THE FINDINGS OF ONE OF THE WORLD’S LARGEST ENVIRONMENTAL SURVEYS OF WILDLIFE ECOSYSTEMS CONDUCTED BY A DEVELOPER, CARRIED OUT ALONG 250 KILOMETERS OF THE RED SEA COASTLINE.
The comprehensive study covers natural ecosystems and species across the areas of Red Sea Global’s two flagship destinations - The Red Sea, centered around Al Wajh lagoon, and, slightly north of that area, Amaala. The study was conducted by a dedicated and expert scientific team at Red Sea Global, but has also been supported by partner groups from across the globe to ensure that cutting-edge methods and technologies are deployed to monitor critical resources.
“Throughout our organization, at the heart of everything we do, lies the conviction that responsible development and regenerative tourism are essential in the fight to protect the natural habitats of our world’s precious marine and coastal areas,” said John Pagano, Group CEO of Red Sea Global.
“That’s why we’re pioneering the creation of new benchmarks for our industry. We aim to push beyond conservation and explore innovative ways to regenerate the natural ecosystems in which we operate. We’ve set a quantifiable target of achieving a 30% net conservation benefit by 2040, and we will continue to publish annual updates that measure our progress toward this ambitious goal. Key to that is setting a baseline from which we track progress, and ensuring we are fully informed and understand the incredible biodiversity that surrounds our developments,” Mr. Pagano added.
The survey along the Red Sea coast, conducted throughout 2022, revealed that many threatened and endangered species inhabit the area, and have established breeding grounds across it - highlighting the importance of environmental protection and regeneration efforts by Red Sea Global and others in the region.
Key findings of the study include:
Observations of endangered species indicate that the destination is a critically important location for conservation and breeding:
74 Hawksbill and 145 Green Sea Turtle nesting tracks were recorded at Amaala and 251 Hawksbill and 613 Green turtle nesting tracks at The Red Sea. From these numbers, it is estimated that there were around' instead of 'we estimate that at Amaala, and 69 Hawksbills and 173 Green Turtle females nesting at The Red Sea this year. Given female turtles do not breed every year, the total population of the area would be considerably larger.
17 Sooty Falcon breeding pairs were observed at Amaala and 48 breeding pairs in The Red Sea.
There were multiple sightings of critically endangered Halavi Guitarfish juveniles at a number of locations in our area, and clear evidence that our area includes important nursery habitats for the species.
Sighting in the Amaala area of a pair of Orca (killer whales). This species is a rare visitor to the Red Sea, with fewer than 10 previous reports within the area. The observation at Amaala is by some distance the most northerly sighting we are aware of for this species in the region.
Study from Red Sea Global builds on results of the largest ever environmental baseline survey completed by a developer released last year, covering 250 km of coastline across The Red Sea and Amaala destination areas
Study is the latest initiative from Red Sea Global as part of its commitment to regenerative and responsible development
Analysis of the nesting grounds and breeding success of bird species on the islands yield positive results:
In Amaala, a total of 2,129 nests were counted of seven species, while at The Red Sea (a much larger area), the second year of island bird populations monitoring revealed more than 25,000 nests of the 11 species we surveyed.
Two Osprey nests occupied by breeding pairs were found on An Numan, with both pairs having successfully fledged all seven of their chicks by the second visit. Two
further nests occupied by breeding pairs were found on Nabgiyah and Awandia.
In addition to Osprey, breeding pairs or colonies of six species of birds were discovered on Amaala islands - the most abundant species were LesserCrested Terns and Bridled Terns. Though breeding success was variable across The Red Sea, success was estimated for seven species including the Great and Lesser Crested Tern, Sooty Falcon, and the Red-Billed Tropicbird.
The population status of reef fishes shows an abundance of marine life across Amaala and The Red Sea areas, with some notable endangered species sighted:
Although smaller in area than The Red Sea, Amaala marine habitats still contain many impressive reefs, with coral cover averaging 21.5% and the highest cover at any site being 57.2%.
193 fish species were recorded during the 69 Amaala surveys, with the most diverse families being Wrasse (36 species) and Damselfishes (24 species).
Key findings include the prominence of endangered and vulnerable species such as Hawksbill turtles and Sooty falcons, as well as thriving coral reef habitats and rare sighting of Orca group – never seen before in the area
Two endangered reef fish species including the Sky Emperor and Humphead Wrasse were identified by the Amaala survey team, while four vulnerable species were also spotted: Bumphead Parrotfish; Harlequin Filefish and two species of Coral Grouper (Plectropomus areolatus and P. marisrubri).
Reef Sharks were more frequently seen at Amaala (12 of 69 sites) than at The Red Sea (six of 82 sites) this year. All the sharks seen during in-water surveys by the coral reef team this year were WhiteTip Reef Sharks (Trianodon obesus).
The resurveys of core monitoring sites at The Red Sea (at 82 of the 280 surveyed for the 2021 baseline) showed only small changes in coral cover or fish biomass between years.
Rapid assessment surveys achieved improved understanding of the carbon sequestering potential of seagrasses:
The surveys team conducted seagrass rapid assessment surveys at 250 locations across The Red Sea and Amaala.
Overall, 10 of the 12 seagrass species found in The Red Sea basin have been encountered in The Red Sea area and seven in Amaala.
Larger species such as Enhalus acoroides, Thalassia hemprichii and, especially, Thalassodendron ciliatum, contribute to substrate stabilization and sediment accumulation, and hence to enhanced carbon sequestration. Those species have extended root systems that trap sediment and allow them to withstand wave action in mud substrate.
To build a more detailed picture of the trends identified in the study, the research team has deployed best-in-class technology to continue capturing crucial data on an ongoing basis such as by recording multiple physical, chemical, and biotic variables across the region, alongside remotely sensed (satellite) data for larger areas.
As part of this study, ongoing monitoring has also been established and put in place. This includes the GPS and satellite tagging of 30+ Sooty Falcons, to better understand their breeding and hunting patterns, as well as the satellite tagging of several recently rehabilitated Hawksbill sea turtles - furthering our understanding of foraging patterns.
“Red Sea Global is an organization led by science, which prioritizes the health and wellbeing of the environments in which it operates. Our incredible team of local and international scientists are testament to the
commitment made by the leadership of the group to show tourism can be a force for good and demonstrate meaningful examples of more responsible approaches to the way we develop and operate,” added Dr Omar Al Attas, Head of Environmental Protection and Regeneration, Red Sea Global.
This study not only informs development decisions at Red Sea Global, in order to minimize potential negative impact on the natural ecosystems of the region, but also showcases the latest initiative from the organization in its commitment to prioritizing planet and people. These studies form the initial benchmark for Red Sea Global to measure itself against its stringent commitment to leaving the environment across its destinations a more thriving and naturally healthier place than it was before. Alongside the benefits of Red Sea Global’s sustainable tourism practices, these findings also contribute important insights and data on endangered wildlife species to the global scientific community, aiding worldwide conservation efforts.
TO DISCOVER MORE ABOUT THE SURVEY, KEY FINDINGS AND SCIENTIFIC METHODS:
A 45-MINUTE BOAT RIDE FROM THE MAINLAND, SHEYBARAH IS ONE OF RED SEA GLOBAL’S MOST AMBITIOUS ISLANDS, WITH FUTURISTIC STAINLESS STEEL VILLAS THAT FLOAT OVER THE WATER, REFLECTING THE SEA, SKY, AND REEF BELOW. THE VILLAS, MANUFACTURED BY GRANKRAFT IN SHARJAH FREE ZONE, EACH HAVE SLIDING DOORS THAT OPEN TO A DECK, A SEATING SPACE, AND AN INFINITY POOL WITH VIEWS OF THE KINGDOM'S PRISTINE WATERS. NATURALLY, CREATING SUCH STRUCTURES IS QUITE AN ENGINEERING FEAT, WITH SEVERAL COMPANIES AND CONSULTANTS COMING TOGETHER TO ENSURE THAT EACH OVERWATER ‘ORB’, WEIGHING AROUND 150 TONS, WILL BE A DREAM LUXURY DESTINATION FOR GUESTS.
Within this brief, it is vital to ensure that guests are kept comfortable at all times, not only with regard to temperatures inside the villas but also aspects such as the possibility of any noise pollution due to expansion and contraction. This called for a thermal cycling test, which is designed to evaluate the impact of subjecting a system and its components to accelerated cycles that mimic exposure to temperature changes. The system is exposed to a number of repeat cycles ranging from high to low temperatures according to project requirements. Further assessment can be done by follow-up tests, measurements, or studies. During the test specific data can be captured to assist the design and execution team in better understanding an assembly or substantiating design parameters. But this particular test asked more than most; for this was the biggest thermal cycling test the world had ever seen!
In this issue of Saudi Projects, we speak to three of the people tasked with carrying out this test, circumnavigating a number of challenges as they progressed in order to capture data that will ultimately ensure that Sheybarah really does become a fantasy island for those lucky visitors who will begin to arrive as early as next year.
ATTEMPTING WHAT HAD NEVER BEEN DONE BEFORE
“We were responsible for assisting the engineering consultancy team with the design,” explains Michelle Bacellar, Technical Director, Meinhardt Façade Technology. “Killa Design came up with the vision for the villa and we developed the technical details for the facade design.
“During the design stage process, we went through a series of options for different cladding construction, and various cladding materials. In the end, it was agreed that the cladding material that most closely achieved the design vision was stainless steel, with the shell being completely welded together forming one large facade unit.
“Typically, a standard façade system will consist of independent façade panels, that are separated by joints. The joints can be designed to accommodate any movement from the base structure or as a result of thermal loads. In Sheybarah however, the building facade consists of one singular shell, without any joints, therefore the behaviour of this facade under temperature loads was of great concern during the design stage. “
It was Thomas Bell-Wright International Consultants, one of the leading testing companies in the region, having worked on such blue-chip projects as The Museum of the Future and Riyadh Metro, that carried out the testing. “Our role was basically to provide a specific and bespoke thermal cycling test for one entire villa of this amazing project,” says Sandy Dweik, CEO, Thomas-Bell Wright International.
“Normally a thermal cycling test is carried out on a representative mock-up of the project facade in our laboratory. And these would be around five meters by ten meters, whereas, in this particular project, we were tasked with testing a full villa. So basically we had to construct a chamber for the cooling and heating cycles that was larger than the villa
itself, situated in the manufacturer’s facility. Thermal cycling on this scale, which is about 80 times what we usually conduct, had never, as far as we are aware, been attempted before.”
Before the thermal testing, of course, the villas went through a series of different trials, looking at the varying thicknesses and supportive arrangements of the shells, as well as what deflection could be accepted visually by the architectural team. “We had the deflective criteria and the deflective limitations that are born from a structure perspective,” Michelle says. “But this project was very much aestheticdriven, so we had to limit the reflection to ensure we didn’t get too much information that would affect the visual aspect of the shell and create too much deformation on the reflective images. Now, a lot of these things we can
obviously engineer and we did, so during the design process we’ve engineered and we’ve plotted different deflective shapes because the look of the villas is of primary importance.”
Tarek Bayoumy, Executive Director –Architecture at Red Sea Global, takes up the story: “Our main intent when we started to work on this project was to create a fantastic stainless steel orb without any joints - it's never been done before. We have a lot of parameters that we have to adhere to, following all of the international standards for any hospitality project regarding, for instance, acoustics and thermal. And our specialist consultants put forward a number of recommendations, one of those being thermal testing.”
“We had to construct a chamber for the cooling and heating cycles that was larger than the villa itself”
“When we started thinking about this concept and how it would react with the marine environment in Sheybarah, we started considering steel structure expansion, the steel grade, and how all of this material together would react to the weather and environment” adds Mohamed Moustafa, Director – Architecture, Red Sea Global. “So we laid out those parameters at the beginning and started to make some assertions about how we would achieve them.”
Thermal cycling tests are commonly performed on a wide range of products, including electronic components, integrated circuits, automotive parts, aerospace components, materials used in construction, and consumer goods … but never before on an entire
villa. So, were there particular challenges or was it simply a case of scaling up?
Sandy explains: “Well, a little bit of both - the scale was quite large and we had to build a chamber that's 22 meters by 22 meters and 11 meters in height. We had to build a steel structure with insulated cladding panels fitted to it and we had to build it around one of the villas. So the entire villa was contained inside the chamber and, of course, at the same time, we had to be careful not to damage the villa while we worked around it.
“We had to put the the structure up and also had to install our equipment – we had to install the sensors and the cooling and heating equipment within the confined area around the villa.
So it was really quite challenging.”
“Yes, when we were exploring our options to do this thermal testing, at first we took a small portion and carried out thermal testing on that,” says Tarek. “The facility in the UAE was perfect for doing that. But when we discussed it with our specialist consultants they told us that the parameters from that particular test would not be sufficient to allow us to be confident about the conclusions. They recommended that we build a complete enclosure around one complete villa, which we did. It was a big decision at that time to build a complete enclosure for a one-bedroom villa. But it allowed us to fully test our design.”
A thermal cycling test involves subjecting the test sample to a series of temperature cycles, typically ranging from low to high temperatures or vice versa. “Thermal cycling tests in general are designed to do an accelerated weather cycle,” explains Sandy. “In real life, you would have summer and winter cycles, and when you conduct a thermal cycling test you provide an accelerated cycle, monitoring the assembly to see how it would endure this cyclic effect. In this case, the project had a particular requirement to go from a temperature of 5 degrees C to a maximum of 85 degrees C, which is what we do for thermal cycling tests in many projects in this region.
“Because of the size of this project, though, we brought in industrial-sized chillers and air handling units to deliver the cold air, and for the hot cycle, we had to provide infrared lamps and load banks. To complicate things even further, the temperature inside the villa had to be in liveable conditions, which is around 24 degrees, plus or minus 3 degrees. So while we were doing the heating and cooling cycles in the chamber around the villa, the temperature inside of the villa had to be more or less constant.”
“Noise generated by the facade under thermal expansion was another huge concern we had during the design stage because this is something we cannot engineer,” Michelle says. “We needed to test the full-scale villa
to ensure that the shell movements under temperature loads would not generate any noises, particularly considering that this is a hyper-luxury hotel. In addition, the larger temperature changes occur usually early morning or late afternoon, when it is very likely that guests will be in the villas. Consequently, any noises that could be heard inside the villa would not be acceptable, so for us, it was very important to have this verified by testing.
“We had audio recording equipment inside the villa that would capture any noises that were generated during the test. This is something that required a lot of communication and debate with Thomas Bell-Wright because we knew we could record the sounds, but we needed to know where the sounds were coming from.
“To facilitate this, Thomas Bell-Wright engaged the services of a specialist acoustician who came up with the idea of fitting, in different areas of the villa, vibration sensors, which would align with any sound produced and be able to capture where the sound was coming from. So it was a very extensive preparation.”
Thermal cycling tests provide valuable data for product design, quality control, and reliability assessment, but it’s far from a simple process. “We hooked up the large thermal cycling chamber to a set of equipment and then we had to link the villa up to another set of equipment at the same time, so we were running two systems in order to achieve our thermal cycling process,” Sandy says. “This is a
unique project, it’s not like a normal standard test, we had to break everything down and explain it all in detail, submit it to the project team, and then discuss it with them in order to reach the best possible solution, enabling them to gather as much information as possible about the villa during the thermal cycling test.”
It was not just the scale and complexity of the thermal testing either, as Michelle explains: “We were carrying out a test that didn’t yet exist! So we then had to come up with a testing regime that could somehow satisfy us that the design covered all of those aspects.”
This included ‘re-inventing’ certain pieces of equipment, such as the cameras, with Sandy saying: “The problem with cameras is that at high temperatures, above 50 degrees, their performance cannot be guaranteed – they will most probably fail. We looked at several potential options but couldn’t find the resolution we were looking for. So we decided to go with eight SLR cameras, but we had to modify them. We completely disassembled the camera into two parts – the parts that were inside the thermal cycling chamber were the lens and shutter, and these were connected by an insulated wire to the rest of the camera, which is the electronic part of the camera, located outside of the thermal cycling chamber. This is how we monitored the surface of the villa during the tests. The cameras were hooked up to the software by isolating the camera into two parts.”
“Yes, the cameras had to be able to stand high temperatures, and we carried out the tests four times to make sure we got all of the data we needed, allowing us to go back to our specialist consultants for further analysis,” Tarek says. “And some of the results even exceeded expectations. These villas, of course, will not be experiencing the extremes of temperatures we used in the thermal testing, but those are the tests, they need to go with the parameters, taking things to the extreme.”
During thermal testing, several surprises
or unexpected results can arise that may require further investigation, particularly on this project, which was more complex than most. “This test was quite a complicated process,” Sandy says. “It was part of a quality assurance study for this villa and we were able to get a lot of data for the project team to test against the performance and design parameters desired. For example, there were things that we noticed during the test, like the insulation inside the villa exceeded our expectations, so we were able to maintain the temperature inside the villa quite easily at a constant temperature while we had the thermal cycling taking place outside.”
“It was very difficult at the beginning, which was to be expected with something that had never been done before,” Michelle says. “So there was a little bit of time spent fine-tuning and making sure that we could achieve the two upper and lower temperatures. But in the end, it is a confirmation that the whole villa was behaving like it had been engineered to do.”
“During the first cycle there were minor things but nothing alarming – so the results were in line with our expectations and there were no major worries or risks. We viewed the design and all the parameters very, very carefully several times; we got third parties for our reviews. And we are now pleased to say that Sheybarah Resort, which is an off-grid, zero-energy, and zerowater development focused on sustainable designs of hospitality, will be welcoming its first guests in 2024,” Tarek concludes.
“We were carrying out a test that didn’t yet exist!”
“There were things that we noticed during the test, like the insulation inside the villa exceeded our expectations”
RED SEA GLOBAL (RSG) HAS AGREED A PILOT PROJECT TO LAY PARTANNA’S CARBON-NEGATIVE CONCRETE PAVERS AT ITS LANDSCAPE NURSERY.
Partanna is the pioneer of the world’s first carbon-negative concrete, with technology that not only avoids carbon emissions but naturally removes it from the atmosphere. RSG has agreed a pilot project for the manufacture, delivery and installation of an initial 11,000 carbon-negative pavers.
The pavers will be placed at RSG’s landscape nursery, the largest in the region at one million square meters, which is set to grow more than 30 million plants by 2030 to landscape The Red Sea and Amaala destinations.
“We believe that sustainability is no longer enough. We need to find ways to restore and regenerate the planet. That is why we have committed to increasing the net conservation benefit at our destinations by 30% through the enhancement of habitats that ensure biodiversity can flourish, and to being carbon neutral when we become fully operational. Green technologies such as Partanna’s carbon-negative concrete could play a crucial role in helping us achieve these ambitious aims and even going one step further to become carbon negative,” said John Pagano, Group Chief Executive Officer at RSG.
The product supply agreement and first pilot scheme follow a Memorandum of Understanding (MoU) signed between the two organizations at COP27 in Egypt last year.
Under the arrangement, both parties will scope out future pilot projects – including applications of Partanna’s ocean-resilient concrete as an infrastructure solution to coral reef restoration projects at RSG.
Using recycled ocean water brine in its concrete, Partanna’s innovative solution is better suited to under-ocean conditions than traditional concrete and has been proven to be more durable.
Rick Fox, former Los Angeles Lakers basketball star and Hollywood actor, Co-Founder of Partanna Global, said: “Red Sea Global is right, sustainability isn’t enough. We say
that carbon avoidance isn’t enough either. The world desperately needs removal solutions and our technology can perform like no other, permanently locking in the carbon it absorbs. With a shared vision to make the world a better place, we have high expectations for what RSG and Partanna can achieve together. Our plan to pioneer groundbreaking technology solutions for the global coral reef development industry could set a new standard for marine stewardship.”
Partanna is as durable, versatile and scalable as traditional cement. Its use of brine as a core ingredient brings unique benefits to the Middle East, where desalination plants can harvest more fresh water per liter processed and provide Partanna with the rest.
RSG has embraced sustainable construction techniques at every opportunity, from offsite modular construction to crushing construction waste that can’t be recycled and using it as fill material. As a result, The Red Sea became the first development in the Middle East to secure LEED platinum certification, the US Green Building Council’s highest level of certification.
The Red Sea destination is set to welcome its first guests this year when the first three hotels and phase one of the international airport open. It will become the world’s largest destination to run solely on renewable energy from opening. Its five solar farms for phase one are 98.6% complete, with more than 750,000 panels now installed.
he zero-carbon 5G network, designed exclusively for The Red Sea, is the latest technological innovation at the resort. Designed with both people and the planet in mind, the revolutionary 5G network will bring guests the highest speeds for 5G connectivity in the region and be powered by 100% renewable energy from over 760,000 solar panels that Red Sea Global has built to power the entire 28,000km2 destination.
“We aspire to be global pioneers of regenerative tourism development, adopting 100% renewable energy at our flagship destination, The Red Sea, and working towards the achievement of a 30% net conservation benefit by 2040. These ambitious goals demand ambitious partners, and our collaboration with Zain KSA transcends telecommunications, extending into sustainability and environmental protection,” said John Pagano, Group CEO at Red Sea Global.”
“Zain KSA has demonstrated a deep understanding of our requirements and provided us with the services and solutions necessary to achieve our strategic objectives. Together, we are determined to make a meaningful impact that sets new standards in sustainable development.”
Designed using innovative 3D printing technology, the project will achieve three primary goals: preserving the environment, reducing emissions by utilizing renewable energy, and mitigating visual distortion. The towers have been built to blend harmoniously with The Red Sea’s unique and vibrant landscape. Inspired by the surrounding rock formations, the exterior aesthetic of the towers seamlessly interweaves into the resort’s natural habitat, ensuring minimal visual impact and safeguarding the project's environmental integrity.
Eng. Sultan Bin Abdulaziz Al-Deghaither, CEO of Zain KSA, said: “As a leading provider of telecommunications and digital services, we are immensely proud of this achievement that will certainly pave our way to become a pioneering sustainable technology provider. By collaborating with Red Sea Global, one of the world’s most visionary developers of sustainable development, we reaffirm our commitment to a shared vision that balances achieving human prosperity with the preservation of nature and its sustainability for future generations, as outlined by Saudi Vision 2030. By prioritizing tech for sustainability through innovation and the development of cutting-edge digital infrastructure, we
can effectively turn these values into reality. Within this approach, we are committed to localizing innovation and promoting the use of locally sourced content and have successfully constructed the 5G towers for this project within Saudi Arabia. With these remarkable achievements, we are further bolstering our support for one of our nation's crucial strategic projects, demonstrating our commitment to realizing Saudi Vision 2030’s goals for nationwide digital transformation and sustainability, including the goals to achieve carbon neutrality by 2060 and improve the quality of life across the Kingdom.”
RSG selects partners with like-minded values and Zain KSA commitment to transitioning the Information and Communication Technology (ICT) to net-zero complements RSG’s efforts to keep sustainability and regeneration at the heart of its resorts. The creation of the 5G network aligns with Vision 2030's goals of elevating clean energy reliance, curbing carbon emissions, and safeguarding the environment.
Designed using innovative 3D printing technology
Red Sea Global and Zain KSA unveil revolutionary netzero 5G network at flagship destination, The Red Sea
THE POWER TRANSMISSION & DISTRIBUTION BUSINESS OF LARSEN & TOUBRO HAS ACHIEVED IMPORTANT MILESTONES FOR THE POWER ELEMENTS AND GRID PACKAGES OF THE WORLD’S LARGEST GREEN HYDROGEN PLANT BEING BUILT BY NEOM GREEN HYDROGEN COMPANY. LOCATED AT OXAGON IN SAUDI ARABIA’S REGION OF NEOM, NEOM GREEN HYDROGEN COMPANY (NGHC) IS AN EQUAL JOINT VENTURE BY ACWA POWER, AIR PRODUCTS AND NEOM.
GHC is setting up a mega plant to produce green hydrogen atscale for global export in the form of green ammonia with a total investment of $8.4 billion. Supported by 23 local, regional, and international banking and financial institutions, the project has now achieved full financial close, and construction is moving forward.
A few quarters back, L&T received the nod to establish the renewable energy generation, storage and grid infrastructure from Air Products, the system-integrating EPC contractor and exclusive off-taker of
green ammonia to be produced from the project. The value of the packages awarded to L&T aggregate to $2.779 billion. Since then, significant progress has been achieved in various activities including surveys, design and engineering, establishment of temporary facilities, and procurement of long lead items.
Under these contracts, L&T will engineer, procure, and construct a 2.2 GWac PV solar plant, 1.65 GW wind generation balance of plant, and a 400 MWh battery energy storage system under the Power Elements package. It will also construct three 380
kV switching stations, 306 KM of 380 kV overhead lines and UG cables required for the Kingdom’s grid network. The scope also includes the Energy Power Monitoring System (EPMS) for the complete network.
Appreciating the bold vision of the Kingdom and the project proponents, the Chairman designate and Managing Director of Larsen & Toubro, Mr. S. N. Subrahmanyan said: “Such initiatives at scale have the potential to speed up global energy transition. Also, these technology-led projects are aligned with L&T’s aspirations towards propelling our next wave of growth and reflect the customer’s trust in our commitment to professionalism, timely delivery, and quality.”
Commenting on the development, Mr. T Madhava Das, Whole-Time Director & Sr. Executive Vice President (Utilities), Larsen & Toubro said: “We are proud to be associated with a project that will integrate 4GW
of renewable energy to enable the production of up to 600 tonnes of carbon-free hydrogen per day.”
In a recent statement, Wolfgang Brand, Vice President of NEOM Green Hydrogen from Air Products, the prime EPC contractor and system integrator for the entire facility, expressed enthusiasm for the progress made towards the world’s largest green hydrogen production facility in NEOM: “We are pleased to commence the full execution of this lighthouse project and are proud to work with our partner L&T in their ambition to produce carbon-free hydrogen using renewable energy.”
“NGHC is excited to be leading the global energy transition and having the right partners is essential in making this happen, so we are thrilled to be working with Larsen & Toubro on our green hydrogen generation, grid infrastructure and storage”, added David R. Edmondson, CEO of NEOM Green Hydrogen Company.
“Such initiatives at scale have the potential to speed up global energy transition”
The value of the packages awarded to L&T aggregate to $2.779 billion
SCANDINAVIAN INDUSTRIALISED BUILDING SYSTEM (SIBS), A MODULAR HOUSEBUILDER, HAS BEEN AWARDED A CONTRACT TO CONSTRUCT 35 HOUSING BLOCKS AT SAUDI ARABIA'S MASSIVE NEW ECONOMIC ZONE, NEOM.
he Stockholm firm was awarded an engineeredequipment contract for 2,174 dwellings for workers on the 26,500 km2 zone's planning, engineering, and construction. They will be the major personnel accommodation and office cluster for the giga-project beginning in the fourth quarter of next year.
The apartments will have one and two bedrooms plus a balcony. The buildings will have solar panels and will comply with NEOM’s sustainability standards. As the blocks will act as upmarket site cabins and temporary accommodation they can be dismantled and reassembled at other locations as and when needed across NEOM.
Erik Thomaeus, Chief Executive at SIBS, said: “Our substantial capacity and ability to adapt systems and production to different regulations, climates and needs have all been decisive in the process.”
The Stockholm firm was awarded an engineeredequipment contract for 2,174 dwellings
Now taking charge of the physical construction of the development, collaborating with a team of leading theme park experts, vendors, and infrastructure professionals, Dewan’s impressive project will feature an extraordinary collection of 22 adrenaline-charged rides and aims to become the ultimate center for entertainment, sports, and the arts in the Kingdom.
To be found in close proximity to Riyadh, the park will incorporate nine distinct districts,
each inspired by Saudi Arabia’s native animals, including the remarkable Camel Rock, the vivacious Den, the vibrant Herding Grounds, and the enchanting Arabian Peak. This ambitious $750 million project is committed to implementing pioneering technology to align with sustainability efforts seen in other landmark ventures like NEOM and The Red Sea. Noteworthy environmental systems have been installed, consuming 75% less water, with up-to-the-minute
technologies efficiently addressing concerns related to evaporation and wastage.
From breathtaking theme parks to imposing sports arenas, pulsating concert venues, thrilling racetracks, and electrifying adventure activities, Qiddiya Water Theme Park will be a humming hub of activity and an astonishing testament to Dewan’s visionary design and Saudi Arabia’s unwavering commitment to a brighter, sustainable future.
THE DAZZLING VISION OF THE RENOWNED ARCHITECTURAL AND ENGINEERING, DEWAN, IS TRANSFORMING QIDDIYA WATER THEME PARK INTO A MAGNIFICENT REALITY. THIS MASSIVE PROJECT, WHICH SPANS AN INCREDIBLE 337,948M2, IS SET TO BECOME THE WORLD'S LARGEST WATER PARK.
British studio Foster + Partners has unveiled designs for the Equinox Resort Amaala hotel, which will feature a circular ‘floating’ canopy.
The hotel is the first hotel to be announced as part of the Amaala Marina Village, also designed by Foster + Partners, and will have 128 rooms, including two luxury penthouses. The design is inspired
by the stunning natural landscape and traditional architectural style. Equinox Resort Amaala will also feature a covered entrance large enough for vehicles to pass through with a circular floating canopy, which was designed to provide a ‘dramatic entrance’ for guests, whether they arrive by car or boat.
The hotel will accommodate a magnesium-salt rooftop pool and feature four open courtyards that have been designed with water features and landscaping that aim to naturally cool the air.
The design is inspired by the stunning natural landscape and traditional architectural style
The Saudi Arabia Interior Design Market size is expected to grow from $3.72 billion in 2023 to $5.94 billion by 2028, at a CAGR of 9.80% during the forecast period (2023-2028), according to Mordor Intelligence.
The Kingdom’s interior design market is flourishing because of the continuing success of the construction sector, with a varied assortment of projects requiring interior products and services.
A surge in the number of real estate projects for retail, commercial, and hospitality, along with growing demand for residential properties, combined with government initiatives to develop infrastructure, is projected to propel the interiors market forward. Immense developments such as The Red Sea project and King Abdullah Economic City, for example, are enticing a variety of international and regional interiors and fit-out designers.
Considerable opportunity for interiors lies in the educational and healthcare sectors, with Vision 2030 along with Index Saudi set to fuel more investments in the coming years.
The Kingdom’s interior design market is flourishing because of the continuing success of the construction sector
Under the guidance of Adriana Graur, Design Director at dwp, and Scott Whittaker, Group Creative Director, The Carlton Al Moaibed Hotel in Al Khobar is being transformed and will become the Kingdom’s first Vignette Collection Hotel
Combining tradition and contemporary elegance, the hotel represents a narrative that supports Saudi Arabia’s Vision 2030, and is a reflection of the nation’s desire to showcase its abundant
cultural heritage while at the same time offering guests a pre-eminent and sophisticated hospitality experience.
Deriving inspiration from time-honored Arabic motifs, the hotel’s design integrates contemporary interpretations of local artwork and Arabic patterns, curated by dwp’s team of specialists. The hotel’s design sympathetically meshes comfort with local tradition, creating a warm and welcoming ambience.
A reflection of the nation’s desire to showcase its abundant cultural heritage
The Holiday Inn brand continues to grow at a swift tempo throughout the Kingdom, with the Holiday Inn Riyadh The Business District the latest to open its doors for business.
Offering a total of 138 rooms and suites, catering to a wide array of accommodation needs, including executive suites and family rooms, the hotel features the brand’s open lobby concept, which brings together the traditional hotel lobby, lounge, bar, and restaurant areas into one open space.
Reliably familiar, yet refreshingly different, this brand-new Holiday Inn Riyadh The Business District has a look and feel that has been designed to meet the requirements of all travelers, including families. Its Open Lobby gives guests a warm and welcoming place to relax, work or socialize.
The hotel features the brand’s open lobby concept
The new Barn's Café at King Abdulaziz International Airport (KAIA) in Jeddah, which faces the spectacular aquarium, enchants travelers with the aroma of freshly brewed coffee and soothes the eyes with an arresting decor of light greens and pinks, making it the ideal environment for a latte and a spot of relaxation.
“This recently opened café, designed by altavia.odg, offers a one-of-a-kind coffee experience, welcoming travelers to the Kingdom with a captivating setting dedicated to the good things in life. But why did KAIA select altavia.odg in the first place? We posed the question to Eng. Omar Bahakim, who responded immediately: "It was based on trust and existing projects carried out by the firm; we trusted in its creativity and ability to create a design that fits the brand."
The design is inspired by the destination of Jeddah on the Red Sea, with altavia.odg aspiring to reflect this sense of place through the use of design elements. The curves of the facade and the interiors are inspired by the waves of the sea, creating a sense of movement and fluidity in the space.
This design concept aims to generate a calming and relaxing atmosphere for travelers, reflecting the tranquil atmosphere of this coastal city.
“At Barn's, we care about enhancing the customer journey, and altavia.odg designed an interior that creates a superior experience, paying attention to the ambiance, visual merchandising, and seating areas, as well as all of those small details that are often overlooked.
“Being located in the arrivals hall is a great challenge because you become a part of the initial image that visitors to the city form, and we all know how important first impressions are. As a result, everything must be textbook in every detail, from the quality of service through to visual appearance,” Eng. Omar says.
This design concept aims to generate a calming and relaxing atmosphere for travelers, reflecting the tranquil atmosphere of this coastal cityBARN'S CAFÉ, JEDDAH AIRPORT
When designing the space, altavia.odg faced challenges that differed greatly from those encountered in a city store, where, as designers, altavia.odg has the freedom to create a unique and memorable experience for customers while paying close attention to the brand. The interior design should represent the café's personality while also generating a sense of community and belonging. It must be inviting, comfortable, visually appealing and memorable. This can be accomplished by utilizing unique materials, lighting, graphics and a distinct color palette.
At an airport, in addition to the strict regulations found there, the design also needs to focus on accommodating travelers who have limited time and are always on the move.
The café needs to be easily accessible and quick to navigate. Consideration has to be given to the overall aesthetic and cultural context while at the same time blending them with the brand values.
When altavia.odg received the brief, they discovered that the client expressly requested that they depart from the regular design and feel of Barn's in its main branches in Jeddah and produce something unusual that gets the attention of travelers as soon as they exit the arrival gates. As a result, the creative team produced an environment that reflects the sense of warmth and quiet needed after a long journey, utilizing pastel colors and curving spaces. The company also had to keep in mind that people nowadays enjoy taking images and posting them on social media. To meet this demand, they ensured that the walls, as well as the FF&E selection, would surprise and delight customers, many of whom would be unfamiliar with the brand.
“The idea was to choose a color that conveys a sense of comfort, calmness, and relaxation, given that all travelers are concerned with comfort and fun, so light green and light pink were chosen. What the traveler needs when exiting the plane has also been considered, comfortable seats and common tables equipped for the use of electronic devices,” explains Eng. Omar. “We find that altavia.odg's designs are always appealing to a wide range of people; they have their own unique style, and their solutions are always appropriate to the location and event.”
BARN'S CAFÉ, JEDDAH AIRPORTWhile providing the same high quality and warm welcome, Barn's Café at KAIA is unmistakably different from its other branches in the Kingdom
While providing the same high quality and warm welcome, Barn's Café at KAIA is unmistakably different from its other branches in the Kingdom. The altavia.odg team recognized that Saudi Arabia has a strong 'coffee culture,' particularly among young people who are well-traveled and have a great appreciation of art and design. They keep up with the current trends and are tough judges when it comes to interior design in their own country's cafés.
Consequently, in keeping with Barn's strategy, the company wanted to ensure that, while the materiality and features of each branch differ, there is a connecting line among all of them, what are known as design vernaculars, which make each branch unique yet unmistakably a Barn's Café. This was especially true at KAIA.
“We intended to be different from other branches and wanted to provide an exceptional experience for our customers,” Eng. Omar said. “As you know, the airport is the main gate for many
pilgrims and serves more than 41 million passengers annually, so Barn’s very much needed to take all of this into account and respond accordingly. It is a different but just as extraordinary an experience as all of our other branches.”
Working with Barn's is obviously a feather in the cap for Altavia. odg, especially when it comes to Saudi clients. The brand is well-established and one of the earliest domestic Saudi specialty coffee brands in the Kingdom, having a nationwide network. The firm is therefore particularly proud of this partnership, which extends beyond the business aspect, with altavia.odg considering itself a part of the Barn's team. Indeed, it is looking forward to a long, creative, and mutually beneficial collaboration for many years to come.
Eng. Omar is equally happy with the relationship, concluding: “We have received many accolades and a great deal of positive feedback from both our customers and Barn's personnel. We are delighted with the outcome.”
“At Barn's, we care about enhancing the customer journey, and altavia. odg designed an interior that creates a superior experience”BARN'S CAFÉ, TAHLIA BARN'S CAFÉ, TAHLIA BARN'S CAFÉ, FORMULA 1
Although
Today, retail design has almost become entertainment, sitting alongside theater and movies, with the audience becoming part of the narrative. So, when Saudi Projects had the good fortune to sit down with Talar Bardakjian, Creative Director at altavia. odg, an award-winning spatial design and branding consultancy, we first asked her if a store is no longer just a store, but more of a stage where the retail drama plays out?
“That’s 100% true. With the rise of online shopping, retailers have found new ways to excite customers and drive footfall into their stores. This has led the brands to focus on pushing the boundaries of experiential retail, by focusing on creating unique and engaging in-store experiences for their customers. The physical store has become a platform where the customers interact with the brands, engaging the customer, and creating memories,” Talar explains.
This is an approach that produces purposeful shopping experiences, with Talar continuing: “At altavia.odg, we create beautiful spaces, yes, but that is almost secondary because what we really do is craft experiential retail so that people want to return, and that’s really important. This approach is often referred to as ‘retailtainment’, where the retailer makes sure that the customer understands that this is not just a transactional destination. In our studio, we try to bring value and meaning to any project we are working on, be it an f&b project in Saudi Arabia or a retail store anywhere else in the world.”
altavia.odg has been working with the Barn’s coffee brand, one of the firm’s key clients, since 2019. And this longstanding relationship gave Barn’s the confidence to trust altavia.odg to change the design direction and create something different.
“In one example, we tried to completely change the atmosphere by carrying out extensive research to understand the local environment, which then allowed us to create a space that is memorable for customers.
“At one time, sense of place was just for dutyfree and airports, but what we’re doing now is bringing a sense of place to smaller retailers and coffee shops”
This was a successful undertaking and we now have many more stores in the pipeline to do for Barn’s and with each one we are going to bring in new and distinct ideas,” Talar says.
Defining localization and a ‘sense of place’ is a challenge, not unlike defining what makes a great play or ballet. It’s about creating a link to the local culture and, although that sounds simple, is not something that is easy to accomplish for most retailers. As Talar explains, though, it is increasingly important to realize that sense of place, saying: “At one time, sense of place was just for duty-free and airports, but what we’re doing now is bringing a sense of place to smaller retailers and coffee shops. Sometimes it can be literal, and sometimes it can be conceptual, but as a studio, we try not to be overly literal, preferring to take parts of stories and then create a space that gives an idea of the sense of place for that individual outlet.”
Every project, of course, is a oneoff, and one recent assignment saw Talar spearhead the design and development of Bahrain Duty-Free, with the client taking an entirely different approach.
This was a totally different kind of project and was a smooth process in terms of design because the client knew exactly what they wanted. And what they wanted to focus on wasn’t the sense of place, it was the service. They wanted to deliver world-class service to their customers, so the brief was to do something slick, contemporary, and timeless –focused more on the customer journey and the offer in-store that makes the customer feel valued.
“The design approach aimed to create a modern and minimalistic space that prioritizes exceptional services, including personal private VIP rooms and a high-end cigar lounge for travelers seeking a tranquil environment away from the busy airport scene, “ explained Talar. “Additionally, QR codes and user-friendly purchase options were integrated throughout the store to ensure ease of use for customers.
“Moreover, we collaborated closely with our client to ensure that convenience was a key factor in the store's design, implementing features such as online ordering and dedicated self-pickup lockers in arrival stores. Throughout the project, it was crucial to coordinate closely with all stakeholders and manage all aspects of the project to ensure the client's needs and brand coordination were met. Ultimately, we were delighted to receive feedback from the client indicating their satisfaction with the overall duty-free performance.”
The approach to designing dutyfree stores in airports depends on a thorough understanding of what the airport is looking to achieve, with Talar saying: “Some airports prefer a subtle interpretation of the sense of place of the city or country, while others prefer a more obvious approach. However, it is important to avoid replicating the city/country's iconic features or characteristics in a literal sense. Instead, the focus should be on interpreting these ideas in a more conceptual and modern manner.
“The starting point for any airport duty-free design project is to conduct a deep dive into understanding the city or country and the airport itself. We often prefer to travel to the location and conduct on-ground research, interacting with the local people, visiting old sites and local buzzing streets to gain a better understanding of the culture and demographics. Design plays a critical role in duty-free stores, but it is equally important to create spaces that appeal to all passengers flying through that city or airport.”
Retail technology is leaning toward powerful digital customer engagements, but is this approach leaving some customers behind? Is everyone really looking for digital solutions? “I wouldn’t say everyone,” Talar begins, “a lot of people like to go into a store and physically pick out the products they want to buy, but there are other types of clientele who are in a rush and they know what they want, so digital makes sense for them. So we need to provide several offerings to our clients, serving those people who are in a hurry but also consumers who enjoy face-to-face interaction. We have to tick all of the boxes.
“Some stores, of course, are still keen on a feeling of familiarity and nostalgia. If we go into one of these stores there is face-toface interaction – they focus on customer-centric service. They don’t focus on digital because they believe that digital stops consumers from interacting. When people are making big purchases they want that face-to-face experience with someone they can trust, someone who can answer questions. However, it is essential to use nostalgia in moderation and in a way that is relevant to the target audience. While some customers may appreciate a nostalgic design, others may prefer a more modern and cutting-edge aesthetic. Therefore, the key is to strike a balance between nostalgia and modernity that resonates with the brand and the target audience and creates a positive and memorable shopping experience.
“It depends on the product. When we’re working in a hypermarket like Carrefour, we definitely need to understand the demographic, both people who are busy and others who are more traditional and like to browse around and take their time. It depends on the client and the type of retail we’re designing.”
In terms of branding, sustainability encompasses more than just the green movement.
Consumers want to know how production works in a brand’s factory and how the packaging is done”
It entails developing your brand through long-term marketing, branding, and production practices.
“I would say more and more stores and brands are invested in sustainability because the consumer is increasingly going for brands with a purpose behind them, ones that they know are doing something good for the planet,” Talar says.
“Consumers are no longer interested in brands that are just big names. Instead, they want to know how production works in a brand’s factory and how the packaging is done, so our clients are definitely requesting more and more sustainability, understanding that their customers prefer to purchase products from brands that prioritize environmental consciousness over brands that only create aesthetically pleasing products or packaging.
“This mindset extends to the construction of retail stores too, with customers seeking out brands that show consideration for the environment and the staff who work within the space. As design consultants, we prioritize advising our clients on appropriate zoning and layout strategies that aren’t just customer-centric but also staff-centric as well. So we make sure we create break spaces for the people using that space, which must also be easy to maintain while working. We also like to encourage the retention of existing conditions to make use of existing materials by just uplifting them. We stay away from developing complex construction details and promote the use of local materials as much as possible, ensuring that all necessary certifications are obtained from our suppliers to make certain that the production of materials and products is not detrimental to our planet.”
At the heart of today’s retail is an enhanced customer experience and altavia.odg is one of the world’s most innovative and creative firms in this fiercely competitive arena, regularly winning work from new clients but also receiving a lot of repeat business.
“We are working on quite a few projects at the moment, we are very busy. This includes work on a number of coffee chains throughout Saudi Arabia, as well as big duty-free developments. These projects will be executed this year. We have a lot of projects all over the world, but in the Middle East most of our clients are currently in Saudi Arabia, and we’re very happy about that,” Talar says.
Looking to the future, Talar believes that there will be four primary challenges and opportunities in the coming years, incorporating:
A shift towards online shopping: With the rise of e-commerce, more and more customers may prefer to shop for duty-free products online rather than in physical stores. Travel retailers will need to adapt and find ways to provide a seamless omnichannel experience for their customers.
Changing consumer preferences: As consumer preferences and behaviors evolve, travel retailers will need to keep up with the latest trends and adapt their offerings accordingly. For example, younger generations may have different expectations when it comes to the products and experiences they seek from travel retailers.
Competition from other channels: Travel retailers are not only competing with other duty-free stores but also with other retail channels such as local stores and online marketplaces. To stay competitive, travel retailers may need to differentiate themselves by offering unique products, experiences or services.
Sustainability concerns: As consumers become increasingly aware of the impact of their actions on the environment, travel retailers
will need to prioritize sustainability in their operations. This may include reducing waste, using ecofriendly materials and promoting responsible consumption.
Finally, we asked Talar why so many companies and organizations choose to work with altavia.odg; what is the secret behind the firm’s success? Talar needs no time to think, responding instantly: “What we’re good at is retail design and travel retail design, and what makes us different from other agencies in the region is that our priority is thinking about our client, their target audience, how they increase sales, how they bring in a story or purpose to their brand.
“Rather than just thinking about aesthetics, we think about the strategy and the client, and together both of these steps make the project successful. We have a team that has a lot of background in retail design too. Finding such people in the region has been really quite difficult. However, we have persisted, handpicking our staff, all of whom have degrees in retail or considerable retail experience. We’re in Saudi Arabia, we’re really specialized, and we’re enjoying working with such ambitious and forwardlooking clients,” Talar concludes.
“Some stores, of course, are still keen on a feeling of familiarity and nostalgia.”
“Rather than just thinking about aesthetics, we think about the strategy and the client, and together both of these steps make the project successful”
