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    Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

    $36mln contract for construction of Duqm fisheries complex

    $36mln contract for construction of Duqm fisheries complex

    Ministry signs agreement to support Oman’s honey industry

    Ministry signs agreement to support Oman’s honey industry

    Local, Italian companies partner up to establish food retail chain in Egypt

    Local, Italian companies partner up to establish food retail chain in Egypt

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      Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

      Egypt’s food industries contribute 24.5% of GDP

      Egypt’s food industries contribute 24.5% of GDP

      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      New study reveals that UAE is most competitive economy in the Arab world

      New study reveals that UAE is most competitive economy in the Arab world

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      • CES 2017
      • Election Results
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      Oman Construction Equipment Industry to 2028

      Oman Construction Equipment Industry to 2028

      $36mln contract for construction of Duqm fisheries complex

      $36mln contract for construction of Duqm fisheries complex

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

      Madayn working on major Oman industrial city projects

      Madayn working on major Oman industrial city projects

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Foundation stone laid for new 700-bed hospital is Salalah, Oman

      Iraq set to award new Faw Port deals

      Iraq set to award new Faw Port deals

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        Suez Canal expects US$3.5 billion in revenues in H1

        Suez Canal expects US$3.5 billion in revenues in H1

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        UAE and Egypt’s consortium to buy African renewables firm Lekela Power

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Fitch revises Saudi Aramco’s outlook to positive from stable

        Investments in renewables in Egypt reach LE6 bn: Official

        Investments in renewables in Egypt reach LE6 bn: Official

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        Egypt signs 8 gas exploration contracts worth $934mn over 15 months

        JGC lands $3.7bn Iraq refinery upgradation project deal

        JGC lands $3.7bn Iraq refinery upgradation project deal

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        • Hospitality

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

          Qatar’s hospitality sector peaks despite turbulent 2020

          Qatar’s hospitality sector peaks despite turbulent 2020

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

          Staycations to stimulate Qatar’s hospitality sector

          Staycations to stimulate Qatar’s hospitality sector

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        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food

          Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics

            Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

            Egypt’s food industries contribute 24.5% of GDP

            Egypt’s food industries contribute 24.5% of GDP

            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

              Trending Tags

              • Hospitality

                Food Africa and pacprocess MEA attract over 25,000 trade visitors to the trade fair duo in Egypt

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

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              Saudi Arabia implements tax to encourage property development

              OBG

              August 3, 2016
              in Economy, Infrastructure, Real Estate
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              Recent measures to levy a tax on empty plots of land in Saudi Arabia are intended to kick-start the residential property sector and tackle the Kingdom’s housing shortage.

              The government is targeting so-called white land – undeveloped blocks of property that mark large areas of Saudi Arabia’s cities – by constructing an enhanced regulatory framework for developers as part of the Kingdom’s National Transformation Plan (NTP).

              In mid-June the cabinet approved a series of regulations including the implementation of a 2.5% tax on these undeveloped zones for residential or commercial purposes.

              Between 40% and 50% of land within Saudi Arabia’s major cities remains vacant, according to local media reports, primarily due to companies and individuals building up land banks that in turn push up prices and lead to speculation.

              These new regulations, coupled with government plans to release state-owned land for development, are designed to tackle the housing shortage, lead to a drop in land prices and hopefully improve affordability for middle-income families, which account for more than two-thirds of the population, according to press reports.

              Phases of implementation
              Though an exact timetable has yet to be set out for the implementation of the tax, indications are that it will be introduced in stages.

              The levy will first be imposed on owners of undeveloped plots larger than 10,000 sq meters within certified master planned developments, followed by single owners of similarly sized blocks.

              In later stages, single landowners of smaller plots of developed land – land serviced with horizontal infrastructure such as roads and power but no vertical development ¬¬–  exceeding 5000 sq meters in the certified master planned developments and single landowners of plots exceeding 10,000 square meters in one city will be subject to the tax.

              Industry backs initiative
              While broadly welcomed by property developers and brokers, the new land tax is seen as just one step in broadening the home ownership base and encouraging more investment in the residential market.

              Further measures and support mechanisms, such as expanded mortgage laws, should be implemented to facilitate the full execution of the new law, according to Mowaffaq Al Hashimi, president of Saqifat Al Safa, a local property developer and real estate management firm.

              “The fees on vacant land should accelerate residential housing developments and reinvigorate the market, but like any other regulation, it should be stretched over a reasonable amount of time, rather than hurried throughout the course of a single year,” he told OBG.

              Boost to the economy
              In addition to increasing the number of housing units, the NTP also aims to broaden the base of the national economy.

              One of the NTP’s objectives is to raise the property sector’s contribution to GDP from 5% to 10% and increase the rate of annual growth in the industry from the current level of 4% to 7% by 2020. In line with the plan, the ministry of housing is also aiming to lift the current rate of home ownership from 47% to 52% by 2020.

              This would increase the Kingdom’s level of private asset holdings, while government plans to further liberalize access to credit, through providing funding, mortgage solutions and ownership schemes, will also serve to boost the sector.

              The Saudi Arabian Monetary Authority (SAMA) has already moved to facilitate access to finance by easing some of its restrictions on loan to value (LTV) on property transactions.

              In mid-March SAMA announced an amendment to the LTV ruling, lifting its credit ceiling from 70% to 85% for real estate finance companies, though the lower level remained in force for other lenders.

              This should help stimulate purchase activity and have a knock-on effect on the construction sector by making it easier for developers to attain building permits, while also strengthening the position of the real estate finance sector.

              If financing is readily available, the objectives set out in the NTP can be achieved, according to Riyad Ahmed Al Thagafi, CEO of real estate at Saudi Arabia-based AWJ Holding, who estimates investments in housing will cost between SR1trn ($266bn) and SR1.5trn ($400bn) over the course of the next 10 years.

              “Investment and growth in the residential sector have the capacity to generate employment, with small and medium-sized enterprises being first in line to benefit from the higher level of jobs creation,” Al Thagafi told OBG.
              Oxford Business Group
              3 August

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