Riyadh Real Estate Market Overview second quartermid-east.info/wp-content/uploads/2016/09/chestertons-riyadh-q2-2016-report.pdfAl Sahafah 120,000 160,000 Al Rahmaniyah 140,000 220,000

Riyadh Real Estate Market Overview

The second quarter 2016

Prepared by: Market Studies & Research Department

July, 2016

1

Page No. Contents Serial

2 Riyadh City Overview 1

2 Riyadh Residential sector 1/1

11 Land sector in Riyadh 1/2

16 Riyadh Office sector 1/3

18 Riyadh Retail (commercial) sector & shopping centers 1/4

20 Riyadh Hotel sector 1/5

23 Kingdom of Saudi Arabia’s Vision 2030 (1452 H)1/6

26 White Land Fees1/7

32 CHESTERTONS*

2

1‐ Riyadh City Overview:

1 Riyadh population in 2004 (1425) 4,260,000

2 Riyadh population in 2016 (1437) 6,506,700

3 The percentage of Saudis in 2004 (1425) of the total population 66%

4 growth rate Population in Riyadh between 2004 – 2010 (1425‐1431) 4.2%

5 growth rate Population in Riyadh between 2010 – 2016 (1431‐1437) 4%

6 The difference in population number in Riyadh between the years 2016 ‐ 2004 )1425‐1437( 2,246,700

7 Percentage of the population that their age is less than 15 years 27%

8 Percentage of Saudis in Riyadh 64%

9 Percentage of non‐Saudis in Riyadh 36%

10 Indian nationality Percentage of total population 14%

11 Pakistani nationality Percentage of total population 12%

12 Percentage of house owners who have moved two or three times during their stay in Riyadh 70%

13 Percentage of house owners who have moved four to five times during their stay in Riyadh 10 %

1/1 Riyadh Residential Sector Overview:

1 The number of houses in Riyadh in in 2004 (1425) 704,000

2 The number of housing units in Riyadh in 2016 (1437) 1,217,996

3 Number of units built between 2004 – 2016 (1425 – 1437) 513,996

4 Number of families in Riyadh in in 2016 (1437) 1,116,339

5 Percentage of vacant housing units for the year 2016 8%

6 Villas Percentage of total residential units for the year 2016 52%

7 Apartments Percentage of total residential units for the year 2016 42%

8 Local buildings percentage of total residential units for the year 2016 2.5%

9 percentage of Saudis who own their homes 2016 56%

10 Percentage of Saudis who build their own houses through personal funds 2016 46%

11 Percentage of Saudis who build their houses through the Real Estate Development Fund 2016 30%

12 Percentage of Saudis who build their houses through private companies such as banks and real estate

companies 2016 21 %

3

1/1/1 Apartments average rents in Riyadh:

26,935 SR is the Overall average rent for the apartments in Riyadh City, this average differs in Riyadh depending on location.

Table 1

Sector

Apartments rent (in SAR) Overall average for

every sector lowest price average

highest price average

Western Riyadh 20,650 29,800 25,225

Northern Riyadh 24,286 37,714 31,000

Central Riyadh 28,700 43,250 35,975

Eastern Riyadh 18,700 25,250 21,975

Southern Riyadh 16,895 24,105 20,500

Overall average 21,846 32,024 26,935

Overall average rent for apartments in Riyadh 26,935

Source: Field survey by CHESTERTONS

Chart 1

20,650

24,286

28,700

18,700

16,895

29,800

37,714 43,250

25,250

24,105

25,225 31,000 35,975

21,975

20,500

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh Southern Riyadh

Average lowest prices Average Highest price The overall average for each sector

4

This table shows the apartments rental prices in Riyadh (in SAR) :

Western Riyadh Northern Riyadh

To From District Name To From District Name

24,00017,000Laban 45,00027,000 Al Falah

25,00018,000Irqah 28,00020,000 Al Aqiq

50,00030,000Al Khozama 45,00030,000 Hittin

50,00030,000Al Nakheel 40,00027,000 Al Malqa

45,00027,000Al Mohammadeyah 35,00022,000 Al Nafl

45,00025,000Al Rahmaniyah 35,00025,000 Al Sahafah

24,00017,000Al Raid 40,00022,000 Al Yasmin

Eastern Riyadh Central Riyadh


45,00035,000 Al Nasim Al Sharqi 45,00027,000 At Taawun

45,00035,000 Al Nasim Al Gharbi 70,00045,000 Al Wahah

45,00035,000 Al Nahdah 40,00025,000 Al Masif

45,00035,000 Ghirnatah 40,00025,000 King Fahd

45,00035,000 Al Munsiyah 45,00030,000 King Abdullah

45,00035,000 Al Hamra 45,00030,000 Salah Ad Din

45,00035,000 Al Yarmuk 45,00030,000 Al Izdihar

45,00035,000 Al Qadisiyah 45,00035,000 Al Nuzhah

40,00027,000 Al Muruj

Southern Riyadh 50,00030,000 Al Sulimaniyah

ToFrom District Name 45,00030,000 Al Wurud

30,00020,000Al Fayha 50,00030,000 Al Olaya

22,00015,000AL Shifa 35,00027,000 Jarir

19,00015,000Al Marwah 40,00025,000 Al Dhubbat

18,00015,000Badr

45,00030,000Al Hada

24,00017,000Al Badi'ah

5

1/1/2 Villas average rents in Riyadh:

SAR 118,668 is the overall average rent for villas in Riyadh, this average differs in Riyadh City depending on location.

Table 2

Sector

Villas Rents (in SAR) Overall average for



Western Riyadh 84,500 142,000 113,250

Northern Riyadh 110,714 162,857 136,786

Central Riyadh 116,500 194,000 155,250

Eastern Riyadh 70,500 118,500 94,500

Southern Riyadh 72,368 114,737 93,553

Overall average 90,916 146,419 118,668

Overall average of villas rents in Riyadh 118,668


Chart 2

84,500 110,714

116,500

70,500

72,368

142,000

162,857 194,000

118,500

114,737

113,250

136,786

155,250

94,500

93,553

0

50,000

100,000

150,000

200,000

250,000



6

This table shows the Villas rental prices in Riyadh (in SAR):



120,000 80,000 Laban 230,000 140,000 Al Falah

130,000 80,000 Irqah 130,000 90,000 Al Aqiq

220,000 140,000 Al Khozama 240,000 150,000 Hittin

240,000 140,000 Al Nakheel 200,000 140,000 Al Malqa

240,000 140,000 Al Mohammadeyah 140,000 90,000 Al Nafl

220,000 140,000 Al Rahmaniyah 160,000 120,000 Al Sahafah

240,000 150,000 Al Raid 160,000 100,000 Al Yasmin



80,000 50,000 Al Nasim Al Sharqi 180,000 90,000 Al Taawun

90,000 60,000 Al Nasim Al Gharbi 250,000 120,000 Al Wahah

100,000 70,000 Al Nahdah 150,000 90,000 Al Masif

140,000 80,000 Ghirnatah 150,000 90,000 King Fahd

120,000 70,000 Al Munsiyah 200,000 130,000 King Abdullah

180,000 90,000 Al Hamra 200,000 130,000 Salah Ad Din

120,000 70,000 Al Yarmuk 200,000 130,000 Al Izdihar

90,000 70,000 Al Qadisiyah 200,000 130,000 Al Nuzhah

250,000 140,000 Al Muruj

Southern Riyadh 250,000 150,000 Al Sulimaniyah

To From District Name 250,000 150,000 Al Wurud

160,000 120,000 Al Fayha 250,000 150,000 Al Olaya

90,000 60,000 AL Shifa 150,000 90,000 Jarir

90,000 60,000 Al Marwah 200,000 120,000 Al Dhubbat

90,000 60,000 Badr

250,000 150,000 Al Hada

120,000 70,000 Al Badi'ah

7

1/1/3 Apartments average selling prices in Riyadh:

SAR 441,656 is the overall average selling price for Apartments in Riyadh, this average differs in all sides of Riyadh depending on location.

Table 3

Sector

Apartments selling prices (in SAR) Overall average for



Western Riyadh 336,500 514,000 425,250

Northern Riyadh 394,286 582,143 488,215

Central Riyadh 415,000 632,500 523,750

Eastern Riyadh 317,000 512,500 414,750

Southern Riyadh 296,842 415,789 356,316

Overall average 351,926 531,386 441,656

Overall average of apartments sales in Riyadh 441,656


Chart 3

336,500

394,286

415,000

317,000

296,842

514,000

582,143

632,500

512,500

415,789

425,250

488,215

523,750

414,750

356,316

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Riyadh West Riyadh north Riyadh Central Riyadh east Riyadh South


8

This table shows the apartment selling price across Riyadh (in SAR):



450,000 270,000 Laban 600,000 450,000 Al Falah

450,000 350,000 Irqah 500,000 350,000 Al Aqiq





700,000 450,000 Al Raid 600,000 350,000 Al Yasmin











550,000 400,000 Al Muruj


To From District Name 700,000 450,000 Al Wurud

450,000 350,000 Al Fayha 700,000 450,000 Al Olaya

450,000 300,000 AL Shifa 550,000 350,000 Jarir


350,000 250,000 Badr

450,000 350,000 Al Hada

450,000 300,000 Al Badi'ah

9

1/1/4 Villas average selling prices in Riyadh:

SAR 1,787,926 is the overall average selling price of villas in Riyadh. Table 4

Sector

Villas Sales (in SAR) Overall average for every sector The average

lowest price the average highest price

Western Riyadh 1,490,000 2,010,000 1,750,000

Northern Riyadh 1,678,571 2,221,429 1,950,000

Central Riyadh 1,589,000 2,615,000 2,102,000

Eastern Riyadh 1,480,000 1,990,000 1,735,000

Southern Riyadh 1,126,316 1,678,947 1,402,632

Overall average 1,472,777 2,103,075 1,787,926

Overall average selling price of villas in Riyadh 1,787,926


Chart 4

1,490,000

1,678,571

1,589,000

1,480,000

1,126,316

2,010,000

2,221,429

2,615,000

1,990,000

1,678,947

1,750,000

1,950,000

2,102,000

1,735,000

1,402,632

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



10

This table shows Villas selling prices across Riyadh (in SAR) :



1,700,000 1,300,000 Laban 2,500,000 1,800,000 Al Falah

2,000,000 1,600,000 Irqah 1,900,000 1,600,000 Al Aqiq

3,000,000 2,000,000 Al Khozama 3,000,000 1,900,000 Hittin

3,000,000 2,000,000 Al Nakheel 2,400,000 1,800,000 Al Malqa

2,400,000 1,800,000 Al Mohammadeyah 2,000,000 1,600,000 Al Nafl

2,400,000 1,800,000 Al Rahmaniyah 2,200,000 1,700,000 Al Sahafah

3,000,000 2,000,000 Al Raid 2,200,000 1,700,000 Al Yasmin



1,700,000 1,200,000 Al Nasim Al Sharqi 2,500,000 1,600,000 Al Taawun

1,700,000 1,300,000 Al Nasim Al Gharbi 3,000,000 2,000,000 Al Wahah

1,800,000 1,400,000 Al Nahdah 2,200,000 1,500,000 Al Masif

2,000,000 1,500,000 Ghirnatah 2,200,000 1,500,000 King Fahd

1,900,000 1,400,000 Al Munsiyah 3,000,000 1,800,000 King Abdullah

2,500,000 1,900,000 Al Hamra 3,000,000 1,800,000 Salah Ad Din

2,000,000 1,500,000 Al Yarmuk 2,500,000 1,700,000 Al Izdihar

1,600,000 1,200,000 Al Qadisiyah 2,500,000 1,700,000 Al Nuzhah

3,000,000 1,800,000 Al Muruj

Southern Riyadh 3,000,000 180,000 Al Sulimaniyah

To From District Name 3,000,000 1,800,000 Al Wurud

2,000,000 1,300,000 Al Fayha 3,000,000 1,800,000 Al Olaya

1,400,000 900,000 AL Shifa 2,500,000 1,500,000 Jarir

1,400,000 900,000 Al Marwah 2,500,000 1,600,000 Al Dhubbat

1,300,000 900,000 Badr

3,500,000 1,900,000 Al Hada

1,800,000 1,400,000 Al Badi'ah

11

1/2 Land prices in Riyadh:

1/2/1 Selling Price for Residential land with single street frontage: Overall average selling price for Residential land overlooking on one street frontage in Riyadh is 2,150 SR/m2.

Table 5

Sector

Residential land with single street frontage (in SAR) Overall average

for every sector lowest price average


Western Riyadh 1,750 2,000 1,875

Northern Riyadh 1,700 1,850 1,775

Central Riyadh 2,400 2,750 2,575

Eastern Riyadh 2,200 2,600 2,400

The general average 2,000 2,300 2,150

Overall average selling price for Residential land with single street frontage in Riyadh

2,150


Chart 5

1,750

1,700

2,400

2,200

2,000

1,850

2,750

2,600

1,875

1,775

2,575

2,400

0

500

1,000

1,500

2,000

2,500

3,000

Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh


12

This table shows the selling prices for Residential land with single street frontage , across Riyadh (in SAR):



1,400 900 Laban 3,000 2,500 Al Falah

1,900 1,700 Irqah 2,400 2,100 Al Aqiq





3,000 2,500 Al Raid 2,500 2,200 Al Yasmin











3,400 3,000 Al Muruj


To From Name district 3,000 2,600 Al Wurud

1,200 1,100 Manfuhah 3,300 2,700 Al Olaya

1,300 1,100 Ash Shifa 2,300 2,100 Jarir


1,200 1,000 Utaiqah

2,300 2,100 Al Hada

1300 1200 Al Badi'ah

13

1/2/2 Selling Prices for Residential land with main road frontage and return: Overall average selling price for Residential land with main road frontage and return in Riyadh is 2,463 SR/m2.

Table 6

Sector

Residential land with main road frontage and return (in SAR) Overall average

for every sector average lowest price

average highest price

Western Riyadh 1,900 2,800 2,350

Northern Riyadh 1,900 2,250 2,075

Central Riyadh 2,600 2,900 2,750

Eastern Riyadh 2,500 2,900 2,700

The general average 2,225 2,700 2,463

Overall average selling price for Residential land with main road frontage and return in Riyadh City

2,463


Chart 6

1,750

1,700

2,400

2,200

2,000

1,850

2,750

2,600

1,875

1,775

2,575

2,400

0

500

1,000

1,500

2,000

2,500

3,000

Western Riyadh Northern Riyadh Central Riyadh Eastern Riyadh

14

This table shows selling prices for Residential land with main road frontage and return, across Riyadh (in SAR):



1,500 1,000 Laban 3,400 2,700 Al Falah

2,400 1,900 Irqah 2,700 2,400 Al Aqiq





3,500 3,000 Al Raid 2,800 2,500 Al Yasmin











3,600 3,200 Al Muruj


To From Name district 3,400 2,700 Al Wurud

1,300 1,100 Manfuhah 3,700 3,000 Al Olaya

1,500 1,200 Ash Shifa 2,500 2,200 Jarir


1,300 1,100 Utaiqah

2,700 2,400 Al Hada

1,700 1,400 Al Badi'ah

15

1/2/3 Commercial land in Riyadh:

Commercial (Retail) land located on main roads in Riyadh were sold between SAR 2,000 – SAR 23,000.

Table 7

(In SAR)

Average highest rate lowest rate Road

7,750 9,000 6,500 Eastern Ring Road

5,750 6,000 5,500 Western Ring Road

10,500 12,000 9,000 Northern Ring Road

7,500 8,000 7,000 Anas bin Malik Street

4,500 5,000 4,000 Khair Road

2,500 3,000 2,000 Kharj Road

20,000 23,000 17,000 King Fahd Road

7,750 8,500 7,000 King Abdul‐Aziz Road


Chart 7

6,500

5,500 9,000

7,000

4,000

2,000

17,000

7,000

9,000

6,000

12,000

8,000

5,000

3,000

23,000

8,500

7,750

5,750

10,500

7,500

4,500

2,500

20,000

7,750

‐

5,000

10,000

15,000

20,000

25,000

Eastern RingRoad

WesternRing Road

NorthernRing Road

Anas binMalik Road

Khair Street Kharj Road King FahdRoad

KingAbdulazizRoad

the lowest rate the highest rate Average

16

1/3 Riyadh Office sector:

1/3/1 Current supply of administrative offices in Riyadh: The second quarter 2016 witnessed the development of a few administrative offices projects to be delivered within the next two years. It is worth mentioning that rental rates have seen a slight rise, Offices rents range between 400 SR/m2 up to 1,280 SR/m2 and sometimes up to about 1,700 SR/m2 in some distinctive towers in Riyadh.

Table 8

Offices rental prices across Riyadh (in SAR/Sqm)

Main Roads From to

King Fahd – North 800 1,200

King Fahd – Centre 900 1,250

Northern Ring Road 950 1,250

Eastern Ring Road 700 800

Khurais 700 850

Olaiya ‐ North 700 900

Olaiya ‐ centre 800 950

King Abdullah – Centre west 700 800

King Abdullah – East 550 700

Prince Mohammed Bin Abdulaziz ‐Tahlia 950 1,100

Takhasusi 650 850

Al Oruba 750 850

Salahuddin – Malaz 650 850

Othman Bin Affan 650 750


17

1/3/3 Future supply of administrative offices in Riyadh (2016 – 2018):

It is expected that in 2016 the main completions will be the Information Technology & Communication Complex (ITCC) as well as Majdoul tower located on King Fahd Road will lead the market. The King Abdullah Financial District project expects further delays and is unlikely to provide any office space during the year 2016. The next table shows our projections for the total gross leasing offices areas within the next 3 years in Riyadh:

Table 9

Offices ‐ Project Name Total Rental Area (GLA in 000 Sqm)

Expected to start in

King Abdullah Financial District (KAFD) 800 2018 ‐ 2017

ITCC 230 2017

King Saud University Endowment Project (KSUE) 95 2018 ‐ 2017

Majdoul Tower 55 2017

Hamad Tower 31 2016

Others 100 2016 – 2017 ‐ 2018

Total GLA (000 Sqm) 1311 Till the end of 2018

Source: Field survey & analysis by CHESTERTONS

Chart 9

Offices Future supply in Riyadh (2016 – 2018):

800230

95

5531

100King abdullah Financial District(KAFD)

Information Technology &Communication Complex (ITCC)

King Saud University EndowmentProject (KSUE)

Majdoul Tower

Hamad Tower

Others

18

4/1 Riyadh Retail (Commercial) sector & Shopping Centers:

The rental for shops across the city ranges between 700 SR/Sqm and 1,200 SR/Sqm with average of 927 SR/Sqm, and it might exceed to 2,500 SR/Sqm for line shops in some premium malls.

1/4/1 Current supply ‐ rented spaces for shopping centers:

Total Retail rented spaces in the second quarter of 2016 reached approximately 1.47 million square meters, with growth of 600 Sqm more than was available at the end of year 2015.

Table 10

Growth rate Area rented – (in million

square meters) year

‐ 1.27 2013 Reached

8% 1.37 2014 Reached

3% 1.41 2015 Reached

4% 1.47 2nd quarter 2016 reached


Chart 10

1.27

1.37

1.41

1.47

1.15

1.20

1.25

1.30

1.35

1.40

1.45

1.50

19

2/4/1 Future supply for the shopping centers in Riyadh (2016 ‐ 2021): It is expected new commercial centers will be established in Riyadh city such as Mall of Saudi, Deriyah Festival City Mall, The Avenues, and others, all of which represent an added rental area about 1,418,360 square meters, as shown in the following table :

Table 11

Upcoming Retail Project Expected GLA (Sqm)

Mall of Saudi ( Majid Al Futtaim ) 300,000

Deriyah Festival City Mall 250,000

The Avenues ( Al Shaya Group ) 200,000

Arabia Plaza 164,360

City Center Ishbiliah ( Majid Al Futtaim ) 100,000

Riyadh Park 92,000

KAFD 88,000

AlHamraa Mall 52,000

ITCC 50,000

Malaz Mall 49,000 Khaleej Mall 43,000

Boulevard Mall 30,000

Total Expected GLA 1,418,360

Source: Field survey & analysis by CHESTERTONS

Chart 11

Future supply for the rental spaces within the upcoming shopping centers in 2016 ‐ 2021

300,000

250,000

200,000

164,360

100,000

92,000

88,000

52,000

50,00049,000 43,000 30,000

Mall of Saudi ( Majid Al Futtaim )

Deriyah Festival City Mall

The Avenues ( Al Shaya Group )

Arabia Plaza

City Center Ishbiliah ( Majid Al Futtaim )

Riyadh Park

KAFD

AlHamraa Mall

ITCC

Malaz Mall

Khaleej Mall

Boulevard Mall

20

It is worth mentioning that there are two big projects were contracted and

approved in North Riyadh, and it is expected to be finished by 2021 – 2022:

The first project is "The Avenues" one of Mabanee (Alshaya Group) projects,

with a total area of 391, 000 m² Northern Riyadh, at a cost of about 6.5 billion

SAR, the project includes a shopping mall and two hotels with 500 rooms,

and residential buildings include 1050 residential unit and a medical building

contains 240 medical clinic.

The second project is "Mall of Saudi" one of Majid Al Futtaim Group

projects, at a cost of about 10.5 billion SAR, with a total area exceeding 866

thousand square meters include one of the largest indoor ski resorts in the

world, the project is scheduled to include 300,000 Sqm for shops,

restaurants, leisure facilities, luxury condominiums, offices, showrooms,

luxury hotels and serviced apartments as well as other public facilities.

21

5/1 Riyadh Hotel sector:

1/5/1 Current supply of hotel rooms in Riyadh: There is stability in the supply of hotel rooms in Riyadh reached about (10,700) rooms during the second quarter of 2016, which showed a percentage increase in the number of rooms 2%, As shown in the following table: ‐

Table 12

growth rate Number of rooms Year

9,500 2013 reached

4% 9,900 2014 reached

6% 10,500 2015 reached

2% 10,700 Q2 – 2016 reached


Chart 12

9,500

9,900

10,500

10,700

8,800

9,000

9,200

9,400

9,600

9,800

10,000

10,200

10,400

10,600

10,800

2013 2014 2015 First quarter 2016

22

1/5/2 Future supply of hotel rooms in Riyadh: It is expected that the future supply of hotel rooms in Riyadh at the end of the third quarter of 2016 will increase by about 3,100 rooms, and the supply is expected to reach up to 17,400 room at the end of 2018, which shows a growth rate of % 83 more than 2013 (was 9,500 room).

Table 13

The expected growth rate

Number of rooms year

13,100 The second half of 2016

21% 15,900 2017

9% 17,400 2018


Chart 13

The Projected Future supply for hotel Rooms

13,100

15,900

17,400

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2016 2017 2018

23

1/5/3 Hotels under construction in Riyadh: There are many 5 star Hotel projects in the pipeline and will be completed in upcoming years as follows:

Table 14

Completion date No. of keys

project name No.

2018 220 InterContinental (King Abdullah Financial District) 1 2016 225 Aloft Riyadh 2 2016 288 Fairmont Hotel 3 2016 241 Hilton (KSU)( 4 2016 135 Nobuo Riyadh 5 2016 362 Crown Plaza 6 2017 830 Hilton Riyadh Hotel (Residence Granada) 7 2017 232 Le Meridien 8 2018 252 Radisson Blu 9 2017 210 Wyndham Hotel (King Abdullah Financial District) 10 2017 200 Court Yard Hotel Al Olaya 11 2019 295 Hyatt Regency Hotel 12


Chart 14

Hotels under construction in Riyadh city

InterContinental (King Abdullah

Financial District), 220

Aloft Riyadh, 225

Fairmont Hotel, 288

Hilton (KSU)), 241

Nobuo Riyadh, 135Crown Plaza, 362

Hilton Riyadh Hotel (Residence

Granada), 830

Le Meridien, 232

Radisson Blu, 252

Wyndham Hotel (King Abdullah

Financial District, 210

Court yard Hotel Al Alia, 200

Hyatt Regency Hotel, 295

24

1/6 Kingdom of Saudi Arabia’s Vision 2030 (1452 H): The Council of Ministers Approved a new a comprehensive and ambition vision of Kingdom of Saudi Arabia based on three PILLARS which are as follows:

1. The heart of the Arab and Islamic world.

2. A global investment powerhouse.

3. A global hub connecting three continents, Asia, Europe and Africa

These pillars will provide better opportunities for partnerships with the private sector. The Kingdom will improve the business environment, so that its economy grows and flourishes, driving healthier employment opportunities for citizens.

1/6/1 THEMES AROUND WHICH THE KSA VISION IS BUILT:

1. A Vibrant Society focuses on the importance of building a vibrant society in which members live in accordance with the Islamic principle of moderation, enjoy a good life supported by an empowering social and health care system ، commitments and goals this theme as follows :

To increase the capacity to welcome Umrah visitors from 8 million to 30 million every year.

To more than double the number of Saudi heritage sites registered with UNESCO. To have three Saudi cities be recognized in the top‐ranked 100 cities in the world. To increase household spending on cultural and entertainment activities inside the

Kingdom from the current level of 2.9% to 6%. To increase the ratio of individuals exercising at least once a week from 13% of

population to 40%. To raise the position from 26 to 10 in the Social Capital index. To increase the average life expectancy from 74 years to 80 years

2. A Thriving Economy, that focuses on creating a thriving economy that provides opportunities for all by building an education system aligned with market needs and creating economic opportunities for the entrepreneur, the small enterprise as well as the large corporation, develop investment tools to unlock our promising economic sectors, diversify the Saudi economy, create job opportunities, improve the business environment to leverage the unique strategic location ، commitments and goals this theme as follows:

To lower the rate of unemployment from 11.6% to 7%. To increase SME contribution to GDP from 20% to 35%. To increase women’s participation in the workforce from 22% to 30%. To move from the current position as the 19th largest economy in the world into the

top 15.

25

To increase the localization of oil and gas sectors from 40% to 75%. To increase the Public Investment Fund’s assets, from SAR 600 billion to over 7 trillion. To rise from the current 25th position to the top 10 countries on the Global

Competitiveness Index. To increase foreign direct investment from 3.8% to the international level of 5.7% of

GDP. To increase the private sector’s contribution from 40% to 65% of GDP. To raise the global ranking in the Logistics Performance Index from 49to 25 and ensure

the Kingdom is a regional leader. To raise the share of non‐oil exports in non‐oil GDP from 16% to 50%.

3. An Ambitious Nation In order for the KSA to be an ambitious nation, the public sector and the government will lead changes to promote effectiveness, transparency, accountability and enabling high‐performance ,commitments and goals this theme as follows:

To increase non‐oil government revenue from SR163 billion to SR1 Trillion. To raise the ranking in the Government Effectiveness Index, from 80 to 20. To raise the ranking on the E‐Government Survey Index from our current position of

36 to be among the top five nations. To increase household savings from 6% to 10% of total household income. To raise the non‐profit sector’s contribution to GDP from less than 1% to 5%. To rally one million volunteers per year (compared to 11,000 now).

1/6/2 HOW TO ACHIEVE THE VISION? Many transformative programs that have paved the way for the Vision have already been launched and will help achieve the goals, including: The Government Restructuring Program. The Strategic Directions Program. The Fiscal Balance Program. The Project Management Program. The Regulations Review Program. The Performance Measurement Program.

To ensure the realization of Saudi Arabia’s Vision 2030, a set of executive programs that will have a significant impact on implementation are being prepared and will be launched in due course, including:

The Saudi Aramco Strategic Transformation Program. The Public Investment Fund Restructuring Program. The Human Capital Program. The National Transformation Program. The Strategic Partnerships Program. The Privatization program. The Program for Strengthening Public Sector Governance.

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1/7 White Land Fees:

1/7/1 The initiatives taken by Ministry of housing to assist the landowners in their Land development process:

Collect all relevant development actors under one roof to facilitate the

procedures. Opportunity to sell raw lands on the map. The Ministry of Housing initiated “WAFI Program” to simplify the

development process, and the Ministry's efforts in co‐operation with the private sector to provide developers to help the landowners who are wishing to develop their land.

1/7/2 Evaluation mechanism for the white lands: Land is assessed in accordance with the site and services and other utilities and activities, the landowner has the right to object to the fees within 60 days from the date of registration, any false information given by the landowner is fraud. In case of impediments or obstacles the fees do not apply to the land, Heirloom land is subjected to fees.

1/7/3 How to specify developed land: When the final maps are issued from the official authorities then it’s defined as developed land, any rental is not exempted from paying fees on such land.

1/7/4 How to calculate Taxes and “Zakat” together: No final deduction for that matter, and a competent Committee will be formed to look at this issue.

1/7/5 The Geographic scope boundaries that is targeted to apply fees in the first phase of white land system: The range includes undeveloped Plots areas in Riyadh, Jeddah and Dammam, including undeveloped Plot area designated for only residential use or commercial residential use; for plots that are 10 thousand square meters or more, within the geographical scope that is shown in the following maps

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1/7/6 Stages of white land fees according to the Executive Regulation:

First stage: 10, 000 m² and above in undeveloped land. Second stage: 10, 000 m² and above in developed land for one owner in one scheme. Third stage: 5, 000 m² and above in developed land for one owner in one scheme. Fourth stage: 10, 000 m² and above in developed land for one owner in one city.

Once announcing and starting any stage, the process cannot go to another stage unless completing 18 months at least, each stage will be announced immediately after the Minister's approval to begin. In the case of non‐application of certain stage on any of the cities, or not in a certain stage to Achieving a balance between supply and demand, the Minister may overcome this stage and move to the next. The Developers Service Center “ITMAM” is now activated, this center has to end all necessary licenses from a One Stop Shop, if there are any obstacles from the authorities and not by the owner, the owner has the right to file a complaint and provide proof of his right, in order not to be charged for any bills or fines or other.

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1/1/7 The implementation mechanism: Landlord has six months for registration. The landowner who provides false information will be under penalty of

law (by the relevant authorities). Bills will be issued on the landowners after 6 months of registration. The landowner have one year from the registration date (about 18

months) to complete and to register the final Drawings and layout of the land, in‐order not to be charged for that year, in case of the development is completed in two years, the landowner will be charged for the first year only and the fees will be canceled in the second year upon delivery.

In the case of non‐payment in a specific period of time, the landowner will be considered violating the law and will be subject to the penalty of law.

Landowner whose bill was issued, has the right to object at a maximum of 60 days, and is answered within 60 days from the date of the objection.

That isn't answered within this period, it shall be considered rejected, and landowner must pay the fees.

1/1/8 The lands definition according to the Executive Regulation:

Undeveloped land: Is a raw land, land that is either does not have a license or is under development. The final maps and the license must be adopted and issued from the municipality and/or other official authorities to be considered as a developed land.

Unused land (Space land): Land that is not developed, or not developed for the purpose it was allocated for.

White land: Land dedicated to either residential use or residential commercial use within the urban boundary.

Developed land: Land where final maps and the license have been adopted by the competent authorities.

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CHESTERTONS One of the oldest firms of Property Consultants in the world. Founded in London in 1805. Over 65 offices in 15 Countries on 5 Continents. At the forefront of expanding International Standards. Permanent regional presence in the Middle East and North Africa established in 2008 Operational office established in the Kingdom of Saudi Arabia. Servicing property requirements within Saudi Arabia, the Middle East Region and Internationally.

BUSINESS LINES Research, Advisory and Consultancy. Property Management. Leasing and Tenant Representation. International Sales and Acquisitions. Capital Markets. Property Valuations. Plant and Machinery Valuations.

RESEARCH, ADVISORY AND CONSULTANCY 1. Market Research

Project Specific Targeted Markets

2. Feasibility Studies

Highest and Best Use Analysis. Master Planning. Financial Analysis. Strategic Advice.

Contact us :

Ahmad Ababatain Mark Morris Jones Mostafa Sewellam Abdulkarem Bawazir

Managing Director, KSA Director & Country

Manager, KSA

Market Studies & Research

Manager., KSA Valuation Manager, KSA

ahmad.ababatain@chestertons‐

mena.com

mark.morrisjones@chestertons‐

mena.com

mostafa.sewellam@chestertons‐

mena.com

abdulkarem.bawazir@chestertons‐

mena.com

0501035777 0501072999 0553726862 0501035888

Address: KSA, Riyadh, King Fahd Road (North), TAMKEEN Tower ‐ 17th floor, offices A & B,

P.O.Box 2573, Riyadh 13325 Saudi Arabia

Documents

Riyadh Real Estate Market Overview second quartermid-east.info/wp-content/uploads/2016/09/chestertons-riyadh-q2-2016-report.pdfAl Sahafah 120,000 160,000 Al Rahmaniyah 140,000 220,000