< Previous10 AB LEADERS February 2023 STARTUP | Saudi Arabia’s real estate challenge needs to solved sustainably The kingdom has the blueprint to reinvent housing for the urbanisation megatrend Housing challenge Saudi Vision 2030 calls for Saudi home ownership to reach 70 percent by the end of the decade, says Almudaifer 30,000 The number of housing units ROSHN is building in northern Riyadh REAL ESTATE | and supports a good living standard. After all, it’s safe to say that quality of life is the very basis of a well-func- tioning society. This elemental need is gaining urgency as demographic, economic and mobility trends show more people converging on urban areas now and for decades to come. Right now, about half the world’s people live in cities, and many forecasters project that by 2050, that number could rise as high as 80 percent. To put that data in perspective, by mid-century the global population is expected to reach at least nine billion – and a whopping seven billion of us will be urban dwellers. Home sustainable home We’re already seeing this growth dynamic in Saudi Arabia, whose popu- lation has increased by 10 million in just 20 years. With over half of all Saudis below age 30, the need to invest in hous- ing is tremendous. The transformation strategy Vision 2030, which primarily aims to diversify the national economy, calls for Saudi homeownership to reach 70 percent by the end of the decade. To achieve that goal, all quali ed buyers need access to ample, quality housing and nancial assistance. But a new paradigm is also needed. Around the world and across the socioeconomic spectrum, city housing too often goes wrong. Substandard materials and workmanship, over- crowding, lack of amenities, poor plan- ning and little if any green space can drastically reduce quality of life. In short, with mass migration underway, the clock is ticking on getting urban housing sorted. Done right, home sweet urban home can be a sustainable one if planned, built and maintained with the right infrastructure, innovation and services for long-term, positive impact. And jobs can be created in the process. Here’s our plan. Local meets global PIF, Saudi Arabia’s sovereign wealth fund and Vision 2030’s diversi cation engine, launched ROSHN, a new When engineers, scientists and other problem-solvers around the world look at humanity’s “grand challenges,” right up there with clean water, sustainable food, ample energy and accessible healthcare is the goal for affordable housing that meets community needs BY AIMAN ALMUDAIFER, HEAD OF LOCAL REAL ESTATE INVESTMENTS DIVISION AT PIF, RIYADHarabianbusiness.com 11 Building communities Sustainable urban housing in Saudi Arabia can promote economic resilience and growth by creating jobs and contributing to GDP | REAL ESTATE national real estate developer, specif- ically to address urbanisation by devel- oping best-in-class housing within integrated communities – a move that addresses national mandates to increase housing and create or expand sectors, including real estate, construction and infrastructure. ROSHN’s 10-year plan to develop more than 200 million square metres in nine cities was launched in late 2020. What’s different about ROSHN starts with the master plan itself. It is focused heavily on lifestyle, community facilities, and walkability aspects that encourage community engagement, followed by architecture that weds the best of local and international, combin- ing global best practices in design and construction with aspects of Saudi heritage (reflected in the ROSHN name, which refers to Arabia’s ancient, hand-carved shutters that o er privacy while admitting cool breezes). Integration: Key to viability Sedra, ROSHN’s agship neighbour- hood in northern Riyadh, will feature more than 30,000 houses over 20 million square metres. Integration is woven into Sedra on multiple levels to underpin a satisfying daily life. The architecture, for example, is in uenced by the traditional Salmani architectural style, with a contempo- rary interpretation to recognise Saudi Arabia’s past, and build on a visionary future. This clean, streamlined style easily accommodates innovation and technology for modern living – seen in the housing types serving a range of resident needs. Sustainability and lifestyle consid- erations are clearly seen in the Sedra master plan, where foot/bike paths and e-scooter hubs ensure that mosques, schools, shopping and other amenities are a short distance away. Green spaces are often overlooked in urban neighbourhoods. Parks, water features and nature trails are proven health and mood boosters, and they can improve sustainability by mitigat- ing pollution and heat. Sedra’s wadi, or riverbed, creates a structural backbone that lets residents enjoy nature. And very importantly, PIF ensures access to long-term nanc- ing at a lower rate, as the owner of the Saudi Real Estate Finance Company – thus helping develop the housing nance market. It’s all about the people Clearly, one size does not t all when it comes to planning a cohesive, resil- ient residential community – given the complexity of a city’s many components, its unique nature, and the varying needs and goals of the community itself. But carefully coordinated planning, executed by the right public- and private-sector partners, can create residential compounds with more convenient facilities and features, more efficient buildings and better infrastructure and land use, to include well-maintained green spaces. All of which come down to the people these communities serve. As Saudi Arabia continues its economic and social transformation, this new approach to urban housing can create a quality of life that ts citi- zens’ aspirations, with strong economic, social and nancial returns – now and for the future. After all, happiness begins at home. This integrated approach will also be applied to Alarous, ROSHN’s second community being developed in Jeddah. Housing as economic catalyst Last but not least, sustainable urban housing can promote economic resil- ience and growth by creating jobs and contributing to GDP. Strategic partner- ships between real estate investors and the private sector will strengthen construction and infrastructure sectors and promote workforce devel- opment, knowledge/technology trans- fer and local content. Additionally, maximising the land bank’s value attracts capital from local and foreign investors. This new approach to urban housing can create a quality of life that ts citizens’ aspirations, with strong economic, social and nancial returns – now and for the future CO VER ST OR Y | 12 AB LEADERS February 2023 12 AB LEADERS February 2023 COVER STORY SETTING THE NEW NORMAL Hisham Mansour, founder and MD of investment juggernaut CFI Financial, sits down with Arabian Business to discuss how his firm has sought to adapt to the changing retail investment landscape while growing as a global organisationarabianbusiness.com 13 | HISH AM M A NSOUR arabianbusiness.com 13CO VER ST OR Y | 14 AB LEADERS February 2023 What impact will new technology, such as AI, have on the retail investment sector? I think that the impact of AI and other new technologies will largely be a posi- tive one. With the way technologies like AI are progressing in the financial sector, it could encourage a lot more retail traders to enter the market in the future whereby these technologies can assist the traders in making decisions. Financial heavyweight With Mansour at the helm, CFI Financial Group has more than 24 years of experience and operating through different entities around the world $156BN The market capitalisation of the Dubai Financial Market (DFM) Technologies like algorithmic trading and copy trading are already hugely popular amongst the retail investment sector, and AI technology will only improve the process of analysing huge volumes of data on behalf of traders, helping them to nd correlations in pricing, deter- mine the best times to trade, and learn with better accuracy and e - ciency how asset prices move with machine learning. CO VER ST OR Y |arabianbusiness.com 15 | HISH AM M A NSOUR Awareness Mansour says the risk of over-trading could always be present if retail investors don’t know what they are getting into Virtual asset It is di cult to de ne cryptocurrencies as a store of value or an investment Is there a danger that retail investors are over-trading? The risk of over-trading could always be present if retail investors don’t know what they are getting into, or if they don’t understand the risks of trading nancial instruments. This is especially true considering the rise of brokers providing easy access to the market, some regulated and some not. Traders can become successful in the markets with a proper strategy and Traders can become successful in the markets with a proper strategy and good knowledge, but it can also work against traders if they are inexperienced good knowledge, but it can also work against traders if they are inexperi- enced. It’s important for retail inves- tors to choose a well-regulated broker, to understand the risks, educate them- selves about trading and to only invest the capital they can a ord to lose when choosing risky investments. Is crypto here to stay as a store of value and as an investment? Crypto has gained huge popularity amongst retail investors in recent years, some seeing it as a long-term investment while others speculating on the trading opportunities it o ers. It is almost certain that crypto is likely to remain at least in the short term as a popular choice due to its uniqueness and the large community behind it. However, it is hard to de ne cryp- tocurrencies as a store of value or an investment not the least because of their volatility and in many cases the di culty to assess on what basis the price is based upon. Therefore, since crypto is highly volatile and still a relatively new asset CO VER ST OR Y | 16 AB LEADERS February 2023 class (if it is to be considered an asset class at all), we will need some more time to see how prices adapt in the future, whether governments and regulators will continue to step in on the industry to adopt it and most importantly to see how crypto can act as a store of value. How has the Middle East developed as a market compared to other global sectors? It is amazing to see how the Middle East has developed as a market with rapid economic growth and diver- sification efforts, especially in recent years and particularly look- ing at countries like the UAE and Saudi Arabia. While the market is still growing in terms of its size and maturity, the Middle East is home to a large and young population, abundant resources, technological advance- ments and a growing tourism indus- try, making it a market with huge future growth potential. Having our headquarters in Dubai and having the largest presence in MENA among competitors, we just can’t be more excited about being here as part of this rapidly growing region. Talk to us about the growth of CFI, why have you selected Dubai as your HQ? As a company, we have grown signi - cantly since our establishment in 1998.Today we operate globally with 9+ offices worldwide across major nancial hubs. We have also grown our product o erings to thousands of tradable instruments across 23 global markets and we recently hit 200 employees at CFI. Choosing Dubai as our HQ was motivated by several reasons. This is the city of the future and we are a futuristic company by nature. It is well located strategically and well known as a hub for international trade and nance, making it an ideal location to serve our client base in the Middle East. Dubai particularly also o ers a highly regulated, stable and attractive business environment Fintech CFI’s range of products and services are constantly expanding and giving clients more access to different market opportunities Digital trade Technologies like algorithmic trading and copy trading are already hugely popular arabianbusiness.com 17 | HISH AM M A NSOUR service where we understand and listen to their investing needs and requirements, helping our clients to empower themselves through invest- ing in the global markets. Our range of products and services are also constantly expanding which means access to more opportunities. We now o er thousands of products across 23 global markets to trade, with some of the most competitive condi- tions in the industry. We are also devel- oping and improving technologically, facilitating quick access to the nancial markets and ease of use when it comes to our trading platforms. We focus heavily on education and provide amazing resources for our clients in terms of free webinars, analysis and other informative resources. Finally, we do all of the above as a properly regulated company that truly believes its reputation and people are its two greatest assets. CFI is also known for taking a glocal approach to the markets it operates in. What exactly does that mean for CFI, and why did you choose this particular strategy? Our ‘glocal’ approach means that while CFI operates on a global scale, more importantly, we also consider and adapt to local market conditions and cultural di erences and believe in the need of being close and acces- sible to our clients not only digitally but also physically. We are essentially aiming to strike a balance between the bene ts of a global presence and the importance of being close and responsive to local needs, tailoring our products and services to the local market to build a stronger presence in each individual market. For example, we have corporate offices set up in every country we operate in, allowing our clients to visit us in person and to see the company behind the trading plat- form. Despite our growing global scale, we always pay particular atten- tion to each market, offering our clients full transparency that trans- lates into a long lasting and trusting business relationship. 23 The number of global markets CFI operates We always pay particular attention to each market, o ering our clients full transparency that translates into a long lasting and trusting business relationship with a fast-growing nancial market and a large pool of top talent within the sector. We feel our choice to have our headquarters is natural given all of the above. How have you differentiated CFI from other retail investment services? CFI is di erentiated in a number of ways. In brief, we believe our clients choose us most importantly because of our positive reputation we have built over the years and also because we o er some of the best and more impeccable trading services all round. We are completely client focused. We give our clients a 1-1, personalised 18 AB LEADERS February 2023 Inside the nal ultra-luxury villas of Dubai’s Al Barari The nal six villas are the development’s largest and most luxurious Development Zaal said the market needs have signi cantly shifted over the past few years Property expert Lewis Allsopp, CEO of Allsopp & Allsopp REAL ESTATE | Real estate mogul Mohammed Zaal revealed the nal plots of the Al Barari development last month. The six villas, which have been released under the name Amaia, represent the “final chapter in the legacy at Al Barari,” and are “the culmination of fteen years of deliv- ering premium living experiences and eco-luxury developments within our community,” Zaal said.arabianbusiness.com 19 High-end living The market for ultra-luxury and luxury real estate has continued to gain momentum in Dubai $2.72M The starting price of villas at Al Barari | REAL ESTATE Zaal has in fact been holding onto these six plots for a very long time, noting that “anytime anyone asked me about it, I’d say ‘no I’m keeping them for myself.’” Now though, with Dubai’s real estate market experiencing a massive upswing, Zaal has decided to place these plots on the market. “These are the best of the best. They’re all corner plots, they’re all sizable plots, and they all have a lot of privacy and their own lakes … I almost have seller’s remorse letting them go,” he explained. Al Barari luxury villas Each villa features a unique design on plot sizes ranging between 12,166 sq. ft. – 27,639 sq. ft. In terms of design, Zaal said that market needs have significantly shifted over the past few years as buyer demographics have changed. Since the end of the pandemic, there has been “a huge in ux of Euro- pean buyers.” This has led to more open designs, more focus on bringing the outdoors indoors, and the use of natural materials. is unlikely to stop as for buyers from overseas, Dubai still represents “value for money, especially for people coming from Europe.” “It still has value for money. Whether I think that the trajectory of growth over the last couple of years will stay in place, I don’t think so, but I think we’ve reached a very mature market and the fundamentals of the market have changed. We do have an undersupply of the high end in the ultra-luxury market.” For those interested in the Amaia villas, real estate agent Allsopp and Allsopp are exclusively presenting the properties. “Finding premium, readily avail- able properties at the top of the Dubai real estate market is becoming increasingly difficult. We are witnessing a massive demand for properties in the city’s most exclu- sive locations, such as Al Barari. Therefore, finding a collection of properties presented to the market at this level simultaneously marks a once-in-a-lifetime opportunity for our clients,” Allsopp & Allsopp CEO Lewis Allsopp said. Finding premium, readily available properties at the top of the Dubai real estate market is becoming increasingly di cult Now, “buyers are lot more aware of what they’re buying,” meaning that developers have naturally focused on using more quality ttings. “It’s definitely a savvy buyer’s market out there,” Zaal said. Despite a massive increase in prices over the past year, the market for ultra-luxury and luxury real estate has continued to gain momentum in Dubai. For Zaal, this is a dynamic that Next >