Arab News  June 15, 2009   K.S. Ramkumar & Galal Fakkar

JEDDAH: Jeddah Mayor Adel Fakieh said yesterday the city’s bad neighborhoods would be eliminated in phases to make way for new housing and other development projects. Making an address at the opening ceremony of the three-day inaugural Cityscape Saudi Arabia, which combines an expo and an interactive conference at the Jeddah Center for Forums and Events, the mayor said: “Five bad neighborhoods will be transformed in the first phase and six more in the second.”

The mayor urged the companies in the real estate sector to consider the encouragement of public private partnerships (PPP) by the Kingdom. “There is immense potential for projects as the city needs infrastructure for a huge number of houses. So, there should be a development strategy evolved to undertake PPP projects.”

Jeddah Gov. Prince Mishaal bin Majed officially opened the Cityscape Saudi Arabia, which may be the largest real estate investment and development event in the Kingdom.

A strategic 20-year plan for the re-development of the city center of Jeddah — principal gateway to the holy places and the second largest city in Saudi Arabia — has taken center stage at the expo.

Speaking about the 20-year plan to transform the city, the mayor said: “Our main objective is to ensure high living standards for residents and visitors as Jeddah is the main gateway of pilgrims to the holy cities of Makkah and Madinah.

“The strategy focuses on urban areas, optimum use of land, boosting the local economy, protecting the environment, improving social services, expanding tourism and transport facilities, as well as developing infrastructure, seafronts, recreational centers, housing facilities and underdeveloped areas.”

Dr. Abdullah M. Bin Mahfouz, vice chairman of the Jeddah Chamber of Commerce and Industry, said until 1996 Saudi investors did not show much interest in real estate. “But thereafter they realized the profitability of investing in this sector. They now give first preference to investing in real estate,” he said.

Abdullah Hamidaddin, deputy governor (for economic cities), Saudi Arabia General Investment Authority (SAGIA), gave a presentation on four of the new economic cities that are planned in Rabigh (King Abdullah Economic City), Madinah (Knowledge Economic City), Hail and Jazan.

“These cities were planned after exhaustive research into the growth and migratory nature of the population. Our study shows that the three major cities — Riyadh, Jeddah and Dammam — have all along attracted people from elsewhere in the Kingdom,” he said.

The conference features a series of panel discussions on the impact of the global financial crisis on real estate investment and development in the Kingdom; updates on the regulatory system, legislation and mortgage law; Shariah and conventional opportunities in real estate investment; and the residential needs of the Kingdom.

The real estate expo is aimed at regional and international investors, real estate developers, government and development authorities, architects, designers, consultants and senior professionals involved in the real estate industry.

It will also be an arena for the display of projects and for networking with investors and developers from around the world.

The showcase running till tomorrow is hosting over 100 companies and covering 10,000 square meters. Organizer IIR Middle East is expecting more than 5,000 participants over the three-day event.