khalid-albeshri

[khalid-albeshri]

Land Acquisition and Zoning in Real Estate Development

Land acquisition and zoning are essential in real estate development, shaping project feasibility and design.

Land Acquisition

- Site Selection: Developers evaluate location for market demand, accessibility, and potential growth.

- Due Diligence: Includes environmental, legal, and historical checks to prevent future issues.

- Negotiation: Purchase agreements cover price, terms, and contingencies.

Land Assembly: Combining parcels for large projects, though complex, allows larger developments.

Zoning

- Understanding Zoning: Zoning laws dictate land use (residential, commercial, etc.) and building regulations.

- Rezoning & Variances: Needed if intended use doesn’t align with current zoning; variances allow minor exceptions.

Impact on Design: Regulations affect layout and size but can inspire creative solutions.

- Community Engagement: Gaining local support can aid in obtaining approvals.

Legal and Strategic Considerations

- Environmental Compliance: EIAs may be required, influencing design and feasibility.

- Strategic Timing & Land Banking: Acquiring land in emerging areas or holding parcels for future use can increase value and opportunity.

In short, land acquisition and zoning involve thorough planning, regulatory compliance, and community collaboration, all vital to project success.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Logistics & Industrial Real Estate: E-commerce growth drives demand for warehouses and last-mile delivery facilities:

The growth of e-commerce is significantly increasing demand for logistics and industrial real estate, especially warehouses and last-mile delivery facilities. As online shopping expands, companies need more storage space and strategically located distribution centers to handle inventory and speed up deliveries to consumers. Last-mile delivery hubs near urban centers are particularly crucial for meeting expectations of faster, same-day, or next-day shipping, making this sector a key focus for real estate development and investment.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

The Top 10 Construction Firms Driving Growth in Saudi Arabia The construction sector in Saudi Arabia is experiencing rapid growth, driven largely by the Kingdom's Vision 2030 initiative, which aims to diversify the economy and reduce dependency on oil. Here are the top 10 construction firms playing a major role in this transformation: 1. Saudi Binladin Group – Established in 1931, this company has led some of Saudi Arabia’s most iconic projects, such as the Grand Mosque expansion in Mecca and King Abdulaziz International Airport​(DTC - درر تمام | Contracting Company)​(ControlTap). 2. El-Seif Engineering Contracting Company – Known for its work on high-rise buildings, including the Jeddah Tower, which aims to be the world's tallest structure​(DTC - درر تمام | Contracting Company). 3. Al-Rashid Trading & Contracting Co. (RTCC) – Involved in significant infrastructure projects such as the Riyadh Metro, RTCC has been instrumental in developing the Kingdom's transportation network​( ControlTap). 4. Nesma & Partners Contracting Co. Ltd. – This firm has a diverse portfolio, contributing to major projects like the King Saud University and the Riyadh Metro​(DTC - درر تمام | Contracting Company). 5. Almabani General Contractors – Established in 1972, this firm has contributed to the development of King Abdullah Economic City and other key projects​(ControlTap). 6. Controltap General Contracting – Specializing in MEP services, this company has been integral to numerous residential and commercial developments​(DTC - درر تمام | Contracting Company)​(ControlTap). 7. Al Harbi Trading & Contracting Co. Ltd. – Known for its involvement in large government and religious projects, including the Medina Holy Mosque expansion​(ControlTap). 8. Alfanar Construction – With expertise in construction and manufacturing, Alfanar has played a significant role in developing industrial and power infrastructure​(ControlTap). 9. Golden Obelisk Contracting Co. – Renowned for luxury residential and commercial projects, Golden Obelisk is known for its high-quality standards and timely delivery​(ControlTap). 10. Bechtel – A major international player, Bechtel has been involved in key Saudi projects such as the Riyadh Metro and various infrastructure developments​(Mordor Intel). These companies are shaping Saudi Arabia's future by contributing to megaprojects across sectors like transportation, residential development, and energy infrastructure, all aligned with Vision 2030.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

In 2024, 750 Chinese companies are working in Saudi Arabia. I will write about some aspects of the business collaboration between China and KSA

China and Saudi Arabia have deepened their collaboration across multiple sectors, driven by Saudi’s Vision 2030 and China’s Belt and Road Initiative (BRI).

Key Areas of Collaboration:

- Energy: China is a major importer of Saudi oil, and joint ventures like YASREF strengthen their energy ties.

- Infrastructure: Chinese companies, such as CSCEC, are involved in major projects like Neom and railway development.

- Technology: Huawei plays a key role in deploying 5G and advancing AI in Saudi Arabia.

- Manufacturing: Collaboration in industrial zones supports Saudi’s diversification efforts.

- Renewable Energy: Chinese firms are engaged in solar and wind projects.

- Cultural & Tourism: Growing cultural exchanges, tourism, and language programs strengthen ties.

- Defense: Cooperation in arms and military technology is growing, though less publicized.

- Finance: Chinese banks operate in Saudi Arabia, with mutual investments bolstering financial ties.

This partnership supports both nations' economic goals and strengthens their strategic positions.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Top Construction Project Challenges:

1. Cost Overruns: Due to inaccurate estimates and scope changes.

2. Schedule Delays: Caused by weather, material delays, and labor shortages.

3. Labor Shortages: Lead to delays and higher costs.

4. Design Errors: Result in rework and increased costs.

5. Regulatory Issues: Cause delays and legal complications.

6. Safety Risks: Lead to injuries and project delays.

7. Environmental Concerns: Require redesigns and delay projects.

8. Supply Chain Disruptions: Delay projects and raise costs.

9. Stakeholder Conflicts: Lead to disputes and delays.

10. Technology Integration: Resistance causes inefficiencies.

11. Risk Management: Poor planning leads to project failures.

12. Quality Control: Results in rework and legal issues.

13. Scope Creep: Causes budget overruns and delays.

14. Communication Breakdown: Leads to mistakes and conflicts.

15. Financial Management: Poor cash flow causes project stoppages.

- Mitigation: Effective planning, communication, risk management, and quality control are essential.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Savills report: Riyadh projected amongst top 15 fastest-growing cities by 2033

Riyadh is projected to be among the top 15 fastest-growing cities by 2033, reflecting its rapid economic development and urban expansion. The city's growth is driven by significant investments in infrastructure, housing, and various mega-projects aligned with Saudi Arabia's Vision 2030. This ambitious plan aims to diversify the economy, reduce reliance on oil, and transform Riyadh into a global metropolis with a focus on sustainability, culture, and technology.

Key factors contributing to Riyadh's growth include the development of new urban areas, enhanced transportation networks, and the creation of cultural and recreational spaces like King Salman Park. The city is also becoming a hub for business and innovation, attracting international companies and talent.

As Riyadh continues to expand, it will play a crucial role in Saudi Arabia's overall economic and social transformation, positioning itself as a leading city not only in the region but on a global scale.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Reasons behind the fast economic growth of Saudi Arabia:

The rapid economic growth of Saudi Arabia in 2022, especially being the fastest-growing among G20 economies, can be attributed to several key factors:

- Increased Oil Production and Prices: Saudi Arabia, being one of the world's largest oil producers, benefited significantly from rising global oil prices and increased production levels. The rebound in global demand for oil post-pandemic, combined with geopolitical tensions that disrupted other oil supplies, contributed to higher revenues.

- Economic Reforms Under Vision 2030: The Saudi government’s Vision 2030 initiative aims to diversify the economy away from oil dependency. Reforms under this vision have encouraged growth in non-oil sectors such as tourism, entertainment, real estate, and finance, driving economic expansion.

- Investment in Infrastructure: Major infrastructure projects, including NEOM, the Red Sea Project, and the expansion of Riyadh, have attracted significant investments. These projects are not only boosting construction and related industries but are also creating jobs and stimulating the overall economy.

- Foreign Direct Investment (FDI): Saudi Arabia has seen an increase in FDI due to improved business regulations, economic reforms, and strategic partnerships with global companies. The Kingdom's efforts to create a more business-friendly environment have made it an attractive destination for foreign investors.

- Strong Private Sector Growth: Government initiatives to boost the private sector, including supporting small and medium enterprises (SMEs), have contributed to economic growth. Privatization of certain sectors and public-private partnerships have also played a role.

- Expansion of Non-Oil Sectors: Sectors such as tourism, entertainment, and technology have seen rapid growth, fueled by government support and increased consumer spending. Events like the Saudi Seasons, international sporting events, and cultural festivals have attracted visitors and investments.

- Labor Market Reforms: Reforms in the labor market, including Saudization efforts (Nitaqat program) and improved labor laws, have increased workforce participation and productivity, particularly among women and young Saudis.

- Fiscal Prudence and Debt Management: Saudi Arabia has implemented effective fiscal policies, including managing public debt and reducing the budget deficit, which has helped stabilize the economy and promote growth.

- Global Economic Recovery: The global economic recovery post-COVID-19 also played a role, as increased global trade and investment flows positively impacted Saudi Arabia's economy.

These factors combined to create a robust and diversified growth environment, contributing to Saudi Arabia's rapid economic expansion

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Key sectors in KSA manufacturing market:

Here’s a concise overview of the key sectors in Saudi Arabia's manufacturing market:

1. Petrochemicals

- Central to Saudi Arabia's manufacturing, leveraging vast oil and gas reserves to produce chemicals like ethylene and polypropylene.

- Major players include SABIC and Saudi Aramco.

2. Pharmaceuticals

- Rapidly expanding with a focus on local production of generics, vaccines, and biotech products.

- Supported by government initiatives to reduce import dependency.

3. Food and Beverage

- Vital for food security and economic growth, focusing on dairy, processed foods, beverages, and halal products.

- Expanding into regional and international markets.

4. Automotive

- Developing sector with a focus on assembling vehicles, manufacturing parts, and electric vehicles (EVs).

- Growing interest from global manufacturers.

5. Construction Materials

- Driven by mega-projects, producing cement, steel, aluminum, and sustainable materials.

- Key to supporting infrastructure development.

6. Metals and Mining

- Emerging sector with significant resources like gold, phosphate, and bauxite.

- Focus on extraction, processing, and downstream industries like aluminum smelting.

7. Textiles and Apparel

- Small but growing, with potential in high-quality textiles and traditional clothing.

- Opportunities in fashion and design.

8. Renewable Energy Equipment

- Focused on producing solar panels, wind turbines, and related components to support renewable energy projects.

- Significant growth potential aligned with sustainability goals.

9. Packaging

- Expanding due to growth in food, pharmaceuticals, and e-commerce.

- Innovation in sustainable packaging solutions is on the rise.

10. Defense and Aerospace

- Strategic priority with efforts to localize military equipment production.

- Supported by GAMI, focusing on parts manufacturing and maintenance services.

These sectors highlight Saudi Arabia's drive toward economic diversification, with strong government support and strategic investments fostering growth across the manufacturing industry.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Why invest in in Saudi Arabia?

Investing in Saudi Arabia is highly attractive due to its strategic location, economic reforms, and ambitious Vision 2030. The country is diversifying away from oil, with massive investments in sectors like tourism, technology, and renewable energy. Key factors include:

- Vision 2030: Transformative reforms aimed at economic diversification and reducing oil dependency.

- Strategic Location: Central hub connecting Europe, Asia, and Africa, ideal for regional and international trade.

- Rich Resources: Leading global energy producer with abundant natural resources and emerging mining opportunities.

- Mega Projects: Landmark initiatives like NEOM and Qiddiya create opportunities in construction, tourism, and entertainment.

- Investment Reforms: Improved business environment with eased foreign ownership and investment incentives.

- Growing Economy: Largest economy in MENA, with a young, expanding population driving demand in various sectors.

- Innovation Focus: Government support for tech and digital transformation, fostering a thriving environment for startups and tech investments.

- Tourism Growth: Efforts to attract 100 million visitors by 2030 open opportunities in hospitality and cultural development.

- Sustainability Commitment: Initiatives like Green Saudi promote investment in clean energy and sustainable development.

In summary, Saudi Arabia offers a stable, resource-rich environment with significant growth potential, making it a compelling destination for global investors.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Economic impact of Riyadh Expo 2030

The Riyadh Expo 2030 is expected to have a significant economic impact on the city of Riyadh and Saudi Arabia as a whole. Here are some of the anticipated benefits:

- Tourism and Hospitality Boost: Hosting an international event like Expo 2030 is likely to attract millions of visitors from around the world. This influx of tourists will boost the local hospitality industry, including hotels, restaurants, and retail sectors.

- Infrastructure Development: Large-scale events typically lead to significant infrastructure improvements. In preparation for the Expo, Riyadh may see enhancements in transportation networks, urban development, and public facilities, which can provide long-term benefits for the city's residents and businesses.

- Job Creation: The preparation, execution, and post-event phases of the Expo will create a substantial number of jobs across various sectors, including construction, hospitality, retail, and event management. This can reduce unemployment rates and boost the local economy.

- Foreign Investment: Hosting a global event can showcase Riyadh's potential as a hub for business and investment, attracting foreign direct investment (FDI). This can lead to increased business opportunities and partnerships in various industries.

- Global Branding and Soft Power: The Expo will provide Saudi Arabia with an opportunity to enhance its global image and promote its cultural and economic achievements. This can improve international relations and increase the country's influence on the global stage.

- Knowledge and Technology Transfer: International expos often serve as platforms for showcasing innovations and technologies. Riyadh Expo 2030 can facilitate knowledge exchange and technology transfer, benefiting local industries and contributing to the nation's Vision 2030 goals of diversifying the economy.

- Cultural Exchange and Tourism Legacy: The event can leave a lasting legacy by promoting cultural exchange and enhancing Riyadh's attractiveness as a tourist destination. This can have long-term positive effects on the city's cultural scene and tourism sector.

The overall economic impact will depend on factors such as the scale of the event, the level of international participation, and the effectiveness of marketing and operational strategies.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

New Murabba Case Study: Urban Transformation in Riyadh

Overview: The New Murabba Project, led by Saudi Arabia's Public Investment Fund (PIF), is a key part of Vision 2030, transforming Riyadh into a world-leading city with a massive modern downtown.

Key Components:

Mukaab Landmark:

Design: A 400-meter cube structure housing a museum, university, theatre, and over 80 entertainment venues.

Urban Planning:

Development: 104,000 residential units, 9,000 hotel rooms, and 980,000 square meters of retail space.

Green Spaces: A 3.2 million square meter park.

Transportation: Integrated public transport network.

Sustainability and Innovation:

Energy Efficiency: Sustainable building practices and energy-efficient technologies.

Smart City Features: Implementation of smart infrastructure.

Public–Private Partnerships (PPPs): The project highlights the role of PPPs in

urban transformation:

Investment and Funding:

Public Investment Fund: Primary investor attracting private sector investments.

Collaboration with International Firms:

Design and Construction: Partnerships with global firms for world-class standards.

Technology: Integrating smart city solutions.

Economic Impact:

Job Creation: Significant job opportunities during construction and ongoing operations.

Tourism and Commerce: Boosting the local economy and Riyadh's global standing.

Challenges:

- Project Management: Ensuring timely completion with robust management.

- Sustainability: Balancing urbanization with environmental impact.

- Community Engagement: Involving local communities and stakeholders.

Conclusion: The New Murabba Project exemplifies the power of PPPs in urban development, integrating cultural, commercial, and residential elements with sustainability and technology to create a vibrant, future-ready urban center in Riyadh.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Real estate development within King Salman Park in Riyadh is integral to its vision of creating a vibrant urban destination. Here's how it plays out:

1. Mixed-Use Environment: King Salman Park integrates residential, commercial, and recreational spaces to cater to diverse needs and lifestyles, fostering a dynamic urban environment.

2. Residential Focus: The development includes high-quality residential units strategically placed to provide convenient access to park amenities, promoting sustainable and community-oriented living.

3. Commercial and Cultural Hub: It features commercial and retail spaces alongside cultural and recreational facilities, enhancing the park's appeal as a comprehensive destination for leisure, commerce, and social activities.

4. Green Integration: Emphasizing sustainability, the park incorporates extensive green spaces, enhancing aesthetics and promoting environmental stewardship.

Benefits:

- Enhanced Urban Living: Residents enjoy a well-rounded urban experience with amenities that support quality of life.

- Economic Stimulus: The project boosts local economy through real estate investment, job creation, and tourism.

- Community Engagement: It fosters social interaction and cohesion, making it a hub for residents and visitors alike.

In summary, real estate development in King Salman Park exemplifies a balanced approach to urban planning, combining residential, commercial, and cultural elements within a sustainable framework that enhances livability and economic vitality.

[khalid-albeshri]

How to manage a company's workflow?

Managing workflow in a company ensures efficiency and productivity. Here are key steps:

1. Define Clear Processes and Procedures

Document Workflows: Outline each step and develop Standard Operating Procedures (SOPs).

2. Assign Roles and Responsibilities

Role Clarity: Ensure team members understand their roles and tasks.

3. Utilize Workflow Management Tools

Project Management Software: Use tools like Trello or Asana.

Automation: Implement automation for repetitive tasks.

4. Set Clear Goals and Priorities

SMART Goals: Define Specific, Measurable, Achievable, Relevant, and Time-bound goals.

Prioritization: Focus on high-priority tasks.

5. Monitor and Measure Performance

KPIs and Metrics: Establish Key Performance Indicators.

Regular Reviews: Conduct performance reviews to identify bottlenecks.

6. Foster Communication and Collaboration

Communication Tools: Use Slack or Microsoft Teams.

Regular Meetings: Hold team meetings for updates and discussions.

7. Continuously Improve Processes

Feedback: Encourage employee feedback.

Optimization: Regularly review and update workflows.

8. Manage Resources Efficiently

Resource Allocation: Allocate resources effectively.

Capacity Planning: Plan resource needs in advance.

9. Ensure Training and Development

Skill Development: Provide ongoing training.

Knowledge Sharing: Encourage knowledge sharing within the team.

10. Address Challenges Proactively

Problem-Solving: Quickly address issues.

Flexibility: Adapt workflows as needed.

Example Workflow Management Approach

Initiation: Identify tasks and assign a leader.

Planning: Break down tasks, assign them, and identify resources.

Execution: Perform tasks and monitor progress.

Monitoring and Controlling: Track progress, hold status meetings, and adjust plans.

Completion: Review tasks, gather feedback, and document lessons learned.

[khalid-albeshri]

How to a company's increase operating profits?

Increasing a company's operating profits can be achieved through several strategies focused on boosting revenue and controlling costs.

1. Increase Revenue

- Expand Sales Channels: Use online platforms, retail, wholesale, and partnerships.

- Enhance Marketing: Implement targeted campaigns via digital marketing, social media, and SEO.

- Diversify Offerings: Introduce complementary products or services.

- Improve Customer Service: Ensure high-quality service to encourage repeat business.

- Optimize Pricing: Find a balance between competitive pricing and profit margins.

2. Control Costs

- Reduce Operating Expenses: Cut unnecessary spending and negotiate better supplier terms.

- Optimize Inventory: Implement just-in-time practices to reduce holding costs.

- Increase Efficiency: Invest in technology and streamline operations with automation and lean management.

- Outsource Non-Core Functions: Reduce overhead by outsourcing.

3. Improve Profit Margins

- Increase Efficiency: Enhance processes to reduce waste and improve productivity.

- Enhance Product Quality: Focus on quality to reduce returns and increase customer satisfaction.

- Negotiate with Suppliers: Get better terms for materials and services.

4. Financial Management

- Manage Debt: Ensure interest payments don’t erode profits; consider refinancing high-interest debt.

- Manage Cash Flow: Effectively manage receivables and payables to maintain healthy cash flow.

5. Employee Productivity

- Invest in Training: Provide continuous training to boost efficiency.

- Offer Incentives: Align employee goals with company performance through bonuses and profit-sharing.

6. Innovation and R&D

- Invest in R&D: Innovate to stay competitive and command higher prices.

- Adopt New Technologies: Use the latest tech to streamline operations and reduce costs.

7. Strategic Partnerships

- Form Alliances: Partner with other businesses to access new markets and share resources.

- Enter Joint Ventures: Share risks and capitalize on new opportunities through joint ventures.

Regularly review financials, monitor KPIs, and stay agile to adapt to market changes for sustained profit growth.

[khalid-albeshri]

How do we eliminate a company's operating expenses?

Eliminating a company's operating expenses entirely is typically not feasible, as these expenses are necessary for the day-to-day functioning of the business. However, you can significantly reduce operating expenses through various strategies. Here are some approaches:

1. Automate Processes

2. Outsource Non-Core Activities

3. Negotiate with Suppliers

4. Reduce Office Space

5. Energy Efficiency

6. Review and Cut Subscriptions

7. Optimize Inventory Management

8. Improve Employee Productivity

9. Outsource Non-Essential Roles

10. Renegotiate Debt and Leases

11. Utilize Freelancers and Part-Time Workers

12. Implement Cost-Effective Marketing

13. Streamline Operations

While eliminating operating expenses entirely is impractical, these strategies can significantly reduce them, improving overall efficiency and profitability.

#KhalidAlbeshri #خالدالبشري

[khalid-albeshri]

Risks in Construction Projects: Empire State Building

1. Structural and Design Risks

Innovative Design: The Empire State Building was the first project of its kind to reach 102 stories. This involved new engineering challenges, particularly with wind load calculations and the structural integrity of such a tall building.

2. Safety Risks

Worker Safety: With over 3,400 workers, the risk of accidents was high, particularly since safety standards were not as stringent as today.

3. Financial Risks

Great Depression: The project commenced during the onset of the Great Depression, which posed a substantial financial risk. Investors were wary, and securing funds was challenging.

4. Logistical Risks

Material Supply and Coordination: The construction required vast amounts of materials, including 60,000 tons of steel. Coordinating the delivery and assembly was a significant logistical challenge.

5. Time Constraints

Ambitious Timeline: The project was completed in just 13 months, an incredibly short time frame for a building of its size.

6. Environmental and Site Risks

Urban Location: Building in the heart of New York City posed risks related to space constraints, existing infrastructure, and minimizing disruption to the surrounding area.

7. Technological Risks

New Construction Methods: The use of new construction technologies and methods introduced uncertainties about their effectiveness and reliability.

[khalid-albeshri]

What are the causes of WeWork company bankruptcies?

1. Aggressive Expansion: WeWork's rapid growth and high-risk strategy led to significant overextension.

2. Leadership Issues: Adam Neumann's controversial leadership and governance practices contributed to the company's downfall.

3. Failed IPO: The failed IPO exposed financial vulnerabilities and led to a drastic reduction in valuation.

4. Pandemic Impact: COVID-19 severely affected demand for office spaces, compounding WeWork's financial issues.

5. Ongoing Financial Struggles: Despite efforts to stabilize, WeWork's substantial debts and lease obligations have continued to hamper its recovery efforts.

The story of WeWork is a cautionary tale about the risks of rapid expansion and the importance of sustainable business practices and transparent governance.

#KhalidAlbeshri #pivot #Holdingcompany #CEO #Realestate #marketingtips #خالدالبشري