Marhaba folks! 🌞 In today's edition, we discuss Riyadh being the most expensive city in the region for real estate developers, the UAE lowering its 2024 inflation forecast to 2.3%, and YouTube Middle East enhancing efforts to combat misinformation using AI. Yalla, let’s go 🏃🏻‍♀️

💸 Riyadh is the most expensive city in the region for real estate developers

What is it about:

• Riyadh emerges as the top regional leader in real estate construction costs, reaching up to USD 2.6k per sqm, according to the 2024 ICMS report by Turner & Townsend. Globally, Riyadh ranks 19th in construction expenses.

• Key cost breakdowns include SAR 790-651 per sqft for high-rise CBD offices, SAR 836-SAR 1k per sqft for educational buildings, SAR 1.9k per sqft for resort hotels, SAR 1.7k per sqft for five-star hotels, and SAR 604-743 per sqft for residential buildings.

• The Kingdom's construction surge is driven by government-supported initiatives such as Neom and Vision 2030 but faces challenges like skilled labor shortages, which contribute to higher costs compared to Dubai.

Why does it matter:

• Understanding Riyadh's construction cost dynamics is crucial for real estate, infrastructure, and development stakeholders. The city's ascent in regional cost rankings highlights its attractiveness for investment amid ambitious national projects.

• Challenges like labor shortages underscore the need for strategic workforce planning and cost management strategies.

What is next:

• Riyadh's construction inflation is projected to stabilize at 5.0% in 2024, down from 7.0% in 2023. Stakeholders should monitor regulatory developments, project timelines, and market conditions closely to navigate cost fluctuations effectively.

• Continued government support and strategic investments will likely shape Riyadh's construction landscape, influencing regional competitiveness and economic growth prospects.

📈 Markets

🇦🇪 UAE Downgrades 2024 Inflation Forecast to 2.3%

What is it about:

• The UAE's Central Bank has revised its 2024 inflation forecast down to 2.3% from 2.5%. This adjustment follows slower increases in commodity costs, incomes, and rents, detailed in the bank's latest quarterly economic review. The dirham's appreciation against the USD has contributed to this moderation.

Why does it matter:

• Understanding the UAE's inflation outlook is crucial for economic planning and investment decisions. The revision suggests a stable inflation environment, influenced by factors like currency movements and commodity prices, impacting various sectors of the economy differently.

What is next:

• The UAE anticipates inflation to average 2.3% next year, driven primarily by non-tradeable items in the consumer basket. Despite fluctuations in specific categories like housing and transport, overall stability in inflation rates indicates balanced economic conditions.

• Monitoring price trends and sector-specific impacts will be essential for stakeholders navigating the UAE's evolving economic landscape.

Quote of the day

"Don't wait for opportunities, create them." - Charles R

🤖 YouTube Middle East Boosts Efforts to Tackle Misinformation Using AI

What is it about:

• YouTube in the Middle East is stepping up its use of AI to combat misinformation, addressing issues exacerbated by recent events like the Gaza genocide.

Why does it matter:

• Fighting misinformation is crucial for maintaining trust online. YouTube's efforts focus on tackling misleading content, including deceptive titles and false claims.

What is next:

• Fighting misinformation is crucial for maintaining trust online. YouTube's efforts focus on tackling misleading content, including deceptive titles and false claims.

🎥 The latest from the Smashi Business Studio