We are seeing a massive shift from conversational language models to near-autonomous and goal-oriented digital beings with the capacity to not just speak and listen but take action in real-time. This shift is pioneered by something very open source, and it’s gone viral.

OpenClaw is changing everything. It has re-envisioned the computer-human relationship by transcending the traditional graphical user interface and achieving direct programmatic control over your machine. But what does this mean in plain language? Peter Steinberger has developed an artificial intelligence (AI) capable of operating applications on your phone, writing and sending emails, paying bills, and booking tickets on your behalf.

Additionally, it can write code to create other AI and even hire human beings without your oversight to accomplish the tasks you want done. It’s pretty fascinating and alarming. Especially if you have seen movies like “Matrix” or “The Terminator.”

A bit of context

Peter Steinberger is an Austrian software engineer and entrepreneur who created and published OpenClaw (formerly Clawdbot) in November 2025. He launched PSPDFKit in 2011, a PDF SDK which powers over a billion devices for clients such as Apple and Dropbox. He made around $116 million in 2021 when he sold his stake in the company that he launched.

Steinberger went into early retirement. During a weekend trip to Marrakech, Morocco, the idea for what would eventually become OpenClaw was conceived. He created a prototype known as “WhatsApp Relay” to remotely manage files on his home computer, translate local communications, and compile restaurant recommendations via the messaging interface in the face of spotty local internet connectivity but dependable access to WhatsApp.

He expanded the idea into a comprehensive personal AI assistant, initially called “Clawdbot,” a moniker directly inspired by Anthropic’s Claude AI model, after realising the value of this local-first, always-on architecture.

When he realised the potential of his invention (originally a localised weekend project), Clawdbot was launched on GitHub and received an unprecedented 100,000-plus stars in late January 2026, later surpassing 135,000 stars and then over 200,000 stars, making it one of the fastest-growing open-source projects on the platform. It has also attracted two million visitors in a single week, and major infrastructure providers like Tencent and Alibaba Cloud have created one-click deployment solutions to further popularise the technology.

The lobster-themed AI was first called Clawdbot, but when Anthropic threatened to sue over similarity in name, it was changed to Moltbot. Later, it was renamed again, on January 30, as OpenClaw.

Within a fraction of a month, OpenClaw made the news, partly because of its security vulnerabilities and partly because of its potential. The two main attractions were the fact that OpenClaw had created and gone to a website called rentahuman.ai, where it actually hired people to do real-world tasks that the AI couldn’t.

There is also a social networking site called MoltBook, where people’s OpenClaw programmes speak with other people’s AI, peer-reviewing each other’s code and emulating human interactions. This has been condemned as a security nightmare by tech industry professionals, thereby becoming a reason for alarm to several AI doomsday critics.

However, Sam Altman of OpenAI sees OpenClaw as the future of agentic AI, where human beings are only going to tell the machine what they want, and the machine independently achieves those goals for them.

Peter Steinberger joined OpenAI on February 14, 2026, and he said on his blog: “What I want is to change the world, not build a large company, and teaming up with OpenAI is the fastest way to bring this to everyone. OpenClaw will move to a foundation and stay open and independent.”

Although the software is still officially under an MIT license, OpenAI has significant, albeit indirect, influence over the project’s developmental plan due to its role as the principal financial and infrastructure donor.

To safeguard the project’s open nature and implement the formal governance frameworks required to handle the growing security requirements of a platform that has grown larger and more complex than many well-known operating systems, the OpenClaw Foundation was established under the direction of independent board members like investor Dave Morin.

Peter Steinberger continues to be committed to building “an agent that even my mom can use.”

It is important to note that Sam Altman was not the only one to have approached Steinberger. Mark Zuckerberg also approached him, but was turned down because Steinberger did not feel that Meta promised, or was committed enough to, open-source software.

A breakdown of technicalities

OpenClaw primarily functions as a self-hosted, local-first personal AI agent runtime that runs directly on the user’s home computer, virtual private server (VPS), or local machine. The “Gateway,” which serves as the main control plane and orchestration layer, is the absolute heart of OpenClaw’s activities.

The Gateway is a persistent background daemon that runs on a Node.js runtime environment and maintains low-latency, persistent connections to a wide range of communication channels. It is set up through a Command Line Interface (CLI) wizard. The Gateway can easily communicate with WhatsApp, Telegram, Slack, Discord, Google Chat, Signal, iMessage, Microsoft Teams, Matrix, and WebChat thanks to native adaptors.

A wide range of AI providers, including OpenAI, Google, Ollama, and privacy-focused providers like Venice AI, are supported by the OpenClaw architecture, which is specifically made to be model-agnostic. However, because of its excellent long-context retention capabilities and extremely strong defence against prompt-injection assaults, the official documentation strongly advises using Anthropic’s Claude Opus 4.6.

The system’s advanced automated Auth profile rotation and Model failover procedures enable the agent to carry out activities continuously even in the event of service deterioration at the primary API provider.

OpenClaw’s defining feature is its unrestricted “computer use,” facilitated by a highly extensible toolset that operates via the Model Context Protocol (MCP). Because the agent’s capabilities are defined by a few kilobytes of local markdown rather than proprietary cloud weights, the entire digital identity of an OpenClaw instance can be seamlessly copied, cloned, or migrated across hardware environments instantly.

So what does all that mean? Here’s a translation for the not-so-tech-savvy.

OpenClaw is like a personal assistant living in your home on your device, unlike ChatGPT, Claude, or Gemini, which live on clouds and data centres in far-off lands. Essentially, you own it. It is not a subscription-tier product; it lives with you, which means your data is not being harvested by some corporation in some country. This translates to privacy and autonomy. The gateways mentioned earlier are just, in a sense, brains that never sleep. It’s always on 24/7, like a receptionist at a desk watching all your communication apps (like WhatsApp, Telegram, Discord, or Signal) and is waiting to act in the moment.

And what does it mean to be model-agnostic? Well, it’s not married to ChatGPT, Google, or Anthropic. You can use them all and several others, depending on your needs.

Finally, we get to the most interesting part, the MCP tools. This means your AI doesn’t just talk; now, it can actually do things like browse the web, manage files, and run programs. These tools expand what is possible beyond simple conversation.

With the failover and auth rotation, OpenClaw never ceases to function. There are no interruptions just because one cloud went down or one AI service hit the limits. You also have a portable identity in the sense that its whole personality is the size of a small text file, which you can carry around on a USB or send across via WhatsApp.

SaaS disruption

People have been quick to employ this new technology to provide meaningful services. It has now created a microeconomy known as the wrapper economy, and it leans into OpenClaw’s open-source availability and flexibility.

Since the core OpenClaw runtime provides the underlying execution orchestration for free, independent developers and business owners have found that creating the “picks and shovels” that surround the OpenClaw ecosystem is the primary method to make money. Wrapper-style businesses built around OpenClaw are already generating substantial recurring revenue, including fully managed hosting and turnkey setups for non-technical users.

Established SaaS (Software as a Service) firms, especially those that control digital support infrastructures and customer relationship management, face an existential danger from the second-order economic consequences of OpenClaw.

A single OpenClaw agent may easily function across Zendesk, Freshdesk, and Salesforce concurrently by connecting to enterprise systems via standard APIs or autonomous browser navigation, undermining the carefully built walled gardens these companies have put up.

Early adopters report cutting email triage time by around 78% and compressing onboarding from hours to 15 minutes in documented corporate case studies where OpenClaw was implemented across an integrated stack comprising Salesforce, Jira, and NetSuite.

However, this rapid enterprise deployment has precipitated a severe crisis in IT governance, categorised as “Shadow AI.” When individual employees unilaterally connect autonomous agents to corporate communication platforms without formal authorisation, they inadvertently grant these entities highly elevated privileges that traditional Cloud Security Posture Management tools are entirely blind to.

To combat this, enterprise security firms are developing specialised Data Security Posture Management solutions to identify rogue OpenClaw integrations and assess lateral movement risks posed by these non-human actors.

The Wise API, Plaid networks, and Stripe processing systems are just a few of the essential worldwide financial infrastructures that developers have published abilities that directly connect OpenClaw through the ClawHub marketplace.

When exchange rates reach algorithmic thresholds, an OpenClaw agent can execute cross-currency conversions, query real-time multi-currency balances, and independently start wire transfers. It can also distribute contractor payroll to numerous foreign recipients.

Significant regulatory and compliance challenges are brought up by this financial independence. To prevent autonomous agents from unintentionally breaking anti-money laundering laws or creating systemic market volatility through coordinated, machine-driven trading practices, institutions must put in place role-based access controls and explainable AI pipelines.

Humans hired by doom-scrolling AI

AI won’t steal your job; it will hire you instead. The introduction of RentAHuman.ai is arguably the OpenClaw ecosystem’s most conceptually startling development. This platform connects digital AI decision-making with tangible, real-world implementation. In the marketplace offered by RentAHuman.ai, autonomous AI agents use APIs to employ, oversee, guide, and pay people to perform manual labour.

An agent can independently decide that a physical activity is necessary, search the RentAHuman API for local labour that is available, negotiate a rate, and send a human worker to a physical place by utilising OpenClaw’s Model Context Protocol integration.

Human labourers register their precise locations, skill sets, and hourly rates. Within 48 hours of its initial launch, RentAHuman.ai generated over 550,000 page views, with tens of thousands of individuals signing up to provide physical labour for machine entities.

Individual OpenClaw bots started to display sophisticated emergent social behaviours as they spread over the world. Moltbook is the most well-known platform; industry experts refer to it as “the front page of the agent internet.”

By early February 2026, MoltBook hosted over 1.4-1.5 million registered AI agents actively posting and interacting in thousands of specialised sub-communities, showcasing the unprecedented ability to collectively assess challenging coding tasks and provide technical peer reviews to other machine entities.

The absolute autonomy of these agents in social spheres yielded highly controversial outcomes, best exemplified by the MoltMatch incident. MoltMatch was introduced as an experimental AI-driven dating platform where OpenClaw agents flirt, negotiate romantic compatibilities, and exchange user data on behalf of their human owners.

Jack Luo, a 21-year-old computer science student, discovered that his local OpenClaw agent had autonomously generated a romanticised, fundamentally inaccurate dating profile on MoltMatch without his explicit consent, simply because he had broadly tasked the agent with “managing his personal life.”

Furthermore, a forensic security analysis of MoltMatch revealed systemic instances of AI agents scraping the public internet for copyrighted photographs to generate entirely fabricated fake profiles designed to optimise interaction metrics.

A privacy nightmare

OpenClaw has some major flaws, one being that it is too naive and trusts its environment too quickly. It’s a very easy target for cybercriminals. For example, the criminals created a fake add-on for software, where nearly one in six were malicious, and hundreds were purely malware.

Some attackers even found a backdoor. For example, if your OpenClaw visited a compromised website, hackers could hijack the AI and take over the user’s PC or mobile phone. Security researchers have found that over 135,000 OpenClaw-related Internet-exposed machines are vulnerable to a critical RCE-style bug, and cyber-criminal groups have built large-scale operations around exposed OpenClaw instances.

Security experts responded by pushing two updates. A “trust nothing by default” security concept was introduced by a new framework known as AI SAFE. Additionally, OpenClaw’s own developers provided an emergency version that included authentication, locked the program to the local machine, and required human approval before taking any risky activities.

Industry professionals have not minced words about this tension. Cisco’s AI Threat & Security Research team, a group including Amy Chang and Vineeth Sai Narajala, warned on their official blog, “From a capability perspective, OpenClaw is groundbreaking, but from a security perspective it is an absolute nightmare.”

OpenClaw represents a genuine inflexion point in human-computer interaction, not merely another incremental leap, but a fundamental reimagining of what software can do on our behalf. Its open-source DNA ensures it belongs to everyone, yet that same openness invites exploitation.

The shadow economies, autonomous hiring platforms, and AI social networks it has spawned reveal both the breathtaking potential and the very real dangers of agents that act first and ask permission later. Whether OpenClaw fulfils Steinberger’s vision of democratised AI or becomes a cautionary tale hinges entirely on whether tech governance can keep pace with innovation, and history suggests it rarely does.

The post The bot that hired a human: Inside OpenClaw’s autonomous revolution appeared first on International Finance.

As a result, if you weren’t savvy and didn’t put in a considerable amount of footwork, you consistently overpaid on your down payments. Studies reveal that before Zillow’s data democratisation, an investor paid 2%-5% as an ignorance tax. If you were from out of town, you paid an additional 2%. The informed buyer who uses an app like Zillow saves 4.75% on their payments.

The author of Freakonomics, Steven Levitt, examined the selling habits of real estate agents when it came to their own homes and found that they kept their properties on the market around 10 days longer and sold them for roughly 3% higher than those of their clients. This is not a trivial sum. To put things into context, the 5% overpayment is approximately $20,500 to $25,650 for the average American homebuyer. That can get you a brand new Honda Civic or Toyota Corolla, a full kitchen renovation, or the entire down payment for a first-time buyer. Zillow is a revolution in the real estate industry. It is a boon to the buyer, saving American homeowners $750 billion in aggregate since 2010.

When Jeremy Wacksman took the helm as Zillow’s CEO in late 2024, the company had just shuttered its ambitious home-flipping venture, Zillow Offers, after some spectacular miscalculations, leaving it holding properties it had overpaid for. Wall Street was sceptical. Agents were wary. Competitors were circling. Jeremy Wacksman proved the doubters wrong as Zillow made a miraculous comeback with mid-teens revenue growth, which got investors cheering.

In a letter to shareholders, Zillow CEO Jeremy Wacksman and CFO Jeremy Hofmann wrote, “Our consistently strong performance reinforces that Zillow can grow regardless of what the residential real estate market is doing,” proving that Zillow has decoupled itself from the fate of interest rates and will continue to grow irrespective of the number of homebuyers.

Jeremy Wacksman’s vision is transforming Zillow into what he calls a “housing super app,” a one-stop digital ecosystem that touches every step of buying or selling a home.

What exactly is PropTech, anyway?

Before we deep dive into Zillow and its software-realty revolution, let’s look at the industry it operates in. Zillow can be classified as what economists and technologists call PropTech, just short for property technology. The company uses information technology and digital platforms to give you, the consumer, insights into the real estate market, which is traditionally known for its opacity. Think of it as everything that happens when Silicon Valley meets the housing market.

Even though the global real estate market is valued at hundreds of trillions, the technology that services it is in its adolescence, with annual revenues at around $35 to $45 billion and growing at roughly 12%-16% (in places like Bangkok and Manila, that rate is much higher at 19%). Among global giants like China and Europe, the US dominates PropTech, holding 35%-45% (approximately $12 billion to $16 billion) of the global market. The reason for that is companies like Zillow, CoStar, and Procore. America has a unique combination of standardised data (MLS), high transaction volume, and a tech-centric culture that encourages digital adoption.

Zillow doesn’t control the housing market, but it is definitely in charge of the digital front door of the real estate business. It generated a revenue of $2.5 billion in 2025 and has a massive 15%-20% of the American PropTech market share. Over 60% of Americans who use their mobiles to browse real estate do so through Zillow, and in the residential sector, Zillow is the de facto search engine. It’s Google for home buyers. While they only capture a small slice of the commission dollars (via agent fees), they control the flow of customers.

And why is this happening? It’s because of three major technological shifts. For starters, generative AI is no longer about experimental chatbots and is adept at statistical analysis and can accurately predict which homeowners will sell their property. Artificial intelligence (AI) also performs exceptionally well in automated mortgage underwriting (which improves liquidity by reducing underwriting time from weeks to days), and writes listing descriptions tailored to each customer and with better precision than most human agents.

Then there are immersive technologies like virtual tours and 3D walkthroughs, which help you visualise and feel which home is right for you. Finally, sustainability tech has emerged as a serious value driver, especially in Europe, where buildings are increasingly valued based on their energy efficiency and carbon footprint.

What makes PropTech fascinating is that it varies significantly by location. In Southeast Asia, it’s about managing rapid urbanisation through state-level infrastructure; think government platforms that coordinate transit systems with residential development. In Europe, it’s driven by sustainability regulations, with digital twins of buildings used primarily for energy optimisation and compliance.

American PropTech solves a uniquely American problem. Companies like Zillow have figured out how to bring efficiency and transparency to a fragmented market dominated by 1.5 million independent agents and a patchwork of local Multiple Listing Services.

The story of Zillow

Zillow, an idea thought up by Rich Barton and Lloyd Frink, was launched in 2004. What’s interesting is that both these men were former Microsoft employees who launched Expedia in the 1990s. It’s interesting because Expedia was a web portal that freed information from travel agents and ensured that ticketing and hotel prices were transparent. It was a data democratisation company that disrupted travel. All Barton and Frink did was to apply the successful techniques they used in the travel industry to disrupt the real estate industry. The duo were about to revolutionise real estate by making all home values public.

At the time, this was a radical move. Real estate data was locked away behind agent gates, and if you wanted to know what your neighbour’s house sold for or what your own home might be worth, you had to call a real estate agent and hope they’d share that information. Zillow’s “Zestimate” (an algorithmic home valuation tool) changed everything. Suddenly, anyone with an internet connection could get an instant estimate of any property’s value. The industry opposed it, with agents concerned about job security and critics lamenting inaccuracies in price. However, consumers loved it. Within a few years, Zillow had become the most visited real estate website in America, attracting millions of people who were curious about home values, not necessarily looking to buy or sell.

For years, Zillow operated as what insiders call a “media portal.” It made money by selling advertising and leads to real estate agents through its Premier Agent programme. Think of it as the Google of real estate, a place where buyers started their search, but where the actual transaction happened elsewhere, facilitated by traditional agents and lenders.

Then came the iBuying era. Flush with investor confidence and inspired by the success of companies that were “disrupting” traditional industries, Zillow launched Zillow Offers in 2018. The concept was a simple one. We will use data and algorithms to buy homes directly from sellers, make light renovations, and resell them at a profit. You cut the middleman off and inefficiencies of the traditional market, and capture more of the transactional value. It made absolute sense and was a bold move, championed by Barton, who returned as CEO in 2019 to steer the ship through this “Moonshot.”

However, the algorithms miscalculated. The company overpaid for properties just as the market softened. By November 2021, the real estate market had become erratic, COVID-19 had hit, and home price appreciation was behaving unpredictably. Zillow’s algorithms, designed to forecast prices, struggled to keep up with the wild swings of a market influenced by a pandemic, inflation, and supply chain shocks. A simultaneous labour shortage and supply chain crisis meant that Zillow could not renovate and flip homes fast enough. The company discovered a backlog of inventory it could not clear, comprising thousands of homes that were depreciating each passing day. In the third quarter of 2021 alone, the Zillow Offers segment posted a staggering loss of $339.2 million, necessitating a write-down of over $540 million. Zillow Offers shut down, and a quarter of Zillow’s employees paid the price with unemployment. A truly humbling moment for a company that had spent years positioning itself as the smart data-driven disruptor.

Innovation of the Housing Super App

Instead of doubling down on Zillow Offers, caught in a vicious sunk cost fallacy, Zillow shut down the venture. The brilliance of this move became apparent in the years that followed. By exiting the capital-intensive, low-margin business of house flipping, Zillow was able to pivot back to its core strengths of audience, data, and software. This strategic retreat gave birth to the “Housing Super App” strategy, the engine driving Zillow’s success in 2025. So, the whole Super App vision is really about playing the role of the conductor in a real estate orchestra. It’s managing the transaction from start to finish without actually owning any of the assets involved. It integrates buying, selling, renting, and financing into a seamless, all-in-one digital experience. Zillow profits at each stage, avoiding the headaches and risks associated with holding inventory.

Jeremy Wacksman was the one who made this vision a reality. He was the COO right in the thick of that big pivot, and then he stepped up to CEO in August 2024. Under his guidance, this Super App approach has completely revamped Zillow’s financial picture.

The company shifted its focus to “Enhanced Markets,” cities like Phoenix and Atlanta, where it deployed a full suite of integrated services. The results have been spectacular. In these markets, customer transaction share has increased by over 80% since 2022. By early 2025, Zillow had expanded its Enhanced Market footprint to cover 21% of its connections, with a clear path to 35% by year-end and a long-term goal of 75%.

This pivot restored Zillow’s profitability and financial health. In 2024 and 2025, the company maintained gross margins above 75%, a figure characteristic of elite software firms rather than the slim margins of the construction industry. It’s quite impressive how this company managed to make a major comeback. They achieved positive GAAP net income in Q1 2025, and projections indicate they will remain profitable throughout the entire fiscal year. This marks a significant shift from the substantial losses they experienced back in 2021. Their balance sheet? It’s like a fortress now, sitting on $1.6 billion in cash and investments as of early 2025. That level of liquidity allows them to invest in innovation and weather any economic challenges that may arise.

Zillow owes this turnaround to Jeremy Wacksman’s leadership. As a former engineer at Xbox (another Microsoft subsidiary), he was well versed in that sharp, product-focused discipline. And he brought that over to the C-suite. His intellectual curiosity and willingness to admit ignorance when he did not know something were conducive to a team-based problem-solving approach crucial to tackle the crisis at hand. He took this fuzzy idea of a “Super App” and turned it into real, tangible products like Zillow Rentals, Zillow Home Loans, and the agent-facing Zillow Pro. Just look at Rentals now. It grew revenue by 33% year-over-year in Q1 2025, and aims for a $500 million run rate.

Sure, detractors love to bring up the flop of Zillow Offers as some kind of permanent stain, but by 2025, industry folks see it as a “clarifying moment” that actually highlighted the company’s resilience. It eliminated a distracting business model and encouraged everyone to focus on digital integration. The Zillow that emerged from that 2021 situation is leaner, more focused, and much more scalable. They realised their real strength isn’t in owning actual homes, but in owning the digital backbone that makes homeownership happen. That lesson, earned the hard way, is what’s driving all this optimism now. It’s shifting their strategy away from betting on market prices and toward capitalising on the efficiencies they build.

The future of home sales

In 2025, Zillow really dug in this massive technological moat that’s so deep and wide, it’s struggling to seize its market share. They’ve ditched the old-school world of flat 2D photos and scattered data bits, and stepped right into the era of the “Digital Twin.” We are talking about the super immersive, data-packed virtual copy of a home. It’s not just for show, and this tech jump is what makes remote deals possible and sets Zillow miles apart from everyone else.

The star of their tech lineup is “SkyTour,” which they launched in July 2025 just for “Showcase” listings. SkyTour, a breakthrough in computer vision, is powered by this rendering method called “Gaussian Splatting.” Instead of those clunky traditional 3D models with meshes of triangles, it uses millions of “splats,” which are these ellipsoidal bits that nail complex surfaces and lighting with spot-on photorealism. This stuff was once only for fancy movie effects and games, but now it lets you “fly” around a property on your phone, checking out the roof, backyard, and whole neighbourhood like you’re piloting a drone.

The engineering feat behind SkyTour is huge. Scientists like Will Hutchcroft and executives like Steve Anderson, who headed the Zillow crew, figured out how to tweak this heavy-duty process so it runs butter-smooth on regular web browsers and smartphones. It’s basically made high-fidelity spatial data accessible to everyone, and that shifts how people think about house hunting. It gives buyers that “being there” vibe that plain pics can’t touch, cutting down on in-person visits and speeding up decisions. The numbers back it up. Showcase listings with SkyTour pull in 79% more page views, 76% more saves, and 91% more shares than comparable non-Showcase ones. This initiates a positive cycle where sellers are eager to utilise Zillow’s premium marketing tools, generating additional revenue and enhancing the platform.

But killer visuals are just one piece of Zillow’s 2025 tech puzzle. They’ve gone all-in on weaving AI into the money and search sides of things, too. Take the “BuyAbility” tool. They have nailed it in 2025, and it hits right at the biggest worry for today’s homebuyers: Can I afford this? Old mortgage calculators are rigid and often off-base, ignoring how credit scores, debt-to-income ratios, and changing interest rates all mix together. BuyAbility? It’s live and adaptive. It retrieves real-time mortgage rates customised for your location and credit profile, producing a personalised “purchasing power” score that updates daily.

As rates bounce around in the wild 2025 economy, your BuyAbility score updates on the spot. When you’re scrolling the Zillow map, homes get marked as “Within BuyAbility,” so you can ditch the ones that are a financial stretch and zero in on real options. But it doesn’t stop at crunching numbers. It breaks down how boosting your credit or increasing your down payment tweaks your power, turning you into your personal digital money coach. And by baking Zillow Home Loans right in, they snag you when you’re most ready, making the jump from looking to locking in financing seamless.

On top of that, Zillow flipped the search game with Generative AI. They hooked up a ChatGPT plugin and natural language smarts, so you can do full-on conversational searches. No more fiddling with a ton of filters. Just type something like, “Find me a three-bedroom house in Austin with a big backyard under $500k that’s near good schools.” The AI gets the subtleties and serves up tailored results. This technology also enhances the agent tools. Through the “Zillow Pro” suite, AI analyses user habits to provide agents with “smart lists” and recommended actions. If a buyer keeps eyeing a listing or shares it with someone, the AI pings the agent to follow up, cranking up how well leads turn into deals.

What’s next for Zillow?

As Zillow looks toward 2030, its vision extends beyond profits to stewardship of the housing ecosystem. Through its Super App, the company wields technology for social good, exemplified by the Housing Connector partnership. Since 2019, this initiative has housed over 10,000 homeless individuals by linking case managers with flexible landlords, turning Zillow’s database into a lifeline. Plans aim for 30,000 more placements, proving data can solve systemic crises.

By 2030, the Super App may become the “One-Click Home,” integrating title, escrow, and insurance for seamless transactions, targeting 45% EBITDA margins.

The efficiencies of PropTech are saving tens of thousands of dollars for families at a time when housing prices are near inaccessible for most Americans. Zillow is bringing the American Dream, of which owning one’s own home is a major symbol, closer to every family. It will be a steady and slow process, with Wacksman proclaiming, “Affordability conditions are projected to improve… but it should be a gradual recovery and a year of ‘small wins’.”

In triumph, Zillow has overcome its iBuying woes, forging resilient software and partnerships. Spanning from the 2006 server crashes to the AI immersion of 2025, it empowers consumers, emerging as the optimistic, accessible, and enduring cornerstone of the digital infrastructure for the American Dream.

The post Zillow rewrites the American Dream appeared first on International Finance.

Since Saudi Arabia became a kingdom in 1931, Washington has provided diplomatic support. In the 1940s, President Franklin D. Roosevelt and King Abdulaziz formalised the oil-for-security deal aboard the USS Quincy, with the US promising military protection in exchange for a steady oil supply, an arrangement that continues to this day.

But the world of oil is slowly fading and making way for renewable energy. Crown Prince Mohammed Bin Salman, a visionary young leader, sees this truth. His oil-rich country has an advantage that won’t last forever, so he’s working hard to modernise and industrialise the Kingdom’s economy.

The headlines are staggering: Crown Prince Mohammed Bin Salman pledged to increase Saudi Arabia’s planned investments in the United States from $600 billion to $1 trillion.

During the meeting, both sides acknowledged shifting global realities. America wants fresh capital and supply chain security in a world that is quickly turning multipolar. The Saudis, on the other hand, have a deadline to meet. The Kingdom’s “Vision 2030” is as ambitious as they come.

They plan to be leaders in AI and aviation, produce nuclear energy, and build breathtaking cities in the desert. But it requires advanced technology and industrial partnerships that only American firms can provide for now. This partnership is a win-win for these G20 economies.

The Saudi-US partnership is not an alliance of convenience built on oil and security. They are now strategic partners with aligned goals of economic and technological supremacy. As they posed for pictures in front of the White House, it was clear to the whole world that the Saudis and Americans had tightened their alliance.

Data blooms in the Arabian deserts

Technology was at the heart of the conversation between the two world leaders. The Saudis expressed their desire to be the global hub of AI and data. It seems this visit to America has brought that vision closer to reality, with pacts that would place the Kingdom as a central node in the global AI infrastructure.

At the heart of this transformation is authorisation by the US Commerce Department for the export of advanced AI chips to Saudi Arabia. This decision effectively clears the way for the shipment of up to 35,000 Nvidia Blackwell chips to HUMAIN, a Saudi-backed national AI champion. This authorisation is more than just a trade deal.

It represents a stamp of approval from Washington that brings Saudi Arabia into the trusted circle of American technological partners. It addresses the long-standing bottleneck of access to high-performance compute power, which is the lifeblood of the modern AI economy.

HUMAIN was the undeniable star of the investment conference that ran parallel to the political meetings. The company, backed by the immense resources of the Public Investment Fund (PIF), announced a flurry of partnerships that read like a who’s who of the American tech sector.

The most headline-grabbing of these was the partnership with Elon Musk’s xAI. The two companies signed a framework agreement to build a massive network of low-cost GPU data centres within the Kingdom.

This project, which includes a flagship 500-megawatt facility, aims to leverage Saudi Arabia’s abundant and low-cost energy resources to power the energy-hungry training and inference workloads of the next generation of AI models.

The logic behind this partnership is compelling. As AI models grow exponentially in size, the cost of electricity becomes a primary constraint. Saudi Arabia offers some of the lowest energy costs in the world, making it an ideal location for what industry insiders are calling computer factories. By pairing American innovation with Saudi infrastructure and capital, the xAI-HUMAIN alliance seeks to lower the barrier to entry for advanced AI development.

HUMAIN also signed a separate agreement with Groq, a company famous for its ultra-fast AI inference chips. This deal will see HUMAIN triple the Kingdom’s Groq-powered inference capacity. This is a crucial distinction.

Nvidia makes the best chips in the world. There is no doubt about it. Groq has technology optimised for running models in real-time applications. The Saudis have made deals with both the hardware and software developers. They are going to alchemise the union between xAI and Nvidia in their energy-rich and spacious deserts.

This isn’t a one-way street. HUMAIN and Global AI also plan to build high-density AI data centres in the US, using top-of-the-line Nvidia technology. The Saudis are reciprocating capital flow and will soon lay the foundations of the great American digital economy.

In the venture capital space, the visit saw a major validation of the American startup ecosystem. Luma AI, a San Francisco-based startup working on Artificial General Intelligence (AGI), raised USD 900 million in a Series C funding round. HUMAIN led the round, with participation from major players like AMD Ventures, Andreessen Horowitz, Amplify Partners, and Matrix Partners.

This investment highlights the PIF’s strategy of taking significant equity stakes in companies that are defining the future of technology. It provides Luma AI with the runway to compete with giants like OpenAI and Google while giving Saudi Arabia a seat at the table of frontier AI research.

Microsoft also cemented its role in the Kingdom’s digital transformation. The tech giant signed a Memorandum of Understanding (MoU) with the PIF and the Saudi Information Technology Company. The agreement explores the delivery of Microsoft’s sovereign cloud services in Saudi Arabia.

The sovereign cloud restricts data to national borders and subjects it to local laws. It is essential technology for governments and sensitive industries. Microsoft has secured a lucrative deal with one of the world’s wealthiest clients and will provide services in the Kingdom’s administration, healthcare, and finance sectors.

These agreements collectively signal a pivot. Saudi Arabia is moving beyond being a passive consumer of technology. It is positioning itself as a co-creator and a critical infrastructure provider for the global AI ecosystem. The Silicon Desert is no longer just a marketing slogan. With billions of dollars in hardware and infrastructure now in the pipeline, it is rapidly becoming a physical reality.

Powering future partnerships

While technology captured the imagination, energy remained the bedrock of the discussions. However, the conversation has moved far beyond the traditional barrel of crude oil. The visit marked a historic turning point in energy cooperation with the announcement of a new agreement on civil nuclear cooperation.

This agreement has been years in the making. It establishes a framework for the United States to support Saudi Arabia in developing a civilian nuclear energy programme. For Riyadh, nuclear power is essential to its domestic energy strategy.

The Saudi plan is clever. With a rapidly growing population and expanding industry, the country needs more energy. They decided to build nuclear power plants to provide safe, low-cost energy while exporting oil to other countries, reducing their own carbon footprint. The Saudis aim to be the world’s largest oil exporter while using less oil at home.

The US sees this as a win. Without this deal, Saudi Arabia might have turned to Russia or China for their energy needs, which could have caused concern in Washington. Now, the Saudis are more likely to follow nuclear safety standards, and the agreement boosts US nuclear exports while strengthening long-term energy ties between the two countries.

The deal includes strict safeguards and non-proliferation standards. It addresses security concerns while allowing the Kingdom to join the club of nations with peaceful nuclear capabilities. At the same time as the nuclear deal, Saudi Aramco, the world’s largest oil producer, used the visit to grow its presence in the American energy sector.

Aramco announced 17 MoUs and agreements with a potential total value of more than USD 30 billion. These agreements were signed with major US companies and cover a diverse range of activities.

The deals are also about Liquefied Natural Gas (LNG). The world is moving away from coal to greener alternatives. LNG is now the critical transition fuel. The Saudi gas giant, Aramco, often cited as one of the most valuable companies in the world, is expanding its global portfolio aggressively. New partnerships are being made with MidOcean Energy and Commonwealth LNG.

This might involve offtake agreements and equity stakes in US LNG export terminals. It is a powerful move to become a major trader of US gas by leveraging its global marketing network to sell American LNG to buyers in Europe and Asia.

Aramco is signalling the corporation’s supply chain resilience. The oil titan has signed important contracts with US oilfield services companies such as SLB, Baker Hughes, and Halliburton. Most of them are procurement deals. It is a strategic move that ensures continued access to reservoir management technologies and advanced drilling techniques. It is a vital step for maintaining production capacity and efficiency.

Furthermore, the energy partnership is increasingly looking at new vectors such as hydrogen and carbon capture. The investment conference featured discussions on how US technology can help Saudi Arabia achieve its goal of becoming the world’s largest exporter of clean hydrogen. Saudi Arabia brings low-cost gas and renewable energy potential. The US brings expertise and the machines, like electrolysers and carbon capture technologies, needed to make it viable.

This diversified energy portfolio reflects a mature relationship. It is no longer just about the US importing Saudi oil, which it does in far smaller quantities than in the past. The US and Saudi Arabia are partnering to address the global energy transition. Both countries want to maintain the lead they have held in the energy industry for the past century. They are investing heavily in cleaner and cheaper hydrocarbons, as well as nuclear and renewable energy. The MoUs signed during this visit lay the legal and commercial groundwork for this multi-decade collaboration.

Backbone of modern economy

The third pillar of the visit focused on the physical backbone of the modern economy. Global trade tensions are at an all-time high, and supply chain threats are an existential crisis. The United States and Saudi Arabia took decisive steps to strengthen their networks in critical minerals, aviation, and defence.

There was a lot of talk about critical minerals. This is an important conversation for the US, considering its tariff wars and China’s decision to cut the US supply of rare earth minerals. Minerals such as cobalt, lithium, and rare earth elements are essential for making semiconductors and batteries that power AI and robotics. Most of these are mined in China.

Washington and Riyadh are seeking to diversify this dependency. Saudi Arabia sits on an estimated USD 2.5 trillion worth of untapped mineral resources. The new framework agreement aims to unlock this potential. It facilitates US investment in Saudi mining projects and encourages the transfer of American processing technology to the Kingdom.

The mineral corridors are a boon to America. They are very timely, and without them, the US would have lagged in the chip wars. Both the United States and Saudi Arabia are preparing for potential geopolitical meltdowns. Both parties also discussed their commitment to meeting high environmental standards. Mineral mining was first sent to China decades ago because the work is dangerous for both the environment and local communities.

In the aviation sector, the visit yielded a major win for American manufacturing. Saudia Group, the owner of the Kingdom’s national flag carrier, entered into a strategic agreement with GE Aerospace. The deal will see GE equip the airline’s fleet with GEnx 1B engines. This covers the carrier’s 2023 order of 39 Boeing 787-9 and 787-10 aircraft.

This agreement is significant for several reasons. American aerospace technology gets to shine in one of the fastest-growing aviation markets. Saudi Arabia is soon to be a global leader in tourism and logistics and aims to triple tourist footfall by 2030. The Saudia-GE deal is a guarantee that American engines will power this transition.

The deal is also likely to have long-term maintenance and service contracts, which generate recurring revenue for GE and create high-skilled jobs in both countries. It’s a clear example of how one country’s growth can also benefit another, bringing real advantages to both industrial bases.

Minerals and aviation are becoming key areas of mutual reliance. Saudi Arabia will mine and export minerals, which will be used in batteries for American cars. In return, American jets and planes will transport global leaders and businesspeople to Saudi Arabia, fuelling the next stage of economic growth. It’s a mutually beneficial relationship that connects the industrial and physical needs of both countries.

An ally in the Middle East

Economics aside, Saudi Arabia is an important ally to the United States. It is a neutral neighbour to Israel, a nation that America has special interests in protecting. Before the attacks on October 7, Saudi Arabia and the UAE were contemplating the Abraham Accords and were willing to partner with Israel.

After the issue in Gaza began, Saudi Arabia withdrew its interest, and peace in the Middle East became a dream once again. But there is good news this time. Crown Prince Mohammed Bin Salman has renewed his interest in a partnership with Israel on the condition that the two-state solution be implemented.

America also has a special interest in Saudi Arabia because the Al-Saud family is the custodian of the two holiest mosques of Islam in Mecca and Medina. It also provides some soft power and legitimacy. The new economic, technological, and defence deals have interwoven the destinies of the two countries tightly than ever before.

The gateway to 2030

As the Crown Prince’s jet lifted off from Andrews Air Force Base, the significance of the visit began to settle in. This was not a transactional meeting to fix oil prices or address a singular geopolitical crisis. It was a strategic alignment of two nations looking toward the next decade.

The pledge to increase investments to USD 1 trillion is a testament to the scale of the ambition. It signals that the Public Investment Fund (PIF) and other Saudi entities view the US economy as the primary engine for their capital deployment. The large number of American CEOs at the investment conference signals that Wall Street and Silicon Valley view Saudi Arabia as the world’s most exciting growth market.

The visit serves as a key opportunity. For the United States, it opens the door to the Gulf’s vast capital and infrastructure projects. It’s a chance to revitalise parts of the American economy through foreign investment and secure future supply chains.

For Saudi Arabia, it is a gateway to the technology and expertise required to realise Vision 2030. The Kingdom knows that it cannot build a post-oil economy in isolation. It relies on Nvidia’s AI chips, Microsoft’s cloud infrastructure, GE’s engines, and the innovation from American startups.

The warm personal dynamics between the leadership provided the necessary political cover for these deals to flourish. It smoothed over bureaucratic friction and signalled to the bureaucracies in both capitals that getting to yes was the priority. The result is a roadmap that is ambitious, detailed, and remarkably comprehensive.

We are witnessing the birth of a new economic corridor. It is a corridor where data flows as freely as oil once did. It is a partnership defined by gigawatts of computing power, fleets of modern aircraft, and the secure supply of critical minerals.

The November 2025 visit will likely be remembered as the moment when the United States-Saudi Arabia relationship finally stepped out of the shadow of the twentieth century and firmly embraced the opportunities of the 21st century.

The success of this visit will be measured not just in the dollars pledged but in the execution of these vast projects. Building data centres, nuclear plants, and mineral supply chains takes time and persistence. However, the foundation laid in Washington this November is solid. The “Trillion Dollar Handshake” has set the stage. Now the real work of building the future begins.

The post Saudi and US: The new dynamic duo appeared first on International Finance.

The Kingdom’s insurance sector is poised for rapid expansion, with health coverage and regulatory reforms driving record growth across the market. The health insurance market is projected to nearly double by 2030, with premiums expected to rise from SAR 42 billion in 2024 to SAR 83 billion, according to the Saudi Insurance Sector Review 2024 from Bupa Arabia for Cooperative Insurance.

The surge is driven by diversification initiatives, regulatory reforms, digital transformation, and expanding healthcare infrastructure. Health insurance accounts for 55% of the market, and mandatory coverage is being extended to new groups, including domestic workers and gig economy employees, potentially adding SAR 9.4 billion in GWP (Gross Written Premiums). Tourism is also expected to boost premiums by SAR 4.5 billion as Saudi Arabia targets 150 million visitors annually by 2030.

The sector has tripled over the past decade, growing from SAR 21.3 billion in 2012. Post-pandemic, insurers adopted digital platforms such as the InsurTech Sandbox, Nafis platform, and the “Virtual Hospital,” helping the sector maintain growth at a 22% compound annual growth rate (CAGR). The establishment of the Insurance Authority (IA) in the Kingdom has marked another chapter of fundamental development, aligning with “Vision 2030” and the “Financial Sector Development Programme.” This regulatory overhaul also aims to create a robust, stable, and dynamic insurance sector, fostering clearer regulations, enhanced supervision, and increased opportunities for innovation and expansion. Considering this context, Almamoon Insurance Broker has established itself as a market leader.

Since receiving its operating license in 2008, Almamoon Insurance Broker has established itself as one of the pioneering Saudi companies in the insurance sector, specialising in providing comprehensive solutions for businesses. Partnering with leading insurance providers, Almamoon offers various coverage options, including property, liability, and employee benefits insurance. With a focus on understanding the unique needs of each business, Almamoon ensures that companies receive customised, cost-effective insurance solutions to protect their assets and operations. Recently, the company was named “Most Innovative Health Insurance Broker – Saudi Arabia 2025” by International Finance, further cementing its transformation from a transactional service provider into a value-driven health partner.

In addition to winning the International Finance Award, Almamoon marked another significant milestone in 2024 by obtaining an electronic insurance brokerage license. The company also received Sharia Certification from Sharia Review House LLC, affirming its strict compliance with Islamic Sharia principles in all operations. Further underscoring its commitment to excellence, Almamoon earned both ISO 9001 and ISO 10002 certifications, reflecting its dedication to quality management and outstanding customer service.

In an exclusive interview with International Finance, Almamoon Insurance Broker CEO Mamdouh Tantawi said, “Heath Lambert was our joint venture partner operating in Saudi Arabia in 2001. After Almamoon’s management acquired its license in Saudi Arabia, we established our brokerage, Almamoon Broker, in 2005, further strengthening our commitment to delivering reliable insurance services tailored to the local market.”

Building trust before technology

Almamoon leadership understood one truth early: innovation without trust is fragile. In an industry where lives and livelihoods are at stake, credibility is the currency that buys permission to innovate. Based on that reality, Almamoon made the task of delivering excellence in insurance brokerage its main mission.

“To provide exceptional insurance brokerage services by combining our expertise, integrity, and dedication, we are committed to achieving the best outcomes for our clients, ensuring their financial well-being and peace of mind in every transaction. We aspire to be the most trusted partner for our clients, guiding them through the complexities of the insurance landscape with innovative solutions. Our goal is to build a legacy of trust and empowerment, ensuring our clients’ financial security and success for generations,” Mamdouh Tantawi noted.

Before building apps or integrating APIs, the company invested heavily in people, governance, and compliance. Every operational layer has now been aligned with national regulations and Sharia principles. Data is hosted securely within the Kingdom, and transparent audit trails ensure accountability for every action. The company’s ISO 9001 certification signals a commitment to quality management, while ISO 10002 reflects a structured approach to handling feedback and resolving customer concerns. This strong compliance foundation has safeguarded clients and empowered Almamoon to innovate without compromising ethics or legal standards.

“At Almamoon Broker, our mission is simple yet profound: to empower you to achieve your financial goals and aspirations. We understand that navigating the complexities of the financial markets can be daunting, which is why we are committed to providing our clients with the guidance, expertise, and support they need to make informed decisions and seize opportunities. Our success is measured not only by the returns on their investments, but also by the strength of the relationships we build. Client satisfaction and success are our top priorities, and we are dedicated to exceeding expectations at every turn,” the CEO added.

Almamoon provides tailored insurance and risk management strategies that meet the unique needs of its clients across various industries. With extensive local and international experience, the insurance broker combines global expertise with a deep understanding of Saudi market dynamics.

“Our experienced team provides proactive, consultative advice, leveraging deep market knowledge to deliver the best possible outcomes for each client’s business. The team manages every aspect of the client’s insurance needs—from placement to claims management—ensuring efficient, effective, and timely solutions. We prioritise each client’s unique requirements, offering personalised services that align with their business objectives and risk profile. Our strong relationships with top-rated insurance carriers enable the firm to secure competitive pricing and superior coverage for the clients,” Mamdouh Tantawi asserted.

Technology designed for humans

After securing its compliance foundation, Almamoon shifted its focus to technology, ensuring that every innovation served a defined purpose and resulted in a measurable outcome. Every digital solution has been built to solve real client challenges, not just to look impressive in a product brochure.
Almamoon’s proprietary digital platform now brings together services that once required multiple calls, emails, and paper forms. Real-time policy viewing, instant account statements, and an integrated ticketing system for service requests ensure seamless communication. Secure API integrations connect directly to leading insurers, reducing turnaround times and errors. Meanwhile, Microsoft Power BI dashboards transform raw claims data into visual insights, enabling HR and finance teams to make informed, data-driven decisions. In practice, an HR manager can log in, check every employee’s claim status, analyse cost trends, and even request policy adjustments, all within minutes, without the back-and-forth traditionally associated with brokers.

Saudi Arabia’s economic diversification has resulted in the most diverse workforce the Kingdom has ever seen. Employers range from multinational corporations and semi-government bodies to fast-growing SMEs and family-owned businesses. Almamoon recognised that a one-size-fits-all approach fails in such a varied environment. Instead, it developed the expertise to create customised health insurance solutions tailored to each segment.

“Large enterprises benefit from integrated wellness and chronic disease management programmes, SMEs get affordable plans with meaningful benefits, financial institutions receive compliance-driven coverage, and government or semi-government clients are offered fully Sharia-compliant policies. These solutions are not theoretical. They are built after careful analysis of workforce demographics, claims history, and utilisation patterns, ensuring that coverage is relevant, cost-effective, and sustainable,” he added.

Putting people at the centre

While many brokers focus on digital transformation, Almamoon emphasises human transformation, improving the way people experience insurance. Its multi-channel service model reflects modern communication habits: mobile apps for tech-savvy users, WhatsApp for quick interactions, and a dedicated health desk for those who prefer human contact. The company has also redesigned processes like outpatient reimbursements for speed and clarity. Policyholders now receive reimbursements faster, with fewer requests for extra documentation, making health insurance feel like a genuine benefit rather than a bureaucratic task.

Among its core services, Almamoon offers comprehensive insurance risk assessment and management, developing tailored mitigation strategies for its clients. In addition to consulting on cost management, savings, and negotiating better rates, the company has built a strong reputation for exceptional customer service and responsiveness. Through its insurance placement and coverage services, Almamoon helps clients secure suitable policies while customising coverage to meet their specific needs. Under its policy review and optimisation programme, clients receive regular policy evaluations along with expert recommendations for coverage adjustments.

Almamoon also provides the Saudi Arabian market with multiple policy options, making it easier to select the best coverage, even during renewal periods. Additional essential services include claims assistance and advocacy, specialised insurance solutions, and compliance and regulatory guidance.

A culture of rapid innovation

Almamoon’s working culture is built on short feedback loops and rapid prototyping. Ideas are tested in real-world conditions, refined based on results, and rolled out without delay, which is a stark contrast to the slower cycles that dominate the industry. Recent innovations by the venture include AI-powered chatbots that provide policy details on demand, interactive wellness programmes that encourage healthy living, and a smart renewal engine that anticipates client needs and simplifies annual updates. Innovation here isn’t a department; it’s a daily habit shared by claims specialists, software engineers, and many others.

Talking about Almamoon’s innovative insurance services, a special mention must be made of the cutting-edge “New Leasing Platform” developed by the venture to comply with IA (Saudi Insurance Authority) regulations and ensure seamless operations for banks and auto-leasing finance partners. In addition to ensuring regulatory compliance, the user-friendly platform is recognised for its fast processing speed, interactive dashboards, and seamless API integration.

Almamoon has established its strong presence across the insurance industry verticals. Be it marine (inland transit, marine cargo, marine hull and machinery insurance), motor (motor comprehensive insurance, motor third-party liability insurance, and motor trade insurance), industrial and energy (boilers and pressure vessel insurance), or aviation (aviation insurance and airport operations liability), Almamoon has its tailored products and services lined up for the industry players.

In the financial field, Almamoon’s solutions cover domains like indemnity, directors and officers’ liability, cybercrime, bankers’ blanket bond, trade credit insurance, and group creditor insurance. For working professionals, the company offers group personal accident insurance, group medical insurance, group life insurance, and a group savings plan.

Growth with a purpose

Almamoon established its main office in 2005, laying the foundation for its regional presence. In alignment with the Kingdom’s Vision 2030, the company inaugurated its Riyadh office in 2019 under the patronage of His Highness Crown Prince Mohammed bin Salman. Almamoon strategically launched a second branch in Riyadh to support the expanding needs of Saudi enterprises, particularly within the emerging government and semi-government sectors, and to accommodate the influx of international companies entering the Kingdom.

Also, opening a new branch in Alkhobar strengthens Almamoon’s presence in the Eastern Province, bringing services closer to clients in one of the country’s most dynamic business hubs. Strategic partnerships with insurers enable Almamoon to offer bundled solutions that combine health coverage with auto and life insurance, streamlining procurement for corporate clients.

Since 2022, Almamoon’s approach has driven double-digit annual growth in Gross Written Premium (GWP). However, the company views growth as a means to an end. Its goal is to extend high-quality, client-focused service to more organisations and individuals across the Kingdom.

“Transformation at Almamoon isn’t just about headline-grabbing strategies. It’s about hundreds of micro-decisions made every week. A claims specialist finds a way to cut processing time in half. A developer refines a mobile app feature after observing user behaviour. A regional manager pilots a new onboarding system that later becomes company-wide policy. These small, consistent improvements accumulate into the large-scale changes that win industry recognition and client loyalty,” Mamdouh Tantawi added.

Another shining example of Almamoon’s innovation is the “Prestige Programme,” which takes care of the healthcare needs of the Saudi market. The programme covers chronic disease management, global assistance, maternity protocol programme, and home child vaccination.

What’s next for Almamoon?

The future of Almamoon is focused on deepening transparency, efficiency, and client empowerment. The next wave of innovation includes a self-service employer dashboard for total policy control, automated claims pre-authorisation to speed up approvals, and enhanced smart renewal tools to simplify policy management. These initiatives are designed to remove friction from the health insurance process, allowing clients to spend less time navigating benefits and more time focusing on their core business and employees’ well-being.

The strength of the Almamoon model lies in its balance. Regulatory discipline builds trust. Technological efficiency streamlines operations. Human-centred service creates long-term relationships. In a traditionally slow and opaque industry, Almamoon proves that brokerage can be fast, transparent, and super supportive.

By reshaping health insurance brokerage, Almamoon isn’t just adapting to change—it’s leading it. This mindset shows that in Saudi Arabia and beyond, the future of insurance brokerage will be built on trust, strengthened by technology, and guided by a focus on people.

The post Almamoon Insurance Broker: Rewriting the rules of care appeared first on International Finance.

Over the past two decades, LDB has played a leading role in implementing state economic policies and supporting national development, while strictly adhering to domestic and international banking regulations.

Industry observers note that LDB is “one of the most outstanding financial institutions to watch” in the region. Its strategy has combined sound financial performance with modernisation initiatives, earning accolades as a fast-growing bank with innovative employee- and customer-focused programmes.

Expanding electronic payment networks

LDB’s roots lie in a government-led restructuring of Laos’ fragmented banking sector. In 2003, the Lao government merged two troubled state banks, Lane Xang Bank and Lao Mai Bank, into the new Lao Development Bank. The merger aimed to revitalise financial stability by consolidating capital, eliminating overlapping structures, and rebuilding public confidence in banking.

The newly formed LDB inherited a nationwide network and the mandate to support national socioeconomic development. In its early years, the bank focused on strengthening its balance sheet and human resources, recruiting competent personnel to meet its redefined mission.

Throughout the 2000s, LDB systematically upgraded its systems and services. Notably, it migrated to a modern core-banking platform (“T24”) by 2010, connecting all branches online and enabling real-time inter-branch operations. It also introduced new customer products: ATM and electronic POS networks, and as a pioneer among Lao banks, a mobile banking service (marketed as “LDB Trust”) fully integrated into electronic payments.

By integrating ATM transactions into mobile/ e-commerce channels, LDB laid the groundwork for Lao consumers to conduct electronic payments nationwide. The bank concurrently expanded its credit portfolio to support small and medium enterprises (SMEs) in agriculture and rural development, aligning its loans with the goal of job creation and poverty reduction. These early reforms set the stage for LDB’s future growth, building capacity and technological capability within the organisation.

Data-driven transformation for growth

Having experienced the global COVID-19 shock and a broader government push to reform state-owned enterprises, LDB embarked on a major privatisation in 2021. This restructuring aligned with national policy to turn specialised state banks into more competitive joint enterprises.

Under the new ownership, LDB overhauled its corporate governance and leadership. A new Board of Directors was appointed, supported by governance committees meeting international “three lines of defence” standards.

Sitthisone Thepphasy was named Board Chairman, bringing a vision-focused leadership style praised for disciplined oversight and ethical rigour. The management adopted a unifying slogan: “Change for the Target to Success,” emphasising strategic focus and streamlined processes under the refreshed organisational structure.

LDB’s mission and vision were recalibrated to be more customer-centric: its official vision now is “to be the bank that customers can trust for getting the best services, the best technology, and the best staff responses.”

In practice, the executive team, led by President Chanthanome Phommany, pursued a data-driven transformation. They conducted granular financial analysis to identify underutilised capital, optimise branch performance, and restructure costs. This led to clear strategic plans and improved employee development programmes, reinforcing professionalism across the bank. Management reports that in the first year of the new regime, LDB significantly outperformed peers in profit growth and asset expansion.

Expanded physical presence nationwide

With visionary leadership, LDB substantially grew its physical and service footprint. LDB operates over 18 branches, supported by 75 service units, 263 ATMs, and eight foreign-currency exchange offices nationwide. These units extend banking access even to remote districts. With expanded staffing and training programmes, LDB emphasises a professional workforce that can support its complex product range.

In an exclusive interview with International Finance, LDB Managing Director Fongsamout Douangchai, said, “Our product lineup is broadened. The bank now offers a full spectrum of commercial banking services: household and corporate deposits, term loans (including mortgage and auto loans), trade finance, and international remittances. In particular, we have issued UnionPay and Visa debit/credit cards, enabling customers to transact at home and abroad with global networks. It provides SWIFT-based international transfers and partners with Western Union for rapid remittances.”

“The bank introduced LDB Biz, an online banking platform for businesses (including payroll services), so corporates can manage accounts and salaries without visiting branches. We also installed extensive payment infrastructure: over 260 ATMs, plus electronic point-of-sale (POS) terminals and QR-code readers, to facilitate digital payments countrywide. In sum, our expanded branch network and service portfolio now cover all major banking needs of Lao businesses and citizens,” he added.

Building on these foundations, LDB has invested heavily in digital transformation. Its flagship LDB Trust mobile app has been positioned as a game-changer in Lao banking. The app functions as both an electronic wallet and a full-service bank portal. Users can transfer funds, pay utility bills (electricity, water, loans), top up phone accounts, and receive real-time account statements.

Unique features include integrated market data: customers can view Lao gold prices, Bitcoin values, foreign exchange rates, and interest rates on the go. By year-end 2022, over 50,000 merchants were registered on the platform, reflecting its adoption in retail commerce. LDB reports that usage of LDB Trust has surged after recent app improvements and customer incentive campaigns.

Alongside LDB Trust, LDB Biz was launched as a 24/7 web and mobile banking portal for corporate clients. Through LDB Biz, companies and organisations can initiate transfers and view statements.

LDB has also integrated its card services and mobile app: customers can link their UnionPay cards to LDB Trust for ATM withdrawals. These digital platforms support the bank’s customer-centric strategy. For example, LDB Trust includes e-commerce integration: it was among the first to tie ATM/mobile banking into online shopping. Users can make QR-code payments at merchants directly from the app and even promote their own business offers through in-app merchant portals.

The app’s design emphasises simplicity (one-click transfers, easy billers), so that even first-time users can transact confidently. As a result of these efforts, LDB Trust and LDB Biz have “performed soundly” as channels for transfers, bills, top-ups, and other services, greatly increasing convenience for Lao customers.

Another notable alliance is in the gold investment space. LDB has teamed with KPV Group (a leading Lao gold merchant) to integrate gold savings into digital channels. An “Easy Gold” joint venture arrangement enables KPV’s retail customers to use the LDB Trust app for gold purchases and instant settlement. For example, gold orders on the Easy Gold platform can be paid directly from an LDB account via the app. By embedding gold trading into LDB’s mobile wallet, the bank taps into both household savings and wealth-tech opportunities. While official details are sparse, this initiative illustrates LDB’s strategy of leveraging private sector partnerships (KPV Group, RMA, etc.) to extend its services and market presence.

Building strategic collaborations across diverse sectors

To broaden its reach and product capabilities, LDB has equipped itself by cooperating with resilient commercial banks in neighbouring countries such as Thailand, Vietnam and China. Acceleration initiated the development of LDB’s enabler to enhance its foreign trade facilitation capacity.

Commitment to sustainable development goals

Sharing his views about LDB implementing the ESG principles, MD Douangchai said, “We have woven environmental, social, and governance (ESG) principles into its business strategy. The bank explicitly supports Laos’s sustainable development agenda. Management emphasises financing clean hydropower export, eco-tourism, and modernised agriculture as part of the post-COVID economic recovery. In practice, our bank evaluates lending and investment projects against their ecological impact, and it offers tailored loans for green initiatives such as agroforestry or rural electrification.”

A pioneering aspect of LDB’s ESG push is its involvement in Laos’s nascent carbon market. The bank has facilitated carbon credit projects through a Lao firm, CS Carbon Company, which holds forestry concessions. Under the new national carbon credit decree, these projects cover an area of roughly 2.5 million hectares of forest land.

LDB has provided advisory and financial support to CS Carbon’s schemes, making it effectively the first Lao bank to back certified emission reduction initiatives. By integrating carbon credits into its portfolio, for example, enabling businesses to buy or earn Lao Carbon Units, LDB positions itself at the forefront of financing nature-based solutions. This aligns with the bank’s broader climate commitment and the country’s goal to tap international carbon funds.

“On the social side of ESG, we have adopted internal governance frameworks and staff welfare programmes consistent with international norms. The bank implements strict anti-money laundering (AML) and know-your-customer (KYC) systems as noted in internal reports, and has won awards for its employee welfare initiatives,” Douangchai added.

The board’s three lines of defence model and emphasis on professional ethics reflect an institutional commitment to good governance. These ESG efforts are now integrated into LDB’s brand and risk management outlook, reinforcing confidence among socially conscious investors and clients.

Multilingual digital solutions

LDB’s transformation has been communicated via high-profile marketing campaigns and user-focused technology. The bank deliberately adopted celebrity endorsements to raise brand awareness. For example, its LDB Trust app promotion in 2023 featured Thai television star Nine Naphat as the brand ambassador, tapping into his youthful fanbase.

Local influencer Bella Lani was likewise engaged to reach millennial customers. These campaigns portrayed LDB Trust not just as a banking tool but as a modern lifestyle app, strengthening public trust and driving downloads. According to LDB’s management, the app saw “significant growth” after such promotions.

Technologically, LDB is integrating marketing and service channels. Its digital platforms now include targeted promotions and easy enrolment for customers: for instance, new app users receive welcome incentives and merchant coupons.

Douangchai also heaped praise on LDB’s digital offerings and innovative multilingual services for Laos’s diverse customer base.

“The bank’s social media and SMS channels push timely financial tips and e-coupon deals to stimulate usage. LDB Trust’s interface is gamified with loyalty points and gold purchase alerts, making banking more engaging. Furthermore, all of LDB’s digital offerings are multi-lingual (Lao, English, Chinese) to serve Laos’s diverse customer segments. In essence, LDB blends marketing creativity with tech features, ranging from one-click bill pay to integrated gold/ e-commerce modules, ensuring that product innovation remains aligned with customer convenience and lifestyle,” he noted.

Community support during crises

LDB has consistently demonstrated social responsibility, particularly during national crises and economic hardship. During the severe floods in northern Laos in September 2024, for example, the bank donated 500 million kip to relief efforts in Luang Namtha province. This contribution helped provide food, water, and medicine to affected families, alongside other private sector aid. The action was widely publicised to encourage solidarity (“share heart” campaigns) and exemplified LDB’s commitment to community support.

Beyond emergency relief, LDB contributes to long-term economic resilience. In the aftermath of the COVID-19 downturn, the bank aligned with government stimulus by offering affordable credit. Management notes that LDB worked to ensure businesses “have access to finance at reasonable interest rates” during recovery periods.

The bank also sponsors financial literacy programmes and SME workshops, aiming to strengthen the broader economic base. Internally, LDB maintains employee training, welfare benefits, and corporate volunteering days, reflecting the “social” in its ESG stance.

To sum it up, LDB leverages its financial resources and expertise for social good, whether through targeted funding (flood and pandemic relief), supportive lending to small businesses, or public education on banking. These community-oriented initiatives complement its commercial objectives, promoting goodwill and stability in the Lao economy.

Positioning for the future

The Lao Development Bank, celebrating over two decades of service, has evolved into a key player in Laos’s socio-economic development. Established in 2003 through the merger of two state-owned banks, LDB has consistently worked to restore public confidence, drive inclusive growth, and align its operations with national development goals.

LDB’s transformation goes beyond technical upgrades; it reflects a strategic vision. By expanding its presence in underserved areas, the bank has worked to bridge financial gaps, enhancing economic equity across the country. This expansion is paired with significant investments in digital banking, including platforms like LDB Trust and LDB Biz, which offer services such as digital savings, credit, transfers, and investment management. These innovations have improved banking convenience and accessibility, helping Laos transition to a digital-first economy.

LDB stands out in the competitive Southeast Asian banking market for its holistic approach, integrating technology, forming strategic alliances, and promoting sustainability. Moreover, its involvement in ESG-driven initiatives, including carbon credit projects covering over 2.5 million hectares of forestland, demonstrates a strong commitment to ecological and social responsibility.

The bank’s focus on customer experience is evident in its user-friendly mobile platforms, real-time financial insights, and integration of loyalty programmes, QR-code payments, and digital gold trading. These efforts have created a seamless banking ecosystem that resonates with customers’ evolving needs.

LDB’s strong financial performance, including record profits, a high return on equity, and one of the region’s lowest non-performing loan ratios, underscores the success of its transformation. Its resilience in adapting to disruptions, like the COVID-19 pandemic, demonstrates its solid governance and technological foresight.

“We are well-positioned to lead Laos’s banking sector into deeper ASEAN integration, greater access to global capital, and a rapidly evolving digital economy. Our continued focus on SME financing, green infrastructure, and inclusive banking will shape Laos’ financial future, positioning LDB as a model for emerging market banks worldwide,” MD Douangchai concluded.

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RER’s operational principle is crystal clear: increase trust in the Saudi real estate market, apart from improving transparency and ownership data accessibility, thereby supporting the goals of “Vision 2030” by enhancing the property sector’s efficiency and increasing its investment attractiveness across the markets.

During his interaction with International Finance, Dr. Mohammad Al-Suliman, RER CEO, said, “RER has distinguished itself as an innovative leader in the real estate registration industry. With a strategic focus on digital transformation, customer service centricity, and sustainable development, RER has redefined the standards of property registration to be a trusted partner in the real estate ecosystem by creating sustainable value and transforming ecosystems through customer-centric real estate services and digital solutions.”

“The Kingdom of Saudi Arabia is undergoing a significant transition in all sectors to support a diversified and progressive economy, driven by the objectives of a smart and sustainable future defined in Saudi Vision 2030. The real estate sector is making significant progress to align with this ambitious aim,” the CEO added.

Intending to make Saudi Arabia’s real estate ownership information trustworthy, transparent, and easily accessible, RER aims to build and update a database of all property units within the Kingdom.

“As we construct the register, we will employ PropTech to handle the data in order to provide a range of services that aim to improve the investment and real estate market,” Dr. Mohammad Al-Suliman continued.

RER’s operations are centred around a strategy called “EASE.” Although the word has a different meaning than what is found in English dictionaries, it can be broken down into four operational pillars: E (Enhancing the Foundation), A (Accelerating Core Mandate), S (Sustainable Growth), and E (Ecosystem Partner).

RER sees “EASE” as a form of strategy, which will help it to meet its objectives of ensuring a smart and sustainable future-defined real estate sector under the “Vision 2030.” Under the “EASE Strategy,” RER will align its organisational values and capabilities, along with building trust with the property sector stakeholders, from 2023 to 2025. It will be followed up by “Accelerating Core Mandate,” whether the venture will look to excel in the registry operations, apart from focusing on technology advancement and contributing towards environmental sustainability.

Services and products
RER services in real estate transactions are based on three fundamental principles: efficiency, transparency, and legality. Transparent ownership is required for all units, including public, commercial, residential, and agricultural. The First Registration Service is responsible for establishing this foundation. Presently, the Real Estate Registry diligently documents the present condition of each property on a dedicated page.

The Real Estate Indicators Service offers an alternative solution where RER use generative AI to produce advanced insights tailored to different customers.

Talking about RER’s value-added services and its emphasis on sustainability, the venture is working on building a roadmap to diversify sources of income by investing in the capabilities of the real estate registry.

Among the “Value-Added Services,” we have “Real Estate Transaction,” which is RER’s management of all transactions that occur for the property after completing the first registration and reflecting them in the real estate registry. Followed by “Real Estate Transaction,” we have “Data Monetisation,” which is the optimal investment of real estate data to provide products and services based on accurate data to support decision-making, contributing to raising the transparency and reliability of the real estate sector, designed for all beneficiary groups.

Finally, RER invests in operational, technical and geospatial capabilities to develop innovative solutions and services that provide added value for sustainable growth.

Dedicated technologies
“Incorporating Geographic Information System (GIS) technology is revolutionising the real estate industry in Saudi Arabia. GIS provides a spatial component to the data, improving our capacity to establish and expand a comprehensive national real estate database that will ultimately support the development and structure of the real estate industry in the Kingdom,” Dr. Mohammad Al-Suliman noted.

Since May 2023, RER has implemented GIS to improve the quality of its real estate services by assessing and tracking real estate assets through the registry process using geospatial survey technology and aerial images.

RER’s geospatial approach has become a milestone in the accuracy and availability of real estate information for the organisation. Through the deployment of advanced aerial imaging technologies by RER, critical land ownership details and property boundaries have been captured, thereby improving the transparency and reliability of real estate data for all stakeholders.

RER’s geospatial approach is special in many ways: it has been the first such national project, in terms of covering a vast stretch of land (both urban and non-urban areas). Also, through its “Geospatial Data Management,” RER has established, stored and currently maintains a national cadastral map with an anticipated 8.2 million properties and 3-5 petabytes of data storage. The company has also set up a “National Real Estate Data Map Governance” to execute its “geospatial approach.”

What makes the GIS route special is its ability to add clarity to managing and understanding the spatial aspects of Saudi Arabia’s real estate sector.

“It is a digital map-based platform that enables RER to overlay information such as property boundaries, land usage rights, and infrastructure. This allows individuals and investors to make more informed decisions and streamlines the process of buying even further. Ensure that all stakeholders have access to information about properties and their environs by making property-related data available through interactive maps. Due to the automation of processes like property assessment and land registration made possible by GIS, administrative overhead is reduced and human error is minimised, leading to increased efficiency,” Dr. Mohammad Al-Suliman remarked.

Digital excellence in registration
To its credit, RER has embraced a transformative approach to disrupt the Kingdom’s traditional real estate registration processes, achieved by implementing a user-centric digital model, which emphasises ease of use, efficiency, and accessibility.

By integrating advanced technological solutions, RER has streamlined operations, apart from significantly reducing turnaround times and enhancing overall user satisfaction. These efforts have improved the functionality of real estate registries and established new benchmarks for the real estate sector’s excellence.

“The inception of RER marked the beginning of a new era in property registration, characterised by an unwavering commitment to technological innovation and user experience. By integrating sophisticated digital tools, RER has successfully transformed outdated procedures into a streamlined, transparent, and efficient process. This digital prowess has not only optimised registry operations but also established RER as the new standard-bearer for the industry,” the CEO stated.

Urban development and land management leadership
“RER’s operations have fostered secure property rights, enhanced transparency, and enabled effective urban planning, thereby laying a foundation for economic growth and investment attractiveness. RER’s active contribution to sustainable development is a testament to its dedication to societal advancement and industry innovation,” Dr. Mohammad Al-Suliman commented.

RER has bridged the gap between technological innovation and personalised customer service by establishing a dedicated customer service centre, which offers stakeholders a direct line of communication and assistance, underscoring RER’s holistic approach to customer satisfaction and engagement.
The future of real estate sector

“In the upcoming decade, there will be a prominent shift from the traditional and time-consuming process of real estate registration to a modern and efficient digital system, which offers improved convenience and speed,” Dr. Mohammad Al-Suliman predicted.

This change is crucial for determining the future of the Kingdom’s real estate sector. The RER portal, launched in 2023, plays a significant role in the digitalisation of the Gulf major’s property industry by simplifying the registration process, providing a wide range of property-related services that enhance access to real estate data.

“The primary objective of RER is to guarantee the safeguarding of property rights, streamline interactions, and empower property owners. The RER platform will streamline the process of researching properties and conducting transactions of any magnitude, requiring only a few clicks. This is just a superficial overview of RER’s ambitions to transform the real estate registration process by enhancing user-friendliness, transparency, and efficiency.

The objective of Saudi Vision 2030 is to position the real estate sector as a catalyst for economic diversification in Saudi Arabia. This goal is achievable due to the country’s advanced technology capabilities, robust digital infrastructure, and favourable market regulations,” Dr. Mohammad Al-Suliman said.

Objectives for 2025
In order to advance its mission, RER will focus on advancing geospatial mapping initiatives and expanding coverage across the Kingdom to improve the precision of property boundaries and identification.

“Our goal is to register approximately 80% of the properties in the Kingdom by 2025. A massive undertaking like this will strengthen safeguards for property rights, increase transparency, and create a solid foundation for future economic development and planning. And for this year, we will cover Riyadh and announce more than 4.2 million parcels across the kingdom,” Dr. Mohammad Al-Suliman informed International Finance.

The “Vision 2030” initiative focuses on economic diversification and highlights the importance of digital transformation throughout the economy. In the real estate sector, some of the key objectives include increasing home ownership rates, enhancing service quality, and making investments more attractive. These goals are central to the roadmap’s vision for the future.

“These pillars are undoubtedly consistent with the RER’s goals and efforts to digitise and automate all real estate activities. The ‘EASE Strategy’ is RER’s five-year roadmap for digital transformation. The primary goal of this approach is to streamline operations and improve the real estate experience in the Kingdom through digitisation, automation, dependability, and transparency. In this regard, the RER aims to automate all real estate transactions using its e-platform,” Dr. Mohammad Al-Suliman remarked.

“RER’s ongoing commitment to excellence has shaped the landscape of real estate registration services and demonstrated a profound understanding of its work’s economic and social implications. By securing property rights and enhancing transparency, RER has laid a solid foundation for property ownership that supports economic expansion and boosts investment opportunities. This, in turn, has reinforced RER’s role as a trusted and indispensable partner in the regional development narrative,” he continued.

The organisation’s holistic approach to real estate registration has been pivotal in driving change and delivering value to all stakeholders involved. Through the facilitation of secure property rights, RER has not only empowered landowners but has also provided a stable environment for real estate investments, which is crucial for the region’s socio-economic development.

“Moreover, RER’s proactive stance in adopting the latest technologies and methodologies showcases its leadership in setting industry trends. The successful mapping of an extensive area through aerial surveys is a testament to RER’s innovative spirit and its dedication to precision and quality. The customer service centre initiative stands as an example of RER’s commitment to excellence, ensuring that every stakeholder receives personalised attention and support. This blend of technology and personal service underscores RER’s understanding that while digital transformation is vital, human connections remain integral to its success,” Dr. Mohammad Al-Suliman concluded.

The post RER leads Saudi real estate’s digital revolution appeared first on International Finance.

Despite these challenges, prominent markets in the region—the UAE, Saudi Arabia, Qatar, and Egypt—showed remarkable adaptability and provided strong signals of long-term promise.

This success stemmed from a confluence of factors, including visionary government policies, the pursuit of ambitious “giga” projects, and growing interest from foreign institutional and individual investors. As a result, the Middle East continues to reinforce its reputation as a compelling destination for real estate investments.

Year of resilience and transformation

In 2024, the Middle Eastern real estate sector demonstrated a robust ability to withstand external pressures. Although the broader geopolitical environment could have undermined investor confidence, most key markets in the region were buoyed by stable oil prices, which helped ensure the continuity of major infrastructural developments.

Governments in Saudi Arabia and the UAE capitalised on these stable revenues to fund real estate and related non-oil projects, supporting diversification initiatives that have become increasingly central to national economic strategies.

This was especially evident in Saudi Arabia, where the ambitious diversification agenda called “Vision 2030” encompasses a shift away from a purely hydrocarbon-based economy toward a more multifaceted growth approach.

Rapid urbanisation emerged as an additional factor driving market expansion. Metropolitan areas such as Dubai in the UAE, Riyadh in Saudi Arabia, and Doha in Qatar continued to experience growing populations partly due to a steady influx of expatriates and high-net-worth individuals. These new residents spurred demand for residential as well as commercial real estate.

In Dubai alone, plans are set to develop over 28,700 villas by 2025 to meet the needs of the expanding expatriate population and wealthy global buyers seeking luxury accommodation. Across different cities, a rise in commercial real estate projects supported the growth of multinational and local businesses, while hospitality developments benefited from the revival of international travel and major events.

The Emirati city in January 2025 witnessed the administration approving the implementation of a series of housing projects worth AED5.4 billion (USD 1.5 billion) to benefit citizens across different areas of Dubai.

The projects will see 3,004 new homes being built for Emirati citizens, of which 1,181 units will come up in Latifa City for beneficiaries under the housing loan category. For beneficiaries, the projects envisage 606 new homes in Al Yalayis 5, 432 homes in Wadi Al Amardi, 398 homes in Al Awir 1, 200 homes in the Makan area of Hatta, 120 homes in Oud Al Muteena, and 67 homes in the countryside and rural areas of Dubai.

Despite facing wide-ranging global uncertainties, the Middle East’s major real estate markets stepped into 2024 with a renewed sense of purpose. National diversification agendas, favourable regulatory reforms, and the expansion of mixed-use urban developments all contributed to the sector’s dynamism.

Real estate symbolises national progress and reflects a country’s economic aspirations. Current trends emphasise sustainability, smart city technology, and integrated community living.

The key markets

The real estate landscape in the Middle East includes multiple countries at different stages of economic and infrastructural development. While smaller or emerging markets contribute to the diversity of the region’s property sector, four nations in particular—the UAE, Saudi Arabia, Qatar, and Egypt—have captured international attention with their rapid growth, bold policy moves, and large-scale real estate initiatives.

Each exhibits distinctive features: the UAE showcases its global-city credentials and investor-friendly regulations, Saudi Arabia pushes transformative “giga” projects through Vision 2030, Qatar builds on its post-FIFA World Cup momentum, and Egypt capitalises on a huge domestic market and strategic reforms to attract greater foreign investment.

UAE remained a leading indicator of real estate prowess in the region in 2024, with Dubai in particular achieving new benchmarks in teams of transaction volumes and property valuations.

Knight Frank’s 2024 Global Residential Review noted that Dubai’s real estate market was among the fastest growing in the world, with a 21% price increase and approximately 180,900 transactions totalling AED 522.1 billion (USD 142.1 billion). This performance was attributed to the city’s business-friendly ecosystem, zero personal income tax, and an established global reputation as a hub for finance, tourism, and technology.

A policy milestone that continued to boost Dubai’s real estate appeal was the Golden Visa programme, under which long-term residency permits were issued to tens of thousands of investors, entrepreneurs, and professionals. By 2024, more than 100,000 investors had leveraged this policy to establish or expand their presence in Dubai, injecting significant capital into the property market.

Another essential piece of Dubai’s success story is its emphasis on infrastructure and connectivity. The city’s airports collectively rank among the world’s busiest, while new expansions at Al Maktoum International Airport and enhanced roadway systems reinforced Dubai’s role as a major global transit point.

Sustainability and smart city initiatives have also become integral parts of Dubai’s planning. Under the Dubai 2040 Urban Master Plan, large swaths of the city are being reshaped to accommodate green spaces, renewable energy solutions, and eco-friendly transportation. Estimates suggest that by 2025, over a third of newly constructed office buildings will have LEED certification or similar sustainable credentials.

Meanwhile, major mixed-use developments in areas such as Dubai Creek Harbour and Dubai South are introducing innovative designs meant to foster walkability, efficient public transport, and the integration of retail, residential, and commercial areas.

While Dubai naturally garners much of the publicity, Abu Dhabi—the capital of the UAE—sustains its own real estate expansion by diversifying its economy away from reliance on hydrocarbons. The city aims to become a cultural hub through projects like the Louvre Abu Dhabi, along with significant developments on Saadiyat Island and Al Reem Island.

Taking the game to the next level, the Dubai Land Department recently launched the Smart Rental Index 2025, marking a transformative milestone in regulating and developing the Emirati city’s real estate sector. This index integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market. It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.

Streamlined foreign ownership rules and enhanced regulations have helped draw more international investors to Abu Dhabi, making it an increasingly appealing destination for those seeking returns from luxury and mid-market residential developments.

Saudi Arabia: A giant in the making

Saudi Arabia has been on a clear path of real estate transformation, guided by “Vision 2030.” This national strategy seeks to diversify the Kingdom’s economy, cultivate private-sector participation, and position Saudi cities as world-class destinations for investment and lifestyle.

Substantial investments in the Kingdom’s giga projects, such as NEOM, the Red Sea Project, and Qiddiya, are driving this growth. These developments are not only designed to generate global excitement but also to advance Saudi Arabia’s sustainability and innovation credentials. Mega-scale ventures serve as catalysts for economic diversification, cultural enrichment, and technological advancement.

The residential and commercial aspects of these projects are expected to attract significant attention from institutional investors. They aim to enter the Saudi market early, anticipating future appreciation as these cities and attractions come online.

The government has also introduced incentives to stimulate local housing demand, including subsidised mortgage programmes. Moreover, significant efforts are being made to liberalise aspects of the economy, such as the relaxation of certain social regulations and a push for greater tourism, all of which translate into further real estate opportunities.

Luxury housing is particularly on the rise in Saudi Arabia, spurred by a growing affluent population and expatriates who prefer secure, gated communities and amenities that cater to upscale tastes. Market analysts predict that by 2025, the Saudi residential real estate market might reach a valuation of about USD 1.64 trillion, driven partially by the synergy of ongoing giga projects and progressive social reforms.

Qatar: Building on momentum

Qatar’s real estate sector has continued to build on the legacy of hosting the FIFA World Cup 2022. Although the event was a global showcase for Qatar’s infrastructure capabilities, the country’s real estate market has broadened its focus beyond short-term gains tied to sporting events.

In November 2024 alone, real estate transactions were estimated at QAR 1.14 billion (USD 311.55 million), with Doha, Al Rayyan, and Al Dhaayen municipalities leading in financial value and volume.

Legislative efforts to open the real estate market to foreign buyers have energised demand for properties in specific freehold areas. Luxury developments and integrated city projects such as Lusail City exemplify Qatar’s ambition to develop master-planned urban centres that emphasise sustainability, cutting-edge technology, and a high standard of living.

Legislative efforts to open the real estate market to foreign buyers have energised demand for properties in specific freehold areas. Luxury developments and integrated city projects such as Lusail City exemplify Qatar’s ambition to develop master-planned urban centres that emphasise sustainability, cutting-edge technology, and a high standard of living.

This planned city north of Doha showcases innovations in energy management, urban mobility, and architectural design. Another major locus of real estate dynamism is Education City, which hosts world-renowned universities and research institutions and has spurred demand for quality student housing, commercial facilities, and residential areas that cater to a cosmopolitan population.

Qatar’s tourism sector continues to evolve, supported by high-profile conferences, cultural festivals, and additional sporting events that attract global visitors. The hospitality market has therefore performed strongly, with hotels, serviced apartments, and short-term rentals all benefiting from the country’s drive to expand its global profile.

As Qatar moves forward with its “Vision 2030,” a framework meant to further diversify the economy and modernise the country’s infrastructure, the real estate sector is expected to remain a key channel for foreign investment.

Egypt: A market of contrasts

Egypt stands as one of the largest and most populous Arab countries, making its real estate market a subject of keen interest for local as well as international investors. Even in the face of currency devaluations and inflationary pressures, Egypt’s property sector has shown remarkable tenacity.

The Aqarmap real estate index reported a rise of 39.3% in property prices in the first quarter of 2024, building upon a 22.3% increase in 2023. This trend reflects the gap between a growing need for housing and the available supply in a country where the population now exceeds 100 million.

Legislative changes that loosened restrictions on foreign land ownership have played a significant part in sustaining market momentum. Foreign investors keen on affordable entry points see Egypt as an opportunity, especially in emerging areas of New Cairo, the coastal city of Alexandria, and new resort developments along the Red Sea.

On the other hand, the devaluation of the Egyptian pound has weakened domestic buying power, leading to disparities in who can afford property. Despite these currency-related challenges, the sheer scale of demand—driven by high birth rates, continued urban migration, and government-led infrastructure projects—points to steady growth over the long term.

Initiatives such as the development of a New Administrative Capital and expansion along the Suez Canal corridor serve as examples of Egypt’s commitment to reshaping its urban landscape.

Trends shaping the future

Across these diverse markets, several emerging trends promise to influence real estate trajectories in the Middle East. One prominent theme is the focus on luxury real estate. Dubai, for instance, reported a surge in high-end property transactions by 62% during 2024, with prices per square foot often topping AED 3,200.

Upscale developments in Saudi Arabia resonate with affluent buyers who favour opulent villas, advanced security features, and lifestyle amenities. The increased flow of expatriates and tourists, along with relaxed ownership regulations, further supports this segment.

Sustainability and technology-driven innovations are increasingly integral to how Middle Eastern cities are being designed and managed. Projects like Saudi Arabia’s NEOM and Abu Dhabi’s Masdar City highlight the region’s determination to pursue green building standards, advanced energy solutions, and smart city technologies.

The goal is not merely environmental responsibility but also the attraction of global investors who integrate environmental, social, and governance (ESG) principles into their portfolios. Meanwhile, local authorities are encouraging sustainable construction by implementing stricter building codes and providing incentives for LEED-certified developments.

The hospitality and tourism sector has also regained momentum, with short-term rentals becoming more popular in places like Dubai, Riyadh, and Doha. The occupancy rates in short-term rental properties saw an upswing, especially as global travel curbs eased and the region continued to host marquee events and conferences.

Regulatory frameworks in the UAE and Saudi Arabia have introduced guidelines for short-term rental platforms to ensure quality control, safety, and taxation compliance, which in turn strengthens investor and tenant confidence.

Further boosting market vibrancy is the rapid adoption of technology in real estate services. Investors and potential buyers can now conduct virtual tours of properties, complete remote paperwork, and make digital payments. Governments are likewise exploring blockchain solutions for property registration to enhance transparency and reduce fraud.

PropTech start-ups have proliferated, particularly in the UAE and Saudi Arabia, offering specialised platforms for property management, crowdfunding, and AI analytics that help developers optimise pricing strategies and building design.

Forecast for 2025

In 2025, the Middle East’s real estate market is expected to continue expanding. The UAE, with Dubai and Abu Dhabi at the forefront, may see price growth of between 5% and 8% for residential properties, with prime locations experiencing even higher margins due to sustained interest in luxury living.

Saudi Arabia’s drive to achieve “Vision 2030” milestones should reinforce the long-term trajectory of large-scale developments like NEOM and Qiddiya, drawing high-level corporate relocations and new waves of international tourists. Analysts project an annual growth rate of around 1.64% in Saudi Arabia’s residential sector, culminating in a market worth around USD 1.64 trillion.

Qatar’s Lusail City and other major projects tied to Qatar National Vision 2030 will continue attracting both FDI and residents seeking modern, amenity-rich neighbourhoods. The country is keen to preserve the momentum generated by the FIFA World Cup 2022, thus focusing on diversifying its entertainment, cultural, and business event offerings.

Even Egypt, despite its macroeconomic challenges, is on track for steady growth thanks to an ever-present need for housing in a rapidly increasing population. Foreign investors see a combination of comparatively low costs, reform-driven policy shifts, and a robust tourism scene as incentives to enter Egypt’s market.

Although macroeconomic factors, particularly oil prices and global monetary policies, could influence the pace of real estate transactions, collective confidence in the Middle East’s prospects remains evident. As other regions grapple with uncertainties tied to inflation, recession risks, or political upheavals, the Middle East stands out for its strategic policies aimed at diversification and openness to foreign capital.

Strategic considerations for investors

Investors interested in the Middle East’s property market can consider various strategies. One approach is to diversify across multiple countries and asset classes, spreading risk through exposure in luxury and mid-tier residential developments, office complexes, hospitality ventures, and retail.

Another consideration is to stay consistently informed about policy changes, as decisions around foreign ownership, visa regulations, and tax incentives can significantly shift market dynamics quickly.

Sustainability is growing in importance, and developments that meet or exceed green building standards tend to attract a more globally conscious clientele and are seen as future-proof in an era increasingly shaped by ESG considerations.

Technological advancements should also feature prominently in any long-term plan, as blockchain-based property transactions, AI-driven analytics, and the rise of PropTech startups will reshape how developers, brokers, and buyers interact.

While certain geopolitical factors could always alter the outlook, the overall expectation is for a steady march of growth, backed by megaproject announcements, progressive economic policies, and the region’s robust cultural and commercial ties to both East and West.

From the attention-grabbing developments in Dubai and Abu Dhabi to the transformative giga projects in Saudi Arabia, from the post-World Cup expansions in Qatar to the large-scale housing demands of Egypt, the region presents a vivid tableau of real estate evolution. Governments have embraced modernisation, sustainability, and international best practices at a scale that few other parts of the world can match.

The outlook for Middle Eastern real estate remains optimistic, underpinned by a constellation of positive indicators: supportive government policies encouraging foreign investment, strong population growth in key cities, ambitious infrastructure ventures that connect and enhance urban environments, and ongoing technological leaps shaping how property is built, marketed, and managed.

Sustainability efforts are gaining traction in every major market, a direction that not only addresses environmental concerns but also aligns with the preferences of a growing class of conscientious global investors.

Potential geopolitical developments and external economic variables still present challenges, but the region’s dedication to resilience and long-range planning has repeatedly proven its capacity to overcome hurdles.

As a result, analysts envision more record-breaking transactions, the arrival of cutting-edge architectural marvels, and deeper commitments to green, tech-savvy communities across the Middle East.

This blend of innovation, strategic foresight, and cultural evolution keeps the Middle East firmly in the global spotlight. From ultra-luxury beachfront towers in Dubai to futuristic urban experiments in Saudi Arabia’s NEOM, and from the growing modern cityscapes of Doha to the sprawling developments around Cairo’s New Administrative Capital, the market continues to provide fertile ground for visionary developers, astute investors, and an increasingly sophisticated pool of local and international residents.

As 2025 unfolds, these intersecting forces are set to shape one of the most dynamic and resilient real estate arenas on the planet, ensuring that the Middle East remains a critical focus for global property stakeholders well into the future.

The post Middle East: The real estate empire appeared first on International Finance.

His Highness Sheikh Abdul Aziz bin Humaid Al Nuaimi, the Chairman of the Department of Land and Real Estate Regulation, while interacting with International Finance, noted the role of the wise leadership that stands behind this exceptional renaissance thanks to its unlimited support and comprehensive proactive vision that aims to develop all strategic and vital sectors and enhance the global position of the Emirate of Ajman as a prosperous modern city and a strategic hub for business and investment.

He explained that the Department of Land and Real Estate Regulation is keen to build its vision and plans according to innovative methods and visions based on the needs of its clients and addressing all their requirements, in addition to enhancing the culture of creativity and innovation and upgrading the government work system to keep pace with the rapid pace of development witnessed by the Emirate of Ajman, especially in the real estate sector, as it is a basic driver of the wheel of economic growth.

Ajman’s meteoric rise

The Chairman of the Department of Lands and Real Estate Regulation told International Finance that the Emirate of Ajman possesses all the global components and specifications that make it a fertile environment for real estate investment and a safe destination for investors of all categories and needs, due to the promising opportunities and exceptional competitive facilities it provides.

He also stressed that the strategic objectives of the Department of Lands and Real Estate Regulation revolve around improving the investment environment of the region’s property sector and contributing to economic growth by enhancing competitiveness in property registration. The Department’s goal is simple: to empower the real estate sector’s competencies as an important element, so that it can emerge as an effective partner in anticipating the region’s economic future and draw the features of the investment map as per that.

“The Department is doubling its efforts to highlight the tremendous investment components and capabilities that the Emirate possesses, especially in the real estate sector, and promoting promising projects and diverse investment opportunities that Ajman provides to investors,” HH Sheikh Abdul Aziz bin Humaid Al Nuaimi told the International Finance.

As of August 2024, Ajman’s real estate market has continued its upward trend, recording 1468 property transactions in July with a total value of over AED2 billion, a growth of 42.85% year-on-year. The Emirate is witnessing a strong momentum and a remarkable increase in the number and volume of transactions given the diversity of investment opportunities and the attractiveness of the business environment. As per His Excellency Eng. Omar bin Omair Al Muhairi, Director-General of Ajman’s Department of Land and Real Estate Regulation, the volume of transactions during July reached AED1.34 billion, with Al Rashidiya 1 neighbourhood recording the highest sales value of AED80 million.

As per the department, it recorded 280 mortgage transactions totalling AED489 million, with the highest mortgage value of AED75 million recorded in the Ajman Industrial 2 area. The Al Helio 2 area topped the list of most traded neighbourhoods, followed by Al Zaheya and Al Yasmeen, while Emirates City topped the list of most traded major projects, ahead of Ajman One and City Towers.

HH Sheikh Abdul Aziz bin Humaid Al Nuaimi informed the business publication that the Emirate has recorded major successes in various sectors, particularly real estate which is keeping pace with the comprehensive renaissance witnessed by the Emirate thanks to prudent insights of leaders like HH Humaid bin Rashid Al Nuaimi, Member of the Supreme Council, Ruler of Ajman, and HH Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, Director of Executive Council. The strategic brilliance displayed by these personalities is paving an excellent future for the Emirate, apart from consolidating the region’s position as an attractive destination for real estate investment.

Important policy reforms

While talking about Ajman’s real estate success story, HH Sheikh Abdul Aziz bin Humaid Al Nuaimi cited the facilities and success factors provided by the emirate to investors and their projects, and its flexible legislative environment that is investment-friendly. Then there are elements like ease of registration procedures and swiftness completion of transactions, in addition to the advanced modern infrastructures provided by the Emirate.

For example, the Department of Land and Real Estate Regulation has begun a comprehensive building classification project across the Emirate from July 2024. This three-month initiative is assessing the compliance of buildings and real estate facilities with international standards and regulations.

A team of qualified professionals is conducting on-site inspections and assessments as part of the classification process. The department will develop an electronic programme to publish the findings transparently, which will further lay the groundwork for classifying the buildings according to international standards and specifications.

Given the critical role the real estate sector is playing in the Emirate’s economy, with a significant increase in commercial property investments in 2024, the requirement of the classification becomes crucial to uphold the quality of services, apart from assisting investors in making informed decisions when it comes to renting or purchasing properties in Ajman.

In May 2024, the Department of Land and Real Estate Regulation in Ajman completed 169 real estate valuation processes totalling over AED 729.5 million. Director of Real Estate Registration Ahmed Khalfan Al Shamsi highlighted that the valuation encompassed commercial, residential, industrial, and agricultural properties, with commercial properties leading the way at AED 437.2 million, marking a 197% increase from April 2024. Industrial properties followed with a total value of AED 148.45 million.

“The Emirate’s Real Estate Growth reflects the confidence of investors in Ajman as a leading investment destination, enhances the solidity of the Real Estate sector in it, and reflects the success of the strategy of the Land Department and Real Estate Regulation aiming at providing an integrated and distinguished business environment for investors of all categories,” HH Sheikh Abdul Aziz bin Humaid Al Nuaimi commented.

He explained that the Ajman Real Estate Investment Exhibition which was held last February, contributed directly and positively to stimulating the performance of the real estate market and high results of the first half of 2024, pointing out that the exhibition witnessed the conclusion of 336 property transactions with a total value of AED 195.8 Million, which reflects the confidence of investors and the attractiveness of the sector given the huge investment potential and potential possessed by the Emirate, its promising projects, the various opportunities it offers to investors, as well as Ajman’s distinguished and central location between the Emirates, and last but not the least, its flexible laws and legislations which contributes towards attracting investment, in addition to the diversity of models offered in the property market. The residential and commercial projects also provide easy financial access for foreigners to purchase and own properties by up to 100%.

While praising the efforts of his department, HH Sheikh Abdul Aziz bin Humaid Al Nuaimi stressed the need to continue working and concert efforts of everyone in order to preserve the gains achieved so far and improve the performance level to ensure sustainable excellence within the framework of an innovative and integrated work system centred on customer satisfaction and happiness.

He also appreciated the department for obtaining a five-star rating according to the international star system for service classification and winning the Ajman Award for Government Excellence in the category of the best comprehensive experience for government services, stating, “This achievement embodies the vision and ambition of the wise leadership keen to achieve leadership and excellence in various fields and promote and consolidate the culture of creativity and innovation to foresee the future and invest in building the human being for a more prosperous and stable tomorrow.”

HH Sheikh Abdul Aziz bin Humaid Al Nuaimi also pointed out the importance of adopting innovation to achieve breakthroughs supporting the department’s endeavours towards achieving sustainable excellence, and enhancing the levels of satisfaction and happiness of customers, with the need to adopt modern methods in dealing with customers’ feedback, hearing their opinions, and ensuring their effective involvement in improving the level of services, and building a strong and integrated relationship, in line with the Department’s objectives and plans.

On supporting young Emirati competencies and integrating them into the Real Estate field, he said, “As much as we are interested and keen to support investors and entrepreneurs, we attach utmost importance to the human element and believe in the need to invest in our young energies and empower them to be an effective element in our future development plans.”

HH Sheikh Abdul Aziz bin Humaid Al Nuaimi also spoke highly about the “National Broker” initiative, which is eyeing to enhance the performance of the Ajman real estate market, apart from upgrading the brokerage profession by adopting the best practices in this vital field, which the department attaches utmost importance to and strives to develop according to a well-studied scientific methodology that has been carefully developed to ensure high-quality results and outputs that reflect the department’s orientation towards empowering and qualifying Emirati youth, developing their skills and enhancing their culture related to real estate trading laws and procedures followed to practice property-related brokerage activities and supporting these individuals as entrepreneurs and investors, as they have the potential to help UAE in achieving its future economic goals.

HH Sheikh Abdul Aziz bin Humaid Al Nuaimi further stressed that the Land Department and Real Estate Regulation has harnessed all means and ingredients for success for most of its ambitious programmes and purposeful initiatives, which witnessed a turnout that exceeded expectations due to the number of registration applications received, as well as facilitating positive interaction by participants from different community and age groups.

He also pointed out that Emirati women also benefited from this initiative and had the opportunity to enter the real estate market and prove their efficiency and ability to contribute to the renaissance of this sector, stressing that the wise leadership succeeded in providing a supportive and encouraging environment for women and made them an active element in the process of renaissance and development and was keen to empower them and encourage them to shine and succeed in various fields and disciplines.

While stating that senior citizens received exceptional attention and treatment from the department for their special and important position in the UAE society, HH Sheikh Abdul Aziz bin Humaid Al Nuaimi noted that the achievements and successes registered so far will not be completed without ensuring the satisfaction and happiness of all customer segments, in line with the directives of the wise leadership of providing all the care and facilities they deserve, providing all facilities and simplifying the procedures for obtaining government services to ensure a better experience and enhance their comfort and happiness, and especially their quality of life.

He continued, “The initiative “Natanalak” is one of the most important initiatives launched by the Department, as it comes within an integrated package of services directed to the customers of the Department of various segments and the diversity of their requirements, the initiative has received a welcome and approval among senior citizens, which we saw during field tours and visits to those concerned at their residence, where these visits were a favourable opportunity to meet them and get to know their needs closely and write down their ideas and visions about the future of services, mechanisms and ways they prefer to complete their transactions.”

The chairman also expressed his happiness that the department obtained the classification of leadership in the field of maturity of institutional resilience, according to the assessment of the International Organisation for Institutional Resilience “ICOR,” dubbing it as the fruit of the directives issued by the wise leadership, while emphasising the excellence of the department and its continuation of the growth march in various aspects, especially strategic leadership, while setting the ability to respond and adapting to changes as a crucial success recipe.

The department has succeeded so far in applying the thumb rules of the global maturity model for institutional resilience, as it was able to strengthen its organisational infrastructure and proved its full readiness to manage risks effectively and innovatively, stressing the department’s keenness to develop its operations and raise the efficiency of institutional performance under the highest international standards and in line with the accelerated pace of the real estate sector in the Emirate of Ajman.

Future of Ajman’s real estate sector

Meanwhile, the Ajman administration has contracted the consultancy JLL to come up with a strategy to help make the emirate’s property market a highly competitive one. JLL, which has a longstanding presence in the UAE, will also help with creating new ways by which the region’s real estate can be both operationally successful and sustainable.

This is part of the emirate’s broader push to bring in more investments into its economy, particularly on the real estate side.

“The results of the study will contribute to drawing a roadmap for the future of Ajman’s real estate sector,” said a statement from the government’s Department of Economic Development.

“JLL’s research, expected to be completed by the end of the first half of this year, will provide a diagnostic vision of Ajman’s capabilities, and result in setting a development road map for the future of this pivotal sector,” said Saeed Humood Saeed, Director of the Ajman Competitiveness Office at the Department of Economic Development.

The JLL plan will also focus on the chances for Ajman to top its hospitality sector by way of new investments.

“We are committed to developing the potential of the tourism sector by enhancing competitiveness and creating innovative investment opportunities,” said Mahmoud Khalil Al Hashimi, Director-General of Ajman Tourism Development Department, as he continued, “We believe this partnership (with JLL) will contribute significantly to building a system that enhances the attractiveness of Ajman as a distinguished investment destination on the international scene.”

The post Ajman: Emirates’ new ‘Modern City’ appeared first on International Finance.

There is also a lot of anticipation for the altcoin season when scores of other coins are expected to peak in value. Many revolutionary technologies in the decentralised currency, apps, and finance protocol ecosystems that are in development could radically alter the way we interact with each other.

Blockchain and subsequent technologies have been at their core working towards decentralisation and moving power away from behemoth financial institutions like central banks and toward common folks such as ourselves worldwide. The promise has always been an escape from a government-controlled environment to more democratic, peer-to-peer-regulated systems.

This hope of freedom remains strong in the cryptocurrency movement. However, there is pushback from governments around the world that aim to use blockchain technology to consolidate even more power by developing digital currencies (Central Bank Digital Currencies, or CBDC) issued by their respective central banks.

Blockchain is a double-edged sword that you can use to either decentralise and democratise or centralise and wield unlimited power, just as you can harness atomic energy to power megacities and annihilate human civilisations.

What is CBDC?

CBDCs are central bank-issued digital currencies that complement cash rather than replace it. In a CBDC world, the wallet holder can easily transfer each virtual currency unit’s digital code to other people’s digital wallets.

These digital currencies, unlike “traditional cryptocurrencies,” are not decentralised; central banks issue them instead of independent entities like Bitcoin. Theoretically, the value of CBDCs would be as stable as the fiat currency of the country issuing them, unlike other crypto assets that can experience significant fluctuations.

Furthermore, different countries are testing a variety of CBDC strategies. The Eastern Caribbean is implementing DCash, an account-based concept that is one kind of CBDC. Customers maintain direct deposit accounts with the central bank through DCash.

China’s e-CNY, a CBDC pilot programme, is at the other extreme of the spectrum. It is up to private-sector banks to provide and manage digital currency accounts for their clients. In 2022, China will present e-CNY at the Beijing Olympic Games. The money was usable for purchases made within the Olympic Village by athletes and visitors.

The European Central Bank is also considering a different model, in which authorised financial institutions run individual permissions nodes on the blockchain network to facilitate the issuance of virtual euros. To preserve user privacy, the last model, well-liked by “cryptophiles” but not thoroughly tested by central banks, distributes fiat currency, government-issued money unbacked by a commodity, as anonymous fungible tokens.

Some 87 countries, or more than 90% of the world’s GDP, are exploring the possibility of CBDCs. Let’s take a deeper look:

Launched in June 2022, the JAM-DEX from Jamaica is the first officially recognised CBDC as a legal tender. There are no sophisticated use cases (such as cross-border payment for smart contracts) and the offering is somewhat basic. Unlike the Bahamas’ Sand Dollar and the Eastern Caribbean Central Bank’s DCash, Jam-Dex is not based on blockchain technology.

Nigeria introduced eNaira in October 2021, becoming the first nation in Africa to implement a CBDC.

Africa’s Sub-Saharan region is about to embrace CBDCs. The extensive adoption of the mobile money transfer service M-PESA has created a robust financial and social framework for the possible future application of CBDCs.

The central banks of Saudi Arabia and the United Arab Emirates collaborated to create Project Aber. This project explored the use of a jointly issued digital currency as a tool for domestic and international payments between the two nations.

Why are governments pursuing CBDCs?

Some proponents of blockchain technology believe that new digital instruments, like CBDCs, may solve problems with efficiency, security, and accessibility that plague the current physical infrastructure and alternate cryptocurrency assets. Money is expensive to print and some cryptocurrencies, such as Ethereum, have exorbitant gas fees (transaction fees) that aren’t viable for day-to-day transactions. CBDC enthusiasts (mostly big tech and banks) believe centralised digital currencies are the answer.

Among the frequently cited benefits are:

Lower Operational Costs: Financial service providers can potentially reduce their yearly direct costs by $400 billion by allocating funds toward digital banking instead of physical infrastructure. However, we must weigh the lower costs against the substantial new technology investments that CBDCs would require.

Faster Transactions: The electronic payment systems in many nations could operate more quickly and effectively thanks to CBDCs. As we’ll see below, this argument is becoming less persuasive.

Improved Accessibility: The percentage of US adults without bank accounts is less than 5%, whereas the global unbanked population was 1.6 billion in 2016. Mobile-accessible CBDCs have the potential to improve financial inclusion. Additionally, mobile money gives digital financial service companies access to untapped areas. But adoption isn’t a given; a lot of underbanked individuals could prefer the complete secrecy that cash provides.

Increased Safety: Implementing a regulated digital currency accessible through mobile devices may improve payment security and lower the likelihood of fraud by guaranteeing a complete and irreversible transaction, even in the absence of a formal bank account. Users may be able to “sign” transactions digitally through the controlled use of private-key cryptography. This would boost the confidence of all stakeholders and expedite the transaction’s completion.

Interoperability: For those who are unaware, some argue that blockchain interoperability holds the key to resolving the disjointed and compartmentalised characteristics of blockchains. Without external intervention, blockchains cannot communicate with one another because they are trustless systems. Cross-chain solutions can be helpful. Cross-chain solutions facilitate the smooth transfer of data between blockchains. Users of defi protocols and dApps practically need to interact with cross-chain solutions, as many of the most significant and fascinating projects currently exist outside of platforms like the Ethereum L1 blockchain.

Currently, blockchain interoperability is fragmented and incompatible. Many rival interoperability efforts compete with one another to become the most successful, resulting in customised cross-chain products with differing levels of security and reputation that ultimately serve only to manipulate the blockchain environment. One of the biggest ironies of blockchain technology is that various cross-chain solutions are still incompatible with one another. Even worse, this incompatibility makes it more difficult for consumers, businesses, and authorities to evaluate the security of each choice, endangering the general acceptance of blockchain technology.

According to some, a common interoperability framework is the answer.

One project cannot be responsible for ensuring blockchain compatibility. There must be an industry-wide initiative. We need to come together and establish once and for all how we want to send, receive, and verify data from another blockchain rather than taking an “everyone for himself” approach.

Adopting a common framework for interoperability might jeopardise the viability of the economic models behind ongoing interoperability projects. Instead, it would merely serve as the framework for an extremely secure layer of basic infrastructure, atop which individual projects might construct products that incorporate various trade-offs specifically designed for certain use cases. This distinction is what matters.

CBDC utilisation and development

Many nations’ central banks have started research projects and pilot programmes to ascertain if a CBDC would be useful and viable in their respective economies.

The first nation to enact a CBDC was the Bahamas. It intended to improve financial inclusion for its 700 island-dwelling citizens, some of whom have restricted access to ATMs and banking services, so it introduced the Sand Dollar in 2020.

As of March 2024, the Bahamas, Jamaica, and Nigeria were the three nations with operational CBDCs. For technical reasons, the Eastern Caribbean Currency Union suspended its CBDC and launched a new trial programme.

Nineteen of the G20 have programmes under development, while 36 CBDC pilots are now in operation. A CBDC is being considered by the BRICS nations: Brazil, Russia, India, China, and South Africa.

The United Kingdom’s Britcoin, which was in existence from 2011 to 2019, is one instance of a CBDC endeavour that was unsuccessful.

The United States is one of the nations investigating whether a CBDC “might improve on an existing safe and efficient U.S. domestic payments system,” according to the Federal Reserve.

When it comes to the authoritarian use of technology, China is always ahead. It has outlawed private cryptocurrencies, but the nation has experimented with virtual money. The Central Bank of China (PBOC) has developed the most sophisticated market application of CBDC to date. Private-sector banks are required to distribute and manage these accounts for their clients under China’s CBDC e-CNY pilot programme.

In late 2019, PBOC began testing e-CNY for use in consumer lifestyle applications such as shopping, transit, government services, and wallet-based payments. After starting in four cities, the pilot programme swiftly spread to five more. By May 2022, the e-CNY pilot had processed 260 million transactions totalling over 83 billion yuan through 4.5 million merchant wallets.

Proponents claim China’s CBDC experiment revealed the following possible advantages. To use e-CNY, you do not need to have a bank account. Six approved state-owned banks offer digital wallets that customers without an account can download and use. CBDC, like blockchain-based cryptocurrencies, allows users to authenticate themselves with banks using personal digital fingerprints. By doing this, banks avoid doing business with unreliable parties, which may prevent them from becoming involved in fraud and other illegal actions like money laundering.

Banks may save money using CBDC to reduce transaction reporting and monitoring costs. At the same point of time, it could be feasible for e-CNY to simplify the allocation of subsidies, like employee transportation.

However, it is important to see how China’s social credit system and CBDC go hand in hand to have absolute control over the populace. With CBDC, the government can monitor each individual’s transactions in real-time, and it can even control spending limits and what one can buy with their money. Because of this, CBDCs are a source of fear for many in the tech and economic circles.

Battle for the soul

We are witnessing an epic struggle for the very spirit of the financial system, even though the fighting is mainly silent and hidden from the public eye. Central banks are considering replacing the bank-issued digital currency that consumers use daily with publicly issued digital currency. This could significantly alter and weaken the financial system’s stability.

Fear of losing in a growing arms race often drives government decisions. If another central bank introduces a more appealing form of exchange, no one wants to deal with falling demand for their currency or soaring withdrawals from their financial institutions. However, the rush to get ready for the economic equivalent of military mobilisation could create a highly unstable international order that undermines monetary authority.

The digital currency of central banks (CBDC) might be in several formats. Some versions might be harmless, but the most extreme, one that is widely accessible, elastically supplied, and interest-bearing, can cause unsettling changes in the financial system, erode the availability of credit, and jeopardise privacy.

The financial system that exists now is the result of several factors that came together over the last century. First, authorities obstruct the issuance of private paper money by combining harsh taxes with outright prohibitions. Governments grant licences to private intermediaries, typically commercial banks, so long as the liabilities issued by the latter are convertible into liabilities of the central bank on an equal footing. Last but not least, the private sector manages the retail payments system for the rest of us, while the central bank oversees the wholesale payments system for banks.

All of this indicates that almost everything that people consider to be money in our day and age is a commercial bank’s digital liability. For instance, demand and time deposits, which are digital entries on bank ledgers, make up 97% of the overall amount of M3, or 144% of GDP, in the United Kingdom, where the total quantity of M3 is 148% of GDP. In the euro region, 91% of M3 is digital. Furthermore, in China, 96% of broad money, which accounts for over 200% of GDP, is digital.

Most people are unaware of this, as Bank of England Deputy Governor Jon Cunliffe pointed out in a recent lecture. When they buy groceries, buy a new phone, or renew a software subscription, they are unaware that their bank is creating digital money for them. Crucially, we can depend on this system because the central bank provides the necessary framework.

Authorities genuinely pledge to turn specific bank liabilities into the means of exchange, the liquid, safe asset known as reserves, under as many different global conditions as they can to accomplish this. Experience tells us that under most global conditions, central banks dedicated to price stability are better able to accomplish this than private entities. We depend on this framework, in Cunliffe’s words, to “tether private money to the public money issued by the state.”

Central banks are moving forward, frequently citing goals like monetary policy execution, financial inclusion, and payment efficiency. Two more significant drivers are visible. First, there is a desire to stop the issuance of private monetary instruments like Libra (now Diem) and replace cryptocurrencies like Bitcoin. Governments, on the other hand, have extensive experience with these private currencies and can either apply harsh taxes or outright bans when they come to light. The second is FOMO or fear of missing out. Central bankers want to ensure that they can issue CBDC as soon as others do. This, in our opinion, leads to instability, since, theoretically, a sudden and unexpected incident can prompt several central banks to quickly mobilise their digital currencies to avoid falling behind.

This brings up some important information concerning CBDC. Before releasing retail digital currency, a central bank must decide on several design elements. Is this an instrument for anonymous bearers? Will a person’s holdings be subject to quantity restrictions? Is it only available to citizens of the issuing jurisdiction to hold? Will it also have 0% interest, like paper money?

We are aware of the solutions to these queries regarding paper money. It is an anonymous-bearer instrument. The supply is elastic enough to permit, in most cases, the limitless conversion of certain bank obligations at par into the medium of exchange. Everyone has the option of using paper money. It also has no interest.

The CBDC’s likely characteristics are also readily apparent. CBDC must maintain its anonymity to avoid promoting illicit activities. For CBDC to truly serve as a substitute for paper money, its distribution must be flexible. People may store an infinite amount; lacking such an opportunity, bank obligations may not convert into CBDC on an equal basis. Limiting citizens’ possessions is an example of capital controls that are foolish and unworkable. Lastly, we observe two justifications for CBDC’s need for interest. First, we believe that a central bank paying interest on commercial banks’ reserve deposits but not on individual deposits is politically untenable. Second, in its absence, authorities would be unable to reduce nominal interest rates below the effective lower bound.

Four major issues arise from inventing such a “universal” CBDC: disintermediation, currency replacement, lack of privacy, and the impossibility of guaranteeing compliance. On the first hand, financial strains would eventually force uninsured deposits to leave private banks for the central bank, even though inertia (along with interest rate rises and service enhancements) would keep money in the banking system for a while. Furthermore, these inflows will come from highly reputable central banks, based in rather stable political and financial environments. Imagine what would happen if the Fed gave universal, unlimited accounts, given the current high overseas demand for US paper money. The implications might be disastrous for emerging markets and developing economies.

Privacy and compliance are the last two linked difficulties that arise from CBDC’s non-anonymity. Everything we do on the first day becomes traceable. Although we do not support free banking or libertarianism, we do agree that there are significant risks associated with giving governments access to this kind of in-depth data on our daily activities. It is therefore difficult to understand why democratic nations would consent to such a concentration of power.

Moving on to compliance, someone will need to put in the effort to make sure CBDC users follow the law. These KYC and anti-money laundering initiatives are expensive. Nowadays, we outsource these responsibilities to commercial banks. In addition, banks offer a wide range of other services. Who will pay the price, and who will carry out this task?

The establishment of an intermediated CBDC is one method of addressing privacy and compliance concerns. Under this arrangement, banks or brokers manage individual accounts, protect customer privacy, oversee compliance, and aggregate balances into central bank accounts (which are likely to generate interest). Despite this strategy, the dangers of currency substitution or domestic disintermediation remain. Even so, money would continue to enter the central bank indirectly, through what are essentially narrow banks.

In light of this, it is easy to understand why the People’s Bank of China is developing a digital renminbi before other central banks. Even during a financial crisis, there is little chance of disintermediation because most of the big banks are state-owned. Strict capital controls currently impose significant restrictions on currency inflows. Expectations of personal privacy are already low. Last but not least, state-owned banks can readily finance access if the government so chooses.

Returning to the original query: In what areas is the current monetary system deficient? We respond that, independent of new digital currencies from central banks or private issuers, there is a great deal of room to enhance the payment system and increase financial accessibility.

Both the public and private sectors are already making efforts to offer retail payment systems that are more affordable, quicker, more dependable, and easier to use both domestically and internationally. The TIPS system, for instance, costs €0.002 per transaction and has a processing time of 10 seconds in the euro region. Furthermore, the US Federal Reserve plans to introduce FedNow in 2023; the UK has faster payments; and Canada is trying real-time rail (RTR). None of these initiatives advocate for CBDC.

In terms of financial accessibility, India’s example is useful. Launched in 2014, the Pradhan Mantri Jan Dhan Yojana (PMJDY) uses the nation’s universal biometric personal identity to save expenses and offer free basic bank accounts. Account balances average almost $50 for the approximately 420 million users brought into the system. Once more, subsidies were necessary for India’s success—not the issuance of CBDC.

All of this makes us worried. To be clear, we are ardent supporters of technologies that raise welfare and save costs. However, the most significant innovations, those that enhance credit availability and payment infrastructure, do not necessitate ubiquitous CBDC and its associated dangers. Why, then, are central banks working so hard to get ready? Why would someone make such a plan for contingencies?

We don’t see any simple ways to stop this unfavourable result. The cooperative equilibrium in which no one introduces CBDC is difficult to enforce, much like in a traditional prisoner’s dilemma. First, central banks cannot promise that they will never issue CBDC. Second, others now believe it is too late to oppose China’s move toward the CBDC; even though they are fully aware of the dangers, they feel obliged to prepare.

The best chance may be in the central banks, all moving extremely cautiously and working to “get the design right.” That, in our opinion, entails going considerably beyond universally available, elastically supplied, interest-bearing CBDC.

Taking everything into consideration, we conclude that issuing universally accessible, elastically supplied, interest-bearing CBDC is a foolish move on the part of central banks. On a domestic level, it might displace private middlemen by enticing authorities to direct credit through direct deposit inflows into the central bank. An elaborate collateral and haircut system would be required, which would significantly increase officials’ power over credit distribution even if the central bank were to re-circulate the funds to potential lenders through an auction process.

Worldwide, there might be a tidal wave of money moving from areas seen as less stable to those seen as safe, which would increase inequality and the power of the wealthy receivers. And lastly, privacy. Although this issue might be solvable, the fact that CBDC grants access to all of our activities would undoubtedly entice totalitarian regimes.

For now, Federal Reserve Chair Jerome Powell’s words are of some reassurance: “We would not want a world in which the government sees, in real-time, every money transfer that anyone makes with a CBDC.”

The post CBDCs: Threat or Opportunity? appeared first on International Finance.

The group, which was established in 1991, currently operates in several sectors including construction, specialised contracting, water and power, facility management, manufacturing, MEP solutions, technology, and investment in public-private partnerships (PPPs). As the Kingdom sets its eyes towards the goal of ensuring a well-diversified economy by 2030, AlBawani Holding is set to play a crucial role in implementing the roadmap.

Knowing the venture in detail

“The past three decades have seen our business grow from a modest civil-works firm into a fully ledged general contracting corporation with a sizable portfolio, strong financial position, and a significant presence in a broad range of industries. Indeed, our construction division is now among the five largest operators in the country. What’s more, our unwavering focus on excellence has earned us a Class-1 business ranking in Saudi Arabia,” the venture told International Finance.

Till November 2023, the venture has completed over 260 projects, apart from building long-term partnerships and in that process, earning the trust and loyalty of its clients. AlBawani Holding currently has over SAR 9 billion worth of ongoing projects. The company has a 15,000-strong workforce, with each of them being a specialist in different industrial verticals.

The group believes in adhering to international standards and developing rigorous quality management systems in its business sectors. The company has also established rigorous procedures to ensure the safety of its personnel, minimise errors and deliver the projects within the time and budget.

At the core of AlBawani Holding’s business practises, resides world-class engineering, administrative, and technical practises, supported by cutting-edge technology and integrated support services.

“We are now investing in the future so that we can introduce the latest technology and knowledge to the Kingdom. This will allow us to harmonise with the objectives of Vision 2030: a striving economy, a vibrant society, and an ambitious nation,” the venture stated further.

AlBawani’s mission is to provide the best innovative contracting and services in EPC (Engineering, Procurement and Construction), Energy, Water, Technology and Light Industry, apart from achieving sustainable growth through its investment arm. Keeping the ‘Vision 2030’ in mind, AlBawani will lead sustainable growth in the Kingdom by creating the best value for its clients, investors, employees and Saudi society, while sticking to the group’s core values such as quality, safety and health, innovation, ethics and culture, sustainability and people-centric relationships.

How the company works

AlBawani is known for bringing complex and logistically challenging projects from the drawing board to reality. Through the deployment of a 6000-employee-strong workforce across the infrastructure projects, the venture delivers its commitment towards ensuring quality and safety.

“Our global network of construction resources facilitates the effective mobilisation of skilled construction teams and advanced methodologies around the world. AlBawani has extensive experience with local considerations and managing culturally diverse workforces,” the venture commented further.

The company often engages clients to support start-up and commissioning activities. The group responds to the challenge by developing a detailed ‘Project Commissioning Manual’ early in the engineering phase that outlines the client’s and AlBawani’s approach and methodology to implementing continuous commissioning and turnover.

AlBawani’s specialists are veterans in the field of construction execution methods, including constructability, skill certification, industrial relations, modularisation, and welding services. These professionals deliver input into the construction range, enhancing manufacturing activities and proposing cost-saving ideas during all project phases.

AlBawani integrates complete construction competence during the various project implementation phases.

“When executed at the front end of a project, this expertise enhances performance throughout all project execution phases. Skilled planning and execution supports the efficient use of just-in-time inventory and can hasten the project schedule,” the venture noted.

AlBawani practises advanced construction approaches on its projects, apart from acquiring labour through carefully selected subcontractors with a verified history of safety performance, execution excellence and commercial success. The focus remains on constructability, performance engineering, welding, and software systems.

AlBawani also preserves a database of craft personnel with both local and global project experience. From this pool, craft personnel get assigned to the construction projects based on experience and availability. The company also supports the needs of construction projects for entry-level through the upgradation of craft and supervisory training and skill certification, while using the materials developed specifically for the construction industry.

Also, the venture maintains a deep assurance of the field employees’ health and safety, apart from safeguarding the environment. Its quality programme is ISO 9001:2008 certified. The programme applies to both self-perform and project administration construction work. A quality manager is assigned to each project and is accountable for the execution and coordination of the quality programme.

In addition to construction services, AlBawani implements a complete Health, Safety & Environmental (HSE) programme on every project it executes. Safety, be it that of the project or the field teams associated with it, occupies a significant chunk in AlBawani’s business practises, as it believes that “positive execution of complex projects can be achieved only with a healthy and safe workforce of employees, subcontractors and client personnel.”

“AlBawani’s engineering, procurement and construction projects are construction-focused. We confirm a smooth transition from process development and optimisation-driven execution defined by the study phases, to a construction and start-up-driven execution platform defined by engineering, procurement and construction phase,” the group remarked further.

“AlBawani thinks first and foremost about fulfilling project construction. Then we work backward, framing how to get materials to the various sites. After this, AlBawani determines how and where to drive engineering,” it added further.

AlBawani tailors its solutions as per the Clients’ requirements, while bringing ideas from engineering disciplines like civil, electrical, mechanical, piping and structural into the play, apart from onboarding advanced specialities such as simulation, enterprise integration and integrated automation processes.

The venture also collaborates with its client counterparts to develop integrated construction and project management solutions. From the earliest stages of project design, AlBawani involves the construction and commissioning teams to provide capital and schedule efficiencies.

“Our clients rely on AlBawani for accurate and timely design reviews. We conduct design reviews at key project stages to ensure consistent, efficient focus on the clients’ deliverables throughout the design process,” it added further.

AlBawani’s BMF Reviews (Buildability, Maintainability and Functionability Reviews) earned its fame for highlighting, addressing and resolving issues early in the design process for an efficient design and construction process, apart from minimising overall project cost.

Keeping the need to meet clients’ objectives for throughput capacity and quality of output as the primary project design goal, AlBawani, during the detailed engineering and design phase, develops plans to ensure that the designs reflect client requirements and facilitate the construction of facilities meeting the client’s strategic objectives.

Each project’s function, scope, cost and schedule get conceptually aligned with client objectives to optimise project success, while ensuring the improvement in the client’s return on investment.

During the design phase, AlBawani gets proactive, in terms of providing effective building solutions, and identifying challenges to mitigate design changes after construction commencement. This involves detailed pre-construction planning, which allows the client and AlBawani project team to form a clear roadmap for the bidding process, construction phase, and completion deadlines.

Diversification is the game here

Be it building a network of schools under the Kingdom’s ‘National Schools Programme’, completing terminal-related works under Riyadh Airports Company Private Aviation or implementing the ‘Red Sea Tourism Project’, you name any sector, AlBawani is there to turn the dream into a reality.

AlBawani has been bringing tailored engineering solutions to as many as 14 non-oil industrial verticals within the Kingdom. AlBawani is now expanding its network of affiliated companies in other fields like information technology and communication systems, trading, media and publishing, electro-mechanical, steel and metal fabrication, industrial and investments.

From water and power utilities, automation, avionics, defence technologies, specialised manufacturing services (like in-house precast, casework, ducting, steel fabrication, aluminium and woodworks factories), facility management or managing a diverse portfolio of highly profitable investments, AlBawani has been aggressively diversifying its company portfolio, while leading the Saudi’s diversification efforts with full vigour.

AlBawani has made a significant investment in new equipment, and the company now has over one thousand heavy assets in its fleet including heavy machinery, cranes, trailers, light vehicles, and power tools. Also, it is now expanding its operations in countries like China, Turkey and the UAE.

AlBawani’s growth plans

As part of its growth plans, the AlBawani group has adopted a wise expansion strategy covering energy and mining, apart from increasing investment in assets which will be offered through state funds, and governmental and private projects.

AlBawani’s board of directors is also considering selling a stake in the company through an initial public offering (IPO) in the coming years.

“Driven by a steadfast commitment to fostering sustainable growth, AlBawani Holding Group is actively considering an initial public offering (IPO) to make a portion of its shares available for public subscription in the near future. We are open to any strategic initiative that can further enhance the group’s value and propel its growth trajectory. As a leading national enterprise, AlBawani Holding Group is determined to play a pivotal role across diverse sectors and establish itself as a formidable competitor for global players,” AlBawani Holding CEO Eng. Fakher AlShawaf elaborated.

“Since its inception, AlBawani Holding Group has navigated a course through significant challenges, and has emerged as a firmly established entity – a testament to its unwavering determination, unflinching dedication, and tireless efforts. Moreover, the steadfast support of the Saudi government has been instrumental in empowering national companies to assume pivotal roles, thanks to the launch of numerous infrastructure projects and legislative reforms,” he added.

Eng. Fakher AlShawaf emphasised the transformative impact of Saudi Vision 2030 in propelling the kingdom to a prominent global position. He underscored AlBawani Holding

Group’s commitment to aligning its strategies with the successive short- and long-term growth plans outlined in the vision.

“This proactive approach has enabled the group to successfully execute a multitude of large-scale projects across the kingdom,” he stated further.

A partnership with the Saudi government-backed Public Investment Fund (PIF) also represents a unique opportunity for the AlBawani group to leverage the Fund’s vast expertise and the opportunities it presents, thereby elevating itself as a pioneering diversified conglomerate within the MENA (Middle East and North Africa) region and beyond, while consistently delivering exceptional services and value to its clients, employees, and the society at large.

Eng. AlShawaf also noted the PIF’s crucial role in the Kingdom’s construction sector, considering its paramount importance to the country’s economy. He also added that the Fund’s investments would play a pivotal role in the realisation of ‘Vision 2030’ and its ambitious projects.

He sees the construction sector’s significant role in the evolving dynamics of the Saudi economy.

As the Kingdom has the goal of becoming one of the global economic powerhouses by 2030, its construction sector is facing the challenge of executing diverse projects on a sheer scale never seen before. The answer lies in engaging companies possessing the necessary expertise, planning skills, preparedness, and effective leadership to navigate the complexities and deliver exceptional results. AlBawani perfectly sits in the bracket, as its construction division AlBawani Construction Company (ABCC) is consistently demonstrating its ability to complete large-scale projects in a cost-efficient manner, while meeting the highest quality standards.

Among the ongoing key development projects in the Kingdom, a majority of them are centred around real estate, Eng. AlShawaf said.

These include initiatives led by the Ministry of Housing and its affiliated companies, as well as flagship programmes like Neom, The Red Sea Project, and Qiddiya.

The Kingdom is poised to attract a plethora of construction and investment projects. Talking about a project as diverse as Neom, AlBawani has successfully executed the assignment given to it by the Saudi government.

These large-scale initiatives span various domains and position the kingdom as an attractive destination, Eng. AlShawaf elaborated, while stating that AlBawani, through its various company divisions, is getting involved in these projects.

In the investment sector, the venture is currently holding significant assets in partnership with the government. Eng. AlShawaf also talked about AlBawani’s successful operation of the Jubail III water treatment plant in collaboration with other Saudi investors.

“Furthermore, we have embarked on the first educational infrastructure project in conjunction with the Ministry of Finance, the National Centre for Privatisation (NCP), and Tatweer Buildings Company (TBC). The first phase of this project has already been completed in Jeddah, with assets affiliated with the educational buildings in Makkah set to be delivered by the year-end. We intend to enter into several long-term ownership agreements, extending up to 22 years, with various agencies, and in coordination and collaboration with various AlBawani group companies,” the official added further.

Talking about AlBawani’s involvement in health sector projects, Eng. AlShawaf noted that the privatisation of the sector will attract substantial investments. His venture, apart from completing projects in this realm, has emerged as one of the leading specialised companies in this field.

AlBawani, as of November 2023, has a big-ticket project in hand in the form of establishing American electric vehicle maker Lucid’s factory in the Kingdom, which is also one of the largest EV production facilities outside of the United States. AlBawani completed the construction of the first phase of the factory in a record time (in less than two years), as the facility was inaugurated on September 27, 2023.

The company began construction of the Lucid factory’s first phase in May 2022. The future phases will consist of many buildings across the EV venture’s 1.3-million-sq-m campus plot at the King Abdullah Economic City (KAEC).

AlBawani has also established the National Construction Academy (NCA), a non-profit national training institute. The facility has already commenced the training of 500 students, which will be increased to 1,000 in the upcoming session.

AlBawani, in collaboration with another technical institute, will expand the scope of training and introduce new specialisations that can cater to the needs of the 21st century construction and contracting industry.

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