Wednesday 23 October 2024

#Muscat. #Oman, Urban Design Plan in Contrast to #Dubai and #AbuDhabi - Bloomberg

Muscat. Oman, Urban Design Plan in Contrast to Dubai and Abu Dhabi - Bloomberg


A new master plan for Muscat, Oman, could see the city become notably denser, greener and better connected by public transportation.

The proposal, developed by urbanists Broadway Malyan, aims to help the sprawling coastal capital of 1.4 million adapt by 2040 to a series of challenges: a fast-growing population, an economy diversifying beyond oil, and climate change-fueled risks of extreme weather.

Still in the process of approval — although it’s backed by Oman’s Housing Ministry — the plan seeks to imagine a different form for Gulf urbanism than that of neighbors Dubai and Abu Dhabi: compact, more mid-rise than high-rise, and with a greater place for nature within the city.

Muscat’s location means it faces specific challenges, some of them geographical. The capital of a country whose roughly 4.5 million inhabitants are heavily concentrated on the coast, Muscat is located on a narrow strip between mountains and the sea. As a result the city has grown along a linear corridor-like layout, where neighborhoods follow each other like wagons on a train. This has created a polycentric city where travel times from one end to the other can be lengthy — up to 160 minutes during morning peak hours — encouraging residents to stay closer to home.

Despite its austere beauty, this narrow site also poses environmental challenges. It is crisscrossed by 14 wadi systems — riverbeds that are dry or merely moist during most of the year in Oman’s tropical desert climate, but which can swell dramatically during the summer rainy season. This makes large parts of the city vulnerable to inundations — 45% of the land area to floods from the wadis and 20% from high tides. The intensification of extreme weather has made flood management an essential component to future-proofing the city; in May 2024 extraordinary floods killed 17 people across Oman. The landscape has further encouraged a fragmented urban structure, where development stops and starts depending on terrain.

Setting a New Course
The Omani capital of Muscat is planning for a very different future from that of nearby Dubai and Abu Dhabi.

Until recently, the site has posed few problems. While the city is ancient — it was mentioned as an already important port in the first century — Muscat only surpassed 100,000 residents in 1979 and 500,000 in 1994. A modest population meant distances remained manageable and building land still easily available. So easily available, in fact, that a right to land ownership has been written into national law.

Any Omani man over 23 — and many but not all Omani women — are theoretically entitled to a free plot of land of up to 600 square meters (6,458 square feet) to build a house on. While getting a plot now requires a long wait for allocation by lottery, and many remain unbuilt, the archetypal Omani dream has still remained not apartment living but a single-family villa. Although Muscat has some densely built areas, these are usually seen as less desirable places to live, populated mainly by lower-income expats who are also the primary users of the city’s limited public transport system.

For Muscat to stay competitive, these habits will need to change. By 2040, the population will reach 2.7 million. Continuing sprawl would leave its urban area unmanageable, inefficient and lacking in sustainability.

Denser development, public transportation, bans on greenfield building and a system of parks are the key tools the master plan employs to break these patterns. A 55 kilometer (35 mile) light rail system shadowing the coast will provide a new spine for the city, tunneling through the rocky slopes that divide Old Muscat from the western bulk of the city, which is home to the international airport and luxury resorts such as a five-star St. Regis resort on the Gulf of Oman. Rapid transit buses will provide a parallel east-west link further inland. New denser development will be encouraged along the light rail, with mid-rise apartment buildings flanking the line intended to preserve mountain views.

The government is already buying up land along this spine that would allow Muscat to re-center by developing its “missing middle” — an underused area that lies between the old city and current development hotspots near the airport. At the heart of this will be a new waterfront development from Zaha Hadid Architects, where a rising string of towers curling out into the harbor would be the city’s one major concession to high-rise construction. Meanwhile, the existing downtown area of Ruwi, a lively but somewhat neglected space, will be regenerated to make it more of a magnet for people across Greater Muscat.

The new plan is as much about restricting construction as encouraging it, however. To discourage further sprawl, a no-build zone will be instated in the city’s mountain foothills and in its far west, a still largely unbuilt area destined to function as a future “green lung.” Green zones in areas at risk of floods are also being marked out.

“We’ve done a lot of flood mapping,” says Broadway Malyan’s Director of Urbanism Phil Bonds. “Broadly speaking, we’ve tried to keep all development away from zones at risk of flooding up to 50 years from now. In these zones, there’s an element of wadi-taming that needs to happen to make them more resilient and livable, but we want to avoid culverting as much as possible.”

Instead, some wadi systems will be planted with vegetation and nourished with recycled wastewater that would otherwise end up in the sea. The new tree and bush cover would provide seams of parkland through the city and likely retain enough water to self-sustain without irrigation. The city will also get some more leisure space from a revamped waterfront promenade, which has a string of beaches that are currently underutilized.

Such goals fit neatly within what is currently considered good urbanism. Whether they are delivered is a question for later, with many master plans elsewhere ending up more aspirational than binding. One strength is the plan’s coordination of projects already partly underway. A feasibility study for the light rail was delivered in August 2024, while construction should begin on the new waterfront district by the end of this year. The plan’s best chance of being fully implemented, however, is that it should end up paying for itself several times over. “When we costed the plan,” Bonds says, “we calculated that for a $19 billion investment, they’d end up with a $50 billion uplift.”

#UAE lender ADCB posts 23% rise in Q3 net profit, beats estimates | Reuters

UAE lender ADCB posts 23% rise in Q3 net profit, beats estimates | Reuters

Abu Dhabi Commercial Bank (ADCB.AD), opens new tab beat forecasts with a 23% rise in third-quarter profit on Wednesday helped by factors such as a jump in fee and commission income.

The UAE's third-largest bank by assets reported a net profit of 2.39 billion dirhams ($651 million) for the three months to Sept. 30, up from 1.94 billion a year earlier.

That topped the 2.09 billion expected by analysts, LSEG data showed.

($1 = 3.6728 UAE dirham)

Most Gulf markets in red on heightened regional tensions | Reuters

Most Gulf markets in red on heightened regional tensions | Reuters


Most stock markets in the Gulf ended lower on Wednesday as geopolitical tensions in the region depressed sentiment, while corporate earnings failed to lift investor mood.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, weighed down by a 1.4% slide in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 0.9% decrease in Al Rajhi Bank (1120.SE), opens new tab.

The International Monetary Fund further lowered its GDP growth forecast for Saudi Arabia for 2024 to 1.5% and estimated growth to accelerate to 4.6% next year in its latest World Economic Outlook Report released on Tuesday.

Gulf stock markets were predominantly in negative territory, as geopolitical tensions in Middle East continued to weigh heavily on market sentiment, said Hani Abuagla, Senior Market Analyst at XTB MENA.

"Additionally, a potential decline in oil prices could also affect the market."

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.2%.

Oil prices - a catalyst for the Gulf's financial markets - fell after industry data showed U.S. crude inventories swelled more than expected, though futures were still up about 2% this week as traders factored in continuing conflict in the Middle East.

Dubai's main share index (.DFMGI), opens new tab gave up early gains to close 0.1% lower, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 1.8%.

In Abu Dhabi, the index (.FTFADGI), opens new tab declined 0.5%, hit by a 2.1% slide in the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab.

However, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab concluded flat despite reporting a sharp rise in third-quarter profit.

The Qatari index (.QSI), opens new tab declined 1.5%, as most of its constituents were in negative territory including the Gulf's biggets lender Qatar National Bank (QNBK.QA), opens new tab, which retreated 2.8%.

Shifting expectations around how fast and deep the Federal Reserve will cut rates have also hurt risk sentiment, with traders now anticipating the U.S. central bank to be measured in its easing.

Monetary policy in the Gulf Cooperation Council, which includes the UAE, often aligns with the Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was flat.

#Saudi Arabian economic growth to accelerate in 2025 as oil taps open: Reuters poll | Reuters #UAE #Qatar

Saudi Arabian economic growth to accelerate in 2025 as oil taps open: Reuters poll | Reuters

Economic growth in Saudi Arabia will accelerate next year thanks to higher oil output after two years of modest performance, according to a Reuters poll of economists, who also forecast robust growth for other Gulf Cooperation Council (GCC) states.

The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, has been curbing oil output since late 2022 but is expected to increase production in December, likely boosting revenues for the six GCC countries.

Crude oil prices are expected to remain broadly weak and average $76.75 per barrel next year, up from around $74.8 currently, according to a separate Reuters poll.

Saudi Arabia, the world's largest exporter of crude oil, is reportedly preparing to abandon its unofficial target of reaching $100 per barrel. This will allow the kingdom to reverse past production cuts and increase market share, which along with non-oil revenue growth, will help drive faster economic growth.

The Oct. 9-22 Reuters poll of 21 economists forecast the Saudi economy would expand 4.4% in 2025, the fastest in three years, and up from an expected 1.3% this year.

The GCC economies were forecast to expand an average 4.1% next year, up from the 3.7% expected in a July poll and faster than the 1.8% growth projected for 2024.

"We expect the effects of lower oil prices and higher production volumes (to) largely (offset) each other. Since growth is focusing on produced volumes, real GDP growth will still benefit and accelerate in 2025 relative to 2024," said Ralf Wiegert, head of MENA economics at S&P Global Market Intelligence.

Prominent economies in the region, Saudi Arabia, the United Arab Emirates, and Qatar, have been exploring ways to diversify from relying on oil as their main revenue source, with many economists predicting the growth rate in non-oil GDP will be largely in line with oil GDP next year.

"However, oil revenues will play a critical role for all of the three economies. Even in the long-term outlook, non-oil revenues will be unable to replace oil revenues," Wiegert said.

The UAE economy is expected to be the fastest growing in the region at 4.9% next year, up from 3.7% in 2024. Qatar economic growth is projected to accelerate to 2.7% in 2025, up from 2.1%.

"The UAE's economy will be the star performer in terms of economic growth in 2025. If OPEC+ is set to open the taps up, the UAE will stand to gain more as it has had its base oil output quota raised twice without being able to take advantage of that," said James Swanston, economist at Capital Economics.

"Qatar and the UAE are further along in their diversification efforts and are better placed in a world approaching peak oil demand. In particular, UAE has a much larger non-oil economy and, exemplified by Dubai, is able to sustain tourism, financial services, and not rely as much on oil."

In the rest of the GCC, growth expectations for Bahrain, Kuwait and Oman for next year are projected at 2.8%, 2.5% and 2.8%, respectively, versus 2.8%, -1.3% and 1.6% in 2024.

Inflation, which has remained stable in the region, is poised to stay subdued with median forecasts ranging from 0.8% to 3.0% for this year and next.

ADIA to invest $750 mln in debt of India's GMR Group | Reuters #AbuDhabi #UAE

ADIA to invest $750 mln in debt of India's GMR Group | Reuters

Abu Dhabi Investment Authority (ADIA), the UAE's largest sovereign wealth fund, will invest about $750 million in the debt of India's GMR Group, giving it a foothold in one of the world's fastest-growing aviation markets.

The investment will also allow the Indian company to reduce the pledged shareholding on its airports business.

ADIA has invested in structured debt instruments of a unit of GMR Enterprises (GEPL), the holding company of GMR Group. GMR Enterprises owns a roughly 25% stake in GMR Airports (GMRI.NS), opens new tab.

The funds will be used to refinance all external debt of GMR Enterprises, which is looking to lower its pledge on the shareholding of GMR Airports "significantly", GMR Group said in an exchange filing.

GMR Enterprises' total debt had increased nearly 4% year-on-year to 44.77 billion rupees ($532.5 million), according to its latest annual report.

"This investment from ADIA will facilitate the repayment of all external debt at GEPL, strengthening our ability to support the continued growth of GMR Airports," said GMR Group Corporate Chairman Kiran Grandhi.

India's domestic passenger traffic is expected to double to 300 million by 2030.