The second oldest conference in the CPI Industry events portfolio returns after several years on the back of a much-felt need for a dedicated, multilateral HVAC conference that looks at all disciplines under one roof, as contributing to socio-economic and sustainable development
targets in the Kingdom of Saudi Arabia and the broader GCC region.

With Saudi Arabia undergoing sweeping changes (see side-bar: The Kingdom: A vibrant real estate market), with mega-projects to match, the aim of the conference is to look in-depth at project finance; regulatory frameworks; legal structures; HVAC systems; pre-design, design, construction and installation strategies; digital-inclusiveness; testing & commissioning; and O&M approaches that can ably support the developments and be part of an integrated eco-system that results in smart cities, and an enhanced and sustainable standard of living

Inherent in the discussions will be:

  • Regulations governing air conditioning in Saudi Arabia
  • Financial modelling of HVAC and broad construction projects
  • Legal structures (application of FIDIC, drafting of contracts, dispute-resolution)
  • Total Cost of Ownership (TCO): The HVAC industry as an ally of building owners across
    multiple sectors (healthcare, hospitality, education, aviation, commercial real estate, residential, industrial)
  • Integrated project development mechanisms to achieve the desired outcomes of cost-effective, reliable and environmentally friendly air conditioning in the Kingdom at a fundamental level
  • Innovations to match the needs of unique linear cities and futuristic objectives


What’s making the real estate in Saudi Arabia tick in 2023

According to a 2023 Deloitte Report, the Saudi real estate market is poised for further growth. The report, covering hospitality, residential and commercial space and industrial segments, predicts positive outlook for 2023.
The report, titled ‘9th Annual Middle East Real Estate Predictions 2023’, reveals the recovery, post-COVID-19, of tourism in the Kingdom of Saudi Arabia, with the key indicators within the hospitality sector being the increase over the past year in occupancy and average daily rates (ADR). The report also highlights the growth in residential sales as well as the rise of rent prices of commercial office space. The significant growth of Saudi Arabia’s gross domestic product (GDP) is making it among the most attractive global destinations for investors.

Stefan Burch, Partner and Head of Real Estate, Deloitte Middle East, said: “As global economies fully re-open post pandemic, we predict continued growth in the Saudi Arabian real estate market throughout 2023. Growth is set to be driven by robust spending across a wide range of government initiatives as well as a strong private sector that is responding to pent-up levels of demand for good quality real estate projects. While 2022 saw record levels of demand for commercial office space, as a result of ‘Programme HQ’, 2023 looks set to be dominated by the delivery of high-quality residential-led mixed-use schemes and a continued focus on tourism, leisure and entertainment projects.”

Oliver Morgan, Partner and Head of Development in Deloitte’s Real Estate team, in the Middle East, said:“2022 has been a prosperous year for residential investors, who had a tough time looking back at more recent trends in Dubai. In Saudi Arabia, there continues to be excess demand across all residential sectors, with more volume housebuilders competing for market share and to differentiate their product. Riyadh, and Dubai, continue to be attractive commercial markets, as occupiers search for growth away from the Far East and Europe. Investment in infrastructure, plus evolving retail and F&B offers, are a social marketer’s dream which continue to draw record levels of tourists to both locations.”

Saudi Arabia’s real estate performance has been wonderful. The country’s GDP grew by 8.6% in Q3 2022
and is expected to have grown by 8.3% in Q4 2022, before moderating to 3.7% and 2.3% in 2023 and
2024, respectively, according to the World Bank. The post-COVID recovery of the real estate sector is led
by increasing tourist demand and government spending on infrastructure projects, such as the Riyadh Airport expansion, among others. The first three months of 2022 were the strongest for occupancy performance in Riyadh, reaching 76% in March 2022. Meanwhile, Jeddah hotels recorded the highest occupancy performance in May 2022 at 59%.

Sales prices for villas and apartments have increased during the first nine months of 2022, in comparison to 2021, and the demand for apartments from Saudi nationals has remained strong.

Employment forecasts from Oxford Economics indicate the Financial and Business Services segment
registered a year-on-year growth of 12% in Saudi Arabia.

The Economist Intelligence Unit (EIU) estimates that the total retail sales volume in Saudi Arabia has
increased by approximately four per cent in 2022, with sales expected to increase by two per cent a year, on average, between 2023 and 2026.

Rents have remained relatively stable for prime industrial stock due to the limited availability of international-grade warehouse facilities and the increasing demand from logistics companies.