The document discusses factors to consider when evaluating locations for a new residential development project in KSA or UAE, including infrastructure, regulations, market demand, and transportation access. It provides an example of the Al Safa neighborhood as an ideal location for development in Riyadh, Saudi Arabia. Finally, it outlines Saudi Arabia's Vision 2030 economic plan and three major real estate projects - NEOM, the Red Sea Resort, and Qiddiya Entertainment City - that are being developed to diversify the economy away from oil.

1. COLLIERS – CANDIDATE COMPETENCY TEST
Mohd Abdul Samad Kidwai
kidwaisamad@gmail.com
+91 9696966942/8795787137

2. IDEAL LOCATION IN KSA/UAE FOR DEVELOPING A NEW
RESIDENTIAL APARTMENT COMPLEX
Factors to consider before finalizing the location:
 Location assessment
 Adequate availability of floor area ratio
 Suitable regulatory and land zoning norms
 Distance from the various business districts of the city
 Availability of mass public transport, connecting different parts of city with the location
 Availability of social infrastructure already in place (hospital, school, retail complexes etc.)
 The ongoing market occupancy rate in the existing apartment buildings of the micro market
 Demand and supply analysis (projections of upcoming other development projects in the area) of the
subject micro market

3. EXAMPLE OF AN IDEAL LOCATION IN KSA
The best residential area in Riyadh for development is Al Safa. Located in the central part of the city and
has a lot of potential for growth. The area is also well-connected to other parts of the city, making it an
ideal place to live in and develop.
There are many reasons why Al Safa is an ideal residential location in Riyadh.
 It is centrally located within the city, making it convenient for residents to get around
 Home to many amenities and facilities that make everyday life easier, such as supermarkets, schools,
parks, and hospitals
 It is a relatively safe and clean neighbourhood, which is important for families with young children
 The prices of properties in Al Safa are relatively affordable, making it a great option for those on a
budget
There are many other potential areas for development in Riyadh, including:
 The Diplomatic Quarter
 The Financial District
 The City Center
 King Abdullah Financial District
 Riyadh Park

4. VISION 2030 & 3 IMPORTANT REAL ESTATE GIGA PROJECTS
The Saudi Vision 2030 is a long-term strategic plan that was unveiled by the Saudi Arabian
government in April 2016. The plan outlines the Kingdom’s goals and aspirations in terms of
economic development, social reform, and global engagement.
The main objectives of the Vision 2030 are to reduce Saudi Arabia’s dependence on oil, diversify the
economy, create more jobs, increase the amount of renewable energy used and become a global
investment powerhouse
 To achieve this, the Vision outlines a number of key initiatives, including:
 Diversifying the economy away from oil
 Developing a strong private sector
 Investing in human capital
 Creating a vibrant society
 Enhancing governance
The implementation of Vision 2030 is already underway and is being overseen by the Saudi
government’s Council of Economic and Development Affairs. So far, several reforms have been
introduced, including measures to encourage foreign investment, reduce bureaucracy, and support
the development of small businesses.

5. NEOM
It is the most prominent giga project in the world and is anticipated to be the largest private sector
investment in the history of the KSA. The giga project is a $500-billion initiative announced by the
Saudi Arabian government in 2017.
The project will span 26,500 square kilometers and will be located in the northwestern corner of the
KSA, on the Red Sea coast.
The giga project will include a mix of residential, commercial, industrial, and agricultural zones, as
well as a major investment in renewable energy.
The project is expected to create up to 1.3 million jobs and contribute $380 billion to the Kingdom's
GDP by 2030

6. RED SEA RESORT
The giga project is a vast and ambitious plan to develop Saudi Arabia's Red Sea coastline into a
major global tourism destination.
The project includes the construction of a huge artificial island, a luxury hotel and residential complex,
an international airport, a shopping mall, a marina and a range of other infrastructure.
The aim is to attract visitors from all over the world to experience the natural beauty of the Red Sea
and its coral reefs, as well as the modern facilities and amenities on offer. Project is still in its early
stages, when completed, it could transform KSA’s economy and position the country as a major
player in the global tourism industry.

7. QIDDIYA ENTERTAINMENT CITY
The Qiddiya Entertainment City 2030 is a proposed mega project in Saudi Arabia that seeks to build
the world’s largest entertainment city.
The project is expected to cost over $8 billion and will be located near the Saudi capital, Riyadh. The
project is expected to attract over 50 million visitors per year and will act as a catalyst for the
development of the tourism sector and create approximately 35,000 jobs during construction and
70,000 jobs upon completion.
The Qiddiya Entertainment City 2030 will span over 33 square kilometers and will feature a variety of
attractions, including theme parks, water parks, museums, an aquarium, a safari park, and much
more.

8. IMPACT OF THE GROWTH OF ONLINE RETAIL TO HAVE ON THE
REAL ESTATE INDUSTRY IN KSA?
The growth of online retail in Saudi Arabia is expected to have a positive impact on the real estate
industry.
Online retail is changing the way consumers shop and impacting the way retail space is used. This is
resulting in a shift in demand for retail space, with a preference for more convenient locations. This is
having an impact on the types of properties being developed and the way retail space is being used.
The demand for warehouses and distribution centers is expected to increase, as well as the need for
retail space in areas with high internet penetration.

9. NAME OF THE SAUDI REGULATOR FOR REAL ESTATE
VALUATION?
Saudi Authority for Accredited Valuers (Taqeem) is the pre-eminent valuation institution in the
Kingdom of Saudi Arabia.
Since its inception in 2012, Taqeem has put in place the requisite regulatory, licensing, standard-
setting and academic framework aimed at advancing the valuation profession and raising public trust
and confidence in the profession.
The considerable value of the assets is (or will be) underpinned by valuations, to be undertaken by
accredited valuers regulated by TAQEEM – be they for sale or purchase, loan security valuations,
government grants, feasibility studies and development.

10. HOW TO EVALUATE A VACANT PLOT OF LAND IN A PRIME
LOCATION IN RIYADH?
When evaluating a vacant plot of land in a prime location in Riyadh, Saudi Arabia, you will need to
consider the following factors:
 The size of the land
 The location of the land
 The zoning of the land - commercial use land will be worth more than land that is zoned for
residential use
 The current market value of land in the area
If the land is already developed, this will also increase its value.

11. HOW TO EVALUATE IF THERE WERE NO COMPARABLES
AVAILABLE?
There are a few ways to value land without sales comparables. The most common methods are:
 Cost approach - which estimates the value of the land by its replacement cost. This approach is
most accurate when the land is undeveloped or has few improvements. This method is often used
when there are no recent sales of similar properties in the area.
 Income approach - which estimates the value of the land by its potential to generate income. This
approach is most accurate when the land is developed and has a significant income-producing
potential.
The value of land is based on what an informed, willing buyer would pay for it in its highest and best
use.

12. INVESTMENT VALUATION BASED ON THE PROVIDED
SCENARIO:
Please refer to attached excel sheet in email