CBRE, JLL looking to move into Saudi Arabia

The Gulf nation is diversifying its economy in the face of low oil prices

TRD LOS ANGELES /
Feb.February 03, 2016 10:00 AM

Major commercial property firms including Downtown L.A.-headquartered CBRE, as well as JLL are looking to build up their presence in Saudi Arabia as low oil prices force a shift in the country’s economy away from its traditional focus on energy exports.

CBRE has gotten preliminary approval to do consulting work in the Gulf nation, and is in talks with a prospective partner on the ground, looking to set up brokerage, valuation and property management services, the Wall Street Journal reported.

JLL has an “aggressive expansion plan” for the kingdom, having doubled its headcount in the country over the last two years, Jamil Ghaznawi, who heads the firm’s Saudi office, told the Journal.

One major reason for the companies’ push is persistently low oil prices, which have prompted Saudi Arabian officials to propose sweeping changes in the country’s economy.

“The oil prices shock is almost forcing a rebirth and creating a whole new economy, which is attracting the interest of global businesses,” Faisal Durrani, head researcher at Cluttons, a London-based property consultation, told the Journal.

Revenues from oil exports make up about 55 percent of Saudi Arabia’s GDP, and as much as 90 percent of its federal budget. With crude oil prices hovering around $30 a barrel, the Saudi government is pushing the economy’s privatization and diversification, including into real estate.

“Some of the reforms that are being proposed will bring a level of modernization to Saudi Arabia, especially the real-estate sector,” CBRE’s Nicholas Maclean, “We feel the opportunity is bigger than ever now.” [WSJ]Ariel Stulberg


Related Articles

arrow_forward_ios
An illustration of Airbnb's Chief Executive Brian Chesky

Los Angeles No. 1 in country for Airbnb, other short stay rentals

Los Angeles No. 1 in country for Airbnb, other short stay rentals
CBRE CEO Robert E. Sulentic, and Keller Williams Founder Gary Williams with the Lantana property

Keller cries foul: Brokerage sues CBRE over WeWork lease deal

Keller cries foul: Brokerage sues CBRE over WeWork lease deal
Three office buildings in the Pasadena Collection

Swift pays $193M for Pasadena office portfolio

Swift pays $193M for Pasadena office portfolio
A rendering of West End

GPI scores $120M construction loan for Westside Pavilion

GPI scores $120M construction loan for Westside Pavilion
Kodo in Koreatown

Just built, just sold: CGI Strategies finds buyer for new Koreatown rental complex

Just built, just sold: CGI Strategies finds buyer for new Koreatown rental complex
JLL’s “corrupt” culture enabled “securities fraud” and sexual harassment, broker alleges in lawsuit

JLL’s “corrupt” culture enabled “securities fraud” and sexual harassment, broker alleges in lawsuit

JLL’s “corrupt” culture enabled “securities fraud” and sexual harassment, broker alleges in lawsuit
Movers & Shakers: JLL hires tenant rep specialist, CBRE brings in new valuation leader

Movers & Shakers: JLL hires tenant rep specialist, CBRE brings in new valuation leader

Movers & Shakers: JLL hires tenant rep specialist, CBRE brings in new valuation leader
Red-hot industrial market plateaued toward end of 2018: report

Red-hot industrial market plateaued toward end of 2018: report

Red-hot industrial market plateaued toward end of 2018: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...