AGP Executive Report

West Bank Housing Tenders: Israel has moved ahead with internationally condemned E1 settlement plans by issuing tenders for about 1,200 homes (1,234 units cited) east of Jerusalem, a project critics say would split the West Bank and sever East Jerusalem, with bids due Oct. 19 ahead of Israel’s Oct. 27 election. Diplomatic Pushback: The UK, France, Germany, Italy and others called the move “unacceptable,” urged Israel to withdraw, and warned businesses about legal and reputational risks; Egypt and Jordan also condemned E1. Local/Regional Impact: Al-Azhar framed the tenders as land theft and a violation of international resolutions, urging binding action to stop settlement expansion. Market Context: With regional tensions and higher oil prices weighing on sentiment, global investors also watched bond-yield moves and debt concerns—factors that can spill into construction and financing conditions across the region.

Dubai Residential Supply Watch: Dubai says 104 projects delivered over 24,000 units in the first half of 2026, with completions up 36% year-on-year—another sign of steady stock entering the market. Dubai Cost Pressure: Dubai inflation eased in July (5.33% y/y) from June’s peak, with transport costs still the biggest driver—fuel and passenger transport remain key for household budgets and project operating costs. Saudi Permits & Real Estate Activity: Saudi Arabia’s operating revenues rose 6.1% in June while building permits jumped 20.3%, with real estate activities up 15%—supportive backdrop for construction-led growth. Egypt Industrial Real Estate: Egypt’s Suez Canal Economic Zone signed a $50m Egyptian-Saudi Techno Bond deal in Sokhna, targeting production by end-2027 and adding about 200 jobs initially—industrial space and logistics demand get a boost. West Bank Housing Shock: Israel advanced the internationally condemned E1 settlement plan with tenders for 1,234 homes, drawing condemnation from Egypt and Jordan and raising fresh risks for regional stability and cross-border investment sentiment. Gaza Trade & Costs: An AP investigation says Gaza smuggling has boomed, pushing up prices for essentials and even medical supplies—an indirect hit to rebuilding timelines and housing-related supply chains.

West Bank Housing Under Pressure: Israeli forces carried out raids across occupied West Bank and occupied Jerusalem, setting up checkpoints, searching homes and vehicles, and conducting demolitions in multiple areas, including attempted home storms near Ramallah and clashes around al-Amari refugee camp. Settlement Risk to Land Use: UN chief António Guterres said he’s “deeply alarmed” by new illegal Israeli settlement tenders, especially E1, warning it could sever West Bank north-south links and threaten a two-state solution. Egypt-Nile Water Security: Egypt warned it will not allow additional Ethiopian Nile dams, saying Cairo has the right to defend water security—an issue that can reshape long-term infrastructure and land planning across the region. Gaza Reconstruction Funding: The US told Congress it will send over US$206m for a proposed Gaza peacekeeping force tied to reconstruction and security operations, signaling continued momentum despite stalled conditions. Saudi Luxury Real Estate Update: Amaala’s phase one investment reached US$13.6bn, with nine luxury resorts opening under Red Sea Global’s wellness-led masterplan.

West Bank Housing Push: Israel moved ahead with the E1 settlement plan, launching marketing for the first 1,400 homes and issuing tenders for 1,200+ units, drawing Palestinian Authority condemnation over fears of “disconnected enclaves” and further severing East Jerusalem from the West Bank. Justice System Shock: Israel also unveiled construction of a gallows facility for Palestinians convicted of terrorism, with a law mandating hanging enforced via military courts, sparking renewed international rights criticism. UK Inflation & Housing Costs: UK CPI rose to 2.9% in July as gas and energy bills climbed, with housing-related costs contributing most—another pressure point for affordability and construction demand. US Homebuilding Slows: US housing starts fell again in July (single-family down 9.9%), blamed on high borrowing costs and the broader Iran-war backdrop. Saudi Real Estate Finance: Diriyah Company secured $533m financing from Arab National Bank for residential projects, signaling continued appetite for large-scale development in the Kingdom. Egypt Urban & Property Tech: Egypt launched a real estate tax app to streamline services and boost compliance, while Parkin signed an Egypt MoU to expand smart parking and mobility solutions.

Nuclear Oversight: Egypt’s ENRRA says the El Dabaa nuclear power plant is being built under top safety and security standards, citing licensing reviews, daily inspections and IAEA monitoring after reports of alleged construction violations. Iraq–Turkey Business: Iraqi PM al-Zaidi met a Turkish delegation to discuss investment in airport, metro, rail, power, dams and agriculture, with Turkish firms signaling readiness to expand. Trade Finance for Construction & SMEs: EBRD agreed a $75m trade finance facility for Iraq’s Al Mansour Bank to back cross-border imports/exports, including agriculture, construction and consumer goods, with compliance support. West Bank Housing Tender: Israel published a tender for 1,234 homes in the E1 settlement area, drawing criticism that it will fragment the West Bank and create irreversible facts on the ground. Cement Pricing Probe: Nigeria’s FCCPC opened further investigation into cement price manipulation after comparing Nigeria with Kenya, Tanzania, Egypt and others, as local prices keep rising despite high production capacity. Qatar Women in Business: A report highlights women’s growing economic role in Qatar, with rising leadership and ownership across companies and support from major business and financial institutions. Real Estate Market Pressure (US): Zillow-related class action plaintiffs seek to reopen claims that referral programs pressured agents to steer borrowers to Zillow Home Loans.

Strait of Hormuz Risk to Property & Energy Costs: A ship was hit in the Strait of Hormuz, with Iran warning the route would stay closed until U.S. terms are met—keeping oil-price pressure front and center for the region’s construction and financing outlook. Gulf Finance Friction: Saudi Arabia tightened oversight on money transfers to the UAE, delaying payments for some firms—another sign of widening rifts that can slow cross-border real estate and development deals. Housing Market Pressure Signals: U.S. single-family starts fell in July on higher mortgage rates and weak affordability; the knock-on effect is a reminder that financing conditions can quickly cool demand. West Bank Settlement Tensions: Reports say Israeli forces have shown inertia in evicting settlers during the Qusra siege—an instability factor that can disrupt land, permits, and investment certainty. Engineering & Infrastructure Pipeline: Malaysia advanced amendments to its engineers’ registration law, aiming to strengthen regulation and public safety—relevant for future project delivery standards.

Digital Housing & Social Services: Qatar’s Ministry of Social Development and Family has fully moved housing and social security applications online, with a rebuilt website and an AI assistant (“Sanad”) to answer enquiries and guide users through forms and tracking. Transport & Construction Costs: Germany’s record-low Rhine water levels are squeezing construction supply chains, reducing barge capacity for sand, gravel and other materials and pushing up delivery and building costs. Iran–Gaza Security & Land Use: Reports say an international stabilization base inside Gaza is being planned, with construction work selected for a small site near the border—another sign how security decisions are shaping the territory’s future built environment. Infrastructure Progress (Iran): Iran says land acquisition is complete for the 160-km Rasht–Astara railway, with funding secured and construction expected after contract approval. Water Politics (Egypt–Ethiopia): Egypt warns Ethiopia against controlling Nile flows or adding more dams, stressing it will defend downstream water rights. Archaeology & Heritage (Egypt): New finds at Tell Abu Seify near the Suez Canal, including a Ramses II inscription referencing restoration of a Horus statue “Lord of Masen,” may help identify a lost Egyptian city. Regional Trade & Crossings (Türkiye–Syria): Türkiye is expanding and modernizing multiple Syria border crossings to boost capacity for trade, transit and passenger movement.

Israel Housing & Immigration Policy: Israel’s finance minister Bezalel Smotrich is drafting a plan to bring one million Jewish immigrants from North America and Europe within a decade, including legislation to let diaspora communities receive land and housing without Israel’s standard tender process, with a push for large-scale public construction to speed up supply. Israel Real Estate Market Divergence: Tel Aviv’s residential market is widening its gap from the rest of the country, with new-apartment demand keeping prices elevated while social and regional affordability gaps grow. UAE Residential Delivery: Nakheel has started handing over 892 villas and townhouses at the redeveloped Jebel Ali Village near Ibn Battuta Mall, a major post-demolition delivery for the 80-hectare community. Gaza Urban Development Risk: Israeli forces stormed Qalandiya ahead of planned demolitions of Palestinian homes and structures, citing “building without a permit” and tightening access roads—another blow to local urban development. Egypt–Nile Water Stakes: Egypt escalated its fury over Ethiopia’s plans for three more Nile dams, warning it won’t allow any de facto control of flows that could threaten downstream water rights. Gulf Construction & Cost Pressure: With Hormuz traffic and regional conflict pressures, building-material and logistics costs remain a key risk factor for projects across the region. Infrastructure & Energy for Cities: Masdar’s windfarm progress toward powering 1.3m homes and broader GCC hospitality growth point to continued demand for urban power and land-linked infrastructure. Real Estate Finance & Delivery Delays (Egypt): Egypt’s real estate delivery delays are again tied to financing and governance challenges, keeping buyer confidence and timelines under strain.

Gaza Diplomacy: US envoy Jared Kushner met Hamas leaders in Egypt as Washington pushes a revived Gaza plan, with Israel still rejecting the roadmap and Netanyahu keeping the deal on ice. West Bank Pressure: Pope Leo XIV renewed calls to end violence against Palestinians in the West Bank as settler attacks and a siege in Qusra intensified, while Israel weighs shifting West Bank enforcement from the military to police. Egypt Real Estate & Delivery: Egypt’s property sector headlines include new investments and projects (including West Cairo’s SIA Boulevard) alongside reports that delivery delays are exposing financing and governance gaps. Construction & Urban Finds: In Israel, excavations tied to major transport works uncovered a 1,300-year-old planned industrial-commercial complex in Ramat Gan, underscoring how infrastructure projects reshape urban landscapes. Banking & Housing Risk: In occupied areas, banking coverage looks strong on paper (low NPLs overall) but risks remain tied to foreign-currency lending and uneven local bank health. Tourism Demand Shock: Dubai’s tourism slowdown deepened amid the Iran-linked travel downturn, with hotel occupancy and conference activity still below normal.

West Bank Land & Water Pressure: The Pope urged an end to violence against Palestinians in the occupied West Bank after settler encirclements in Qusra, where homes were cut off from water and electricity amid renewed land-grab fears. Housing Market Signals: Israel’s real estate review flagged a surge in home deal cancellations, with many linked to financing structures where buyers pay only on completion—pushing cancellations up sharply in 2026. Jordan Delivery Gap: A Jerash governorate panel said some 2025 government commitments are largely done (70–80%), while other projects still sit in studies, implementation, or future budgets—highlighting how infrastructure timelines can slip. Tourism-Led Built Environment: Oman unveiled a revamped Shaat Overlook in Dhofar with a glass sky deck and visitor facilities, betting on nature tourism to drive local demand. Construction & Infrastructure Pipeline (Jordan/Region): Public works spending faces constraints elsewhere in the region, with budget officials warning that restoring major highway funding levels won’t be easy—raising the odds of slower project delivery. Energy Storage Boom (GCC relevance): Battery storage capacity jumped globally in 2025, reinforcing the case for grid-ready infrastructure across the Middle East as solar expands.

Energy Infrastructure & Power Supply: Saudi Energy and Expo 2030 Riyadh signed an agreement to provide electricity to the Expo site, signaling the project’s push into the development phase. Power Procurement: Saudi Arabia extended the RFQ deadline for Round 3 of conventional IPPs (CCGT) to Aug 23, 2026, under a BOO model with carbon-capture readiness. Oil & Supply Security: With Strait of Hormuz disruptions tightening supplies, Kenya faces fresh fuel-price risk as global refined-product costs and inventories come under pressure. Construction & Transport Costs: West Asia conflict-linked bitumen price spikes are forcing road overhauls to be repriced and rescheduled, with a revised Delhi road-strengthening budget approved. Real Estate/Urban Development (Jordan): A Jordanian panel on Jerash’s “plans vs reality” flagged uneven delivery across health, water, transport, tourism and education, with some projects completed and others still awaiting studies or budgets. Housing/Planning (Afghanistan): Afghanistan’s Taliban marks five years back in power, citing improved security but ongoing job, refugee absorption and investment hurdles that affect rebuilding and housing demand. Industrial Demand (Morocco): Morocco’s steel demand is forecast to rise 7–8% in 2026 on construction and autos, with growth expected to push past 3 million tonnes in 2027. Major Project Milestone (Egypt): El Dabaa nuclear plant reached a construction milestone with installation of the fifth level of the inner containment vessel for Unit 1.

Real Estate & Urban Renewal (Istanbul): Istanbul is demolishing and rebuilding at speed to cut earthquake risk, with nearly 10,000 unsafe buildings removed each year and subsidies like “Yarısı Bizden” offering grants, relocation aid and low-interest loans to accelerate renewal. Office Market (Istanbul): Prime office rents in Istanbul hit a record $52/sq m per month in Q2 2026, driven by tight supply and low vacancy, while Grade A leasing rose sharply in the first half. Construction & Infrastructure (Saudi Arabia): Jeddah Tower reached 430 metres and 106 floors, with 67% of expected concrete already poured and thousands of workers on site as the project targets over 1,000 metres. Housing & Development (UAE): The UAE set out retirement residency rules for foreigners, including a minimum savings requirement and eligibility via real estate ownership valued at AED 1m+. Downstream Energy Project (Iraq): Iraq’s Oil Ministry agreed with Japan’s JGC to resume work on the Basra FCC complex, aiming to boost gasoline, diesel and LPG output—an industrial move that can support broader construction and real estate demand. Urban Facade Works (Istanbul): Fatih district launched a facade rehabilitation drive across 92 buildings, removing illegal extensions and upgrading streetscapes to improve commercial corridors. Heritage & Place-Making (Egypt/Turkey): Egypt protected ancient Syrna artifacts with landscaping and bilingual signage, while Istanbul also advanced preservation efforts—both pointing to tourism-linked urban value. Market Sentiment (Dubai): Dubai stocks slipped as earnings disappointed and Strait of Hormuz tensions weighed, a reminder that geopolitics can quickly hit regional property-adjacent sectors. Governance & Risk (Saudi/TH, Malaysia): Malaysia’s MACC detained seven people tied to Tabung Haji probe involving a Saudi hotel lease worth SR2.49bn—raising questions about investment oversight in cross-border real estate deals.

Real Estate & Construction (MENA): Megawide Construction Corp. reported first-half net income up 22% to P532m, with real estate revenues (PH1 World Developers) jumping 67% to P1.79bn, while it said the Middle East conflict squeezed margins via higher logistics and operating costs. Gulf Infrastructure: AD Ports Group posted record Q2 2026 results (AED 836m net profit), citing supply-chain resilience measures and rerouting cargo beyond the Strait of Hormuz to keep trade moving. Egypt Macro & Property Demand: The IMF said Egypt’s economy grew 5.2% in Q3 of FY2025/26, supported by Suez Canal, tourism and construction, though it warned conflict impacts may show more in the next fiscal year. Energy & Land-Use Signals: BP, UAE XRG and Qatar UCC won an offshore natural gas concession in Venezuela’s Loran field (not MENA property, but a reminder of how regional energy deals can reshape investment flows). Turkey Heritage & Urban Pressure: Türkiye’s AK Party marked 25 years, with Erdogan highlighting heritage restoration and adaptive reuse—an ongoing theme as urban growth keeps stressing historic districts.

West Bank Governance & Security: Israel’s defence minister says the IDF should hand civil enforcement powers in the occupied West Bank to the Israel Police, as settler sieges and raids continue around Qusra and other towns—an escalation that critics warn could advance annexation-by-practice. Housing & Cost Pressures: Israel’s CPI rose 0.3% in July; housing costs climbed 0.7% while the Home Price Index edged up just 0.1% and rents rose in both renewals and new leases, keeping pressure on affordability. Türkiye Jobs & Construction Demand: Türkiye reported paid employment up 2.5% y/y in June, with construction employment rising 7.1%, a sign of ongoing activity that can support housing supply chains. Mega-Project Progress: Jeddah Tower hit 430m and 106 floors, with 300,000+ cubic metres of concrete poured—another milestone for Saudi’s supertall residential and hospitality pipeline. Energy & Infrastructure: Neom began commissioning its 2.2 GW green hydrogen and ammonia project in Saudi Arabia, targeting product availability in 2027, while Lebanon and Syria moved toward a Damascus investment conference focused on electricity, construction and ports. Market Backdrop: Oil remains sensitive to Hormuz uncertainty, and global markets leaned higher on easing inflation expectations—important for financing costs and real estate sentiment across the region.

West Asia Conflict Impacts Construction & Housing: Israeli forces carried out raids and arrests across West Bank towns and Gaza strikes continued despite a ceasefire, keeping displacement risks and project delays in focus for the region’s real estate pipeline. Energy & Infrastructure Build-Out: Egypt said it plans to add two reactors at the El-Dabaa nuclear plant, while Kuwait advanced PPP re-tendering for 23 state-owned real estate projects and Egypt also pushed wind farm development (NIAT and Rasgha, 500MW total). Urban Sustainability: Kuwait and Turkey launched a greening initiative at the Kuwaiti-Turkish Friendship Park, aiming to improve public space and support circular-economy practices. Mortgage & Market Signals: Mortgage rates in the US edged down to about 6.67% for 30-year fixed loans, offering only modest relief for buyers. Local Governance & Housing Policy: California’s Cap-and-Invest changes sparked protests over potential funding cuts to affordable housing and transit, highlighting how policy shifts can quickly ripple into housing delivery.

M&A Watch: Middle East and North Africa dealmaking hit $46.7bn across 390 mergers in H1 2026, with Q2 value jumping to $25bn as UAE and Saudi investors led outbound activity, and real estate stayed among the most targeted sectors. Dubai Housing Finance: Dubai is rolling out a “Rent Now, Pay Later” scheme for buyers, adding another option for demand as more residents shift toward monthly rentals. UAE Energy & Storage: Masdar is exploring clean power investments and potential participation in a Philippines fuel stockpiling program, signaling continued interest in regional energy infrastructure and storage capacity. West Bank Property Flashpoint: US ambassador Mike Huckabee called a settlers’ siege of Palestinian homes “terror,” highlighting how property disputes and access to utilities remain a flashpoint for land and housing in the occupied West Bank. Construction & Development Pipeline: Türkiye’s justice infrastructure push includes new courthouse and justice palace tenders, while in the UK, Sheffield’s Orgreave Park submitted a 112-page environmental assessment for up to 900 homes plus a 49-acre business park. Market Sentiment: UK GDP grew 0.4% in Q2 despite Middle East disruption, but the outlook remains cautious—important context for housing and construction demand.