Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
TT

Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)

Algeria and the European Union last week launched the first round of talks aimed at reviving their 20-year “Partnership Agreement.”

The talks were initiated at the request of Algiers.

The Delegation of the European Union to Algeria said on Friday that a delegation headed by Florian Ermacora, head of the North Africa Unit at the Directorate-General for Neighborhood and Enlargement Negotiations of the European Commission, paid a working visit to Algeria from January 27 to 30.

The delegation met with representatives of several Algerian ministerial departments, including Foreign Affairs, Energy and Mines, Water Resources, Industry, Trade and Finance. The European officials were also received at the Algerian Investment Promotion Agency (AAPI).

In addition to the EU Neighborhood department, the delegation included representatives from the EU departments for Energy, Home Affairs, Migration and Foreign Affairs.

Discussions focused on future cooperation between the EU and Algeria in the fields of investment, trade facilitation, renewable energy, migration, culture and job creation.

During the visit, Head of the North Africa Unit, EU Directorate-General for Neighborhood and Enlargement Negotiations Florian Ermacora reaffirmed the EU's willingness to give new impetus to cooperation between Algeria and the European Union in the context of the development of a new pact for the Mediterranean, the EU mission said.

It noted that the visit aims to hold consultations on cooperation between the European Union and Algeria for the period 2025-2027.

The new Agenda for the Mediterranean was launched by the European Union in 2021 to strengthen the strategic partnership with its Southern Neighborhood partners in trade and renewable energies, upgrading facilities and infrastructure, and managing migration and counter-terrorism issues.

The European delegation's visit was not announced by Algerian officials.

Also, the statement issued by the EU delegation did not mention whether talks with representatives of the Algerian ministries addressed the country’s request to revise its partnership agreement with the EU and to rebalance the mutual interests of the two parties.

In late 2024, ambassador of the EU in Algeria Diego Mellado Pascua said 2025 could be a very important year for both parties to consult on their mutual relations within a comprehensive framework.

Last June, the EU said it launched a dispute settlement case against Algeria and requested consultations with Algerian authorities to address several restrictions imposed on EU exports and investments.

“The EU considers that, by imposing these trade restrictive measures since 2021, Algeria is not respecting its trade liberalization commitments under the EU-Algeria Association Agreement,” it said in a statement.

The EU’s aim is to engage constructively with Algeria with a view to removing the restrictions on several market sectors, spanning from agricultural products to motor vehicles.

These include an import licensing system with the effects of an import ban, subsidies contingent on the use of local inputs for car manufacturers, and a cap on foreign ownership for companies importing goods in Algeria.

A European diplomat in Algeria, who declined to be named, told Asharq Al-Awsat that the EU is seeking to assess Algeria's prospects and the extent to which the agreement can be modified.

He said the statistical office of the European Union, Eurostat, confirms that Algeria's exports to the 27 Member States of the Union amounted to 18.747 billion euros and its imports from these countries were around 12.648 billion euros.



Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)
TT

Saudi Real Estate Sector Prepares for a New Wave of Foreign Investment

Saudi Arabia's capital, Riyadh (Digital Government Authority)
Saudi Arabia's capital, Riyadh (Digital Government Authority)

Saudi Arabia’s real estate market is preparing to enter a new investment phase following the approval of the executive regulations governing property ownership by non-Saudis, a move that strengthens the sector’s appeal to foreign capital and opens the door to broader opportunities across residential, commercial, and hospitality projects.

The sector is expected to benefit from a wider investor base, positioning real estate as one of the key drivers of growth within the Kingdom’s expanding economy.

During its session on Tuesday, the Council of Ministers, chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, approved the executive regulations for non-Saudi property ownership and endorsed the geographical zones in which non-Saudis will be permitted to own real estate.

Minister of Municipalities and Housing Majed Al-Hogail said the Cabinet’s approval of the executive regulations and designated ownership zones marks an important step toward launching a new phase for the Saudi real estate market.

The sector is entering a new stage as the impact of the non-Saudi property ownership framework begins to take shape in market activity. Specialists expect the influx of new investments to encourage developers to expand supply and improve the quality of real estate products.

Experts believe the next phase will not be limited to growing demand. It is also expected to intensify competition among projects, enhancing market efficiency and contributing to a stronger balance between supply, demand, and prices.

Stimulating the Market

Khaled Al-Jasser, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the move represents a significant boost for the Kingdom’s real estate ecosystem, strengthening investment activity and stimulating market momentum by broadening participation and expanding available opportunities.

According to Al-Jasser, the measure is also expected to increase real estate supply, enhance competitiveness, improve market efficiency, and provide beneficiaries with a wider range of options and more balanced pricing.

The chairman of Amaken International Group added that the initiative enhances the attractiveness of the Saudi real estate market to foreign investors, particularly in light of the Kingdom’s evolving legislative environment and ongoing reforms. These factors support the inflow of foreign capital and reinforce the real estate sector’s position as one of the most promising sectors under the objectives of Vision 2030.

Attracting Capital

For his part, economic analyst Ahmed Al-Shahri told Asharq Al-Awsat that the approval of the executive regulations for non-Saudi property ownership marks a turning point for the market because it addresses a critical issue: transforming real estate from a locally traded asset into a more open investment sector capable of attracting capital.

The significance of the move lies not only in allowing ownership but also in creating a more competitive market capable of attracting developers and investors seeking long-term opportunities in a Saudi economy currently undergoing rapid expansion.

Al-Shahri expects the impact to be reflected in stronger demand for high-quality real estate products, increased appeal of residential, commercial, and hospitality projects, and greater incentives for developers to bring additional supply to market in order to meet the needs of new categories of investors and residents in the Kingdom.

“This means the most significant impact may be seen in the expansion of the market’s overall size, rather than solely in higher prices,” he said.

Price Balance

He continued: “As for prices, the initial phase may support values in the most attractive locations due to the entry of new demand. However, over the medium term, increased supply and stronger competition among developers will serve as an important balancing factor, because a healthy real estate sector is not built on continuous price increases but on the market’s ability to maintain equilibrium between supply and demand.”

Al-Shahri explained that the move could shift the sector from a phase of “product scarcity and rising value” to one defined by “product quality and market competitiveness.” Projects distinguished by location, services, and design will become best positioned to attract investment, while lower-quality developments may face greater pressure to preserve their value.

The non-Saudi property ownership law entered into force on January 22, 2026. The framework consists of 15 articles governing property ownership procedures for foreign individuals, companies, and non-profit entities.


Arcapita, Hines to Explore Joint investments in GCC Industrial and Logistics Real Estate

Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
TT

Arcapita, Hines to Explore Joint investments in GCC Industrial and Logistics Real Estate

Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat
Arcapita's headquarters in Manama, Bahrain. Photo: Asharq Al-Awsat

Arcapita Group Holdings Limited, the global alternative investment firm, and Hines, one of the world’s largest real assets investment managers, announced on Wednesday a partnership to together explore the creation of an institutional-grade platform focused on industrial and logistics real estate assets across the Gulf Cooperation Council (GCC).

The platform would seek to combine Hines’ global real estate investment, development and operating standards with Arcapita’s regional investment, structuring and asset management expertise, supported by Lintara, Arcapita’s local operating platform, a joint statement said.

Through the partnership, the two companies would focus on jointly originating, structuring and executing investments across both development opportunities and stabilized income-producing assets, it added.

Arcapita is headquartered in Manama, Bahrain. It also operates from its offices in the United States, the United Kingdom, Saudi Arabia, the United Arab Emirates and Singapore.

Hines is based in Houston, Texas.

Martin Tan, Arcapita’s Chief Investment Officer, said: “This strategic partnership marks an important step in our approach to the GCC industrial and logistics opportunity. Market fundamentals across the region have reached a depth and maturity that support the case for a dedicated, institutional-scale platform rather than a transaction-led strategy.”

“As GCC countries continue to focus on supply chain resilience and national self-sufficiency, we see a compelling opportunity to help deliver modern logistics infrastructure at scale. By bringing together Arcapita’s long standing regional track record, sourcing and asset management capabilities with Hines’ globally recognized development expertise, the platform would be well positioned to pursue high-quality opportunities across the sector.”

As for Hines’ Global Head of Real Estate, Steve Luthman, he said that the GCC represents one of the most compelling logistics growth markets globally.

He welcomed “the opportunity to partner with Arcapita to explore the development of a structured, platform-led entry into a rapidly growing market, backed by deep local relationships and execution capability.”


Airlines Should Still Avoid Airspace Over Iran After Framework Deal, EU Agency Warns

 A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
TT

Airlines Should Still Avoid Airspace Over Iran After Framework Deal, EU Agency Warns

 A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)
A Kish Air Airlines McDonnell Douglas MD-82 passenger aircraft prepares for landing at Tehran's Mehrabad Airport on June 20, 2026. (AFP)

Airlines ‌should continue to avoid the airspace over Iran, Iraq and Lebanon and remain cautious across the region despite the framework deal between Washington and Tehran, because violations remained possible, the ‌EU aviation safety ‌agency EASA said.

EASA ‌said ⁠on Wednesday it ⁠was extending its conflict-zone advisory for the region until July 1.

Short-term violations of the US-Iran ceasefire remain possible, ⁠in particular in ‌and ‌around the Strait of ‌Hormuz and neighboring airspace, the ‌agency said.

The agency also flagged the fragile ceasefire between Israel and Hezbollah, creating ‌the potential for military activity impacting the airspace ⁠of ⁠Lebanon.