What's at Stake this week? | March 31, 2024

Did you catch 'Dune 2' in cinemas last month? If so, you'll appreciate Dubai's latest architectural gem: the $40 million 'Dragonfly' villa, drawing inspiration from the film's epic landscapes. It's a 2,500 square meter canvas where privacy meets openness, designed to resemble a dragonfly's wings. Unique features include water sculptures that create a mirage of another world, and materials like metal and glass that blend into the stunning sea views. It's a bold statement of futuristic living, embodying Dubai's spirit of innovation.

?? Strategize With Stake

How Millennials can become rich

Given the findings from a recent report by Savings.com, 47% of parents are still financially supporting their adult children, specifically Millennials, with monthly contributions averaging $1,384.?

But what does this data mean??

This scenario highlights that without a proactive approach to saving and investing, the risk isn't just personal financial instability, it also extends to potentially straining the resources of a generation nearing retirement. This makes it imperative for Millennials to build a financial foundation that ensures independence and security for both themselves and their parents in their golden years.

Actionable insights for Millennials

• Economizing and budgeting: Trim non-essential spending. Next, utilize budgeting apps to keep track of finances and set realistic savings goals

• Debt management: Focus on the highest-interest debts first, this will help to save money over time. Refinancing options may also reduce interest rates on high-cost loans, easing financial burdens

• Emergency fund: Saving a consistent percentage of one's yearly income and gradually increasing this amount can create a financial safety net

• Investing wisely: This involves two things, the first is starting early to benefit from compound interest, even with humble investment amounts.? The second is diversifying the investment portfolio across various assets that will help balance risk and enhance potential returns

The power of compound interest

According to Khwan Hathai, CFP, CFT, founder of Epiphany Financial Therapy: "Compound interest works by earning interest on the interest already earned." This process results in investments growing exponentially over time. It's why Albert Einstein famously called it the "eighth wonder of the world."

How it works?

Even with small initial investments, compound interest can lead to significant wealth accumulation.

Imagine you invest $10,000 at an 8% annual interest rate. Thanks to compound interest, this amount can grow to reach $21,589 over a decade. This modest example highlights the importance of starting early and consistently reinvesting earnings.

Bottom line? The path is straightforward: by smartly managing the budget, clearing debt, saving for emergencies, and making wise investments, Millennials can ensure financial independence and bid farewell to relying on their parents' support.

?? Market Watch: KSA

Tourism: The helping hand behind KSA's economic growth and real estate boom

Saudi Arabia is becoming a top destination for tourists worldwide. This growth isn't just changing the country's image; it's also boosting the economy and its real estate sector.

Tourism's big leap

In 2023, Saudi Arabia welcomed over 100 million tourists. This is a huge achievement for the country's Vision 2030, which aims to reduce oil dependence by diversifying the economy. The tourism boom has helped the non-oil GDP contribution reach a record high of 50% in 2023.

Real estate expansion

Large-scale developments, such as The New Murabba Project, serve as more than just infrastructure enhancements; they act as powerful magnets for international capital, investors, and tourists. These initiatives are pivotal in changing the face of the nation's economy and landscape. Here's how:?

• Economic impact: The ambitious New Murabba project is designed to increase Riyadh's GDP by $50 billion

• Employment opportunities: By aiming to generate 334,000 jobs, it's set to make a substantial contribution to the job market, aligning with the nation's employment objectives

• Housing and hospitality: The project plans to build 119,000 residential units and 9,000 hotel rooms, which will address the growing demand from both the burgeoning population and the influx of tourists

Enhancing KSA’s tourism appeal

According to Arabian Business,? noteworthy collaborations with global platforms like Trip.com and regional entities are aimed at attracting 350,000 additional tourists in the coming year. Moreover, the introduction of innovative services like digital passports and visa-free travel for residents and visitors highlights? Saudi's commitment to making travel seamless and accessible.

Aviation's role in tourism

The aviation sector is crucial for tourism. In 2023, flight numbers rose by 16%, amounting to 815,000, while passenger numbers grew by 26%, reaching 112 million. Such figures help position Saudi Arabia as a leading travel destination.

Bottom line? Saudi Arabia's focus on growing its tourism industry is paying off. The country is using its cultural wealth, investing in large real estate projects, and improving travel infrastructure. As KSA continues to welcome the world, its economy, and real estate market are set to grow even more.