RIYADH: With real estate the second largest contributing sector to Ƶ's gross domestic product, investors are flocking to Riyadh to attend the Real Estate Future Forum.
On its first day, the forum hosted top officials and executives in the sector, led byMajid Al-Hogail, minister ofMunicipal and Rural Affairs and Housing.
The eventwill take placefrom 23-24 February.
Top speakers for Wednesday included the governor of Asir region, Turki bin Talal;minister of human resources and social development, Ahmad Sulaiman Al Rajhi,;andMohammed bin Abdullah Elkuwaiz. head of Saudi Capital Market Authority.
ճKnight Frank’s annual 2022 Saudi Residential survey, carried out in partnership with YouGov, found outthat NEOM is themost preferred location to buy a home by the Kingdom’s homeowners, first-time buyers, and high net worth individuals.
Here are the key takeawaysfrom day one of the forum:
Majid Al-Hogail,Housing Minister:
- Real estateis linked to the growth of more than 120 other economic sectors, housing minister told the forum.
- The real estate sector provided 40,000 job opportunities in 2021, increasing the private sector’s participation to more than SR385 billion ($103 billion).
- The sector witnessed a growth in land and property registration by 85 percent.
- Residential real estate financing is expected to exceed 1.2 million new contracts, with a value worth SR600 billion until 2030.
Ahmad Sulaiman Al Rajhi,HumanResources Minister:
- Some 1,950,000 young Saudi men and women are workingin the real estate and related sectors
- The governmenthas decided to localize six activities from the real estate sector, and the goal is to finance 40 percentof the salaries of Saudis for a period of two years, with the maximum amount of SR2000.
- In 2021, 400,000 Saudis entered the labor market for the first time through the private sector.
- Ƶ's tourism sector is aiming to create one million jobs by 2030.
Mohammed bin Abdullah Elkuwaiz, chairman of Ƶ’s Capital Market Authority.
- Real estate investment trusts will offer more profit than stock market investments, he said.
- The CMA chairman revealed that REITs offer returns up to 5 percent, higher than stock market profits.
- He added that the pace of listing applications in 2022 will be higher than in 2021 due to the increase in corporate governance.
Nawfal Al-Khudhairy, CEO of Dar Al-Arkan Real Estate Development Co.:
- Speaking to Arab News,Nawfal Al-Khudhairyoutlined plans forDar Al-Arkan to expand into China and the UK.
- “We are one the largest, if not the largest, real estate development companies in Ƶ...so it’s a key for us tobe part of the forum to share ourour wealth of knowledge of real estate with the public and our partners,”Al-Khudhairy stated.
Ihsan Bafakih, Governor of the State Properties General Authority:
- The authority is building a real estate inventory for the state
- The authority succeed to transfer two districts in Jeddah to the state, working on other districts.
- Jeddah is seeing a big number of demolished districts now and the ownership of all these areas will be transferred to the state
Thabet Al-Sawyeed, Secretary General of the Saudi Contractors Authority:
- According to studies, the volume of contracting in the Kingdom will reach SR275 billion by 2024, with an annual growth rate ranging from 4 percentto 4.5 percentannually.
- The volume of private projects in real estate development is considered one of the largest and highest growth projects, especially in the past years and based on the determinants of Vision 2030.
Osama Al-Zamil,Vice Minister of Industry and Mineral Resources:
- Ƶ is self-dependent in cement production and has sufficient resources for the next 10 years.
- The Kingdom has 17 cement factories distributed across all regions of the nation, which will serve future needs.
- Ƶ has 12 factories to produce ceramics and porcelain with a production capacity of 150 million square meters.
David Grover, chief executive ofbuilding groupROSHN:
- The company is aiming to install EV charging stations in their residential properties, as more people are opting for hybrid cars.
- The limited supply of sustainable materials and the high demand for them from other gigaprojects, are slowing down ROSHN's constructionsin Ƶ.
