Real estate development is powerhouse for creating jobs, enabling sectors: minister
RIYADH: Property development in Saudi Arabia has emerged as a powerhouse for job creation and sectoral advancement, according to the minister of human resources and social development.
Speaking at a panel discussion on the first day of the Real Estate Future Forum in Riyadh, Ahmed Al-Rajhi explained that the industry encompasses more than just direct job creation.
This aligns with the Kingdom’s objective to transform the housing sector and boost investment in alignment with the Vision 2030 goals.
“What makes the real estate sector special is that, once it works, construction works, the supply chain works, the trade of construction materials works, and engineer works,” Al-Rajhi said during the panel discussion titled “Leading Transformation in the Real Estate Industry.”
He added: “The real estate sector until recently was focusing on the trade of real estate and not the real estate development in its comprehensive concept today.”
The minister expressed gratitude to businessmen and the sector as a whole for providing professional property developers who bring final projects to fruition by selling apartments and villas.
Also speaking during the same panel, Mohammed El-Kuwaiz, chairman of the Capital Market Authority, shed light on the nature of the funding present in the sector.
“Over the past three years, 80 percent of the funding to real estate came from individuals. Undoubtedly, financing companies and banks provide incentives for funding to individuals,” El-Kuwaiz revealed.
He continued to note that the remaining 20 percent of the funding during the same period came from companies and organizations.
El-Kuwaiz also highlighted that the volume of assets managed in real estate funds stood at SR170 billion ($45.32 billion).
Moreover, he disclosed that the CMA is working to issue limited real estate equity offering certificates for those who wish to raise financing not exceeding SR100 million.
The Kingdom’s Minister of Tourism Ahmed Al-Khateeb, who was also present in the same discussion, talked about Saudi Arabia’s diverse attractions, including lovely beaches in the east and west and mountains in the south.
“Therefore, when in 2015 or 2016, we developed Vision 2030, we developed the untapped potential for opportunities, including the tourism sector. We have put strategies and allocated funds to unlock these untapped opportunities and incentivize the sector,” Al-Khateeb underlined.
He added that the Kingdom is currently working to provide everything that tourists are looking for, including housing, dining, shopping, entertainment, and historical sites.
Furthermore, Al-Khateeb also addressed how tourist spending in the capital doubled after the Riyadh Season, noting that the newly announced rooms ranged from 250,000 to 300,00 keys.
“We have everything that tourists are looking for in the Kingdom, and we will become the most important in the tourism sector globally,” he reiterated.
The third edition of the forum is poised to explore sectoral developments, highlight major challenges, and delve into opportunities. Discussions will cover financing and the impact of natural factors on the sector.
Under the patronage of Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail, the three-day event will host dialogues aligning with various strategic aspects of the real estate system, both globally and locally.
The platform will feature 25 workshops and 30 sessions, addressing pressing industry issues and emerging trends.