Saudi Arabia is preparing to host regional headquarters for a number of international companies in conjunction with the launch of giant projects stimulating foreign and local investment. Experts, meanwhile, expected an increase in the pace of growth of the real estate sector in the Kingdom.
In remarks to Asharq Al-Awsat, Economist and Businessman Abdullah bin Zaid Al-Malehi said international investors were planning to enter the Saudi market in order to launch a global company in the field of real estate development to keep pace with the stimulating growth in various projects and initiatives.
Al-Malehi, one of the co-founders of the new real estate company, stressed that real estate development has become one of the most important engines of the Saudi economy.
He said the size of the real estate market was estimated at SAR 3 trillion ($800 billion), while the value of real estate funds amounted to SAR 140 billion ($37.3 billion).
He revealed that the new company plans to start its business in Saudi Arabia early next year, saying: “The beginning of 2024 will witness a Saudi-American-Singaporean partnership alliance to develop a global real estate development company in the Middle East region.”
Based in Riyadh, the company will develop residential and hotel real estate projects through the use of new technology and international brand names, he remarked.
According to Al-Malehi, the planned global real estate company is seeking to launch real estate projects with a distinctive idea that meets global technologies and the aspirations of Saudi youth, who make up more than 65 percent of the population, and provides an environment of comfort and luxury.
Dr. Abdel-Rahman Baeshen, head of the Al Shorouk Center for Economic Studies, expected that the coming period would witness a boom in the real estate sector in the Kingdom as many international companies will move their regional headquarters to Saudi Arabia to take advantage of the Green Middle East and Saudi Green initiatives.
Baeshen noted that investors will have the opportunity to benefit from Artificial Intelligence in real estate investment to improve management and operation activities, with the use of smart technology and solutions for security and building control.
He also said the real estate sector will play a major role in raising the country’s GDP and creating job opportunities in the sector by 2030.
