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Saudi Real Estate Market Deals Confirm Solidity despite Surrounding Factors

An aerial view of the Saudi capital, Riyadh (Reuters)
An aerial view of the Saudi capital, Riyadh (Reuters)
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Saudi Real Estate Market Deals Confirm Solidity despite Surrounding Factors

An aerial view of the Saudi capital, Riyadh (Reuters)
An aerial view of the Saudi capital, Riyadh (Reuters)

The Saudi real estate market recorded deals worth more than 214 billion riyals ($57 billion) during the first nine months of this year, according to real estate exchange data.

Real estate experts, who spoke to Asharq Al-Awsat, noted that the recent figures highlight the strength, solidity and cohesion of the Saudi real estate market, despite the surrounding factors, such as the continued rise in interest rates and the decline in financing granted to individuals.

Real Estate expert Eng. Ahmed Al-Faqih said that the value of real estate market deals, despite its relative decline from about 260 billion riyals (69 billion dollars) in 2022, confirms the solidity of the real estate market, despite the continued rise in interest rates, and the decrease in the volume of real estate financing granted to individuals by banks and financing companies.

Al-Faqih pointed to three factors that he said contributed to this value. First, the scarcity of supply in the residential market, whether land, apartments, or villas, which led to an increase in their prices, according to the periodic reports of the General Authority for Statistics (GASTAT).

The second factor is the large demand for real estate. This gave positive signals to property owners and supported adherence to the prices offered, he underlined.

As for the third factor, Al-Faqih pointed to the “open appetite of major businessmen and real estate entities to acquire many undeveloped land deals at billion-dollar prices, which clearly indicates that we are facing a very promising market in the near future, in light of unprecedented support from the government.”

Al-Faqih expects next year to witness greater momentum in the Saudi real estate market after the non-Saudi ownership and investment law comes into effect.

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Aramco, Sempra Announce Deal for Royalties of Equity and Purchase of LNG from Port Arthur

Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
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Aramco, Sempra Announce Deal for Royalties of Equity and Purchase of LNG from Port Arthur

Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)

Saudi Aramco, one of the world's leading integrated energy and chemicals companies, and Sempra, one of North America's leading energy infrastructure companies, announced on Wednesday that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project.

The HoA further contemplates Aramco's 25% participation in the project-level equity of Phase 2.

The parties expect to execute a binding LNG SPA and definitive equity agreements with terms substantially equivalent to those in the HoA, with the SPA and equity agreements subject to several conditions.

“We are excited to take this next step into the LNG sector,” said Aramco upstream president Nasir Al-Naimi. “As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well-placed to grow its gas portfolio with the aim of meeting the world's growing need for lower-carbon sources of energy. This agreement is a major step in Aramco's strategy to become a leading global LNG player.”

Sempra chairman and chief executive Jeffrey Martin said: "The planned expansion of Port Arthur LNG would help facilitate the broad distribution of US natural gas across global energy markets. By expanding the Port Arthur LNG facility's global reach, we can improve energy security while providing a lower-carbon alternative to coal for electricity production."

Port Arthur LNG is a natural gas liquefaction and export terminal in southeast Texas with direct access to the Gulf of Mexico. The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities.

The Port Arthur LNG Phase 2 project is a competitively positioned expansion of the site to include the addition of up to two trains capable of producing up to 13 million tons yearly.

At the heart of Sempra Infrastructure's flagship Port Arthur Energy Hub, Port Arthur LNG has the potential to expand to a total of eight trains, which would position it as one of the world's most significant LNG export facilities. The facility is expected to play an important role in enhancing global energy security and resilience.

Moreover, Sempra Infrastructure is actively advancing infrastructure projects within the Port Arthur Energy Hub, addressing the rising demand for lower-carbon fuels and reducing carbon intensity. This includes the proposed Titan Carbon Sequestration project.