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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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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.