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Procedural Mechanisms Introduced to Boost Efficiency of Saudi Real Estate Sector

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. (Reuters)
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. (Reuters)
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Procedural Mechanisms Introduced to Boost Efficiency of Saudi Real Estate Sector

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. (Reuters)
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. (Reuters)

The Saudi Ministry of Justice has introduced a new electronic system in the notarization sector that simplifies the real estate electronic conveyance service and make it available through additional banks.

Specialists believe that the new mechanisms contribute to preserving the rights of shareholders and regaining their rights in the most appropriate legal way, which helps increase confidence in the real estate sector.

This comes within a package of development initiatives and reforms to raise the efficiency of notarization and real estate security and contribute to facilitating real estate conveyance operations.

Dr. Abdullah Al-Maghlouth, a former member of the Real Estate Committee at the Chamber of Commerce and Industry in Riyadh, told Asharq Al-Awsat that the government is aware of the importance of the sector and was seeking to address the housing crisis by facilitating the relevant regulations.

“At the end of 2020, the Cabinet approved a comprehensive strategy for real estate, which reflects the state’s interest in the sector as one of the pillars of the national economy,” he stated.

Al-Maghlouth noted that the strategy would contribute to improving the performance of real estate establishments, especially small and medium-sized enterprises (SMEs), improving the quality of the tools they use and the services they provide, and expanding job opportunities for young men and women in various fields.

The new strategy represents an important booster for the economy in general and the real estate sector in particular, he added.

Real estate expert Dr. Khalil Khoja told Asharq Al-Awsat that real estate in the Kingdom was one of the most important growth engines for the non-oil economy.

Government statistical data showed that the real estate sector grew by 3.5 percent in the second quarter of 2020 compared to the same period the previous year, he underlined.

Khoja expected that the recent amendments to the legislation regulating real estate will contribute to an increase in large housing projects, achieved through the partnership between the public and private sectors.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.