Broad Saudi Participation in SIAL PARIS 2022 Food Show

Saudi Arabia is working to strengthen the regional position of its food industry (Asharq Al-Awsat)
Saudi Arabia is working to strengthen the regional position of its food industry (Asharq Al-Awsat)
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Broad Saudi Participation in SIAL PARIS 2022 Food Show

Saudi Arabia is working to strengthen the regional position of its food industry (Asharq Al-Awsat)
Saudi Arabia is working to strengthen the regional position of its food industry (Asharq Al-Awsat)

Saudi Arabia’s Exports Development Authority revealed on Saturday that 50 of the Kingdom’s food sector companies are participating in the SIAL Paris 2022 Food Show, which is running from Oct.15 to Oct.19.

Participation at the exhibition significantly raises brand awareness for Saudi exports, strengthening their position in regional and global markets. Moreover, the fair offers an opportunity for Saudi companies to identify international business prospects as it links exporters with potential clients.

The exhibition allows for promoting national products and services on major trade platforms that bring together investors and those interested in several fields, especially food. This helps increase the market share of participants.

Saudi Arabia has put in motion a bold plan for economic diversification that aims to increase the private sector’s contribution to GDP to 65% while creating new non-oil growth engines by 2030.

Through Kingdom Vision 2030, Saudi Arabia aims to diversify non-oil exports and increase its share in the non-oil GDP to 50%.

As one of the world’s largest food and beverage trade shows, SIAL Paris 2022 focuses on several different sectors and activities, including animal production, aquaculture, cultivation of permanent and non-permanent crops, fishing, meat processing, and so much more.

The exhibition also tackles critical challenges facing the food industry and its exports in the world.

SIAL includes about 21 sections. It brings together more than 7,000 exhibitors from more than 119 countries. More than 160,000 visitors are expected to attend the show.



Saudi Mortgage Loans Reach Record Highs

The Cityscape International Real Estate Exhibition 2024 in Riyadh (Asharq Al-Awsat)
The Cityscape International Real Estate Exhibition 2024 in Riyadh (Asharq Al-Awsat)
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Saudi Mortgage Loans Reach Record Highs

The Cityscape International Real Estate Exhibition 2024 in Riyadh (Asharq Al-Awsat)
The Cityscape International Real Estate Exhibition 2024 in Riyadh (Asharq Al-Awsat)

Mortgage lending provided by financing companies has reached an all-time high by the end of the third quarter of 2024 amid developments in Saudi Arabia’s real estate sector.

According to data from the Saudi Central Bank (SAMA), the companies issued approximately SAR 28 billion ($7.4 billion) in real estate loans.

The data indicates that corporate borrowers accounted for SAR 5 billion, while individuals received SAR 23 billion. Additionally, financing companies in the Kingdom reported their highest net income since 2022 during the third quarter, amounting to SAR 768 million ($204.5 million).

Mortgage loans from commercial banks also rose for both individuals and companies, recording a 13% year-on-year increase to SAR 846.48 billion ($225 billion) by the end of Q3, compared to SAR 747 billion ($199 billion) during the same period in 2023. Of this, individual loans comprised 77.6% of the total, amounting to SAR 657 billion—an 11% annual increase—while corporate loans represented 22.4%, growing by 22%.

Commenting on the market’s growth, Mohammed Al-Farraj, Senior Director of Asset Management at Arbah Capital, told Asharq Al-Awsat that “the Saudi real estate market is experiencing unprecedented momentum, driven by a significant increase in mortgage lending to individuals by financing companies. Last year witnessed record growth in this type of lending.”

Al-Farraj predicts the upward trend in the mortgage financing market will continue into 2025, with a projected 12% growth. He attributes this to reduced interest rates, rapid economic growth, rising purchasing power, increased consumer confidence, successful government housing policies, a broader variety of real estate products, and growing demand for housing. He also anticipates that this growth will stimulate economic activity and increase demand for various goods and services.

The US Federal Reserve has played a significant role in the global economic climate by cutting interest rates three consecutive times between September and December 2024, reducing them by approximately 100 basis points to a range of 4.25%-4.5%.

Saudi Arabia has placed considerable emphasis on the mortgage market to enhance liquidity in the real estate financing sector. Several agreements and memorandums of understanding (MoUs) have been signed to develop and strengthen this vital sector.

The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), recently signed an MoU with Hassana Investment Company to develop the market, attract local and international investors, and expand the secondary real estate market.

Additionally, SRC signed an agreement with US-based BlackRock to enhance mortgage financing programs in the Kingdom and increase institutional participation in capital markets. In November, it entered an MoU with King Street, a capital management firm, to activate initiatives aimed at creating a sustainable ecosystem for mortgage refinancing.