عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Launches $1b Real Estate Funds to Provide Thousands of Homes

The Saudi Minister of Municipal, Rural Affairs and Housing during his tour of the Restatex Riyadh Real Estate Exhibition (Asharq Al-Awsat)
The Saudi Minister of Municipal, Rural Affairs and Housing during his tour of the Restatex Riyadh Real Estate Exhibition (Asharq Al-Awsat)
TT
TT

Saudi Arabia Launches $1b Real Estate Funds to Provide Thousands of Homes

The Saudi Minister of Municipal, Rural Affairs and Housing during his tour of the Restatex Riyadh Real Estate Exhibition (Asharq Al-Awsat)
The Saudi Minister of Municipal, Rural Affairs and Housing during his tour of the Restatex Riyadh Real Estate Exhibition (Asharq Al-Awsat)

Minister of Municipal, Rural Affairs and Housing Majid Al Hogail inaugurated Restatex Riyadh Real Estate Exhibition 2023 on March 7.

The exhibition, being held at Riyadh International Convention & Exhibition Center, will continue until March 10.

Several senior officials from government agencies, financing agencies and real estate development companies are expected to attend.

During the opening ceremony, Al Hogail witnessed the launch of real estate funds with a total value of more than SAR 4 billion ($1 billion), according to a press release.

The funds aim to provide more than 4,000 housing units in Riyadh and Madinah on an area of over one million square meters (sqm).

The exhibition enjoys wide participation from real estate development and marketing companies, financing agencies, Saudi banks and institutions specialized in housing and real estate affairs in the public and private sectors, which provide unique housing and financing solutions that suit various Saudi families and meets with the Vision 2030.

In this edition, Restatex will include eight dialogue sessions mainly focusing on the real estate industry and the role of the public and private sectors, sustainability and quality of life in the real estate sector, urban development and Saudi innovation, digital transformation in the real estate sector, affordable housing, real estate brokerage, housing projects challenges and solutions, and a success story by balancing quality and price.

In other news, Al Hogail inaugurated a technical link between the “Tatweer Program” of the Real Estate Development Fund and the Real Estate Developers Services Center “Etmam.”

The link comes with the aim of strengthening the complementary partnership between the Tatweer Program and Etmam.

This will contribute to automating and speeding up the submission of applications and achieving the goals of the national housing program, which focuses on raising the proportion of Saudi families owning their homes to 70 % by the end of 2030.

Most Viewed

 
 
Business

IMF Praises Saudi Arabia’s Unprecedented Economic Transformation

Efforts to diversify the economy have started to bear fruit: IMF (Asharq Al-Awsat)
Efforts to diversify the economy have started to bear fruit: IMF (Asharq Al-Awsat)
TT
TT

IMF Praises Saudi Arabia’s Unprecedented Economic Transformation

Efforts to diversify the economy have started to bear fruit: IMF (Asharq Al-Awsat)
Efforts to diversify the economy have started to bear fruit: IMF (Asharq Al-Awsat)

The International Monetary Fund (IMF) has praised Saudi Arabia’s significant economic changes under the “Vision 2030” national transformation plan, noting improvements in public finances and business regulations.
An IMF mission expected non-oil growth in Saudi Arabia to reach around 3.5% in 2024, crediting careful economic policies and major reforms.
The mission also highlighted record-low unemployment rates and controlled inflation in the country, and welcomed recent updates to funding requirements aligned with “Vision 2030” goals.
The IMF released a concluding statement at the end of its official staff visit to Saudi Arabia.
In the statement, the IMF said: “Saudi Arabia’s unprecedented economic transformation is progressing well.”
“Prudent macroeconomic policies, transformative changes—including through fiscal reforms and in the regulatory business environment—and strong domestic demand have helped prop up non-oil growth. Inflation remains contained.”
“Spending reprioritization and recalibration of major spending programs are ongoing. Efforts to diversify the economy have started to bear fruit.”
“Building on these successes, it will be important to sustain the non-oil growth momentum, maintain financial sector stability, continue mitigating risks of overheating, reverse declining total factor productivity and ensure inter-generational equity.”
Economic Activity Remains Robust
According to the IMF, real non-oil growth decelerated from 5.3% in 2022 to a still robust 3.8% in 2023, driven mostly by private consumption and non-oil investment.
While non-oil growth for Q1-2024 indicates some moderation in economic activity— the IMF staff estimated that the output gap remains in positive territory, close to 2% of the non-oil potential GDP.
The statement also noted that the Saudi economy weathered the geopolitical tensions in the Middle East well, thanks to minimal trade and financial exposures to the affected regions and uninterrupted shipments.
Unemployment Rate Reached Historic Lows
In 2023, the Saudi economy added over one million jobs, primarily in the private sector. The overall unemployment rate for Saudis dropped to 7.7% in the last quarter of 2023—inching closer to the 2030 Vision objective of 7%.
Labor force participation rates have remained at historically high levels but relatively flat over the past year for both men and women, albeit with the women’s rate still comfortably exceeding the Vision 2030 goal of 30%.
Headline Inflation Has Decelerated Rapidly
After peaking at 3.4% in January 2023, year-on-year inflation receded to 1.6% in April 2024, helped by an appreciating nominal effective exchange rate.
However, rents are growing at a brisk rate of about 10% amid inflows of expatriate workers and large redevelopment plans in Riyadh and Jeddah.
Wholesale prices have also edged up recently, reflecting an increase in input costs. So far, some uptick has been observed in the wages of high-skilled workers.
Additionally, the current account surplus narrowed significantly.
The decline in the current account surplus from 13.7% of GDP in 2022 to 3.2% of GDP in 2023 mainly reflected lower oil exports and strong growth in investment-related imports.
These were partly mitigated by a record surplus in the services balance, including a 38 percent surge in net tourism income.
The Saudi Central Bank’s (SAMA) holding of net foreign assets reached $423.7 billion in April 2024, which was slightly above the end-2023 level.
Reserves remain ample, representing 15.6 months of imports and 208% of the IMF’s reserve adequacy metric by end-2023.