Jeddah attracts major real estate developers at the International Property Show
The diversification of Saudi Arabia’s economy has seen radical changes such as the adoption of economic legislations and initiatives. This has allowed citizens, residents and businessmen to take advantage of the investment opportunities offered by a number of development projects, resulting to a surge in growth in several sectors, including real estate and tourism.
As part of its development plans, the Saudi’s Ministry of Housing has earmarked more than SR59 billion for new housing initiative over the next five fiscal years. This includes provision for a savings program to enable citizens to own a home with only a small allocation from the monthly income. This development has encouraged real estate development companies from the private sector to invest in housing projects and to take advantage of speedy facilitation to secure financing licenses. This is in addition to a partnership opportunity for the private sector to develop government land for extensive housing projects.
Saudi Arabia’s approach comes within the framework of the government’s Vision 2030. The launch of the transformation program aims to double housing financing to meet the needs of the citizens by developing a number of residential and community areas in Jubail, Yanbu, and Ras Al Khair.
Within the framework of the Kingdom’s Vision 2030, the Saudi government recently implemented a range of projects. Most notably is the initiative of the Public Investment Fund and the Ministry of Housing with their joint establishment of the Saudi Real Estate Refinance Company. SRC aims to increase home ownership by more than 50% by 2020. This initiative has provided more than 280,000 products in 2017, including 85,000 soft loans and 77,000 residential plots for about 120,000 housing units.
The Kingdom of Saudi Arabia is expected to witness a comprehensive development activity in various economic sectors, especially the construction sector. The indicators show the growth of the real estate market in the major Saudi cities, such as Riyadh, which is expected to grow by 50%, Jeddah by 43% and Makkah by 43%.
Major construction projects are underway in Jeddah including the waterfront promenade in the center of the city, which was announced by the Public Investment Fund, and other major real estate and tourism projects.
The development of these projects will have as its focus the suitability for recreation, entertainment, and shopping to make the city a unique destination for citizens and tourists. The total construction area of the project is estimated to be more than 5 million square meters, which can accommodate more than 58,000 people. All these are a part of the Kingdom’s ambition to be among the 100 most preferred cities in the world.
Around SR18 billion or $4.8 billion has also been earmarked to develop the 10-year Corniche project which will be started this year. This will generate at least 36,000 new jobs.
According to experts, the launch of the Red Sea project, which has been announced by the Kingdom, opens the door to various companies involved in the construction sector to exploit the unique investment opportunities offered by the project, alongside other projects, which are a milestone in the real estate sector and tourism in the world.
Dawood Al Shezawi, head of the organizing committee for IPS Jeddah, said, “Since the announcement of the first edition of IPS Jeddah, we have received interest and commitment from 15,000 investors and 75 exhibitors from at least 15 countries to participate in the exhibition. IPS Jeddah supports not only the development of healthier investment climate in Jeddah, but the development of tourism.”
Shezawi also explained that the Kingdom’s vision and goals reinforce the trend towards diversification of income sources which contribute to raising the GDP to 35% from small and medium-sized enterprises, through the revival of vital projects in Jeddah. Women participation in this growth has reached 30%.
Enhancing the role of tourism in the overall products of the city and the state is one of the objectives that the Kingdom seeks to employ. This objective is shared by International Property Show Jeddah with its unique features that serve as a platform for real estate developers, banks and businessmen.
