Investment in the Kingdom
The fast growth rate that characterizes the Kingdom’s economy as the biggest Arab economies and the fact that the Kingdom of Saudi Arabia is the biggest in area among its Arab neighboring countries increase the investment opportunities in the real estate sector in the Kingdom.
Moreover, the growth boom that the Kingdom is witnessing since the Servant of the Two Holy Mosques King Abdullah Ben Abed Al-Aziz Al Saoud – May God Protect Him – has adopted the biggest budget in the Kingdom’s history puts us in front of a new phase of development and progress on the different levels which heavily activates the demand for the development and infrastructure projects as one of the real estate sector’s domains.
Furthermore, the ever-increasing need for residences and projects resulting from the accelerating demographic growth in the Kingdom and that is considered as one of the highest demographic growth rates in the world activates the demand on the other hand for the residential and urban expansion projects in order to fulfill the demand for residence resulting from the demographic growth.
During the five next years, it is excepted that the total demand for residences will reach around 1.27 million residential units, which necessitates the development of enough plots of residential lands on the level of all the administrative regions in the Kingdom whose total area is estimated at around 280 million square meters with an annual average of 56 million square meters.
What enhances investment in the domains of contracts and real estate and opens the opportunity for additional projects for the companies is the message confirmed by the current development plan stating that the Kingdom needs to construct around 4 million residential units within the next twenty years. Moreover the demand for the construction and building sector will increase and reach more than SR 65 billion in the year 2010 A.D.
All of these examples confirm that the next phase will witness huge investment opportunities and a continuous growth compatible with the demographic growth rate especially after the issuance of many rules and regulations related to investment and new real estates, the opening of tourist domains and the imminent joining of the Kingdom to the World Trade Organization.