increase real estate financing to 502 billion riyals

The Saudi Housing Ministry announced its plan to increase real estate financing to 502 billion riyals before 2020, as part of its comprehensive plan to provide housing for Saudi citizens. The Ministry also seeks to establish 1.2 million housing units throughout the kingdom before 2030. Saudi Housing Minister Majid al-Huqail announced the plan last Wednesday while talking at a finance and housing conference. “We are working to provide real estate finance so that citizens can own homes, the kingdom’s vision 2030 calls for the kingdom’s need for medium housing, and the Saudi government is doing its best to raise the percentage of homeowners to 70% by 2030,” the minister said. “This step came in time Suitable, where only 47% of Saudis own houses. More than a third of Saudi nationals are currently under the age of 15 and more than half are under the age of 25, which means the need for a regular housing plan in the coming years. Khalid Al Amoudi, general supervisor of the Real Estate Development Fund, announced the transformation of the Fund into a financial institution to support the housing sector.

Inaugurates first cinema in Riyadh

The cinema returned to Saudi Arabia after 35 years of absence this week with the opening of the first cinema in Riyadh in a modern film complex at King Abdullah Financial Center. The Saudi Minister of Culture and Information, Dr. Awad Al-Owad, opened the cinema with Adam Aaron, CEO of EMC, and a number of diplomats and industry experts during the first presentation of a series of closed shows before the opening of the cinema to the public. The Black Panther Show saw hundreds of guests at a spectacular movie theater, the newest of its kind. “I know that the Saudis are eager to see the latest films in their own country, and this has now been achieved thanks to the vision of the Kingdom of 2030,” Dr. Al-Awad said on the occasion. This is a defining moment in the history of Saudi Arabia’s transition to a more diversified economy. What has been achieved today is the product of a joint effort, and it would not have been possible without the reconciliation of God and the guidance and support of His Highness Crown Prince Mohammed bin Salman. ” The cinema will be open to the public on Friday, April 20, 2018, and three more galleries are scheduled to open in the complex by September. The vision of the Kingdom 2030 includes the opening of 350 film complexes with more than 2,500 galleries.

King Salman inaugurates al-Qadier project

Saudi Arabia has officially started the construction of the Al-Qadyeh project. The project, which is located southwest of Riyadh, is one of the largest recreational projects in the world. The cornerstone of the project was celebrated at a huge ceremony that filled the kingdom’s skies with fireworks, attended by hundreds of guests from all over the world. King Salman inaugurated the opening ceremony when he placed another in the banner of the Al-Qadier project in place. Crown Prince Mohammed bin Salman, the chairman of the Public Investment Fund, whose vision of the Kingdom 2030 was the main reason for the existence of this project. During the grand opening ceremony, a film was presented to the public showing the diversity of recreational facilities that the project will feature, including recreation parks, sports facilities and nature safaris. The Al-Qadyah project is one of the projects aimed at diversifying the sources of the oil-based economy. With an area of 334 square kilometres, the project will become the world’s largest recreational city by 2030, surpassing the 110-square-kilometre Disneyland City of Florida.

The office market in Saudi Arabia

The rents of office space are still under pressure in Saudi Arabia this year due to the decline in the demand of the occupier and a slow economy. While the kingdom recorded a surge in economic growth in 2018 due to improved oil prices, the drop in late 2017 still runs in the leasing market for office space, according to research published by the real estate consultancy company Knight Frank. The main cities and commercial centers in the Kingdom of Saudi Arabia continue to suffer from the lack of high-quality equities sought by private and public companies. Class B rents have been reduced to an increasingly high degree, with prospective tenants being delayed due to issues such as poor accessibility or limited parking. The demand could recover in the long run as reforms under the National Transition Plan and Vision 2030 of the government began to feed the economy, the report said. Economic growth is expected to reach 2.2% this year and 2.3% in 2019, according to International Monetary Fund (IMF) estimates. The report found that the demand in the capital Riyadh is still a level, with only a few first-class properties such as the Kingdom Tower, Al Faisaliah Tower and the business portal maintaining high occupancy levels. King Abdullah of the financial district is scheduled to deliver the second phase inventory after 2021, which is expected to enhance the supply of the quality area. The average salary for the first-class sports quarter was 1,550 Saudi riyals per square metre per annum, while the class rents amounted to SR 775 per square metre. The tenants in Jeddah are also waiting for a new supply of high-end office space, with the planned Jeddah Gate project from Emaar, a Dubai-based company, which is set to provide about 230,000 square meters of top-quality office space in a mixed area. Use the environment. First-class rents in the Red Sea city declined by 4% on an annual basis, and second-class rents fell by 13%.

Hotel rooms in Saudi Arabia increase

Saudi Arabia is looking to increase the supply of hotel rooms to 600,000 by 2020, a news report said. The country’s entertainment and hospitality sector development initiatives and tourism support were discussed during the recent hotel investment conference, according to a report in the Arab News. The kingdom has more than 2,000 licensed and classified hotels, and the number of residential units has risen to over 6,000 licensed and classified facilities, while the number of hotel rooms has reached more than 500,000 by the end of 2018. Investors have been invited to look beyond the major cities of Saudi Arabia, emphasizing the need to promote tourism and the national heritage industries. In fact, recent annual statistics show that travel and tourism account for 9.4% of Saudi Arabia’s gross domestic product (GDP), with passenger expenditure increasing by 10.5% per annum (14.8 billion US dollars). While the country’s economy is diversified, in line with Vision 2030 plans, the number of international arrivals is expected to increase by 4% annually, according to the World Travel and Tourism Council (WTTC), with a link estimated to 22.1 million by 2025.

Saudi real estate sector sees growth in 2019

The Saudi real estate sector is expected to undergo a “health patch” during 2019, after the sharp rise in real estate prices in the past few years, according to Islam al-Bayaa, head of consulting department at KPMG Al Fozan & Partners in Saudi Arabia.

Public and private sector initiatives to strengthen the sector were the main reason for that remarkable growth.

Al-Bayaa also explained that this correction is expected to continue in the short term, but the market will rise in the medium to long term, given the recent government initiatives to stimulate the sector, especially the initiatives of the Ministry of Housing.

In November, the Housing Ministry launched the “Population” program, which will provide 19.500 housing units for its citizens. The kingdom has also unveiled real estate projects through public-private partnerships.

The increase in real estate in the form of investments was made by the state-owned public investment fund in the Kingdom, which launched several mega projects that are expected to contribute to the promotion of the real estate sector. or through the construction of the Riyadh Metro, where the real estate rose because of developments that occurred near the metro stations.

Al-Bayaa said that these companies will work to promote the real estate market in the newly developed sites, especially the concept of the second home in the kingdom. In addition, some of these projects will include new asset classes that would increase real estate investment alternatives.