Saudi real estate market poised for new boom

A residential complex undergoes construction in Jeddah. [Ahmad al-Moghrabi/Al-Shorfa]

A residential complex undergoes construction in Jeddah. [Ahmad al-Moghrabi/Al-Shorfa]

  • COMMENT

    33

  • Print this article
  • increase decrease

The real estate market in Saudi Arabia is on the verge of expansion because of a projected drop in land prices and a new mortgage law, experts told Al-Shorfa.

New programmes and the new mortgage system -- approved by the cabinet in July and expected to take force in the next few weeks -- will contribute to decreased land prices, realtors said.

Land prices are expected to drop by 20%, especially in the central, eastern and western regions, according to realtors. Residential land prices in cities will vary based on several indicators, including services, employment opportunities, and the level of development.

Abdullah al-Shaal, owner of a real estate development company in Jeddah, said many Saudis who do not own a home have been waiting for a favourable opportunity to achieve "the dream of a lifetime".

"The main reasons for the decline in the rate of home ownership are rapid population growth and the influx of foreign workers into the country," he said. "The drop in land prices will relieve the housing problem, which has become an obsession for many people."

Residents in low and middle income brackets are generating most of the demand as they are unable to obtain home loans from the bank and spend a large portion of their income on rent, according to Khalid al-Shihri, who manages a real estate company.

"The migration from the countryside to the cities intensified the pressure and drove land and housing prices higher. The percentage of Saudis living in cities increased from about 48% in 1974 to 85% today," he said.

It is vital to develop programmes that encourage people to stay in their areas to stem internal migration and correct imbalances in the real estate market, he said.

"The [new] mortgage system and the trend among developers towards building low-cost homes will contribute significantly to solving the housing problem," al-Shihri said.

He said reducing the gap between supply and demand for housing requires that the Ministry of Housing implement various housing programmes that stimulate home purchases.

Construction boom

In March 2011, King Abdullah bin Abdulaziz established the Ministry of Housing to address housing shortages in the kingdom. He raised the value of mortgages provided by the Real Estate Development Fund from 300,000 riyals ($80,000) to 500,000 riyals ($133,000) and pledged to spend more than 250 billion riyals ($66.7 billion dollars) to build 500,000 new residential units.

A week after the king's announcement, Banque Saudi Fransi said the kingdom needs 275,000 new housing units a year through 2015 to meet growing demand, estimated at 1.65 million homes.

Essam al-Borai, an economics specialist with the Bin Mahfouz Group, said the kingdom is poised for a major construction boom that will meet this demand.

"The long-awaited mortgage law will bring about a huge leap in this massive market. The kingdom controls 33% of the real estate market in the Gulf region in 2012," he said.

Al-Borai said those working in the real estate sector should be made aware of the new incentives as the field is reporting an increase in investment.

He said safeguards related to real estate investment transactions must also be upheld.

"It is important to have an arbitration mechanism in place for resolving contentious issues that may arise in order to protect capital investments from being frozen," al-Borai said.

Residents welcomed the fact some real estate developers are seeking to build low-cost homes to meet the needs of millions of Saudis.

Ahmed al-Ari, an elementary school teacher in Jeddah, said he has dreamed of owning a private home for 20 years but has not been able to realise it because of the high price of real estate.

"The approval of the new mortgage law and the new trends in the real estate market offer us some hope of owning a private home and breaking free from the burden of rent, which has consumed an enormous portion of our money over the years," he said.

ADD A COMMENT (COMMENT POLICY) * DENOTES REQUIRED FIELD

Test
  • READER COMMENTS

    عباس عبدالجبار

    2012-10-4

    The Saudi economy is in excellent condition, as Saudi Arabia has oil that helps greatly in boosting its economy, and it is one of the revenue sources for the Saudi state, which is working hard in order to preserve this resource and properly exploit it. However, the Kingdom of Saudi Arabia is in need of building more houses and apartments and working on a wide-scale construction coverage in order to meet the needs of the Saudi citizens and the demand for residential units for sale or rent. We know the importance of residential units for rent as this will undoubtedly satisfy the needs of many Saudi citizens, and also it will provide an opportunity for those who find themselves in a situation whereby they have lost ownership of their house, and consequently, this will solve this problem, instead of having to bear the other costs of purchasing or taking loans. So, the Saudi government should launch these projects and increase them so that the Saudi citizens can live comfortably wherever they are in the Kingdom whether it is for work or other purposes. There are categories of people whose jobs require them to constantly be on the move, and for this purpose, increasing the number of houses and apartments is very important and will definitely have a considerable impact on the Saudi society and economy. Working on expanding architecturally across the entire Kingdom will have a great impact on the lives of the Saudi citizens and their comfort as will the efforts made by the government for the sake of the Saudi citizens.

  • احمد عبدالله

    2012-10-4

    Saudi Arabia possesses oil reserves in its lands which benefits the country greatly. The cooperation between Saudi Arabia and the western countries that buy the oil, greatly helps the Saudi economy, and provides Saudi Arabia and its people with all their needs. But the growing population is affecting public life and its flow in a major way, and this is standing in the way of providing housing and residential buildings and their proximity to the workplace for the Saudi citizens. So, this is why it is necessary to provide more residential buildings and houses because these are necessary with the much higher growth rates presently, and all of this will not affect the kingdom as it is capable of bearing the costs of all these investments in housing, but there should be proper studies carried out in order to ensure proper distribution of these buildings and houses that will have a great impact as they become available with the continued growth of the population. All of this will have a considerable impact on the progress and advancement of the Saudi economy, in addition to what this carries with it in terms of progress to this day. Also, it is necessary to take advantage of these projects and investments so as to relieve the Saudi citizens of the hardship of finding an apartment to live in and which is available to them wherever they move to depending on the nature of their profession. So, it is imperative that the Saudi government do its utmost in order to provide the citizens with proper housing and comfortable living conditions.

  • عبدالرحمن عبدالله

    2012-10-3

    The problem that Saudi Arabia is facing is that the supply of apartments is less than the demand for them, and as such the member of the Board of Directors of the Riyadh Chamber of Commerce and Industry thinks that the best way to solve this crisis in the most rapid manner is by means of mortgages, since most of the people cannot afford to make the house payment all at once, but rather they really need the help of the government in making this facilitation possible, because people will not be able to afford this without this system to help them do so. He also added that the real estate market in Saudi Arabia has not been affected very much because there are no debts.

  • عبدالرؤوف علي

    2012-10-3

    Oil is one of the most important resources that have boosted the Saudi economy into the sky. However, there are many people living in shacks in some regions, which has prompted the kingdom to think about and indeed to take measures in order to build many comfortable houses for its citizens. But it is imperative for the government to do its utmost in order to grant ownership of these lands so that these houses would not become the basis for the problem becoming more exacerbated and hard to solve later on. The lack of housing fit for humans to live in is also the cause for the increase in spinsterhood among the youths because of the unavailability of suitable apartments for marriage. Currently, the government is thinking about converting the small apartments into villas. However, this project has not yet been decided upon, and this issue is still unresolved. These houses represent a positive point in the real estate investments market. Real estate experts are wary of defaults on payment, which is the cause for the stagnation in the real estate market. It is imperative for the government to solve the housing problem because the number of apartments that are available is very much lower than the demand, and this leads to the rise in the price of apartments in such a way that they become beyond the means of everyone. Mortgage is considered to be the best solution in order to launch the Saudi real estate sector, and this is one of the consequences of the global financial crisis. Everyone needs to cooperate to provide housing units, as the market is very thirsty for this currently, and in the event of mortgages being introduced, this will revitalize many of the companies in many sectors.

  • عبدالله المهدي

    2012-9-29

    When we talk about the problems of poverty in Saudi Arabia, we need to mention several facts that are absent from those who do not know what is happening inside of Saudi Arabia. It is true that it is one of the richest countries in the world, possessing oil. However, we find the poor spread out dramatically, especially in the villages where the poor in the country are widespread. They suffer from poverty and they lack industriousness which affects their families. Also, they are suffering a life in which they live very poorly. They do not own homes and they do not have a shelter to live in. They do not have jobs and they do not have any provision to provide a good life for themselves, and for their children. There are more problems of poverty in Saudi Arabia and they must stand then and study them closely as well as determine their causes. They should provide a solution in order to be processed so that there would not be any dramatic increase of poverty. Therefore, we can provide a good life, at least for those families that suffer greatly because of that poverty and by identifying the poor and knowing how to help them, as many live in ruins, not hot, not cold. At the same time, we see the manifestations of wealth and domination of the members of the State and the Saudi royal family. They own everything that is not owned by the Saudi and international banks, and enjoyed an incredible life everywhere. When will the State, in view of these poor, build houses, apartment complexes, or distribute them at the very least? They should ask the officials about the importance of building housing and covering construction to provide what is needed according to the census in the Kingdom of Saudi Arabia regarding the provision of housing and apartments. They should also be given an affordable price to help the lives of the Saudi citizens.

  • عزت عبدالحميد

    2012-9-29

    Although the Saudi economy is in good condition, there are poor people and, of course, when a problem occurs such as the housing crisis, it is considered to be strange because the Kingdom of Saudi Arabia is known to be one of the wealthiest countries in the world, and it owns a lot of financial resources from the petroleum which it exports and produces for abroad. When we seriously look into the reality of Saudi Arabia, we will find the reason for this problem as the main reason is the increase of population in Saudi Arabia, which has been accompanied by only minor construction growth that is not compatible with this increase of population, in addition to the rise of prices of the lands, and the cost of building homes, while the salaries of the Saudi Citizens are still the same, within the limits that don’t allow him to buy or build a private house for himself, which contributed in increasing the suffering of the Saudis, and the occurrence of a housing crisis. There is another problem, that Saudi Arabia depends on the horizontal construction system, which made the situation more complicated. If the Saudi government wanted to solve this problem, which depends on these housing projects, it should move forward as soon as possible on the construction of housing compounds that include those housing projects and coverage that provides a large number of houses as well as apartments in the unit, which is a small area, work to encourage investment of Saudi capital, and to the rest of overseas capitals specialized in the housing sector, because most investments in Saudi Arabia in recent decades tended to the money market and the stock market, and left the arena of housing without considering it. Because it did not provide immediate profits and repayment of assets that were spent on such projects quickly, the government must instead grant facilities for the housing sector in order to attract a lot of investments to it and work on eliminating the housing crisis as soon as possible. It has become a real crisis in Saudi Arabia and it greatly affects the lives of the Saudi citizens.

  • حسين عبدالرحمن

    2012-9-27

    One of the most important sources, which pump money to Saudi Arabia, is tourism and especially tourism in Jeddah. Jeddah is a large coastal city exploited by investors in the establishment of several tourism projects with international standards. It became a goal for anyone who seeks entertainment and is thus visited by thousands of people from all over the world to enjoy the natural scenery as well as entertain themselves with toys, shopping, circuses, and other aspects of entertainment. The vast quantity also requires a tremendous amount of labor inside and outside Jeddah to provide these visitors with their services and their demands. Therefore, this caused the increase of job opportunities for young people of all nationalities and we have in Saudi Arabia in general, and Jeddah in particular, visitors from all the countries and workers from all the countries, all these beside the Saudi citizens of the country. Sure, all these people need places where they can stay. Therefore, Saudis must increase housing and apartments so as not to be an obstacle. However, who wants to come as a visitor, tourist or even as worker to Saudi Arabia - without workers, tourists cannot find anyone who provides them with their demands - decreases the number of tourists coming to Saudi Arabia. However, with increasing housing and apartments many tourists will flock to Saudi Arabia who are assured about the residence and services, so they increase the number of days they are staying in Saudi Arabia. This is an economic gain to Saudi Arabia because as long as the tourists stay in Saudi Arabia, the more they spend to meet their needs. Therefore, tourism and tourism investment are among the most important sources of economic prosperity in Saudi Arabia. And do not forget that the Hajj is also tourism, but religious tourism and is one of the most important sources of economy in Saudi Arabia. In the Hajj season, thousands of people come to Saudi Arabia to perform Hajj. All of these Hajjis have needs and the most important one is the house in which to stay.

  • عبدالمنعم حسن

    2012-9-27

    Saudi Arabia lives with a refreshed economy thanks to many resources, including the most important resources that are available such as oil, natural gas, gold, and other resources, which generate a lot of money for the country and it also seeks to employ them properly to get the most benefit out of them. It is like any country seeking development and renaissances. Therefore, it opened schools, hospitals, factories, restaurants, and others. It invited many Arab laborers to come to their country to contribute to the renaissance of their country in these areas and paid more than they get in their home countries to agree to go there. Therefore, it has gathered many laborers from many Arab countries and those workers are in need of housing where they rent it from its owners. Therefore, Saudi Arabia is in serious need to increase its homes and apartments so that the workers can find places to live in. It would be better if these homes and apartments are close to the universities, schools and factories. Therefore, the worker is near to his work and this will save time, which would be of use at work in the sense that when university lecturers live near the university, teachers live near the school, workers live near the factory, and doctors near the hospital, that will reduce wasted time in delay due to transportation and will use this wasted time for working. This is in the interest of working and in the interest of improving the economy in Saudi Arabia.

  • فيصل عبدالله مرهون

    2012-9-27

    Saudi Arabia enjoys a very wealthy economy because it has many ingredients that make it one of the richest countries in the world. The most important one is "Hajj" as it generates a huge amount of money for Saudi Arabia. It is the reason for creating opportunities for many Saudis for raising their standard of living and economic level. This, of course, is reflected in Saudi society, which raises its economic and business level. For example, transportation, which the Hajji needs to go to the places he wants, especially since he is a stranger to the place and hotels, especially near Al Haram. However, often these hotels could accommodate the vast amount of Hajjis annually. Therefore, Saudi Arabia needs to build houses and apartments anywhere in the country, most preferably to be close to Haram, so it would be purchasable or rentable by many Hajjis because it will make the hard Hajj easier for them. In my opinion, the Hajji will accept to purchase or rent an apartment rather than turning to staying in a hotel because it will cost less and there is more privacy, especially if his family was with him. In addition, these houses and apartments will provide more jobs in its construction and finishing and the Hajji's rate to rent them will multiply several times.

  • فائق احمد علي

    2012-9-25

    Millions of Muslims all over the world head to the kingdom of Saudi Arabia every year to perform Pilgrimage and Umrah on which the national economy depends as well as many other resources. There is no doubt that it provides many job opportunities and it promotes goods and products significantly. It is also considered a simple resource compared to other resources that the State budget depends on and it is at the highest levels of economies and reserves due to the graces like the oil reserves and the minerals. Despite the high level of the economy, the high standard of living and low level of unemployment, many citizens' demands have not been achieved yet. The government works with all its efforts on achieving these demands which are represented generally in the lack of residential communities in the kingdom as the apartments and houses are few due to their rarity. They are very expensive and they create a big burden on many citizens of the middle and lower classes even if their number is low. However, they face this problem and bear it with great difficulty in addition to the high prices of goods and food, and the products needed by the citizens in their daily lives. This problem is not limited to the Saudi people only but also includes many expatriates who go to Saudi Arabia for work, tourism, trade, culture, and education. Therefore, there should be committees from the local authorities to make a feasibility study to build many residential communities in different places of the kingdom and there should be variation between them

  • جعفر ابراهيم

    2012-9-25

    The government and the local authorities in the kingdom of Saudi Arabia can establish many projects that will fulfill the needs of the citizens by providing houses and apartments suitable for all categories and classes of the Saudi people as well as fulfilling their needs for houses that everyone dreamed of for themselves and their families because of the presence of many areas in the kingdom which are not exploited yet and are still desert. It is necessary to provide the houses and apartments after the significant increase of population inside the kingdom, especially the increase of the number of people who come from outside for work. They need many houses and apartments which are suitable for them and for their conditions. Of course, these projects will not affect the internal economy and the general state budget even if they need huge expenses. It will not affect the economy negatively which is considered as one of the strongest economies in the world and it competes to achieve the forefront every day in the levels of the international economies. All of that returns to the precious and expensive properties of the kingdom which it depends on directly in the economy of the State. It helps the State to set up a lot of projects and to raise the standard of living of the citizens without the State suffering from a financial or economic crisis from it. Also, the kingdom achieves a lot of gains because of the Muslim visitors who come to it all throughout the year to perform Pilgrimage.

  • حمزة محمد

    2012-9-25

    The Saudi authorities work on developing the residential projects that Saudi society needs significantly as many lands suffer from desertification and being away from reconstruction by long distances, and thus Saudi society is in urgent need to build many villages and residential cities, and to spread the reconstruction all over the State as well as fight against desertification by all possible means that will not affect the general economy of the State despite its needs for expenses and money. However, there is no doubt that it will bring goodness for the citizens, the economy and the society as well as the strong resources that support the Saudi economy and the kingdom. It depends on them for its expenses and financial needs that compensate for the expenses of the State in various fields in addition to the great gains obtained from the Muslims who perform the religious rituals which are imposed on them to go to the Kingdom of Saudi Arabia to perform Pilgrimage and Umrah which is imposed by God on the Muslims who are able. It has returned with a lot of gains that affected the economy of the State; therefore, there is no harm to the economy of the State if the authorities intensify their efforts to work on these projects that provide houses for the citizens that suit all the categories and classes of the Saudi society, in addition to the necessity of suitable houses for the expatriates who come from other countries for work, tourism or education. As such, the government should set up special committees to study these projects and to begin them quickly in order to achieve many of them

  • محمود حسن محمد

    2012-9-25

    The economy of Saudi Arabia is considered the strongest in the Arab region and one of the strongest economies in the whole world according to many of the international reports and statistics. They also proved that Saudi Arabia is among the highest economies in the world wherein it competes with many developed countries to be at the highest levels. The kingdom depends on many resources and fields in which nature is considered the basis of the economy and it affects the general level of the Saudi citizens as the companies that work in the field of oil and its extraction, exporting, production, and the industries based on them offer a huge number of job opportunities for the Saudi citizens and others who work in these fields in Saudi, so that the natural resources are considered as the most effective resources for the Saudi society which help significantly in changing the level of economies of the State positively. Despite the presence of all these resources and the high level of the economy, Saudi Arabia lacks many of the residential projects and the houses needed by thousands of the citizens. It is necessary to build and construct many houses and apartments to fight against the desertification which swallows much of the Saudi territory. We cannot deny the role of the government and the Saudi authorities in trying to establish many projects in this field which help fulfill the needs of the society in this field and to satisfy the desires of the citizens to get houses with suitable prices that satisfy all the categories and classes of the society. Moreover, it helps in attracting the labor force that comes from all countries

  • عبدالله عبدالعزيز

    2012-9-25

    There is an urgent need to build housing projects in Saudi Arabia to fulfill the desire of the Saudi community by providing many apartments and houses, whether for the Saudi people or the expatriates who live in Saudi Arabia. We will not say that building these projects, as they need a lot of money, will affect negatively the Saudi economy, as there are many resources and forces that will compensate for any shortage or loss that may happen to the national economy inside the kingdom due to the natural resources like the presence of the oil wells and gold mines whose products are exported all over the world. Therefore, it is beneficial to the Saudi society and the economy as well as the strong returns that the Kingdom gets from Pilgrimage and Umrah that a great number of Muslims do annually from all over the world, as God ordered us. It is considered the most active country in the field of tourism because millions of people visit it annually and revive the trade strongly. Moreover, it is necessary to make the housing projects feasible in order to provide apartments for them which are an urgent need, and the government should work on it seriously and quickly.

  • عبد الله الكواري

    2012-9-25

    No doubt that the Saudi economy is known for its power and its high level in the Arab region due to its many resources that nature and God have granted the Saudi people as well as the human resources developed by the companies to attract the outsourcing labor, and to improve the economic level significantly. The gold mines and oil wells are among the effective grants to the Saudi economy in which a great part of the State depends, as well as the economy is based on them. Also, there is a great source that affects the economy significantly which is the presence of the Grand Mosque in Mecca and the Mosque of the Prophet to which people come from around the globe to visit them to perform an obligatory, so that it brings in a lot of gains that affect the economy. There is an urgent need to build houses and buildings for the citizens there and this is a problem that many of the Saudi people and the expatriates suffer from. The government has established a lot of residential projects on which it spends a lot of money to satisfy and impress all categories and to be suitable with the standard of living needed by the categories of the Saudi people as well as the expatriates who stay in Saudi Arabia for work, trade, or even the tourism or shopping. However, there is still the need to build many of these buildings and apartments.

  • علي محمد

    2012-9-24

    The Saudi economy has to grapple with a very big challenge of how to manage the implementation of projects without any inflation in the general budget because it is known that there is a crisis and a deficit in the entire budget of Saudi Arabia. The main reason behind this crisis has become known to the whole world because of what was written and published about it in all the local and international newspapers which showed that it expanded illogically to give mortgage loans and investments in bonds derived from it and borrow much exaggerated sums. When the maturity bonds came, there were defaults and the problem appeared, and the bond started to collapse which led to huge losses many times more than expected. Hence, the problem appeared and as for the houses and the apartments, real estate specialists have agreed on the importance of a new form and a new plan for the real estate development fund, which is to reduce the area of villas and give more space for young people, and that will reduce housing rents and give greater opportunity for ownership. I think that every effort contributes even to solve the problem of apartments. They must find all respect, appreciation and even attention because in the end, this is in the interest of the citizen who loves his country and serves it. Moreover, I see that appreciation is not enough, but there should be moral and material support as well as organizational support, and the reduction of spaces of the villas will further reduce the cost value, as it is better to reduce the rented houses and increase housing that is prepared for ownership.

  • عيسى حسن ابراهيم

    2012-9-24

    When we know that about a third of Saudi society belongs to the middle class and swings down until it reaches the low-income class, we will notice that the Saudi Government has really been on the outskirts of danger because this percentage may increase rapidly in the coming years with no quick solutions to their problems in general and the housing problems in particular. The problem of housing now has become a nightmare for low-income people because there are no government solutions for them, whether to provide quick loans, land that can be built upon or territory prepared for equipment construction. Saudis cannot save under the high prices that rise year after year, and thus it can be said that this is a problem for which the government could not find a solution and cant be solved only after decades when other problems will worsen because of this issue. Yes, there is a demographic crisis in the entire world, but Saudi Arabia is one of the countries that have a large financial plan for many real estate projects which have been proven in Lebanon, Egypt and the Gulf in general. Therefore, why until now can the government not give attention to this important problem? Also, a large part of this problem was caused by the bad media that makes the relationship between the citizens and the property investors semi-detached. The media and stakeholders must highlight on reliable investment parties and highlight them to benefit everyone, and let this crisis pass peacefully. In Saudi Arabia, there are lots and lots that can be offered to the citizens, but only a little planning that is based on the ground and not based on illusions and on things that are not present, so the government must go to the streets and learn how the citizens think and how the investors think, and try to converge and fix things.

  • سلمان محمد علي

    2012-9-24

    Saudi Arabia is one of the most populated countries compared to other countries. This is because of polygamy and love of having offspring. We cannot prevent the population increase in a country with a culture such as Saudi Arabia, we cannot prevent nor deter the quick increase, but what can be done is some organizational work regarding the problem of housing, which is still ongoing and increasing day after day. Now, if we look at a country like the kingdom, the size of a continent, we cannot say that there is no space, but we can say that there is no space available now for such housing. The fundamental solution to this problem is through the collaboration of all ministries, the Ministry of Utilities, the Ministry of Housing, the Ministry of Irrigation and all the ministries have to join together to reconstruct these territories or even make a real plan through which the citizen may feel assured, so he would start buying houses that are being built in distant lands. Also, there are no real guarantees from the housing banks to the citizens. This caused a kind of confusion and misunderstanding for the citizens. It has made them incapable of relying on these banks for fear of issuing any verdicts against them at any time that would ban them from the right to own houses. Payment in installments should be arranged to suit the citizen and his culture, the Saudi citizen can never deal based on usury. So, He can pay monthly or semi-monthly installments, instead of paying the rent. At the end, the ownership can be handed to the citizen and he may live in it.

  • عبدالله خليل إبراهيم

    2012-9-24

    The housing sector and reconstruction in any country is one of the most important sectors that draw much attention from the affairs of State, particularly in the developing countries, which are in the process of growth and which have huge differences in the housing sector, and displacement of the citizens from the countryside to the cities or from nomads to the cities with the increase in the number of housing and the increase in prices have now become a crisis beyond the control of the government in many cases. Saudi Arabia is one of the countries where the housing crisis has become a phenomenon and clear because of the increase in the population and because the government does not follow up on the new buildings, including the services and facilities that serve all new residential areas. The problem in the Kingdom is not born of the moment, but is the result of years ago when the citizens and government were preoccupied by the speculations on the stock market, stocks, descent, and height. All this led to the absence of the government from this problem which has suddenly worsened not only in the Kingdom but also throughout the whole world. The Kingdom has vast areas of land where it can give ownership of lands to every citizen with an area of about 300 meters. However, the problem is of ill-distribution first and monopolizing the market by some individuals secondly. This is what must be remedied quickly so as not to become a real problem between the citizens and the government because the citizens have now lost confidence in the landlords and real estate investors, although the problem is not only the investor's, but also the government's which must be aware of the problem quickly.

  • أحمد العمادي

    2012-9-24

    It has been recently observed that the economic recovery in some Arab countries, especially Saudi Arabia, take the foreign investment as a pillar of economic prosperity, particularly the real estate investment where this is done through an agreement between the Arab parties and other foreign ones, according to the economic feasibility of both. The Arabs have dominated a reasonable proportion of the European purchases. Financial and banking services evolved and developed indicators reflecting our movement of the national economy through the Gross Domestic Product (GDP) as it reflects the economic growth level during a certain period of time. These indicators may show recovery of the economic movement in Saudi Arabia because the Saudi capital Riyadh has great economic movement, which qualifies it to compete with major economic cities. It is known that the Saudi economy depends mainly on oil and tourism, where Mecca embraces the House of God and the Prophet's Mosque in Medina. The two are the Muslims' first Qibla where pilgrims come to them from all over the world every year and even throughout the year. In order to continue the development of the Saudi economy, it is monitored by economists and specialists to observe and note any emergency. In the field of agriculture, the Kingdom has been able to achieve self-sufficiency in agricultural crops. The Kingdom is now moving to building apartments and new homes through real estate investment, which moved the country to an unprecedented economic transfer.

  • خميس محمود

    2012-9-24

    From my point of view, I would expect that the Saudi economy is in dire need of promotion to overcome the difficulties and the obstacles that threatened it. Solving the problem of housing and apartments for the young people must start from the State through implementation and not just by showing the problem. It is time to solve these problems, as well as overcome and eliminate them. There are many practical solutions to solve the housing problem. There are a lot of unexploited desert lands of very large sizes. It is easy to exploit these lands and carry out small projects. The State must solve this problem as quickly as possible to promote the economy. The State must take into account the interests of its people and operate on the convenience to help them work hard and fast for the sake of their beloved home. Also, we should not forget, while we are talking about promoting the economy, to mention the problem of education. You must start with the promotion of education because the problem of education must be equal to the rest of the problems. In fact, it is rather the most notable and we must create a conscious and cultured generation that has the ability to solve problems, and the ability to take risks. This new generation has to be educated and mature so that they can promote our high and dear homeland.

  • محمد عبدالرحمن

    2012-9-24

    There is no doubt that Saudi Arabia is witnessing prosperity in the Saudi economy and expansion in foreign and internal investments, which help the recovery of the Saudi economy. There are many factors that help the flourishing and development of the Saudi economy including real estate investment and building more housing and apartments. This, in turn, helps create jobs through construction and construction equipment, and job opportunities for engineers. It also provides trading interactions between real estate companies and companies of building materials and construction, and this helps to solve the housing problem in the Kingdom. This will also contribute to increasing the income of the Saudi citizen and provide condominiums of all kinds and levels, which reduce the problem of apartments and houses for rent. It also helps the Saudi citizens to have access to apartments and housing ownership, and this allows them to save part of the money that was spent in rent to increase their income. Also, the Saudi economy can go out of this circle and go towards the productive economic transformation, which will help to improve the quality of life for the Saudi citizens as well as make it flourish in many ways including the quick establishment of housing projects, reformation of the disrupted labor market, improvement of the productivity of national labor, and the setup of fund to support the financial economy. I see that the problem of the Saudi economy is not regarding ambition, spending or plans, but rather in the implementation of those things. The thing that the Saudi economy is also facing is the global financial crisis. What is required is to get out of this circuit and transition to the productive economic level.

  • احمد عبدعلي

    2012-9-24

    Although the excellent situation of the Saudi economy and its progress and balance in many capable resources, especially oil and petrochemicals manufacturing, which are capable of providing all possibilities to the Saudi people including the leisured and even minor layers, but there is still a problem in housing. Working on the development of the real estate market has become necessary because Saudi society is characterized by families with large numbers, which need to exploit optimally the spaces. In addition to the need to build small studios for expatriates, which are affordable, and suites for expatriate families, that society needs to diversity and plurality of development both quantitative and qualitative. That requires more support from the Saudi government to extending facilities and dealing with desert and rocky nature of Saudi Land. Even now there are many areas in the capital of Riyadh that rely on septic tanks which did not extend sewage to it and other water areas cut off for several hours. If this is case of the capital what about other cities, especially distant and small ones? No doubt that the Saudi government began working to develop Real Estate market and building more housing, especially for the middle and poor classes, but we cannot yet say that it started to reach the stage of stability and sufficiency .

  • منصور محمد

    2012-9-24

    The Kingdom of Saudi Arabia is one of the most important countries in terms of strength of its economy and stability, which relies on oil and occupies first place globally in oil reserves, production and export. It occupies an excellent position in the production of gas also, and this helped it in becoming the largest producer of Petrochemicals in the Arab world. It makes it easy for the business performance and enjoyment of the economic stabilization. Now it is one of the largest commodities exporting countries in the world, thus making it eligible for membership in the World Trade Organization. In order to support the stability and economic development, the Saudi Government has given the multi-purpose housing great importance in the five-year development plans through its multiple programs for housing sector such as land-grant programs, Real Estate Development Fund loans, public housing program, and other programs for the staff housing for some government sectors. There is a need to rationalize the residential area of the unit so that its elements and spaces have the utmost effectiveness especially since the cost of construction represents two-thirds of the total cost. Abolishing spoilage of blanks leads to appropriate housing economically and makes the process of maintenance, cleanliness and care accessible and easy. The Saudi economy has the ability to implement a boom in the residential area. The Kingdom of Saudi Arabia is one of a few countries that have not been affected by the global economic crisis on the real estate side. The government's support for the Real Estate Development Fund allocations is a great reason to increase the pace of housing construction in the kingdom and reduce the shortfall in it. However, traders should not exploit this period, manipulate the price or use lesser quality material to the market at competitive prices because there is a presence of the opportunists in the market. However, the concerned authorities must carry out that control.

  • محمد صالح

    2012-9-21

    One of the most important signs of economic growth in any country is the launch of construction projects and giving importance to expanding these projects, especially if the necessary resources for this are available. If we take a look at Saudi Arabia in particular, we know that currently those in charge there are increasing these projects in order to employ the workforce among the Saudi youths, and at the same time, these projects increase the individual’s income, as has been published recently. The government’s interest in setting up these projects is simply in order to increase productivity and create new jobs for the youths, and at the same time increase investments and provide housing to the Saudi citizens, which is the most important thing in this issue. It is necessary to exploit all the resources that the country has in order to enhance the economic conditions, and when this exploitation is done for the interest of the citizens, this is what is always hoped for behind the launch of any project, and this is what prompts the population to support these projects that are indeed being launched in order to serve their interests in the first place, and finding the right house at the right price is the major concern of any person anywhere in the world. In their bid to achieve the satisfaction of the citizens, those in charge of the economy should encourage investments in the building and construction sector, as this will lead in one way or another to higher living standards for the individuals in these countries and to progress.

  • محمد شريف

    2012-9-20

    In Saudi Arabia, the country should make equality between the real estate and the citizen, and the development and housing banks and credit banks should accelerate giving the people with low incomes enough money to repay the money for the loans, so that the Saudi citizen could achieve his dreams; and the dream of every citizen is to have a special, comfortable home. Also, the country should not give the citizens apartments and villas for the citizens without maintenance or services nearby. They should provide all the needs of the citizens in order to revive the country, and this is the commandment of God. If the policy of the greedy traders and the property owners of raising the prices continues with no restrictions or laws, the policy of monopoly will result in a specific class of people owning more than other people, and the community will become a society of classes, and the differentiation and customization will be clear. Yes, there is a role for the media, and an obvious role that has led to the instability of trust between the client and the businessmen, and the country should control the media.

  • جعفر حبيب

    2012-9-20

    The middle class is the backbone of all countries, and it produces thinkers. We should not marginalize the role of the middle class, so it will not come under the control of the rich class, so we will apply the monopoly system. The problem of the population that Saudi Arabia has gone through is now a dangerous indication that the country is going to the system of a monopoly, due to the loss of trust between the consumer and the real estate owner or the owner of the property, and that is due to their lack of honesty by raising the prices of the properties at any time. Then, day after day, the Saudi citizen will not care for this market, despite the fact that the real estate market is no less important than any other source of income; it is like oil and wheat, but during the current global crisis, its importance has increased.

  • محمد نوار

    2012-9-20

    The Saudi economy was one of the economies that overcame the crisis of the international economy. One of the articles of the Constitution in the Saudi laws is that the Saudi riyal is stable against the dollar; but now, unfortunately, the housing crisis has become the recent talk of the economists and all people sympathizing with the citizens who do not have homes. No doubt that having a house is the dream of all people with different economic cohesion; the home means stability, so how you can live and produce without a stable home? If we know from the beginning what the main reason for this crisis is, and that it is the international crisis that happened and which led to the rise of property prices in the whole world and not only in Saudi; now the developers are accused, because from the customer's point of view, the seller is greedy. With this crisis, the state should be quick to give loans to the middle-income citizens, so they can pay for the real estate. We have made compromises between the real estate and the citizen and the state. Meanwhile, the state should facilitate loans for the citizens. The loan should be for a suitable duration for all those who can repay it, and it should be suitable for all categories: for those who can pay it once or can pay it in payments, and in all cases there should be facilities as possible for the citizens, to revive the real estate market and for the citizen to have his private home.

  • حسان جميل ياسين

    2012-9-20

    The Kingdom of Saudi Arabia depends mainly on oil in its economy, which is one of the pillars of the world; it has about one quarter of the world’s oil. Due to the growth of the Kingdom's economy, the spread of informal settlements has been noticeable in some regions, in which the Kingdom should build many suitable buildings for the citizens, especially given the increase in the kingdom's economy. The officials should give the citizens the right to own the lands and to build on them, to overcome the presence of the informal settlements. The financial policy should have quick steps to implement the steps, as the last years witnessed a slowdown in spending money until it was down to a quarter of what it was in previous years, and it is a very low proportion. Housing is a solution for many problems witnessed in the Kingdom, like the poor families and the newly married youth and others. Although the Real Estate Development Fund has adopted the problem of converting the small apartments into villas, there are many concerns about the services, like the fees for cleaning, transportation and maintenance. These homes are a positive point and for the Saudi citizen to buy it is a turning point in the world of real estate, which creates a new, positive dimension in the property investment market. Despite the vision of the real estate experts about the importance of these buildings and making them an investment for the future, they all agree on the necessity of the obligation to pay and the entitlement of the payable fees to overcome the recession in the real estate market.

  • مصطفى عبد القادر

    2012-9-16

    There is no doubt that the economy of Saudi Arabia is characterized by considerable development. In fact, Saudi Arabia is a leading country in the extraction of oil reserves. It is one of the first three oil-producing countries in the world. There is no secret to anyone that this country receives huge revenues thanks to this very important sector. On the other hand, the revenues from Islamic Tourism are no less important. Indeed, the Muslims from different countries perform the Hajj and Umrah in Saudi Arabia, which contributes to the economic development during the year. In this respect, we note that the economy of this country is very prosperous, which would immediately lead to a considerable increase in the pace of reconstruction and development in the country. Indeed, the economic recovery would revolutionize construction and reconstruction. It boosts house and apartment construction in order to meet the market demands since many citizens and visitors who come from all over the world need more and more housing units. The travelers include workers in various sectors as well as the pilgrims who want to perform Hajj and Umrah. Thus, the number of houses to be built is not insignificant. Thus, the Saudi Government is supposed to provide a larger number of houses, buildings and apartments. In fact, the massive reconstruction helps countries to make remarkable economical and social progress. Saudi Arabia is not inferior to United Arab Emirates which features the city of Dubai. This city has become an influential international economic pole due to its important Estate and trade. Similarly, Saudi Arabia features huge wealth and Arab and foreign manpower. The Government must be constructive. It should seek the evolution of the Kingdom. This country could become a leading Arab nation through diligent planning.

  • توفيق يوسف

    2012-9-16

    There is no doubt that Saudi Arabia is currently going through a period of tremendous progress and development in most of the sectors. In fact, we are not exaggerating if we say that progress is witnessed in all the fields and that the KSA occupies a great position and has a say in the brotherly Arab or foreign countries for it possesses a lot of both natural resources such as oil, petroleum and natural gas, and non-natural resources, namely factories, foreign companies and investments as well as manpower and capital. Despite that, there is not a sufficient number of houses and apartments to accommodate all the inhabitants of the KSA. Therefore, the latter must build a lot of housing units which should be sufficient for all the people who are living there, whether they were native inhabitants who want to buy houses or non-native people who have come to work or the visitors who want to make their religious obligations, tourists who want to rent houses as they are not residents in the Kingdom. The KSA should also build houses for rent for middle- and low-income people. In fact, all this would serve the interest of the Saudi economy. If we provide these people with comfortable accommodation, they will work on improving the economy of the KSA which is granting them the different amenities.

  • مناف

    2012-9-15

    The Saudi economy depends primarily on oil and it is one of the most important elements of the economy of Saudi Arabia because it produces a very large amount of oil covering almost half of the needs of the oil market and is relied upon in all fields and industries and is a very important member in OPEC. Also, Saudi Arabia is the most important country in the Gulf Cooperation Council in exporting petroleum and is a leader among them. Saudi Arabia is one of the most important countries of the region that exports oil and the strongest of the Cooperation Council. Saudi Arabia's economy has doubled due to the strength of the oil sector and the Kingdom's membership in the World Trade Organization (WTO). All rates refer to the increasing growth in the economy to the maximum rates and I think it probably will continue with this increase. We need to build houses very much, which will absorb all of the many young people who need affordable housing that they can pay for and can complement the rest of the other requirements of preparing accommodation. The government should intervene by helping young people who are about to have families by giving land or allowing them to have apartments commensurate with the needs of the family in terms of area and the youth’s financial abilities to own these houses. In the past families used to live in spacious houses because of the small population and the large areas of land, but with the growing population and the lack of spaces allocated to build houses, the government should reduce the space, so that it can provide young people with adequate houses within their financial ability and so that they can own them.

  • يارب عفوك يارحيم

    2012-9-5

    Mmmmmmmm By God, we don't know what is true anymore because of the lying. People, even if we think of buying a property such as land which costs approximately around 700 thousand dinars…if the prices goes down it will be reasonable. We will find people who would buy for 500 thousand dinars. What is this fantasy?!