LP.com

At the Real Estate Future Forum in Riyadh, the Saudi Capital Market Authority announced for the first time that non-Saudis would be allowed to invest in listed real estate companies in Mecca and Medina. This policy change marks further opening up of the Saudi real estate market. Previously, Saudi Arabia had relaxed its real estate policies, allowing foreigners to own property without a guarantor and to invest in Saudi real estate funds.

In 2023, real estate transactions in Saudi Arabia soared to 277 billion Saudi riyals (approximately $738.7 billion), a 24% increase from 2022's 223.5 billion Saudi riyals (approximately $596 billion). Foreign investments accounted for 30% of the total development investment. These open policies have not only attracted the attention of global investors but have also driven the development of real estate funds. Currently, Saudi real estate funds manage assets worth 170 billion riyals, accounting for one-third of the entire financial market.

Internet

The CEO of the Saudi Arabian Ministry of Housing emphasized at the forum that the real estate industry significantly contributes to Saudi Arabia's national GDP. Minister of Human Resources and Social Development Ahmed Al-Rajhi also emphasized that real estate development is a key force in job creation and economic development, driving comprehensive activity in the construction industry, supply chains, building material trade, and engineering fields. The Saudi General Authority for Statistics predicts that by 2030, real estate development investment will increase to 500 billion Saudi riyals (approximately $133 billion).

However, Riyadh is facing a housing shortage due to population growth outpacing the construction of new housing units. In 2023, apartment rents rose by 23%, and it is expected that population growth will further accelerate, posing greater challenges to the housing market. To address this challenge, the Saudi National Housing Company plans to develop 15 multifunctional residential areas and build 300,000 housing units by the end of 2025, providing more affordable housing options.

Internet

The development of the Saudi real estate industry has brought ample opportunities for construction, supply chains, and other related industries. Following the globally stunning 170-kilometer-long "The Line" urban plan, Riyadh will welcome another new landmark—Mukaab, the cubic city. This will not only be an architectural marvel but will also include technological elements such as underwater landscapes and virtual Martian travel. Led by the Saudi Sovereign Fund PIF, global engineering giant Bechtel, and China Harbour Engineering Company, it showcases Saudi Arabia's unique insights and grand blueprint for future urban design.

The length, width, and height of Mukaab's cubic architecture are all 400 meters, with a staggering built-up area of 2 million square meters. It will contain communities, entertainment facilities, theaters, museums, offices, residential spaces, and up to 9,000 hotel rooms, becoming a new type of city integrating high technology, industrial integration, and eco-living. It is expected to greatly promote regional cultural and technological development.

Internet

The Saudi government's "Vision 2030" plan, launched in 2016, aims to transform Saudi Arabia from an oil-dependent state into a diversified modern economy. The core is massive investments in infrastructure and real estate projects, with a total investment planned in infrastructure and real estate projects reaching up to 4.13 trillion riyals (approximately $1.1 trillion).

In the housing sector, Saudi Arabia plans to increase the national homeownership rate to 70% by 2030. By building new housing and providing housing loan support, living conditions for citizens will be improved. Currently, Riyadh has announced real estate projects worth a total value of $104 billion and plans to build over 555,000 housing units, over 275,000 hotel rooms, over 4.3 million square meters of retail space, and over 6.1 million square meters of office space.

Internet

The Saudi government has also arranged hundreds of billions of dollars in investments, focusing on the large-scale development of transportation, energy, housing, and industrial infrastructure, making the entire country one of the world's largest construction sites. Currently, the infrastructure boom is in full swing, including multiple large-scale projects such as the NEOM new city and The Line, reshaping Saudi Arabia's urban and natural landscapes. The Line project is an environmentally friendly and people-centric future urban environment spanning 170 kilometers, aiming to create a new living mode. Meanwhile, the OXAGON project, as the world's largest floating structure, aims to build a zero-carbon emission advanced port and supply chain system.

The huge infrastructure demand in Saudi Arabia has attracted a large number of Chinese construction companies to flock to this hot land. With the alignment of the "Belt and Road" initiative with Saudi Arabia's Vision 2030 strategy, Chinese companies such as Sinopec, CNPC, PowerChina, CSCEC, and CRCC play important roles in the Saudi engineering field.