Construction, real estate adds 23.5% to Saudi non-oil GDP

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Saudi Arabia's booming construction and the real estate sectors have together contributed 23.5% to the non-oil GDP by the third quarter of 2023, said its municipal, rural affairs and housing minister, highlighting the country's appealing real estate investment opportunities for both local and international capital.

Majid bin Abdullah Al Hogail was addressing the gathering at the third edition of the Real Estate Future Forum in Riyadh yesterday (January 22) after inaugurating the event.

He then toured the exhibition and interacted with prominent investors who are showcasing cutting-edge real estate technologies, products and financing solutions.

The forum is being held under the theme "The Power of Flexibility: Building a Sustainable and Flourishing Real Estate Future" and brings together a distinguished group of economists, investors, decision makers, and real estate experts.

This year's edition is being attended by representatives of over 85 countries, including 300 speakers from both government and private sectors.

In his opening speech, Al Hogail underscored the unwavering support the wise Saudi leadership is giving to the real estate sector, which contributes greatly to improving the quality of life, ensuring family stability and fulfilling aspirations by providing a decent standard of living.

Besides this, it also plays a pivotal role in driving the national economy forward, he stated.

"The real estate activities had contributed 12.2% and the construction sector 11.3% to the non-oil GDP by the third quarter of 2023," he added.

Highlighting the kingdom's appealing real estate investment opportunities for both local and international capital, Al Hogail said it is actively pursuing partnerships to enhance competitiveness, sector development, and expand the real estate supply.

The minister pointed out that the real estate sector had undergone significant transformation and witnessed reforms meant to help it address challenges.

"Agreements have been recently signed with countries like China, resulting in investments exceeding SAR5 billion ($1.3 billion)," he stated.

"Also a sizable residential project is being developed in collaboration with a prominent Egyptian company that will provide around 28,000 housing units across the kingdom," he added.