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Real Estate Sec<strong>to</strong>r<br />
» Real estate plays an important role in <strong>the</strong> Kingdom’s non-oil economy, which remains focused on <strong>the</strong><br />
government’s effort for economic diversification .<br />
» Currently <strong>the</strong> housing finance industry in Saudi Arabia is almost non-existent with <strong>the</strong> housing finance<br />
<strong>to</strong> GDP ratio currently estimated at less than 1%.<br />
» Generally, Saudi Arabia is witnessing an escalating demand from young middle in<strong>com</strong>e Saudis. Thus, if<br />
Saudi is <strong>to</strong> meet such demand it will need <strong>to</strong> build 1.5mn new homes by 2015.<br />
» Saudi Arabia being one of <strong>the</strong> largest construction markets in <strong>the</strong> Middle East is estimated <strong>to</strong> have <strong>the</strong><br />
<strong>to</strong>tal real estate investments of around US$300bn, which are expected <strong>to</strong> cross US$400bn mark in near<br />
future.<br />
» The construction and building activity in <strong>the</strong> Kingdom grew by 7.1% in 2007 as against <strong>the</strong> growth of<br />
7.3% in <strong>the</strong> preceding year. With a value of SR48.8bn in 2004, <strong>the</strong> real estate sec<strong>to</strong>r had a contribution<br />
of 6.8% <strong>to</strong> <strong>the</strong> Kingdom’s GDP.<br />
Global Investment House<br />
39 Saudi Arabia Economic Overview - January 2009
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