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Real Estate Sec<strong>to</strong>r<br />

Attractive for Foreign & Domestic Inves<strong>to</strong>rs<br />

» Besides <strong>the</strong> government’s focus <strong>to</strong> provide quality housing facilities in <strong>the</strong> Kingdom, <strong>the</strong> demand<br />

fundamentals of real estate sec<strong>to</strong>r increase its attractiveness for both domestic & foreign inves<strong>to</strong>rs.<br />

» The FDI inflow as a % of gross fixed capital formation showed a consistent increase in <strong>the</strong> Kingdom,<br />

recording a rise from 24.0% in 2006 <strong>to</strong> 32.1% in 2007.<br />

Foreign Direct Investment Flows<br />

(US$ bn)<br />

24<br />

33%<br />

22<br />

20<br />

28%<br />

18<br />

16<br />

23%<br />

14<br />

12<br />

18%<br />

10<br />

8<br />

13%<br />

6<br />

4<br />

8%<br />

2<br />

0<br />

3%<br />

2004 2005 2006 2007<br />

FDI Saudi Arabia (LHS) FDI UAE (LHS) Saudi FDI /Gross Fixed Capital Formation (RHS)<br />

Source: UNCTAD, World Investment Report 2008 & Global Research<br />

Global Investment House 42 Saudi Arabia Economic Overview - January 2009

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