Saudi Arabia
With a current project portfolio worth over $387 billion, Saudi Arabia remains a compelling market. This is the sole market where overall housing demand fundamentals such as the growing youth population and lack of inventory appear to point to a bright future. However, the lack of clarity on ownership laws and the delays in the approval of financing dampen the market’s potential.
Updates & Milestones
Dar Al Arkan launched the mixed-use Shams Al-Arous project, a $2 billion project which will create 10,000 residential units as well as commercial outlets and public amenities including parks, schools and mosques.41
In the largest-ever redevelopment program undertaken in the Kingdom, the government has unveiled plans to reinvigorate the underdeveloped residential districts of Mecca and Medina and the holy sites of Mina, Arafat and Muzdalfa.42
Located in Medina, the recently launched $1 billion Knowledge Economic City aims to attract knowledge-based industries in the medical sciences and biotechnology sectors by offering research centers and scientific development companies and organizations. The project will also develop housing for 150,000 residents and create 20,000 jobs.43
The Riyadh office market has been buoyed by news that the GCC Monetary Union Central Bank will be located in the King Abdullah Financial District, which is currently undergoing site preparation.44
Kingdom Holdings deferred the Kingdom Tower project — projected to become one of the world’s tallest towers — for an undetermined period.45
Many projects announced in Jeddah during 2007-08 are showing little or no progress as companies scale back the momentum of construction. Sama Dubai, Damac and Diamond Tower along the Corniche are prime examples.46
Saudi Arabia has revealed plans to develop “airport cities” in Jeddah, Riyadh and Dammam. The three new airports will anchor distinct cities that will offer commercial offices, hotels and residential units, as well as schools and shopping complexes.47
Facing a growing population and rising demand for accommodation in the Kingdom, the Saudi government is set to build 8,143 new housing units across 16 cities and governorates.48
Join the Discussion