$4.4BN DEALS SIGNED FOR KSA HOMES
SAGIA ANNOUNCES INVESTMENTS IN THE KINGDOM’S REAL ESTATE AND CONSTRUCTION INDUSTRY
THE SAUDI ARABIAN GENERAL INVESTMENT AUTHORITY (SAGIA) announced three investments worth SAR16.5bn ($4.4bn) in the kingdom’s real estate and construction industry.
An agreement was inked for a SAR10bn residential development on the Al Asfar project between PowerChina International Group, the Ministry of Housing and National Housing Company which will see 17,000 housing units being built over the next six years.
Another memorandum of cooperation was signed between US-based Katerra and the Eskan Programme to introduce modern and rapid construction methods to Saudi Arabia while another will see a residential real estate development on the Telal Alghoroob project between the Sakani programme, Alameriah and Sany (a Saudi-Chinese partnership). The announcement comes against the backdrop of advancing economic reforms in the kingdom.
The Saudi real estate industry is forecast to see growth of 5.3 percent annually over the next five years as the government has dedicated a budget of $15bn towards housing development, with more than 1 million housing units expected to be built during that period.
Saudi Arabia also aims to raise the contribution of approved real estate developers towards new housing development from 10 percent to 30 percent by 2020.
Wu Wenhao, vice president of PowerChina International Group, said: “We are excited by the increased housing demand in Saudi Arabia and the clear plan by the Ministry of Housing and Sakani Programme to meet this demand in the kingdom.”
Housing initiative The Sakani (My Home) programme aims to deliver more than 300,000 residential united across Saudi Arabia this year