$4.4BN DEALS SIGNED FOR KSA HOMES

SAGIA AN­NOUNCES IN­VEST­MENTS IN THE KING­DOM’S REAL ES­TATE AND CON­STRUC­TION IN­DUS­TRY

CEO Middle East - - BUSINESS -

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

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