KSA property investments to reach US$150bn by 2012

North Riyadh is Saudi Arabia's latest real estate investment hub.

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Private real estate investments in Saudi Arabia will reach an estimated US $ 150 billion (AED 550 billion) by 2012, according to industry experts.

North Riyadh particularly, has been earmarked as the rapidly growing and newest ‘real estate investment hub’, with property trade in the region reaching as much as SAR 2 billion (AED 1.9 billion) last year alone.

With plans to launch a large number of projects in 2010 also, private developers and government are working together to establish a ‘New Riyadh’ which can meet the needs of Saudi’s growing population – expected to reach 26.5 million people in 2013.

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Ziad Makhzoumi, Chief Financial Officer of Arabtec Holding, which is currently bidding for work in the region, said: “Saudi Arabia has a very big population that’s growing at a very fast rate, and according to stats almost 50% of that population are less than 21 years old.

“So, what you have is a young, growing community living in a large geographic area, and a place where requirements for infrastructure are massive.”

One well-known housing development in Saudi currently is the 2.5 million m2 Al Gamra project, which offers ready-to-build housing plots between the north highway and King Fahad Road.

After currently selling out Cluster 7 of the development, master developer and property investment firm Injaz Development Company has now begun selling units within Cluster 9.

Injaz’s president and managing director Omar Al Kadi said: “Al Gamra’s four blocks of prime residential land are capitalising on the growing number of mega properties rising up in north Riyadh.

"Local, regional and global firms are also attracted to the location’s proximity to Riyadh’s international airport and key medical and educational sites.”

Alongside housing, the Saudi government has allocated up to US $ 400 billion (AED 1 trillion) in the next five years to build a diverse range of education, healthcare, infrastructure, transport and communications facilities.

Anticipating a high demand for construction machinery, organisers of an international exhibition for construction equipment, Saudi Build - The PMV Series 2010, are expecting a large number of suppliers and trade buyers to attend this year’s conference.

Kamil Al Jawhari, Project Manager of Saudi Build – The PMV Series at Riyadh Exhibitions Company, said: "Saudi Arabia's construction sector has remained buoyant and lucrative, which is why Saudi Build – The PMV Series continues to attract decision-makers and investors from the global construction industry.”

Scheduled for October 18-21 at the Riyadh International Convention and Exhibition Centre, Saudi Build – The PMV Series will showcase a range of products and services to cater for the new and evolving requirements of the Saudi construction sector.