Saudi realty developments exceed $200b

JEDDAH — Construction projects currently going on in Saudi Arabia have crossed $200 billion in value or 20 per cent of the Gulf Cooperation Council (GCC) regional value of $1 trillion.

By Habib Shaikh

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Published: Thu 6 Sep 2007, 9:26 AM

Last updated: Sat 4 Apr 2015, 11:33 PM

Further, the number of development projects in the country doubled in the past 12 months. This year, the total value of new ventures is expected to reach $80 billion.

'Based on our research, the GCC region currently has the world's biggest projects market per capita basis, and Saudi Arabia definitely has a significant share in the tremendous boom with developments covering residential and commercial properties as well as civil, infrastructure and logistics projects. In 2006, joint and exclusively foreign ventures reached an overall value of US$67.5 billion based on the 1,389 licences issued by the Saudi Arabian General Investment Authority (SAGIA),' explained William Buck, international director, Macdonald & Company, a recruitment consultancy focusing on the property industry.

A robust economy, high oil revenues, excess liquidity, and the liberalisation of property laws, fuel the rapid growth of the Saudi real estate industry. The government's thrust towards the diversification of its oil-based economy has also led to high capital spending, which, combined with the availability of credit facilities and real estate funds investing, have further spurred high-stakes construction ventures, and consequently, the demand for highly skilled industry professionals.

According to the findings of the survey, real estate and property professionals in the Kingdom are earning 10 percent more than their counterparts in the rest of the Middle East.

The latest statistics based on the salary levels as well as other pertinent figures would be revealed in the company's upcoming Middle East Salary Survey. The figures will be collated from an online survey that can be accessed by industry professionals on thw Web site

Buck said that the difference in compensation packages of industry professionals in Saudi Arabia is primarily driven by the high demand and the competition for highly skilled talent in the country's booming construction industry.

'Professionals in the real estate and property industry in Saudi Arabia enjoy an edge over regional counterparts in terms of salaries mainly due to the unprecedented boom of the country's real estate and construction industry,' Buck said.

'Companies are competing for highly skilled talent to fill key positions, as investment pours in for massive development or expansion projects. Foreign firms are also keen on investing in the country's enormous market with foreign domestic investments reaching UD$3.65 billion in 2006,' he added.

'We have consistently provided the best career options to industry professionals as well as valuable recruitment insights to companies that have enabled them to attract and retain an efficient team. Our ongoing survey is a manifestation of our commitment, and we are glad that it is garnering a very positive response in the industry. The Salary Survey will provide employees and employers with comparative figures as well as broaden their industry insights,' said Matthew Taylor, international director.

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