“The supply is limited and the demand is enormous,” he said.

Al-Kadi was speaking at a panel discussion on “real estate financing” at the Euromoney Saudi Arabia Conference, which concluded at the Faisaliah Hotel in Riyadh on Wednesday.

Finance Minister Ibrahim Al-Assaf opened the conference on Tuesday.

More than 1,200 delegates from 40 countries attended the two-day event.

An exhibition of products and services offered by financial institutions, commercial banks and investment companies, was also held on the sidelines of the conference.

Al-Kadi also said land prices were rising because of the demand created by new home finance schemes. He indicated that the recent royal decrees had strengthened the real estate sector.

According to a recent study, the Kingdom needs 300,000 residential units every year over the next 15 years — a total of 4.5 million.

Riyadh faces a shortage of 225,000 residential units.

The other panelists included the director of Euromoney for Middle East and Africa, Richard M. Banks, Imad Damrah, Andrew Clout and Ikbal Daredria.

Banks, who moderated the panel discussion, said the organizers were pleased with the large participation of the private sector.

Frederic Janbon, global head of fixed income at BNP Paribas, said the GCC region weathered the global crisis pretty well and the recovery is ongoing.

“For most of the GCC countries the increase in oil prices and production volumes will lead to higher growth in 2011 and stronger fiscal and external balances,” he said.

He said the growth rate is expected to remain robust across GCC states, partly as a result of additional fiscal spending.

“The increase in oil prices and production volumes is expected to increase GCC countries’ combined current account surplus from 12 to 20 percent of GDP. High oil prices have provided an additional incentive for these countries to continue with their investment programs and to recycle their oil revenue abroad.”

He stressed that the recovery in GCC is also helping the world recovery.

“GCC imports are estimated to increase by about $100 billion in 2011.