Property technology can drive Saudi economic growth through the roof
Amid the dunes and soaring skylines of Saudi Arabia, a digital renaissance is underway — a transformation that is reshaping property and facility management and propelling the nation’s economy into a new era of prosperity.
The fusion of technology with real estate operations, known as prop-tech, is ushering in a wave of financial and economic benefits that are uniquely tailored to the Kingdom’s aspirations.
Located in the heart of the Middle East, Saudi Arabia stands as a testament to visionary ambitions and transformative progress. Digital transformation in property and facility management is not just an evolution; it is a strategic endeavor aligning with the nation’s goals for economic diversification, innovation and sustainable growth.
The Kingdom’s embrace of prop-tech is more than an industry shift — it is a catalyst for economic rejuvenation. The financial indicators, deeply rooted in the nation’s Vision 2030 blueprint, illustrate the scale of the transformation and its impending benefits.
The Middle East Economic Digest predicts that technology investments in Saudi Arabia are set to surpass an impressive $15 billion by 2025. This considerable investment, earmarked for infrastructure and real estate, underscores the Kingdom’s commitment to harnessing digital innovation to drive economic growth.
Let us venture into key performance indicators to decipher the tangible economic impacts of prop-tech in Saudi Arabia.
The first is operational efficiency. According to a recent McKinsey study, businesses that fully integrate digital solutions in the region achieve a remarkable 20 percent reduction in operating costs. The result? Enhanced efficiency and financial gains that resonate with Saudi Arabia’s pursuit of fiscal sustainability.
Another is elevated tenant experiences. In an era where customer satisfaction reigns supreme, Saudi Arabia’s adoption of state-of-the-art digital solutions enhances tenant experiences. A Deloitte survey found that a staggering 65 percent of Middle Eastern tenants prefer properties managed with prop-tech, cementing its role in boosting customer loyalty and financial outcomes.
Thirdly, there is the matter of job creation. As Saudi Arabia embraces digital transformation, the ripple effects are felt in job creation.
Gartner forecast over 200,000 new tech-focused jobs by 2024 in the Kingdom, making prop-tech the foremost sector for employment opportunities.
The final KPI is foreign investments. Global investors are drawn to regions with robust technological growth, and Saudi Arabia is no exception. The convergence of prop-tech and property management presents an opportunity for a 10 percent increase in foreign direct investments by 2030, as the World Bank estimates.
Beyond the numbers, prop-tech fosters a sustainable economic path for Saudi Arabia. The alignment of digital transformation with sustainability goals underscores the nation’s commitment to reducing its carbon footprint. From optimizing energy consumption in buildings to supporting Saudi Arabia’s Green Initiative, prop-tech is positioning the Kingdom as a beacon of environmental stewardship.
The prop-tech revolution in Saudi Arabia is not just an evolution but a destiny embraced with foresight and determination. This digital transformation represents an unprecedented opportunity to reshape the nation’s economic landscape, enhance efficiency and lead with innovation.
As the Kingdom forges ahead, businesses, entrepreneurs and stakeholders alike are presented with a clarion call: seize the prop-tech revolution. By harnessing digital tools, fostering innovation and embracing change, Saudi Arabia is poised to achieve remarkable economic growth, elevate tenant experiences and contribute to a prosperous and sustainable future.
In Saudi Arabia, prop-tech is not just a technological shift but an economic renaissance in motion. The numbers speak volumes, illuminating a future of opportunity, progress and prosperity. As the nation pioneers its digital destiny, the convergence of property management and technology holds the key to unlocking a new era of financial success and sustainable growth. The road ahead is clear, and the journey, guided by the beacon of prop-tech transformation, promises to be transformative and inspiring.
• Reem Kharbat is the co-founder of Yarn Cloud Technologies.