Kulli said the Kingdom was one of the countries not affected
by the world financial crisis and with its strong and buoyant economy held
excellent prospects for the booming real estate sector. "There was a
slowdown (in real estate) in parts of the region, but we are least impacted by
the financial crisis and are waiting for the mortgage system to come. Once the
mortgage system is introduced, it can increase the demand by 200,000 (housing)
units per year," as 60 percent of the Kingdom's population is of
youth." The Kingdom needs to spend about $180 billion by 2015 to build new
homes, according to the National Commercial Bank.
Analysts expect that the virgin market appeal of the Saudi
mortgage sector will draw interest from lenders throughout the Gulf. While
trillions of dollars worth of projects have either been shelved or scaled down
in other GCC states, the Kingdom's construction and property sector has come
through the financial crisis in better shape than most of its neighbors. There
is a shortage of two million homes in the Kingdom and it needs another 1.5
million housing units over the next 10 years.
Emaar Middle East, a subsidiary of global property developer
Emaar Properties PJSC, is leveraging its participation in Cityscape Jeddah to
highlight the on-schedule progress and commitment to project delivery. It is
showcasing its three flagship projects in the Kingdom - Jeddah Gate, Alkhobar
Lakes and Emaar Residences at Fairmont Makkah at the event, Kulli said. Emaar is
also showcasing its other international projects including residential
master-planned communities in Turkey, Pakistan and Egypt, among others.
"We have made significant progress on all our projects
with the first residences in Jeddah Gate and Alkhobar Lakes scheduled for hand
over shortly," he said, adding that Jeddah Gate is a SR6 billion mixed-use
project featuring residential and commercial units, and a leasable area for
retailers. The $4.5 billion Alkhobar Lakes is a luxury lakefront development in
Eastern Province, which features more than 2,000 private villas with retail and
leisure amenities for family living. The Emaar Residences at the Fairmont
Makkah is located directly on the Haram Plaza. The serviced residences are
offered on a leasehold basis. "The projects will set a new milestone in
the real estate dynamics of the Kingdom," Kulli said.
This year's event also features the annual Saudi Arabia Real
Estate Investment and Development Conference, with "Transparency,
investment models and future partnerships" as its theme. More than 40
CEO-level speakers are addressing key industry issues and trends at 12 panel
sessions during the event, which also has the support of the Ministry of
Commerce and Industry and the Jeddah Chamber of Commerce and industry.
The event complements a 20-year local redevelopment program
covering the central and historic districts of Jeddah, the Kingdom's second
largest city and the 'Gateway' to the holiest Islamic sites. This year's event
is also larger than the inaugural one in 2009 in which 80 exhibitors from 40
countries took part and received more nearly 9,000 international and regional
visitors, Deep Marwaha, director of Cityscape Saudi Arabia, described as
the largest portfolio of real estate events worldwide.
The day's panel discussions were focused on the "Global
Economy and Saudi Arabia: Lessons Learned from the Crisis," and the
evaluation of the impact of the mortgage law in driving new opportunities in
the residential market. There was also a keynote address on facilitating the
Kingdom's hospitality and tourism infrastructure development on behalf of the
Saudi commission for Tourism and Antiquities.
