JEDDAH: Saudi Arabia’s housing sector is currently in a transitional phase due to changes in the mortgage law and taxes, industry experts said at Jeddah Economic Forum (JEF) 2016 on Thursday.
Speakers at a panel discussion on housing at the forum said they are anticipating the market dynamics “to conclude shifting and become more clear during the first week of Ramadan, once the white land tax has been implemented”.
Basil Al-Ghalayini, chairman and CEO of BMG Financial Group, moderated the discussion, which featured Nidal Jamjoom, CEO of Kinan; Zuhair Hamzah, CEO of SEDCO Development; Alper Apaydin, senior adviser to AkarOne; and Ayman Mansi, director of Residential Development, King Abdullah Economic City.
The experts discussed and agreed that the primary goal of public-private partnership (PPP) in the housing sector is aimed at solving the supply shortage.
The developers noted that while they have substantial volumes of ongoing projects, the market includes several other private developers which impact the market dynamics as well.
Best practices from Turkey were discussed, with a case study on Emlak Konut, a real estate developer belonging to the Housing Development Administration of Turkey.
While the entity is state owned, it is a model example of PPP as it functions with minimal government influence.
The session also addressed that the primary challenge to PPP in housing is the fact that this direction is very new for the sector, with little precedent to follow.
On the second and final day of the forum, keynote speakers and participants in several discussion panels focused on the steps needed to implement PPP with foundational industries in Saudi Arabia.
Saudi Arabia needs to ensure that its youth are educated to global standards and employed in vital industries.
Arvind Mahajan, head of infrastructure, government and health care services at KPMG India, set the tone for the day.
He said technology has an impact on how we design infrastructure. This creates a real opportunity for countries like the Kingdom of Saudi Arabia to ‘leapfrog’ ahead of nations with older infrastructure, avoiding the legacy issues which hold many nations back. he said.
Saudi housing sector in transitional phase
Saudi housing sector in transitional phase
Saudi Arabia says recent STC military movements in Hadramout, Al-Mahra were unilateral, uncoordinated
- Saudi Arabia said the moves harmed the interests of the Yemeni people, as well as the southern cause and the coalition’s efforts.
- The Kingdom said it coordinated with the United Arab Emirates, the president of the Presidential Leadership Council, and the Yemeni government to contain the situation.
RIYADH: Saudi Arabia on Thursday said that recent military movements in the Yemeni governorates of Hadramout and Al-Mahra carried out by the Southern Transitional Council (STC) were conducted unilaterally and without coordination with the Presidential Leadership Council or the coalition leadership.
“These movements resulted in an unjustified escalation that harmed the interests of all segments of Yemeni people, as well as the Southern cause and the coalition’s efforts,” read a statement published by the Saudi Press Agency.
The statement said Saudi Arabia has always prioritized preserving the unity of Yemen throughout recent developments, and that the Kingdom has spared no effort to reach peaceful solutions to resolve the situation in both governorates.
In this context, “the Kingdom worked with the brotherly United Arab Emirates, the president of the Presidential Leadership Council and the brotherly Yemeni government to contain the situation.
“A joint military team was sent from the Kingdom of Saudi Arabia and the United Arab Emirates to put the necessary arrangements in place with the Southern Transitional Council in Aden. These arrangements were made to ensure the return of the Southern Transitional Council forces to their previous positions outside the two governorates and hand over the camps in those areas to the Nation Shield Forces and the local authorities, in accordance with organized procedures under the supervision of the coalition forces.”
The statement said that these efforts remain in progress to restore the situation to its previous state.
Saudi Arabia also said it “hopes public interest will prevail through ending the escalation by the Southern Transitional Council and the withdrawal of its forces from the two governorates in an urgent and orderly manner.”
