Davos, Switzerland - Saudi Arabia's real estate sector is undergoing a significant transformation, driven by the ambitious goals of Vision 2030, according to Yousef A. Al-Shelash, Chairman of Dar Al Arkan. Speaking at the World Economic Forum in Davos, Al-Shelash highlighted the Kingdom's strides in developing a thriving real estate market that caters to both affordable housing needs and the demands of high-net-worth individuals.
Vision 2030, a comprehensive national reform program, has spurred significant changes across the Saudi economy, including a focus on improving living standards and diversifying away from oil dependence. Al-Shelash emphasized that the government's proactive role has been crucial in shaping the sector's growth.
"The Vision 2030 has developed the whole economy, not only the real estate sector," Al-Shelash said. "It has not only developed the approach of the sector but has also brought a new standard in regulations to be as good as we deserve."
Addressing Affordable Housing Needs:
A key pillar of Vision 2030 is to provide affordable housing for Saudi citizens. To achieve this, the government is actively involved in the sector, investing heavily in infrastructure and supporting initiatives that increase housing supply and affordability.
"The vision is there not only to facilitate for the developers and for the foreign investors but also to facilitate affordable housing for most of the Saudi citizens," Al-Shelash said.
Catering to High-Net-Worth Individuals:
Simultaneously, Saudi Arabia is witnessing a surge in demand for luxury properties, driven by a growing affluent population and increased interest from international investors.
"There's a lot of demand. We have more than 3,000 brokers worldwide, a lot of demand from foreign entities to invest in (the Kingdom) and to hold a second home in Saudi Arabia," Al-Shelash added. He expressed confidence that upcoming regulatory changes will further facilitate such investments.
Dar Global's London Listing:
Al-Shelash also underscored the significance of Dar Global, the international arm of Dar Al Arkan, listing on the London Stock Exchange in 2023. This move provides the company with access to global capital markets and enhances its ability to collaborate with international partners.
"London is for sure an attractive market for Saudi investors. The stock exchange there is one of the best worldwide. So that will put the company on a very high standard of regulation," he said.
Sustainable Development:
Sustainability is increasingly becoming a key focus for the Saudi real estate sector. Dar Al Arkan, both domestically and internationally, is committed to embracing sustainable development practices.
"Developing sustainably is about embracing and using the technology that's out there and facilitating green practices wherever possible," Al-Shelash said.
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