Construction & Real Estate

The residential segment is well on its way to returning to pre-2009 levels of growth, with the volume of real estate trading expanding by 30% in 2013 and total value of transactions reaching $2.28bn, compared to $1.76bn in 2012. State-funded housing projects are expected to drive expansion, with the government signing its first-ever housing public-private partnership agreement in 2012. Spending on social housing has boosted the kingdom’s construction sector, which is projected to return to stable growth in the next few years, expanding by 8.59% annually until 2018. Meanwhile private contractors have benefitted from transport construction and expansion projects, with rail and road links set to aid development under the auspices of the Economic Vision 2030 plan. The government intends to invest a total of $22bn in infrastructure over the next four years, with industrial construction poised to see strong growth as a result of new transportation and logistics builds.

This chapter contains an interview with Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.