Saudi Arabia. On the road to sustainable growth. VISION. To achieve sustainable rapid economic growth in Saudi Arabia, capitalizing on the Kingdom’s competitive strengths as the global capital of energy, and as a major hub between East and West. . Focusing on Four Strategic Sectors. Energy
On the road to sustainable growth
To achieve sustainable rapid economic growth in Saudi Arabia, capitalizing on the Kingdom’s competitive strengths as the global capital of energy, and as a major hub between East and West.
Power & Water
Creating Economic Cities
In 2002, KSA announced its plan to privatize enterprises in different sectors, such as:
Impact of reforms and economic prosperity on attracting FDI
Licenses Issued by SAGIA
As of April. 10th 2007
Saudi Arabia for the second year running has been selected by the World Bank as the best among the Arab Countries in the ease of doing business ratings. Its 2007 Global ranking was 38th ahead of some European countries like Spain and Portugal.
Three new railways will be constructed:
1. Saudi Landbridge:
linking Jeddah to Dammam via Riyadh (approx. 950 km)
2. Makkah Madinah Rail Link:
linking Makkah, Jeddah, Madinah and Yanbu (approx. 600km)
3. North-South Railway:
linking Jalamid to Jubail via Riyadh and Dammam (115km).
Water and Electricity
In 2004, the value of real estate transactions including sales of existing units amounted to SR 900 billion. The real estate sector is driven recently by domestic demand and not by speculation. Strong economic and demographic fundamentals are the core drivers of growth in real estate.
Through 2010 the forecast is that total new real estate construction in the Kingdom will reach $129 billion.
In order to meet demand, through 2020 a total of 2.62 million housing units will be built, at an average rate of 163,750 units per annum. Through 2020, total new investment in housing will amount to $320 Billion.
Economists believe that the real estate demand is sustainable and expect a strengthening of the current set of
favorable circumstances with the likely introduction of mortgage products in the next few years. The housing sector is at the center of the Kingdom’s growth in real estate activity.
In value terms the housing sector comprises 75 percent of all real estate activity in the Kingdom.
$20 billion per annum will be required to meet annual housing demand in the
Kingdom through 2020.