Mazaya Monthly Real Estate Report -
February
2015
As for SaudiArabia,Al-Mazaya report believes
the Saudi economy was able to attract a
multitude of GCC investments, especially
real-estate investments, given the Saudi
economic boom and huge public expenditure
ondevelopment projectswhich are tempting to
investors worldwide. Government regulations
on the other hand, pose restrictions to foreign
investments while they show more flexibility
favouring GCC investments. Exchange Data
shows GCC investments in real-estates have
clearly manifested a significant increase up
to 20% by the end of Q1, 2014 with total
investments amounting to SR 14 billion.
The above statistics are due to positive
trends showing Saudi real-estates are the
least in cost amongst the GCC States,
in addition to being safe and rewarding
investments compared to other GCC real-
estate projects mostly directed to tourism.
Kuwaiti investors recorded the largest
number of investors in Saudi real-estates
provoking other GCC investors and attracting
more GCC funds to Saudi real-estates.
4
The above improvements are in line with
alleviating the restrictions on GCC state-
member nationals to own residential and
investment real-estate units in response
to enforcing GCC Good Citizenship
and GCC Common Market Resolutions
which have been practiced since 2008.
Al-Mazaya Report says additional
prospects are awaited from the GCC
Common Market Resolutions and are
hoped to bring in more momentum and
liberation to GCC economy pushing it to
stand against external fluctuations. Real-
estate, Energy, and Industrial sectors hold
special hopes on these resolutions to
affect more growth mainly relying on the
local demand of the GCC state-members.
GCC Common Market aims are to
deepen the concept of Good Citizenship
executing a number of resolutions
believed to target a vast majority of GCC
communities, especially with regard
to: transportation, residence, public
employment opportunities, insurance,
pension, crafts, economic, investment and
service activities, real-estate ownership,
transfer of funds and capitals, stock
exchange and set up of corporations.
The real-estate sector will greatly
benefit when the GCC Common Market
Resolutions are executed on the ground
mainly for the purpose of developing
residential and investment projects.
Al-Mazaya Report strongly believes the
GCC capitals are able to totally absorb the
investment opportunities brought from the
GCC economies given the variety and low
risk associated with these opportunities.
Moreover,
the
latest
statutory
amendments have directly correlated with
investment promotions and intra-GCC
alternate movement of funds. Al-Mazaya
Report anticipates additional healthy
economic and investment relationships
to take place amongst the GCC state-
members also, positively affecting wide
segments of the GCC communities
who enjoy lots of commonalities in term
of development plans, future projects,
income sources and risks encountered.
