Saudi Arabia'a real estate industry undergoing tremendous growth

And Sheikh Khalid H. A. Al-Gahtani, who is also Vice Chairman of the National Real Estate Committee of Saudi Arabia, said growth is pushing forward regulation of the industry, which will further fuel investment, providing opportunities for the small to medium-sized investor.

Speaking on the sidelines of the Cityscape international commercial architecture, property investment and development event in Dubai, Sheikh Khalid said a regulatory framework would deliver transparency and disclosure.

'This will also take the real estate industry in the Kingdom to the next level - where it will be clearly seen to deliver genuine business returns.'

Sheikh Khalid said he envisaged regulations being enacted in the Kingdom in the next six months which would allow the formation of housing associations. A regulatory framework, which would also cover investment laws for foreigners, would make freehold investment in the Kingdom highly attractive, he said.

Sheikh Khalid said that over the past three months alone, US $6 billion has been invested in real estate in the Kingdom.

The Rikaz President also said that the real estate industry was maturing and was proving an excellent source of employment for Saudi nationals.

'Over the next five years we hope to introduce urban relationship development to the curricula of our universities. This is the way forward to encouraging nationals into the industry. We have already succeeded to some degree in Rikaz where 70% of the workforce is now made up of Saudi nationals, which compares with 15% within companies in other sectors,' he explained.

Al-Gahtani added that a Scientific Research Centre for the Real Estate Industry would shortly be opened at King Fahad University for Petroleum and Minerals. 'This will provide solid research on the market, index the market and track trends - in short provide all the information individual investors require.'

Rikaz, a real estate development subsidiary of Gahtani Holdings, is at the forefront of Saudi Arabia's real estate sector. It is the name behind the futuristic Al Fanar City, which is currently being showcased at Cityscape, which runs at the Grand Hyatt Dubai until tomorrow night.