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Cutting steel prices in Saudi Arabia supports the construction sector: Experts

SABIC announces reduction of rebar steel price by SAR200 per tonne in all regions of the kingdom

Experts in the real estate sector in Saudi Arabia assured that the decisions to reduce rebar steel prices by SAR200 per tonne will reduce the construction costs and will revive the construction and reconstruction movement.

The decision also will have an impact on the decline in the prices of other building materials, which will reflect positively on the real estate and housing prices, Alarabiya.net reports.

Saudi Basic Industries Corporation (SABIC) announced the reduction of rebar steel price by SAR200 per tonne in all regions of the kingdom as of last Tuesday.

Abdul Aziz Sulaiman Al-Humaid, Executive Vice-President of Metals at SABIC, explained that the reduction contributes to maintaining the stability of the domestic market and balance, in order to serve the public interest amid the constantly rising demand for steel during the current period and in the future.

Al-Humaid also pointed out that this reduction keeps pace with developments in the regional and global markets.

For his part, Ali Alalyani, the real estate expert, notes that SABIC’s decision will have a positive impact on the drop in construction prices in real estate that will be built. Therefore, built property prices will decline, which is consistent with the decline of the rebar percentage, according to Al Jazirah newspaper.

Meanwhile, Abdullah Al-Ahmari, chairman of the real estate valuation committee, said that the decision to reduce the price per tonne of rebar will have a positive impact on built property, adding that the economic situation which the region is going through now, especially in light of the decline in oil prices and the decline of the stock market, are all factors that will have an impact on the property and the value of residential units, both for the price of land or construction costs.

(SAR1 = AED0.98, at the time of publishing)