Saudi Arabia’s booming and this time it isn’t only about oil
More than 300 apartments in the Riyadh Baru Complex Abdulsalam Almajed were sold in just one month for cash, without even he had to advertise. This is Saudi Arabia, the largest oil exporter in the world, so it is not surprising that the property market is red income because the surge in energy prices flows through the economy. But Almajed said the struggle for houses for 1 million-Riyal ($ 266,400) of the house also reflects something else: Social and Economic Shifts that re-form the kingdom, accelerated by the Crown Crown Crown Crown Program. “There is a change in the mindset,” said Almajed, who heads the developer belonging to the Almajdiah Residence family, when some Saudis embrace a more open lifestyle to be served. “Today there is beautiful creativity in Saudi design.”
While De facto ruler Mohammed bin Salman has concentrated power and enhances political repression since being appointed by his father, King Salman, in 2015, he also ended or limits entertainment and how men and women can get along, and try to curb dependence on oil. Ten years ago, many property owners would not even rent for women, who needed approval from the guardian of men for many life decisions. At present, women enter the larger number of labor markets, and 30% of Almajdiah buyers are women, get investment property or their own homes.
They help lift the economy changed by the energy market. Because most of the world is uneasy about spiral inflation triggered by the Russian War in Ukraine and the potential for recession, the average oil of more than $ 100 per barrel this year means that the Saudi Arabian economy is the fastest growth in group 20. Gross domestic product was extended 11.8% in the second quarter, when the non-miny economic grew 5.4% and now greater than at the end of 2019, before Pandemi struck. The Saudi Aramco energy company has reported the largest quarterly profitable profit from companies registered globally. Billions of dollars flowed to Saudi and increase state investment, increasing sentiment in the private sector that depended on government contracts.
Capital expenditure jumped 64% annual in April to June, when the kingdom started a building including malls and parks and grandiose plans for new cities that were built from the start and the development of luxury tourism in the Red Sea. The overall expenditure is 16% higher, although the estimated budget earlier this year will fall. Summer usually sends Saudi elite to a cooler climate in Europe, but Riyadh’s latest high -class restaurant is packaged. In Coya, Latin American chains, the most popular dinner chairs – 8:30 to 9 nights. — Fully ordered a month ahead. The combined cash withdrawal and sales transaction points, indicators of consumer activity, have risen again, increasing 9% annual in June after the highest record in March. Last month inflation was 2.7%, about one third of the level of the US or the Euro zone.
The Ministry of Finance is trying to stop the habit of tracking oil and subtraction, stimulus that flows through sovereign funds and to long -term projects such as manufacturing and tourism of electric vehicles and tourism. The economy is expected to expand 7.6% this year but growth can return to 2.5% in 2024, according to the Bloomberg survey of economists. The raw is now around $ 90 per barrel as a global concern over the economic decline and the potential for more supplies from Iran if the nuclear agreement is raised and continues to be hung in the market.
“If there is a collapse of oil prices again, there will be more slowing down in activities,” said Monica Malik, head of economist at the commercial bank of Abu Dhabi. “But a number of positive factors come together at this time.” Almajdiah serves rich professionals who want an open home with abundant natural light. Many Saudi houses were previously preferred with tall walls and small windows to maintain privacy. But social opening, along with a smaller family and a tighter budget, change it.
The latest developer complex is built around a shared page and the features of cafes, gym, and nurseries. This style echoed upper class housing in Dubai, Prince Mohammed’s Regional Hub wanted to compete, announced plans to double the Riyadh population and withdraw millions of expatriates. That’s the key to almajed optimism. The more people, the more apartments they need, he said.