The revival of the real estate market in Saudi Arabia

  • real-estate

     

    Although the world has witnessed many drastic changes in 2017, the changes that took place in Saudi Arabia might have been the most shocking ones. Those changes, albeit shocking, were deemed necessary after a major drop took place in both the petroleum industries and the real estate market in Saudi Arabia.

    As the owner of the world’s second largest oil reserves, the Kingdom of Saudi Arabia (KSA) has been economically dependent on the petroleum industries for long decades.

    As a matter of fact, we would not be exaggerating if we said that it, along with the real estate market in Saudi Arabia, was the sole backbone for the kingdom’s economy. The oil industries contribute 30-40% of the Saudi Arabian GDP, not to mention the other sectors that are related or dependent on the petroleum industry.

    This was not only caused by the kingdom’s abundance of fossil fuels, but also the conservative nature of its society. It was relatively more difficult for Saudi Arabia than its competitive neighbors to attract investors of different industries like tourism and entertainment.

    Thus, the Saudi Arabian economy was hit the hardest by the downfall of the oil prices that took place in the last couple of years.

    Such downfall was caused by the discovery of large oil reserves in other countries around the world (e.g. North Carolina in the United States) on one hand, and the world’s slow but continuous shift towards clean energy sources on the other.