Saudi Arabia has continued economic growth

Opportunities in Saudi housing market

Recently Saudi Arabia again touted its continued economic growth during a seminar in the UK.

One business opportunity is the housing market.  The Kingdom projects a shortage in housing of 1.2 million homes.  To alleviate the shortage the Kingdom has allocated $1.2 billion for the construction of 500,000 homes this coming year.  Comparing this to the United States it is little less than a month supply of new homes in the entire country.  Considering the size and density of the country this is very robust growth rate. 

 

The additional housing units coupled with an increased average yearly income of $21,000 per year in 2011  from $14,129 per year in 2009 represents a 49% rise in personal income.  This demonstrates a growing middle class and rising disposal income to purchase home amenities. 

 

So how does one access this market?  As recently mentioned by Engineer Omar Bahlaiwa, Secretary General Council of Saudi Chambers and the Committee for International Trade (CIT).  “To do business in any country you have to understand the culture of the country. Likewise, to do business in Saudi Arabia, you have to visit Saudi Arabia to get to know the business environment and opportunities, the people and the culture. Thus, you can build up a long term relations and a future for your firm.”

 

Opportunities one may look for are strategic partnerships for distribution, establishing sales representatives in-country, or creating a manufacturing facility.  If you are importing raw materials to produce a product in the US, the benefits offered in Saudi Arabia setting a manufacturing facilities is worth an investigation.

 


  
  

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