RIYADH: Construction and building activities contributed 11.6 percent to Saudi Arabia’s total non-oil economic activity in the second quarter, as the Kingdom steadily diversifies its economy, in line with the goals outlined in Vision 2030, according to Abdullah Al-Budair, vice minister at the ministry of municipal, rural affairs and housing. 

Speaking at the Restatex Jeddah Real Estate Exhibition, Al-Budair noted that Saudi Arabia’s leadership is keen to develop the real estate sector in the Kingdom, as it is one of the vital pillars of the country’s economy, Saudi Press Agency reported. 

Al-Budair noted that real estate activities accounted for 14.5 percent of the non-oil economy in the Kingdom during the second quarter, and added that the Ministry is working to improve the sector by facilitating investments, therefer elevating its contribution to the nation’s overall gross domestic product. 

The vice minister pointed out that the housing sector currently contributes SR115 billion ($30.59 billion) to the nation’s GDP, and it has also created 40,000 direct and indirect jobs. 

He further revealed that real estate assets represent 15 percent of the total assets of Saudi Arabia’s Public Investment Fund. 

Citing data from Capital Market Authority, released in September, Al-Budair added that the value of the real estate is about 34 percent of the total private mutual funds’ assets in Saudi Arabia which stands at SR333.6 billion. 

Highlighting the development in the sector, Al-Budair noted that there are existing projects to implement more than 30,000 housing units in Jeddah, with a total value of SR26 billion. He added that there are future projects to implement a further 30,000 additional housing units in different neighborhoods of Jeddah Governorate. 

During the event, Al-Budair and Saleh Al-Turki, mayor of Jeddah governorate handed over 900 housing units to beneficiaries of the Al-Jawhara Residence project. 

The Restatex Jeddah Real Estate Exhibition began on Oct. 10 and will run for three days. More than 40 exhibitors, including PIF’s ROSHN, along with financing bodies, banks, and relevant government agencies, are set to attend.