RIYADH: A study on the establishment of a Real Estate Higher Authority is expected to be completed within three months, Hamad Al-Shuwai'er, Chairman of the National Real Estate Committee at the Council of Saudi Chambers of Commerce, has said. Answering a question by Okaz/Saudi Gazette during a press conference here Sunday announcing the study, Al-Shuwai'er said the authority will localize, develop and organize the real estate industry; encourage investment; and create a positive impression of the industry among official authorities, all segments of society and local and international investors. Al-Shuwai'er said the authority will draft a national policy for the real estate industry, bring together scattered realtors and fulfill the requirements and aspirations of developers and investors. Once the study is completed, it will be referred to the Shoura Council for further study by several official authorities until final approval. Al-Shuwai'er stressed that it is important to organize the real estate sector in the Kingdom, which is considered to be the second biggest investment sector after the oil industry. He said the legislative authority will deal with any possible overlapping of powers and functions with regard to other government agencies. According to preliminary estimates, real estate investments are expected to total SR82 billion during the coming three years with investment in residential buildings exceeding SR484 billion up to 2020. Al-Shuwai'er said the annual housing need in the Kingdom ranges between 160,000 and 200,000 units, which is nearly one million housing units over the coming five years. Investors have been calling for a single authority, instead of several departments, because it will reduce the time to obtain licenses to carry out real estate projects, according to reports. Experts also hope the formation of a new authority will help remove obstacles facing investors. They fear that any delay in getting licenses would force investors to abandon their projects in the Kingdom and look abroad for opportunities. One major businessman reportedly said that Saudi Arabia has been losing billions of dollars in investment due to the absence of an investment-friendly climate and regulations. A single authority is also expected to reduce corruption in the real estate market and contribute to increasing investor confidence. The market is also expecting the passing of the much-anticipated mortgage law.
