JEDDAH – The huge spending in the Saudi housing development reaching $30 billion by 2016 – in which the construction will account 31 percent – offers tremendous opportunities for companies specializing in the sector, particularly in affordable housing. Against this backdrop, the recently held ninth annual “Opportunity Arabia” seminar introduced British companies to a thriving and growing marketplace and raised their investment potentials. The event, organized by The Middle East Association in partnership with the Saudi Committee for International Trade, gave British participants to establish networking with industry experts and potential business partners. Keynote speakers included Sir Alan Munro, British Ambassador to Saudi Arabia from 1989-1993; Omar Bahlaiwa, Secretary General of the Council of Saudi Chambers; and Sir Sherard Cowper-Coles, Business Development Director, International, BAE Systems. Basil M. Al Ghalayini, Chairman and CEO of BMG Financial Group in KSA, who took part in the function, presented some of the high growth sectors in the Kingdom – notably health, housing and energy – which gave British businessmen and companies insight into investment opportunities, sizes and forecasts in these sectors. He highlighted the current real estate market boom in the Kingdom, with massive infrastructure investment providing the basis for growth and a positive outlook for most sectors of the real estate market. A key characteristic of the Saudi market is that demand is primarily generated by local buyers and not foreign investors, he noted, adding that as the demand increases, approximately 275,000 housing units a year needed to be built from 2012 to 2015, with majority of housing developers focusing more on the affordable housing segment. In energy sector, Al Ghalayini said over the next 5 years, Saudi Arabia plans to spend over $100 billion on energy related projects, with $ 60 billion toward power projects. Experts suggest that the demand for electricity in Saudi Arabia will increase by 25 percent during the next five years. With the massive industrial development in the Kingdom, the electricity demand is expected to increase in 2020 to 67,000 MW. In healthcare sector, Al Ghalayini said at present the Saudi government funds most of the demand for healthcare capital and operating expenditures, and called on the greater involvement of the private sector to make high-quality healthcare available to everyone in the Saudi society. – SG
