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Ready to explore ‘Saudi Arabia this week’ by Analytix, with the latest weekly news updates and business insights from Saudi Arabia. Here we go!
From 26th August to 31st August 2024
Real Estate transaction in Saudi Arabia rise to 38% in H1, reaching $ 34 bn
RIYADH: The real estate market in Saudi Arabia rose to 38% in the first half of the year with 106,700 deals worth of approximately $ 33.9 billion, according to a report by real estate consultancy Knight Frank. Residential transactions accounted for 61% of the total value, a 41% increase in the number of deals reaching almost 91,860 transactions. The value of these residential transactions increased by 48%, reaching $20.7 billion.
Several factors are behind this increase including the Saudi Arabia’s Housing Program which provided over 96,000 families with home financing in 2023. Moreover, over 20,000 households have benefitted from the Development Housing Program that offers homeownership opportunities and usufruct rights through government support.
This increase in residential demand is attributed to the government initiatives that made owning a house affordable and partnerships between public and private sectors. Riyadh has seen the highest increase at 49% in residential transactions, as a part of the government’s efforts to develop its appeal as one of the Kingdom’s economic and cultural centres. Other main cities such as Jeddah, Dammam and Madinah also witnessed an increase, however, Makkah saw a slight decline of 6%.
The government’s efforts to increase housing supply and affordability with key programs like Sakani and Wafi have been the driving force that led to an increase by 63.74% by the end of 2023, exceeding even the government’s goal. New regulations that allow foreign investors to purchase property through the Premium Residency Visa also expanded the market, further elevating demand.
Initiative launched to strengthen tourism education and training
RIYADH: Saudi Arabi’s Vice Minister of Tourism, Princess Haifa bint Mohammed Al-Saud, has introduced a campaign to improve education and training in the tourism sector. The Ministry of Tourism has launched the initiative to enhance current educational programs that align with the needs of the labour market.
In 2024, 102 national tourism education and training programs will be assessed rating by the UN Tourism, the Education and Training Evaluation Commission, and the Technical and Vocational Training Corp for the purpose of entering their programs in accreditation both internationally and at the national level and professional certification.
The goal is to get 31 programs accredited nationally and internationally by 2024, to train and certify 200 trainers and staff for managing and teaching tourism programs, and to provide 37 employees of the Ministry of Tourism with professional management certificates. Furthermore, there are 27 other programs that are expected to be accredited by 2025.
Princess Haifa emphasized the ministry’s efforts to collaborate with local and international partners to realize these goals which will improve the competitiveness of Saudi Arabia’s tourism sector, increase the country’s position on the global standing in tourism, and generate employment.
In June, the ministry launched the Tourism National Occupational Skills Standards under “Ahluha” to set professional training benchmarks in tourism education and training to meet the industry’s demands.
Saudi Crown Price met with European Council President in Riyadh
RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman held talks with European Council President Charles Michel in Riyadh on Wednesday, Saudi Press Agency reported.
At the meeting, they discussed about the relationship between Saudi Arabia and EU countries and the measures to improving their partnership. They spoke about the regional and global developments and measures that were taken in order to guarantee safety and security regionally and worldwide.
The meeting was attended by senior officials from both Saudi Arabia and the EU.
Strengthening Trade ties: Saudi’s non-oil exports to enter Indian markets
RIYADH: Saudi Arabia and India are enhancing trade cooperation as India is the second-largest trading partner of Saudi Arabia while Saudi Arabia is the fourth largest trading partner of India. This partnership, anchored in historical ties, escalated after the visit of Crown Prince Mohammad bin Salman to India in 2019 resulting in the establishment of the Saudi-Indian Strategic Partnership Council.
As part of these close ties, the Saudi Export Development Authority is eagerly pushing non-oil Saudi products into the Indian market. Their efforts are visible through projects such as international exhibitions such as Anuga India 2024 held in Mumbai where 25 Saudi firms are exhibiting food products under the ‘Made in Saudi’ brand.
This initiative is compliant with Saudi Vision 2030 that entails diversification of income sources and boost non-oil exports. Saudi Arabia has various promising food products sectors including high-quality dates and white Vannamei shrimp with total export value of over SAR 19 billion in 2023.
Saudi Exports is also committed to developing Saudi exporters through workshops, studies, and cooperation with the authorities to overcome the difficulties encountered such as customs or logistical problems. The recent initiatives include a workshop organized for the improvement of Saudi exports to India & Bangladesh.
Non-oil exports by Saudi Arabia to India reflect the growing trade between the two nations where export figures hit over SAR 23 billion in 2023. In June 2024, export of non-oil in India was almost SAR 1.7 billion contributed by the chemical industry and plastics being major contributors. In the recent five years, export of these products have been valued at nearly SAR 100 billion thus proving the competitiveness of Saudi products in the Indian market.
