RIYADH: Saudi Arabia is poised to draw $6.3 billion in private international capital into its property sector once the ongoing geopolitical conflict in the Middle East region stabilizes, driven by strong structural demand drivers, according to Knight Frank.
In its latest report, the real estate consultancy stated that factors including population growth, business expansion, and inward migration, as well as rising consumer confidence, are supporting the country’s property market, despite the recent conflict in the region.
The Kingdom is balancing the immediate impact of the Iran war with a longer-term push to internationalize its real estate sector, as regulatory reforms and strong demographic demand underpin expectations for renewed foreign investment.
The conflict has slowed non-oil activity, including property markets, across Gulf Cooperation Council countries amid heightened regional uncertainty.
“Notwithstanding the human and economic costs of the Middle East conflict, GCC governments have moved swiftly to demonstrate a heightened level of security and resilience, showcasing their defensive capabilities to reinforce the long-term stability the region has maintained for decades,” said Faisal Durrani, partner – head of research for Middle East and Africa at Knight Frank.
