The government has budgeted for non-oil revenue to reach SR 313 billion in 2019 compared to SAR 288 billion in 2018, showing an increase of 9%. Through Fiscal Balance Program (FBP) by 2023,government aims real GDP growth to reach 2.6% with a focus on economic diversification along with private sector empowerment.In view of the economic developments and growth targets, the timeframe of the Fiscal Balance Program was revised and the goal to achieve fiscal balance has been moved from 2020 to 2023.
Century21 Saudi has prepared this report using both our industry knowledge and market expertise from our real estate projects & studies.
During 2017, Century21 observed no major additions in the residential segment.The market is expecting delays in the upcoming supply due to slow activity and still remains undersupplied.Recently, Ministry of Housing and Al-Tahaluf Real Estate Company announced a 462-unit residential project in the northern district of Riyadh.This will be the first Public Private Partnership (PPP) scheme in the Saudi housing sector to be developed on private sector land. This development will be a planned residential community comprising of 426 duplex units and the remaining 36 will be single-unit villas.
Real Estate Investment Trusts (REITs) is a company that owns and operates income generating real estate assets.
Saudi Arabia currently leads the market with officially eight (8) listed REITs on its stock market called
the Tadawul. The country officially established the listed REITs legal framework in October 2016.
The budgeted expenditure for 2016 was at SR 840 billion. However,the actual spending in 2016 was SR 825 billion, representing a decline of approximately 1.8%. The main reason for this decrease was due to government’s decision to cut down public pending and putting on hold mega projects. The highest budget allocation was for Military, Security & Regional Administration and the actual spending on this sector was 37% which was approximately 4% higher than the budgeted figure. While Education & Training segment received the second largest share at 25% of total actual spending. Education & Training sector remained almost stable at budgeted and actual level of spending.