00:00 The real estate sector in Saudi Arabia is one of the most important sectors,
00:04 specifically in the oil-free economy of the Kingdom,
00:07 and in the Kingdom's vision for the next 20-30 years,
00:10 and to reduce dependence on the oil economy.
00:13 The real estate sector remains one of the most important pillars
00:17 that the Kingdom's economy will be based on in the coming period.
00:22 Let's take a look at one of the important steps
00:26 that Saudi Arabia has taken through the Ministry of Justice,
00:30 which is the establishment of the real estate stock exchange.
00:32 The stock exchange is a platform for trading, as we know,
00:37 for stocks and financial documents in general.
00:40 The same goes for real estate, but the difference is
00:43 what is traded, which is real estate in different forms,
00:48 such as the type of real estate, and there are also real estate stocks,
00:52 and others, as we see in the real estate stock exchange in Saudi Arabia.
00:56 The start of this project was in November 2021,
01:01 until it was officially launched on 27 August.
01:07 The goals for this real estate stock exchange are,
01:10 first, to control the market and prevent commercial practices,
01:15 and also to manage and implement real estate ownership
01:18 at the level of sale and purchase,
01:20 and also to determine prices and know the prices
01:23 for each region, each residential unit, and each square meter
01:27 of what is offered in the market from the process of trading,
01:30 selling and purchasing, and this, of course,
01:33 reduces the idea of transparency, secrecy and monopoly.
01:38 Also, to manage and implement real estate stocks,
01:40 the direct supply of real estate operations data.
01:43 To carry out this project,
01:45 50 million real estate documents were listed in Saudi Arabia,
01:50 and the Ministry of Finance is targeting 100 million real estate documents
01:54 in a project that is one of the largest projects
01:58 that are working on listing documents
02:00 during this period in the region in general.
02:04 The real estate sector in Saudi Arabia is one of the most important sectors
02:08 that the Kingdom focuses on.
02:10 We look at the prices of real estate during the past period,
02:14 specifically at the second quarter level,
02:16 according to the data of the Saudi Statistics Agency,
02:19 that the prices of real estate rose during the second quarter of the current year
02:24 by 18% on the overall level of prices,
02:27 but this increase in fuel was the increase in the prices of real estate
02:31 by more than 1% on the second quarter of the current year.
02:35 According to a survey we conducted in CNBC Arabia
02:38 on the financial results of listed companies in the main market
02:41 for the Saudi market,
02:43 we saw a very strong increase in profits.
02:46 A serious increase of 380% in the profits of companies
02:49 to the level of 693 million Riyals
02:52 on the level of real estate companies in Saudi Arabia.
02:55 The revenues exceeded 3.4 billion Riyals,
02:58 despite the increase in financing costs
03:01 with the increase in interest rates by 55% of the total.
03:05 However, the financing costs did not affect the profits of companies.
03:10 Why? Because there is a lot of support from the government
03:13 to expand ownership and expand real estate projects
03:17 through what the government offers and through the Vision 2030,
03:21 which aims to expand the ownership of Saudis or Saudi families
03:26 to 70% by the year 2030
03:30 and the projects and funding that the Saudi government offers
03:36 to the participants in the various housing programs that it offers.
03:40 The real estate sector is one of the largest sectors in Saudi Arabia.
03:44 According to official statements,
03:46 the sector accounts for about 13% of the total local oil production
03:52 in the Saudi Arabian Kingdom in the third quarter of 2022.
03:58 So, the real estate stock market in Saudi Arabia
04:01 is a new step that Saudi Arabia is taking towards achieving the 2030 targets.
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