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Majed Al Hogail (*) “The 2015 Budget reflects the strength and stability of the Saudi economy, and confirms that the kingdom will proceed with its comprehensive and sustainable development plans;it also promotes the importance of the contribution of the private sector in the development process.”, Said Majed Al Hogail, theManaging Director of RAFAL Real Estate Development Company.
The strength of the kingdom’s economy isn’t its great oil reserves, neither itsSR 3 trillion cash reserve, but rather the diverse strong Local financial and economic factors, among which the human capital who is starting to realize a lot of the nation’s aspirations as well as their own personal ambitions.
Many analysts link between the Kingdom’s budget and the plunge in oil prices, and some expected it to have a negative effect on the exchange rate on development projects, but the Kingdom faced this challenge - as usual –by adopting many the innovative solutions that ensured its safety.
Investment in the various sectors is the key partner in the nation-building and capacity reinforcement process, and hence a number of strong investment sectors are considered as the key contributor to the prosperity of the local economy.However,the real estate sector is by far the most influential investment, since it participates in many public development projects.
The real estate sector is not restricted to housing, as some people believe, it rather includes schools, mosques, shopping malls, hospitals and parks, all of which have an active and influential role in the real estate sector, and therefore, there should be an integrated system that helps maximizing their role in increasing the total national income.
The real estate sector is considered a safe haven for Saudi investors, and investing in it serves many other public and commercial sectors and projects, moreover many housing rules and legislation have contributed in the development of this vital sector.
The government of the Kingdom of Saudi Arabia was keen to support integrated and sustainable economic growth by developing and enhancing the private sector contribution to the economy, thus providing housing for citizens through huge subsidized projects.
Hopefully the budget will achieve the aspirations of the Custodian of the Two Holy Mosques by utilizing this budget in the most efficient way, and proceed with the implementation of previously initiated projects, particularly those related to the citizens’ welfare, and so, this budget has proved that the Kingdom's economy is strong and able to withstand the temporary fluctuations in the oil market, and to achieve the best results.
(*) Managing Director of RAFAL Real Estate Development Company