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Real Estate Boom
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As the largest construction market in the Gulf, the value of new construction contracts awarded to main contractors in Saudi Arabia is expected to increase by 15.4 per cent, reaching $60 billion next year, compared to $52bn last year, it emerged yesterday.Naseba, a leading organiser of high-profile conferences and events, is set to host a new executive congress, 'Kingdom Expansion Congress 2009', which will take place from May 11 to 13 in Riyadh.
The three-day congress will bring together key government bodies, ministries, urban planning and development authorities, leading infrastructure developers, construction companies, architectural firms, building material manufacturers and suppliers and technology providers from all over the world.
The conference is considered of high importance to the development and investment in Saudi Arabia's real estate sector which is expected to remain strong despite project delays and cancellation, according to recent reports from Ventures Middle East.
During the congress, industry experts will discuss the latest trends and issues in the industry, mainly focusing on sustainable cities, public-private partnerships discussions, smart cities and city development strategies, green buildings and innovative build IT solutions, the importance of maintenance and operations and the need for facilities management in the region.
The real estate and construction development is mainly driven by the strong local population growth which is expected to double in the next 20 years, the demographic and structural shifts in the economy, the increasing transparency of laws and regulations attracting foreign investment and the new mortgage law as well as the affluent commercial sector.
As a result, six mega economic cities are currently being developed and are expected to be home to four to five million residents by 2020.
Naseba event project director Prachi Dawar said: "We are pleased to introduce the first event, gathering all leaders from the building, city and facilities management industries under one roof in Saudi Arabia. Kingdom Expansion Congress 2009 is an opportunity for all industry players to enter the new booming Saudi market, understand its needs, requirements and establish themselves in the country."
With the Saudi market currently valued at over $1 trillion worth of underway and planned projects, the real estate activity is estimated to increase at an average annual rate of 5.8pc, with its contribution to GDP increasing from 6.8pc in 2004 to 7.2pc this year. The contribution of the building and construction sector to the GDP is estimated to increase at an average annual rate of 6.7pc, reaching 7.3pc by the end of the year, as compared to 6.6pc in 2004, said the Saudi Ministry of Economy in the Eighth National Development Plan 2005-2009
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