Al Saedan Real Estate – Opening of the Saudi Capital Markets

Al Saedan Real Estate – Opening of the Saudi Capital Markets

The Capital Market Authority’s report disclosed the total market capitalization of the Saudi bourse at 1,945.15 Billion Riyals for the first half of 2014, up 29.93% from last year’s second half.

The report further stated that the Market Index for the first half of 2014 reached 9,513.02 points, up 2,016.45 points (26.9%) for the same duration in 2013.

Since the beginning of 2014 the Index recorded a positive performance and is up by 977.42 (11.45%) points, with the highest point of 9,905.68 recorded on 10 June 2014. The overall value of traded shares in the first half of 2014 reached 1,123.24 Billion Riyals, up 47.64% from last year’s equivalent period.

The gross total for traded shares in the first half of 2014 represented 38.51 billion shares, up 31.23% year-on-year. Total deals sealed during first half of 2014 mounted up to 18.51 billion, up 4.82% from last year’s 17.65 billion deals.

Furthermore, the market regulator announced that Saudi Arabia plans to open its $530 billion bourse to foreigners in early 2015. The move is in line with the national diversification strategy, to create jobs and to transfer the best practices.

Dr. Bader Ibrahim Ibn Saedan, CEO of Al Saedan Real-Estate, a leading real-estate company in Saudi Arabia, thinks that the real-estate market is reasonably valued but expects more growth in the upcoming years due to the latest development in the capital markets and the planned opening of the Saudi bourse to foreign capital. He said, “In Saudi Arabia, the growth of the real-estate market for the last five years was more than 10%, and it will continue close to that figure.”

The exposure of the stock market to foreign capital is a great opportunity for foreign investors to take part in the Saudi real-estate market, a market traditionally shielded from foreign capital.

Also, the new regulation will prompt new real-estate companies to enter the stock market and to create real estate funds seeking to access the foreign capital.

“The real-estate market could experience further growth on the top of phenomenal growth experienced during the past few years. It is the most attractive real-estate market in the Middle East,” said Dr Bader Ibn Saedan.

About Al Saedan Real Estate

Al Saedan Real Estate is one of the largest and leading real estate companies in Saudi Arabia. It focuses on master-plan development, commercial and residential real estate, real estate purchasing and selling, as well as advisory, valuation, and estimation services. Al Saedan is also present in Tunisia and the United Kingdom.

Founded in the year 1938, Al Saedan Real Estate is one of the oldest real-estate companies in Saudi Arabia. Prior to its establishment, the Saedan family worked in the real-estate business for multiple generations.

The development of Al Saedan Real Estate has transformed over the years. Once the government stopped the development of the private sector and the building of infrastructure of the cities, Al Saedan quickly became involved and shifted from horizontal construction to vertical construction. The company started building compounds, malls, and high-rise buildings. Dr Bader Ibn Saedan states, “Private sector real estate developers had to build the necessary infrastructure and the real estate sector became more regulated, sophisticated and slower. As the cities grew, the emphasis shifted from horizontal construction to vertical construction.”

The real estate market has its ups and downs and goes through fluctuating, lengthy cycles. Due to Al Saedan’s old history in the market, the company has in-depth experience, which has been proven and tested for decades. The company has evolved with the ever-changing market, giving them the expertise needed that makes them one of the leading real estate companies in Saudi Arabia.