Housing Minister: More than 133,000 firms in Saudi construction sector
RIYADH — Saudi Housing Minister Majid Al-Hogail said that the construction sector in Saudi Arabia has more than 133,000 establishments with over 1.6 million individuals participating daily in building a new reality: smart cities and integrated development.
Al-Hogail noted that project management gives organizations greater predictability, responsiveness, and execution, and improves performance and raises the quality of achievement.
He emphasized that Saudi Arabia's Vision 2030 outlines an ambitious future that reshapes the economic, social, and development landscape.
The minister explained that project management has become a strategic approach and an essential tool for leading change and achieving sustainable impact, and is no longer an executive option. He noted that the National Projects Council is playing a growing role in unifying efforts and enhancing performance.
He added, "Government project management offices contribute to enhancing planning, follow-up, and governance practices, ensuring quality implementation and consistency with national goals." This came during his inauguration of the Global Project Management Forum (GPMF 2025), hosted by the capital, Riyadh.The GPMF is one of the prominent international events in this field, bringing together more than 13,000 specialists and interested parties from at least 100 countries. There will be 120 international speakers, 60 dialogue sessions and 16 training workshops. The event reflects the position that Saudi Arabia occupies in leading developmental and institutional transformations at the global level.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
7 hours ago
- Arab News
Saudi Arabia's money supply hits $832bn as time deposits reach 16-year high
RIYADH: Saudi Arabia's money supply rose to a record SR3.12 trillion ($832 billion) in June, marking a 7.63 percent annual increase, driven predominantly by a sharp rise in time and savings deposits. According to data from the Saudi Central Bank, also known as SAMA, these income-generating accounts, now totaling around SR1.1 trillion, represent the highest share of the money supply in 16 years. While demand deposits — non-interest-bearing checking accounts — remain the largest component at 47.93 percent, or SR1.49 trillion, their growth at 5.2 percent year on year has lagged that of savings accounts, which grew 21.71 percent over the same period. Other quasi-monetary instruments, including residents' foreign currency deposits, marginal deposits related to letters of credit, outstanding remittances, and repo placements, account for roughly 9 percent of the money supply. However, this category declined 18.54 percent, dropping to SR280.54 billion. Meanwhile, currency outside banks, although the smallest component at 7.83 percent, increased 6.6 percent to SR244.31 billion. Why are time deposits surging? Global monetary tightening and attractive yields are key factors. After previously peaking at 6 percent, SAMA reduced its repo rate in stages, mirroring that of the US Federal Reserve — first to 5.5 percent in September 2024, then further to 5 percent in December 2024. Despite these cuts, the current rate remains relatively elevated compared to the prolonged low-rate environment of previous years, making fixed-term, interest-bearing accounts more attractive than demand balances. Strong lending growth, particularly in sectors tied to Vision 2030, mortgage financing, and corporate borrowing, has outstripped deposit inflows. As a result, banks face increased funding needs and have ramped up offerings on time deposits to attract liquidity. The 2025 International Monetary Fund Article IV Mission noted that while banks maintain strong solvency at 19.6 percent and a healthy return on assets, liquidity pressures are building, and liquid assets relative to short-term liabilities have declined. In response, banks are expanding liabilities through bonds, syndicated loans, and certificates of deposit. Notably, net foreign assets turned negative in 2024 for the first time since 1993, highlighting rising external borrowing. To address risks, SAMA introduced a 100-basis-point countercyclical capital buffer in May 2025, and the IMF welcomed this step, along with tighter loan-to-value and debt burden measures, plus potential foreign-currency liquidity ratios to bolster financial stability. Market analysts foresee continued strength in time and savings deposits. Alvarez & Marsal's first quarter Banking Pulse reported that deposits rebounded 4 percent quarter on quarter, led by an 8.1 percent increase in time deposits, following a seasonal dip at the end of 2024. Likewise, Fitch Ratings, in its March 2025 forecast, projected lending growth of 12–14 percent, led by corporate demand, to continue outpacing deposit growth. Fitch expects Saudi banks to issue more than $20 billion in debt this year as they shift toward non-deposit funding. This, coupled with the continued dilution of CASA 'current and savings accounts' and competition for funding, may blunt the benefits of lower policy rates on banks' net interest margins.
Asharq Al-Awsat
9 hours ago
- Asharq Al-Awsat
Saudi Arabia Rolls Out Measures to Spur Property Use
Saudi Arabia on Sunday began enforcing an updated version of its 'white land' tax, under directives from Prince Mohammed bin Salman, Crown Prince and Prime Minister, aiming to push landowners to either develop or sell idle plots to developers, boosting supply and easing property prices. The amended rules broaden the levy to include vacant buildings, as well as undeveloped plots, and streamline its rollout by imposing an annual tax of up to 10% of a plot or group of plots' market value if their combined area within an urban zone is 5,000 square meters or more, according to regulations. Vacant properties will also face an annual tax based on comparable rental values, capped at 5% of their market value. This rate could be increased to 10% by cabinet decision on a ministerial committee's recommendation. State-owned properties are exempt. Hamed bin Hamri, a member of the Eastern Province Chamber of Commerce's real estate committee and chief executive of Tamkean Investment, said the tax would pressure owners to utilize vacant assets or sell them to avoid annual charges, spurring market activity. 'Holding onto undeveloped land will now come with a cost linked to its market value,' he told Asharq Al-Awsat. 'This reduces the appeal of land hoarding.' He urged owners to seize the opportunity to build or partner with developers to revive unused plots, and called for incentive schemes, easier bank financing, and feasibility studies to help owners bring projects to life. Khalid Aljasir, head of Amaken International Group, warned that the changes could trigger a cautious slowdown in the real estate market. 'Supply will rise faster than demand, giving buyers with cash more bargaining power,' he told Asharq Al-Awsat, predicting that this caution could last for six months before the market regains balance. He described the move as 'bold' and said it could push land prices back to earlier levels. Financial and economic consultant Hussein Al-Attas told Asharq Al-Awsat that expanding the tax to cover vacant buildings was a key step towards tackling one of the main causes of market stagnation — idle, ready-to-use properties. Setting a 5,000 square meter threshold for taxable plots would reduce inefficient land fragmentation and make compliance easier to monitor, he said. Linking the tax rate to asset value, capped at 10%, would ensure fairness and reduce evasion while encouraging genuine development. By targeting vacant buildings, the system addresses shortages in ready-to-occupy or investable stock, Al-Attas said, adding that flexible executive regulations would allow the housing ministry to adapt to shifting market conditions. 'These changes could accelerate development, limit speculative holding of assets, and support price stability while improving economic efficiency in the property sector,' he stressed.
Al Arabiya
13 hours ago
- Al Arabiya
Regional businesses must balance automation with human insight: Al Ghurair CEO
Middle Eastern companies must combine operational automation with human oversight to build resilience against ongoing geopolitical and economic uncertainties, the chief executive of UAE conglomerate Al Ghurair said. John Iossifidis, who has led Al Ghurair as Group CEO since 2020, argued that while autonomous technologies offer speed and scalability, successful businesses require human judgment and creativity, particularly during crises. 'Resilience is not built on automation alone. It is shaped by the judgment, creativity, and empathy of people – traits that are still irreplaceable, especially in moments of crisis,' Iossifidis sais. The executive's remarks come as regional businesses tussle with supply chain disruptions and economic headwinds, including fallout from recent Middle East conflicts. Al Ghurair has committed over Dh1 billion ($272 million) to three advanced food processing projects at KEZAD, including what the company says is the region's first starch facility and a large-scale poultry production plant integrated into the Abu Dhabi Food Hub. The AI-enabled sites support the UAE's National Food Security Strategy 2051. The conglomerate, which operates across foods, development, mobility, infrastructure and property management, has also developed a proprietary app called Buddy's that provides real-time insights to drivers at its Kabi taxi service, formerly known as Cars Taxi. 'Autonomous operations provide the flexibility to scale, pivot, and adapt instantly – but only when guided by human oversight,' Iossifidis said, adding that autonomous solutions should empower workers rather than replace them. The CEO cited examples of regional leaders successfully implementing technology-human partnerships, including DP World's automation at Jebel Ali Port and Dubai Electricity and Water Authority's smart grid systems. Iossifidis referenced Microsoft CEO Satya Nadella's view that 'Our industry does not respect tradition – it only respects innovation,' and emphasized the need for businesses to embrace this mindset to remain competitive. Al Ghurair has established Executive and Advanced Leadership Development Programmes to equip employees with skills to adapt to technological changes. 'We are not replacing roles – we are redefining them,' Iossifidis said. The executive stressed the importance of preparing the region's young workforce for an increasingly automated future, calling it 'an economic imperative.' Citing leadership expert Simon Sinek, Iossifidis said: 'Leadership is not about being in charge. It is about taking care of those in your charge.' He concluded by referencing author Mark Twain's observation that 'The two most important days in your life are the day you are born and the day you find out why,' emphasizing the need for purpose-driven leadership. 'The organisations that thrive in this uncertain era will be those that embed automation where it enhances performance and invest in people where it matters most,' Iossifidis said.
