Sidra Finance President of Arabia: Great interest from foreigners to invest in the residential sector in Saudi Arabia

Sidra Finance’s chairman of the board, Hani Baathman, said that despite his first attendance at MIPIM International Exhibition for the Real Estate in Cannes, in France, described as “the Davos of the real summer “, its pavilion has seen a large turnout from wealth managers, investment banks, corporations and real estate investors, and demand was the most on the residential sector in Saudi Arabia.

Hani Baathman added, in an interview with Al-Arabiya, today, Thursday, that the Saudi Ministry of Housing has completed the legislative and financial aspects and the residential sector has become attractive and qualified for investors.

He explained that the size of the UK housing market is estimated in £ 8 trillion, equivalent to 3 times the economies of OPEC countries combined, and therefore the real estate sector is expected to in Saudi Arabia will witness a boom and great growth.

Regarding the presence of Saudi government companies in able to compete with the private sector, Sidra Capital’s chairman of the board said the Saudi market is large and the residential sector is diverse and he doesn’t believe one or two companies will care about investors.

Regarding the possibility of foreigners owning real estate, Hani Baothman said he does not believe there is a need for non-foreigners to own real estate because the percentage of ownership of citizens is still very low and aims to increase it to a very high percentage. As for Mecca and Medina, there are a lot of questions from investors in all real estate conferences on the possibility of direct ownership for the property.

Baathman explained that many investors are now leaving the equity markets and heading into the real estate sector due to high inflation and the search for a stable return, because the real estate sector is not overvalued and is one of the most anti-inflationary investments.

He added that the problem now lies in the difficulty of finding investment opportunities, noting that Sidra Capital made an offer last week to buy a asset in London worth £ 465 million, and within 4 days other competing funds entered and offered larger sums for the purchase.

He said his company’s portfolio is split equally between the UK and the US and that he has recently started increasing it. in Europe and aims to increase it in Saudi Arabia and cooperate with foreign investors to explore opportunities in Saudi Arabia.

Under the aegis of “Invest in Saudi “, the Ministry of Investments and Saudi government companies participate in the MIPIM International Real Estate Exhibition in Cannes, in France.

Participation in the exhibition aims to review the strategic objectives and projects of the participating parties, the competitive advantages and the size and diversity of real estate investment opportunities, as well as provide information on the Saudi real estate sector to foreign investors.

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