News for ALL
The more than 300 apartments in Almajdiah Residence’s new Riyadh complex sold in just a month for cash, without the company even having to advertise.
This is Saudi Arabia, the world’s biggest exporter of oil, so it’s no surprise the property market is red-hot as income from a spike in energy prices flows through the economy.
But Almajdiah’s chief executive officer, Abdulsalam Almajed says the scramble for the 1-million-riyal ($266,400) homes reflects something else, too: the social and economic shift that’s reshaping the kingdom, accelerated by the crown prince’s overhaul program.
“There’s a change in mindset,” said Almajed, who heads family-owned developer, as some Saudis embrace the more open style of living his firm caters to. “Today there’s beautiful creativity in Saudi designs.”
ET PRIME - TOP TRENDING STORIESStartups, want a Sequoia cheque in a funding winter? Here’s what Rajan Anandan will check out first.Startups, want a Sequoia cheque in a funding winter? Here’s what Rajan Anandan will check out first.Ola’s big Independence Day push: why August 15 is critical for Bhavish AggarwalOla’s big Independence Day push: why August 15 is critical for Bhavish AggarwalHow Chinese factories are finding their way to MexicoHow Chinese factories are finding their way to MexicoTwitter vs. Centre: why India will be the loser in tech giant’s legal battle with MeitYTwitter vs. Centre: why India will be the loser in tech giant’s legal battle with MeitYEV vs. CNG-petrol cars: BluSmart, Ola, Uber, and the future of the cab-hailing business in numbersEV vs. CNG-petrol cars: BluSmart, Ola, Uber, and the future of the cab-hailing business in numbersRIL, other refiners pitch for deregulation of domestic gas. What does free pricing mean?RIL, other refiners pitch for deregulation of domestic gas. What does free pricing mean?While de facto ruler Mohammed bin Salman has centralized power and increased political repression since being elevated by his father, King Salman, in 2015, he’s also ended or relaxed restrictions on entertainment and how men and women can mix, and is trying to curb a reliance NSE -0.28 % on oil.graphBloombergTen years ago, many property owners wouldn’t even rent to women, who needed approval of a male guardian for many life decisions. Today, women are entering the labor market in greater numbers, and 30% of Almajdiah’s buyers are female, acquiring investment properties or a home of their own.
They’re helping lift an economy transformed by energy markets. As much of the world is fretting about spiraling inflation fueled by Russia’s war in Ukraine and potential recessions, oil averaging more than $100 a barrel this year means Saudi Arabia’s economy is the fastest growing in the Group of 20.
Gross domestic product expanded 11.8% in the second quarter, when the non-oil economy grew 5.4% and is now larger than at the end of 2019, before the pandemic struck.
State energy company Saudi Aramco has reported the biggest quarterly adjusted profit of any listed company globally. Billions of dollars are flowing into Saudi coffers and raising state investments, boosting sentiment in a private sector reliant on government contracts.
Capital spending jumped an annual 64% in April to June, as the kingdom embarks on a building spree including malls and parks as well as grandiose plans for a new city built from scratch and a luxury tourism development on the Red Sea. Overall spending was 16% higher, even though this year’s initial budget forecast it would fall.