Property for sale in Saudi Arabia
Saudi Arabia is a desert country that includes almost the entire Arabian peninsula, overlooking the shores of the Red Sea and the Persian Gulf. Known as the place of origin of Islam, it houses the two most sacred mosques of that religion: the Masjid al-Haram, in Mecca, destination of the annual Hajj pilgrimage, and the Masjid an-Nabawi, in Medina, burial place of the Prophet Muhammad. Riyadh, the capital, is a metropolis full of skyscrapers.
Saudi Arabia is bordered by Jordan and Iraq to the north, Kuwait to the northeast, Qatar, Bahrain and the United Arab Emirates to the east, Oman to the southeast and Yemen to the south.
The world has seen many drastic changes in 2017, the changes that have occurred in Saudi Arabia may have been the most disconcerting. These changes, although shocking, were deemed necessary after a sharp fall in both the oil industry and the real estate market in Saudi Arabia.
As the owner of the largest oil reserves in the world, the Kingdom of Saudi Arabia has been economically dependent on oil industries for decades.
Therefore, Saudi Arabia's economy has been hit harder by the fall in oil prices over the past two years.
This fall was caused by the discovery of large oil reserves in other countries of the world on the one hand, and by the slow but continuous shift of the world to sources of clean energy on the other.
How has the fall in oil prices affected the economy and the real estate market in Saudi Arabia?
It can be attributed to the Domino effect; as explained above, Saudi Arabia's economic growth and sustainability were critically dependent on the oil industries.
When oil prices fell, the revenues generated fell significantly and, therefore, the government decided to minimize the damage by reducing the spending and subsidies it offered to its citizens on the one hand and taxing on the other.
If you are thinking of buying a property for sale in Saudi Arabia it could be an interesting investment for the future. At a local level, this has weakened Saudi purchasing power and their willingness to spend their money on acquiring new properties for sale in Saudi Arabia. At the international level, the decline in the oil industry has had a negative impact on investor interest in the kingdom, which has contributed to a major blow to the employment rate of the energy industry.
Despite the struggles it has experienced over the past two years, the real estate market in Saudi Arabia maintains an overall positive outlook due to the multiple reforms currently being planned and implemented by the Saudi Arabian government.
The most important of these reforms are the main parts of Saudi Vision 2030 and the National Transformation Program. These reforms aim to overcome the many obstacles facing the residential sector of the market such as high land prices and the imbalance between supply and demand.
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