The Saudi Arabian General Investment Authority (SAGIA) has reportedly announced massive investments worth USD 4.4 billion (approximately SR16.5 billion) in the Kingdom’s construction and real estate industry. Reports affirm that the declaration has come on the heels of advancing economic reforms in the region.

Sources familiar with the matter claim that an agreement worth SR10 billion related to residential development on the Al Asfar project has been signed between the Ministry of Housing, National Housing Company, and the PowerChina International Group. Apparently, the agreement entails the construction of around 17,000 housing units that would be built over the next six years.

Reliable reports also cite that another memorandum of cooperation has been inked between the Eskan Program and the U.S.-based Katerra that would see the introduction of modern and rapid construction methods in Saudi Arabia. Yet another memorandum of cooperation has been signed between Sakani program, Sany (a Saudi–Chinese partnership), and Alameriah, that would be focused on residential real estate development for the Telal Alghoroob project, claim sources.

Wu Wenhao, branch general manager & vice-president, PowerChina International Group Ltd, has been quoted stating that the firm is rather thrilled with the surging housing demand in the Kingdom and the plan outlined by the Sakani Program and the Ministry of Housing in order to meet the demand. PowerChina is also delighted to be joining forces with Ministry of Housing in a bid to deliver varied residential units for Saudi’s citizens, Wenhao claimed further.

For the record, the Saudi real estate industry has been on a roll lately, and analysts project that it is slated to witness a growth rate of 5.3% over the forthcoming five years. One of the principal driving forces behind the expansion of this industry, analysts say further, may be attributed to the contribution by the regional government. Indeed, the government has allotted a funding of USD 15 billion towards housing development, and over a million housing units are anticipated to be constructed in the next half a decade, cite sources.