RSS   Newsletter   Contact   Advertise with us

Saudi Arabia and South Korea to build 100,000 houses for $20 billion

Staff writer ▼ | March 29, 2016
Saudi Arabia and South Korea have signed an agreement to build 100,000 houses over the next 10 years in the north of Riyadh costing SR75 billion ($20 billion).
Kang Ho-in
Arabia   Shortage of 1.7 million homes claimed
Housing Minister Majed bin Abdullah Al-Hogail inked the pact with the South Korean Ministry of Land, Transport and Infrastructure Kang Ho-in.

The agreement includes an exchange of expertise through workshops and conferences. The joint consortium has two major South Korean companies, Daewoo Engineering and Construction Company and Hanwha Engineering and Construction Corporation, with Saudi Pan Kingdom Company.

The houses would be built as part of a residential city over 38 sq. km, 14 km south of King Khaled International Airport in Riyadh. The final agreement will be signed in October in Riyadh.

Abdullah bin Suaidan, a Saudi real estate businessman, has claimed that there is a shortage of about 1.7 million houses in the Kingdom and 130,000 in Riyadh.

Bin Suaidan, who chairs the Riyadh-based Salman bin Abdullah bin Suaidan Real Estate Group, made this comment in a seminar on the future of real estate as a safe investment in the Kingdom, organized by the Riyadh Chamber of Commerce and Industry on Tuesday.

He said that while there are 1.3 million units currently available in the market, the vast majority of citizens cannot afford them.

Bin Suaidan said property in the Kingdom remained a safe investment, with stability rather than major growth, despite the fall in oil prices and Saudi Arabia’s involvement in Yemen.