Different reactions to the entry of international and foreign companies in the field of real estate development and Saudi contracting with contracts and agreements with the Ministry of Housing for the purpose of constructing and building more than 180 thousand housing units in Riyadh and the rest of the regions and expectations filter that the partnership with the foreign private sector will increase its activation by a number of future agreements due to the great experience that these companies have in the field of rapid construction until the ministry reaches its strategy to build 1.5 housing units within 5 years.
Amlak newspaper, as usual, has anticipated the events and conducted a survey that lacks candor on the subject by asking the following question
Amlak newspaper, as usual, anticipated the events and conducted a frank survey on the subject by asking the following question: How will the entry of international real estate development companies in partnership with the Ministry of Housing affect the local market?
International companies create competition
Mohammad al-Nukhaysh: The entry of international companies creates strong competition and drives the building materials market
The entry of a number of international companies <span class="apple-converted- in the field of real estate development and contracting to the Saudi market with contracts and agreements with the Ministry of Housing would create competition between the public and private sectors and lead to stronger competition between national and foreign companies, and would provide great opportunities for national companies to benefit from the experiences and technologies of international companies due to their multiple activities and professional work. Al-Nukhaish emphasized that there are other benefits of opening the way for international and foreign companies to implement housing units in the Kingdom, most notably the opportunity for Saudi cadres to work in this companies and ignite the spirit of competition, in addition to moving the building materials sector, as well as the possibility of informing national real estate development companies on the latest types of technologies used by these companies in their work, and we are in dire need of such expertise and our youth are also in dire need of this. Booming Saudi building materials market In turn, Yazeed bin Abdulaziz Al-Dughaither, General Manager of Al-Madina Real Estate Management, confirmed that the contracting activity was greatly affected by the suspension of many government projects, pointing out that the private sector is looking for the lowest prices at the expense of quality; so the contractor with high quality, no doubt his costs will be high due to the presence of a supervisory team of engineers and technicians and other administrative costs and will be limited to those companies and small companies or organizations with low quality remain. He hinted that international companies will bring their labor with them, especially technicians and engineers, expecting that there will be limited subcontracts at feasible prices.
From another angle, Al-Dughaither said that the biggest beneficiaries of these partnerships will be the owners of companies and manufacturers of building materials in the Saudi market.
The market is big enough to accommodate everyone <img loading="lazy" decoding="async" class="alignnone size-medium wp-image-10221" src="https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئيس-شركة-يوسف-مروان-للمقاولات1-300x225.jpg" alt="Youssef Marwan President of Youssef Marwan Contracting1" width="300" height="225" srcset="https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئيس-شركة-يوسف-مروان-للمقاولات1-300x225.jpg 300w, https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئيس-شركة-يوسف-مروان-للمقاولات1-1024x768.jpg 1024w, https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئيس-شركة-يوسف-مروان-للمقاولات1-768x576.jpg 768w, https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئيس-شركة-يوسف-مروان-للمقاولات1-1536x1152.jpg 1536w, https://amlak.net.sa/wp-content/uploads/2016/04/يوسف-مروان-رئي
Youssef Marwan: The Saudi real estate market has room for everyone and weak companies will exit the market Youssef Marwan
Youssef Marwan, president of Youssef Marwan Contracting Company, also explained that the entry of international companies will add expertise to the market although there are local contracting companies that have experience, knowledge and previous work with international development companies and I do not think that the presence of foreign companies will have a negative impact on small companies and only weak companies that cannot adapt to the current situation will exit the market. .
Marwan believes that the size of the market is very large and accommodates a lot of contracting activities and said: I think that the entry of international companies huge to implement large projects will inevitably need the local contractor who will have the opportunity to work under the supervision and management of the foreign contractor and Marwan noted that the market will witness a positive movement through subcontracts that contribute to the support and operation of small contractors. Marwan believes that the market will witness a positive movement through subcontracts that contribute to the support and operation of small contractors.
Survival of the strongest Abdullah Al-Delekan: The whole thing needs careful coordination from the relevant government agencies
For his part, Abdullah Al-Delekan, General Manager of Seventh Continent Contracting, believes that the Ministry of Housing, by this step, achieves several goals, foremost of which is to accelerate the construction of housing units in an engineering sequence that removes accusations of lack of achievement and that the amount of support and powers it has obtained is not commensurate with its achievements, At the same time, local companies will be affected by the lack of projects entrusted to foreign companies, especially with the economic issue and the lack of projects in the government and private sectors. He adds that the whole matter needs careful coordination from the competent government agencies to enter local contracting and development companies from the same region to cooperate according to internal understandings and contracts with foreign companies in order to contribute to localizing the construction industry and reviving the real estate and contracting market again, as well as spreading new patterns of construction, and employing a large number of young Saudis. Benefits, advantages and competition Khaled Al-Saab: Entering global companies gives us multiple experiences and creative ideas
In another context, Khalid Al-Saab said We are today in the era of global openness and there is no way to close our doors to ourselves, and the Ministry of Housing did well to take a successful step in hiring international companies to transfer their expertise in the field of building and construction, which is a wide and spacious field that accommodates everyone. Difficult addressed the benefits and advantages that the real estate sector and the construction sector reap by attracting foreign companies, most notably opening the door wide, for our national companies to gain more experience because these foreign companies undoubtedly have a historical legacy and advanced technology in the field of <span class="Apple-converted-This makes us optimistic about the launch of serious steps to solve the housing crisis, and one of the advantages and benefits is to motivate the private sector to exert more effort to compete with international companies, in addition to that the diversity in local and international expertise will create more cross-fertilization and convergence in ideas and this in turn sends us creative ideas in the field of building and construction, and with international specifications.
