{"id":10219,"date":"2016-04-09T11:49:43","date_gmt":"2016-04-09T08:49:43","guid":{"rendered":"http:\/\/www.amlak.net.sa\/?p=10219"},"modified":"2016-04-09T11:49:43","modified_gmt":"2016-04-09T08:49:43","slug":"%d8%a7%d8%b3%d8%aa%d8%b7%d9%84%d8%a7%d8%b9-%d8%a3%d9%85%d9%84%d8%a7%d9%83-%d8%b1%d8%ac%d8%a7%d9%84-%d8%a3%d8%b9%d9%85%d8%a7%d9%84-%d9%88%d8%b9%d9%82%d8%a7%d8%b1%d9%8a%d9%88%d9%86-%d8%af%d8%ae","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/10219\/","title":{"rendered":"Property survey. Businessmen and real estate professionals: The entry of international companies ignites competition in the construction industry"},"content":{"rendered":"

Mixed 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 180,000 housing units in Riyadh and the rest of the regions, and expectations are that the partnership with the foreign private sector will increase its activation with a number of upcoming agreements due to the great experience that these companies enjoy in the field of rapid construction until the ministry reaches the implementation of its strategy to build 1.5 housing units within 5 years.<\/p>\n

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?<\/p>\n

Global Companies Create Competition<\/strong><\/span><\/p>\n

\"Mohammed<\/p>\n

Muhammad al-Nukhish: The entry of international companies creates\u00a0 <\/span>Competition is strong and the building materials market is moving<\/strong><\/span><\/p>\n

Mohammed Aiad Al Nukhaysh, Chairman of Al Nukhaysh Real Estate Co.\u00a0 <\/span>The entry of a number of international companies \u00a0 <\/span>In the field of real estate development and contracting for 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, as well as provide great opportunities for national companies to benefit from the expertise and technologies of international companies due to their multiple activities and professional work.<\/span><\/p>\n

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 these units\u00a0 <\/span>In addition to mobilizing the building materials sector, as well as the possibility of\u00a0 <\/span>We are in dire need of such expertise and our youth are also in dire need of it.<\/p>\n

Saudi Arabia's building materials market is booming<\/strong><\/span><\/p>\n

Yazeed bin Abdulaziz Al-Dughaythir, General Manager of Al-Madina Real Estate Management, said that the contracting activity has been 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 who has high quality will undoubtedly have high costs due to the presence of a supervisory team of engineers, technicians and other administrative costs.\u00a0 <\/span>These companies will be limited and small, low-quality companies or organizations will 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.<\/p>\n

The biggest beneficiaries of these partnerships are the owners of companies and manufacturers of building materials in the Saudi market.<\/p>\n

The market is big enough for everyone<\/strong><\/span><\/p>\n

\"Youssef<\/p>\n

Yousef Marwan: Saudi Arabia's real estate market has room for everyone and weak companies will exit the market<\/strong><\/span><\/p>\n

Youssef Marwan, president of Youssef Marwan Contracting Company, explained that the entry of international companies will add\u00a0 <\/span>Although there are local contracting companies that have experience, knowledge and previous work with international development companies, I do not believe 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.<\/p>\n

Marwan believes that the size of the market is very large and accommodates a lot of contracting activities: I think the entry of international companies\u00a0 <\/span>Huge\u00a0 <\/span>Marwan noted that the market will witness a positive movement through subcontracts, which will contribute to the support and employment of small contractors.<\/p>\n

Survival of the fittest<\/strong><\/span><\/p>\n

\"20160407_2112032\"<\/p>\n

Abdullah Aldegan: The whole thing needs careful coordination from the relevant government agencies<\/strong><\/span><\/p>\n

For his part, Abdullah Al-Delekan, General Manager of Seventh Continent Contracting\u00a0 <\/span>On the other hand, he believes that the Ministry of Housing achieves several goals, foremost of which is to accelerate the construction of housing units in an engineering sequence that eliminates accusations of non-achievement and that the size of the 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 and adds that the whole matter needs careful coordination from the relevant 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.<\/p>\n

Benefits, Advantages, and Competition<\/strong><\/span><\/p>\n

\"Khaled<\/p>\n

Difficult Khalid: Entering international companies\u00a0 <\/span>Gives us multiple experiences and creative ideas<\/strong><\/span><\/p>\n

In another context\u00a0 <\/span>He said\u00a0 <\/span>Director of United Fences\u00a0 <\/span>Khalid Alsaab\u00a0 <\/span>Today, we are in an era of global openness and there is no room for us to close our doors. The Ministry of Housing has taken 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.<\/p>\n

He discussed 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 real estate.\u00a0 <\/span>This makes us optimistic that serious steps will be taken to solve the housing crisis. The advantages and benefits include incentivizing the private sector to exert more effort to compete with international companies, in addition to the diversity of local and international expertise that will create more\u00a0 <\/span>The cross-fertilization of ideas, which in turn gives us creative ideas in the field of building and construction, with international specifications.<\/p>","protected":false},"excerpt":{"rendered":"

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