The Ministry of Investment (MISA) is leading a large delegation of Saudi entities to MIPIM in Cannes this week, which is intended to connect international investors with investment opportunities in the Kingdom of Saudi Arabia. Along with MISA, the Saudi delegation includes the Ministry of Municipal Rural Affairs & Housing, the Royal Commission for Riyadh City, the National Housing Company, ROSHN, Ajdan and Retal; representing some of the Kingdom’s leading real estate developers.
Invest Saudi Arabia’s pavilion at MIPIM aims to promote investment opportunities in a destination that is uniquely attractive for innovative and ambitious investors. Saudi Arabia is expecting international investors to help deliver a number of key government initiatives, such as expanding home ownership, developing the leisure and entertainment industries, and establishing Riyadh as a regional business hub.
Currently, the Kingdom’s real estate market is projected to grow to $20.5 billion, demonstrating the large scale and diversity of the opportunities available. A major driver of these opportunities is residential real estate. Demand is being driven by government efforts to increase home ownership to 70%, together with strong population growth (expected to reach nearly 45 million by 2050).
This pavilion also features other opportunities. Commercial real estate development is being driven by Saudi Arabia’s emergence as a regional business hub, resulting in an increase of 4% in office rents in Riyadh in 2021 and a reduction of vacancy rates to just 3%. As in retail, the development of the entertainment and tourism sectors will not only drive more international visitors to the Kingdom, but also likely translate into more domestic income spent locally.
MIPIM is one of the world’s most important events for international real estate investors and takes place from 15-18 March each year in Cannes, France. MIPIM 2022 is being held under the theme of Driving Urban Change, and is expected to attract over 3,800 exhibitors and attendees from more than 100 countries.