Impact of 2030 Vision on Commercial Real Estate in Saudi Arabia

This study analyzes the effects of Saudi Vision 2030 on the commercial real estate sector in Saudi Arabia. It aims to evaluate the positive and negative initiatives that can affect the industry and how funds infused in this segment can generate income-producing assets. The study uses a deductive approach and descriptive research design, utilizing secondary qualitative data from various sources.

Running head: IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI
ARABIA
Impact of 2030 vision on commercial real estate sector in Saudi Arabia
University Name
Student Name
Authors’ Note

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
Introduction
The current study has the intention to critically analyse the effects of new initiatives
of Saudi Vision 2030 that has the aim to support real estate segment of the kingdom in
reaction to the challenges of the year 2015, dwindling prices of oil and ensuing requirement
to reduce government expenditure. As per Saudi Vision 2030, real estate segment started with
the ensuing government expenses of $10.6 billion to different contractors and consequently
SR20 billion was infused into the nation’s banking structure. In order to broaden horizons of
the economy and open the real estate segment to different small financiers, the capital
authority also initiated novel regulations during the year 2016 and permitted formation of
particularly real estate investment traded finances. The study at hand hereby intends to
critically evaluate the way the funds infused in this real estate segment can help developers in
Saudi Arabia seeking to generate income generating assets.
Context: Background of the research
Saudi Vision 2030 refers to an arrangement to lessen Saudi Arabia's reliance on oil,
expand the economy, and build up public service segments namely, health sector, education
division, infrastructure segment, recreation as well as tourism segment. Objectives include
reinforcement of different economic as well as investment actions, enhancement of non-oil
business trade between nations, and augmenting government expenditure on the armed
forces, manufacturing tools and ammunition (Thompson 2017). Again, there has been a key
influence of the ‘new era of austerity’ along with other macroeconomic threats of destabilized
expenditure control, novel tax regulation establishments and beginning of novel real estate
outlay traded finances on the real estate segment. In essence, the real estate segment in Saudi
Arabia has certainly pursued in the wake of macro-economic influences brought about by
dynamic prices of oil (Ouda et al. 2017). The most important plans of the government to

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
strengthen the market have directed towards a positive outlook that is aligned to dimensions
to neutralize condensed government and consumer expenditure. New initiatives for instance
the Saudi Vision intend to support the real estate sector of Saudi Arabia in reaction to
challenges of dwindling oil prices and consequential requirement to decrease government
spending as per a report (Moshashai et al. 2018).
Aim of the research
The main aim of the current research is to critically analyse effects of different new
initiatives of Saudi Vision 2030 on real estate market. Also, this study at hand has the
intention to analyse the positive and negative initiatives that can immensely exert impact on
real estate industry In Saudi Arabia. There are initiatives included in the plan that intend to
address the structural disadvantages of the nation namely, weak institutional powers,
significant powers in labour market along with inefficient bureaucracy and many others
(Mohanty et al. 2018). The current study also aims to analyse positive and negative
implications of these initiatives addressing structural disadvantages of nation and
subsequently the real estate segment in particular.
Objectives of the research
The primary objectives framed for the research are
- To analytically evaluate effects of novel initiatives of Saudi Arabia Vision 2030 on real
estate segment
- To analyse the ways funds infused in this segment can generate earnings producing assets in
Real Estate Segment in Saudi Arabia
Research Questions

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
- What are the effects of novel initiatives of Saudi Arabia 2030 on real estate industry?
- What are the ways in which finances injected in this segment can generate income
producing assets in real estate sector in Saudi Arabia?
Literature Assessment
The last decade observed considerable growth in the economy of Saudi Arabia on the
backdrop of enhancing oil prices and augmented level of production. In essence, this directed
towards overall expansion of the entire workforce and enhanced government expenditure in
areas namely infrastructure segment, real estate sector, education industry, and healthcare,
telecommunications as well as retail division. Nonetheless, the volatility in prices of oil since
the second half of the year 2014 ushered in a novel economic setting. Saudi Arabia Vision
2030 presents targets that require a shift from a state led system of economy driven by the
private segment (Mohanty et al. 2018). Novel initiatives of Saudi Arabia Vision 2030 is said
to support the real estate segment in reaction to challenges and threats in prices of oil and
ensuing requirement to decrease government expenditure.
Research Methodology
The investigator of the present study can consider deductive approach for the research
study since it is an effectual designs that can help in analysing whether linkage can be
obtained on common circumstances. Keeping in mind the necessities of study, the researcher
has the intention to employ descriptive research design since it makes use of secondary data
together with thorough evaluation of facts that were previously acknowledged to great
degree. Utilizing descriptive research can aid in carrying out complete investigation of
formerly available evidences and subsequently figuring out inferences by undertaking
thematic analysis (Al‐Saidi and Elagib 2018).

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
Data
The researcher intends to utilize secondary data for the current study and undertake a
qualitative analysis of the same. Different types of structured texts entailing survey response,
diverse articles/journals as well as books can be used for the current study (AlRuthia et al.
2018). In essence, this can be gathered as a qualitative data for the current study.

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
Analysis of available data
For the purpose of the study, the examiner intends to utilize case study analysis,
thematic data analysis and analysis of academic literature for evaluation of obtainable data
(Alhowaish 2015). There are different groups that concentrate on recognizing a particular
pattern in a specific dataset. Furthermore, there are different classes of thematic analysis that
can be utilized in the present study are necessarily deductive advances that is directed by
different concepts.
Ethical Consideration
The examiner conforms to rules and regulations of undertaking study.
Fundamentally, the most significant component is to maintain privacy of specific information
presented for the study. Particularly, this private information generated by means of research
and information utilized for the present research need not be shared. In fact, for the current
study, requisite secondary information namely, available reports, periodicals, relevant articles
amongst others are acquired from diverse secondary sources (Alhawassi et al. 2018).
Particularly, information acquired need to be dependable or else the upshots might perhaps
get affected in an undesirable way. Essentially, it is the responsibility of the researcher to
make certain that feelings of none are hurt during conduction of the study. In addition to this,
the secondary qualitative data can essentially be derived from diverse restructured as well as
reliant sources, so that there is no disagreement and inconsistency.

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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
References
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IMPACT OF 2030 VISION ON COMMERCIAL REAL ESTATE IN SAUDI ARABIA
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