Property dealers in Saudi Arabia began a new stage in the expansion of their internal investment department with the decision of entry of the foreign investor in the stock market, as number of them are working on the withdrawal of some of their real estate assets and convert them into the stock market to take profits before the official entry of the foreign investor.
Some property dealers in the Kingdom described that gradually step out of the real estate market and entering into the stock market is positive and seductive at the same time due to what the real estate market suffer from severe recession waiting for the real estate bubble burst, which would negatively affect the real estate market in Saudi Arabia, according to the newspaper "Al Watan".
Economic analyst Fadel Obuainin said that the high liquidity in the stock market is currently significantly contributed to pull the rug from the real estate market gradually, the fact that investing in the stock now will create larger sector than the real estate sector, which suffers from inflation and bubble burst.
He added that there is systematic liquidity by real estate market professionals in Saudi Arabia to hold real estate assets or be transferred to the stock market, pointing out that these steps will affect negatively the real estate market, compared to a positive impact on the stock market.
While real estate investor Talal Al-Otaibi said that the real estate sector is no longer attractive to many real estate traders in the kingdom, as work is under way to get rid of some real estate assets and convert them into shares that have become attractive to enter into due to the size of the current trading that contributed to the revision in the stock market.
Al-Otaibi said that the decision of entering of foreign investor has a positive impact for the foreign investor and the Saudi alike, stressing that the decision to enter the stock market will not be a risk, but there are well thought out plans carried out by an integrated team to look at the success of this investment move.