2 results on '"AbdulJabbar, Rayan"'
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2. Economic Assessment of Off-plan Real-estate policy in Saudi Arabia – 2009-2019
- Author
-
AbdulJabbar, Rayan
- Subjects
- Business & Economics, bisacsh:BUS000000
- Abstract
This study aims to evaluate the practice of selling and financing real-estate projects before completion in Saudi Arabia during the period 2009-2019. The practice is called off-plan sales or financing, which is first regulated by resolution no. 73 of 2009, modified in 2012 resolution no. 47 and last resolution passed on 2016 resolution no. 536. The policy restricted and governed off-plan practice in the country and created new licensing requirements for off-plan development activities. The market implication with the implementation of the policy is the focus of the study. The policy regulated new requirements and stakeholders to implement the policy. The mechanism that Saudi Arabia has applied had progressed in the study period with several implications of the market performance. The role of public policy evolution is to understand the implication of the policy in the market. Saudi Arabia, with low ownership rates, thrives on increasing the affordability of real-estate. Off-plan, as a strategic solution for housing in Saudi Arabia, was used by regulators to promote off-plan activities by bridging the voids in the supply and demand, also enhance off-plan policy practice in the country. Managed by an off-plan policy committee named “Wafi” program in the Ministry of Housing, a set of requirements and development procedures were passed by the committee, which had its implication on the market and real-estate development practice in Saudi Arabia. The research was conducted using a descriptive methodology and a survey. Qualitative research was conducted using close-ended survey questions. Twelve participants were selected with four different groups of off-plan policy users. The first group of 8 buyers, 3 developers, 2 bankers and 2 regulators were recruited. The buyers were selected on different project statuses. The other groups were selected with experience with the off-plan policy covering the first period of the policy implementation and the last period of the policy implementation. The hypothesis was developed to evaluate four aspects regarding the policy, which are economic perspective, buyer perspective, development perspective, and market perspective. The questionnaire was developed to answer the research question of evaluating the implication of off-plan policy in Saudi Arabia between 2009 and 2019. The findings show that respondents believe that off-plan financing confirms the first hypothesis H1 off-plan Stimulating entrepreneurial market dynamics. The results show that Off-plan policy contributed in increasing investment in the market by local and foreign investors, which encouraged banks and developers to utilize Off-plan policy financing. The second hypothesis is confirmed by the H2 Off-plan policy alleviate development risk for developers. The finding shows an agreement on the role of the off-plan policy to govern the development practice in the country. Result show participants agree on the role of the policy helping developers complete on time and access to fund. On the third hypothesis H3 buyers’ rights were protected by the off-plan policy finding confirm the hypothesis. The participants view confirm the role of policy protecting buyers right, project specification and help buyers chose trusted developers. On the last hypothesis H4 Off-plan policy application reduced property price finding shows confirmation of participants view on the role of policy reducing property price. The result shows participants agreement on the role of the policy to increase affordability and reduce property price. The results confirm the literature on the role of public policy in the market. It is also an area of research that is not researched in academia widely. The literature confirms the importance of the results regarding the implication of the policy in the market. The literature also explains the results background on the policy implications in Saudi Arabia during the period 2009-2019. This study is the first focused research on off-plan policy in Saudi Arabia. With fewer attempts on off-plan policy from a legal perspective. The study answers the implication of off-plan policy on several dimensions related to the professional practice of off-plan property development in Saudi Arabia. The finding answers viewpoint of off-plan users, which policymakers can use to evaluate the policy implication and used as a reference for off-plan practice across the globe.
- Published
- 2021
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