DAMMAM/JEDDAH: The business community described the Royal Decree setting the minimum salary for government sector employees at SR3,000 a month as a “noble move that will enable them to lead honorable lives”. Abdullah Al-Ammar, Deputy Chairman of the Chamber of Commerce and Industry in the Eastern Province, said King Abdullah's orders reflected his “wisdom and farsighted vision”. “The decrees are for the well-being and prosperity of society at large,” Al-Ammar said. “The minimum wage will give a lot of employees a greater sense of stability and will help them meet life's difficulties.” He said that the prices of many essential products have risen considerably in recent years, serving to increase the financial pressure on the people. “It has hit low income earners particularly hard,” he said. “The minimum wage will help improve their standard of living.” Muhammad Al-Yami of the Chamber's Contracting Committee, said that a “large section of employees” were currently earning less than SR3,000. “The move is an essential development for them,” he said. “They are struggling to come to terms with rising prices, particularly in consumer products, and a large proportion of them struggle to meet the daily demands for a dignified life. A large number of them are young employees who live in rented apartments, a situation which requires a reasonable amount of money to make ends meet.” Real estate boost Analysts and real estate investors say that the SR250 billion allocated for the construction of 500,000 housing units as well as the decree raising the ceiling for loans from the Real Estate Development Fund would go a long way in closing the massive gap between the supply and demand of housing in the Kingdom. “The formation of a supervising committee from the various relevant ministries will also help ensure that the wheel of development is pushed forward,” they said. Real estate observer Khalid Al-Dhubai'i said the move would “bring about renewed activity in the building industry across the country”, and give many people the opportunity to obtain affordable housing suitable for their needs. Analyst Muhammad Babahr said the real estate industry was the second largest sector in the Kingdom's economy, superseded only by petroleum. “The Royal Orders will help curb the rising prices in real estate and in rents, which aren't even in the interest of the real estate sector,” he said. “The industry now has ahead of it a huge period of transition with an increase in activity and increase in its contribution to gross domestic product. We must now overcome financing issues in the sector through support from the state for specialized funds or through the banking system, and concentrate on developing the staff which the sector is going to need in the near future.” Real estate investor Ghassan Suwaidan said that rising prices on the market in terms of both land and construction materials had led the sector into its current state of stagnancy. The Royal Orders, he said, would help address an urgent issue. “Various studies in the field have shown that around half the population do not own their own homes,” he said. “The real estate industry is also a prime mover of other related sectors such as engineering and marketing firms, contract developer companies, construction material traders and investment firms.”
