Maha Maalouf on the shift from construction to real estate

Companies in Saudi Arabia’s construction industry will in the coming years face a growing number of opportunities in the real estate sector. Construction groups that timely position themselves for growth and master the transition needed will be in pole position to capitalize on the potential, according to Maha Maalouf from LOGIC Consulting.

With Vision 2030 and other expansionary initiatives driving Saudi Arabia’s construction industry to record highs, the sector is not short of opportunities. Yet for those companies aiming for accelerated growth strategic diversification into other landscapes, the real estate scene is beyond doubt a place to consider.

At a session held on the sidelines of the Real Estate Future Forum in Riyadh, Maha Maalouf – senior partner at LOGIC Consulting – walked participants through how they can successfully make the shift from a pure-play construction model to also include real estate development.

“Many Saudi Arabian construction companies aim to leverage opportunities in the real estate sector in the upcoming period, particularly in the housing market, and are seeking a transformation from being a contractor to real estate developer,” Maalouf said.

Having discussed they key differences between the two lines of business, Maalouf outlined how the transition can be realized. The journey starts with ensuring that the fundament for kickstarting a new area of business is in place – this include defining strategies, competitive edge, and key commercials such as go-to-market approach and customer attraction.

“The way how real estate development companies operate also differs,” she continued, shedding light on how aspects such as organizational structure, financial and internal operations, talent management, and governance all need to be aligned with the new/revised business model.

Maalouf also pointed out the growing significance of adhering to standards in areas such environment, health & safety, quality management, and corporate sustainability – to ensure competitiveness.

As organizations embark on the transition, Maalouf said leaders are recommended to keep a close pulse on the change, and apply best practices around risk management, internal control, and supervisory guidance.

The session comes at a time when Saudi Arabia is investing heavily in expanding the supply of its housing market, in order to meet demand in the Kingdom’s residential sector due to population growth and the nation gaining prominence as an expat-friendly economy for foreigners.

Headquartered in Cairo, LOGIC Consulting is one of the region’s leading consulting firms. The firm has been in business for over 25 years, completing over 1,800 projects during this period. In Saudi Arabia, LOGIC Consulting operates with offices in Riyadh and Jeddah.