Saudi investors hit as real estate prices fall in Lebanon

20/03/2016 05:21 AST

The real estate market in Lebanon is among the sectors that have been adversely affected by the political crisis between that country and the Kingdom, and Saudi investors are among those feeling the heat.

The losses due to the slowdown in the Lebanese real estate sector, especially due to the travel alert issued by Gulf Cooperation Council (GCC) countries, are estimated in millions of riyals, some Saudi businesswomen were quoted as saying by local media on Saturday. Experts have warned of an economic crisis in Lebanon in the long run, following a decision by Saudi Arabia to stop military aid to that country and the GCC declaring Hezbollah a terrorist organization and issuing travel warnings to its citizens.

Although some Saudi businesswomen have managed to sell villas, farms and other types of property worth SR250 million in Lebanon, they claimed that they had to incur huge losses. Some businesswomen who spoke to local media said they are finding it difficult to find buyers for their property in that country.

"I sold yachts, villas and a farm in Mount Lebanon due the current political crisis," a Saudi businesswoman was quoted as saying. She said that Saudi women bought properties in Lebanon for recreation as well as business purpose like giving them on rent.

"However, they are not interested in doing any business in that country now." Another Saudi businesswomen said the fall in property prices in Lebanon has caused significant losses.

"I had bought a private farm with a villa for SR5 million. The same property is currently valued at almost half that price."

Salem Al-Shahrani, the commercial attache at the Saudi Embassy in Beirut, said the investments of Saudi women in Lebanon are not made public.

"They are focused on apartments, farms, and villas in different areas. They also have rented properties but have no commercial activities through companies and other establishments," he added.

Arab News