Saudi businessmen have brought back a large part of their funds abroad to invest in the highly profitable construction and real estate sector which is going through a boom period, according to a regional study.

The upsurge in the kingdom’s property sector, by far the largest in the region, is expected to continue over the next few years driven by soaring oil prices, excess liquidity, high return and strong domestic demand, said the study by the Kuwaiti-based Global investment House (GIH).

Another study expects the world’s oil superpower to pump more than $400 billion (Dh1.46 trillion) into construction projects in the next decade to cope with economic growth and surging demand caused by rapid population growth and an influx of foreign workers needed for the developments.

“Repatriation of funds from abroad to the Kingdom plays a role in increased liquidity in the market, as well as directing such funds to the real estate sector. Significant amounts of Saudi funds abroad have already been repatriated,” GIH said.

Other stimulant factors include the availability of low- cost financing, new innovative financing channels and the introduction of a new mortgage law.