2024-01-23 10:39:32
Saudi Arabia is preparing to launch more than half a million new housing units by 2030
Saudi Arabia is expected to offer more than half a million new housing units in the coming years until 2030, following the real estate sector witnessed restructuring with more than 15 supportive legislation during the past five years, which would enhance transparency and improve the investment environment.
This is what was revealed by the Minister of Municipal, Rural Affairs and Housing, Majid Al-Hogail, at the opening of the third edition of the “Future of Real Estate” Forum in Riyadh, in which more than 85 countries and 300 speakers from the government and private sectors participate, along with an elite group of economists, investors, decision makers, and system experts at both levels. Local and global.
Al-Hogail revealed that the contribution of banks and financial institutions to real estate loans exceeded 650 billion riyals ($173 billion), while the number of state-backed loans reached regarding 750 thousand contracts.
Al-Hogail explained that since the launch of the housing program in 2018 until the end of last year, the Ministry worked to enhance the real estate supply by offering more than 450,000 residential units and lands.
He added: “We seek to continue enhancing this supply to reach approximately one million housing units until 2030 in partnership with major real estate development companies such as (National Housing), (Roshen) and others.”
The contribution of real estate activities to the non-oil GDP reached 12.2 percent, while the contribution of the construction sector reached 11.3 percent until the third quarter of last year, according to what Al-Hogail revealed, who explained that the sector is linked to more than 120 economic industries. This confirms its importance and vitality, as the real estate market has become attractive for investments, stimulating growth, and capable of maintaining sustainable prosperity.
Investment opportunities
Al-Hogail stressed that investment opportunities in the real estate sector are a sought-following destination for local and international capital.
He revealed the signing of many agreements and memorandums of understanding with a number of countries, including China, with investments exceeding 5 billion riyals ($1.3 billion), and an agreement to implement a housing project providing regarding 28 thousand housing units with the largest Egyptian companies. Several international partnerships are also currently being prepared, which will be announced. regarding it soon.
Dialogue session
The forum’s activities witnessed a dialogue session entitled “Leading Transformation in the Real Estate Industry” with the participation of Al-Hogail, the Minister of Human Resources and Social Development, Eng. Ahmed Al-Rajhi, the Minister of Tourism, Ahmed Al-Khatib, the Minister of Justice, Dr. Walid Al-Samaani, and the Chairman of the Board of the Capital Market Authority, Muhammad Al-Quwaiz.
Al-Rajhi, for his part, explained that the number of Saudis working in the private sector witnessed an increase from 1.7 million in 2019 to 2.3 million last year, which is a record number achieved for the first time, including 361,000 who had never worked.
He added: “We did not have a decision to localize real estate professions and activities, and the number of Saudis working in the sector did not exceed 12 thousand,” revealing that “the employment rate of citizens in the system increased by 200 percent, through 12 multiple professions, whether in brokerage, or Sustainable construction, or arbitration.
For his part, Al-Khatib reported that the tourism sector represented 4.5 percent of the gross domestic product last year, up from 3 percent in 2019, and last year it reached 7 percent of the non-oil domestic product.
He announced the entry of 5 hotels under the famous “Four Seasons” brand into the Saudi market during the next three years, in addition to the most important international resorts and hotels, explaining that the Tourism Development Fund was able to finance projects worth regarding 25 billion riyals ($6.6 billion) for housing and entertainment, and at the same time revealing A set of incentives offered and will be announced soon.
The Minister of Tourism pointed out that the Kingdom has everything that tourists are looking for, stressing that the Kingdom will become the most important in the tourism sector in the world, and it aspires, through major projects, to reach 150 million visitors in 2030. It also aims for the sector to contribute by achieving 750 billion riyals ($200 billion). ) in the national economy.
Real estate identity
In turn, Al-Samaani stated that the real estate identity will be implemented in the future in partnership with the Ministry of Municipal and Rural Affairs and Housing, which aims to eliminate the problem of duplication and overlapping of deeds, noting that the number of real estate deeds issued according to the real estate identity has reached more than 500 thousand deeds, while the ministry aims to Registering more than 4 million instruments.
The Minister of Justice went on to say: “We have more than 12,000 disputes over inheritances in the courts, and during the first quarter of this year we intend to launch a project and product specifically for inheritances from the day they are due until the time they are distributed.”
As for the Chairman of the Board of the Capital Market Authority, he revealed the volume of assets managed in the real estate funds sector at approximately 170 billion riyals ($45.3 billion), pointing out that the steps that contribute to increasing real estate financing are summarized in developing the debt market and real estate contributions, as well as further liberalization. In real estate funds, ownership and investment in the regions of Makkah Al-Mukarramah and Medina.
Promote local content
On the other hand, the National Housing Company launched the “Rakaez” program, which includes a number of initiatives to support and enhance local content in the housing system and the real estate development sector, through several initiatives aimed at preserving the money spent within the Kingdom and building a sustainable national economy, in addition to enhancing the capabilities Locally to maximize national purchasing power.
On the sidelines of the forum, the Real Estate Development Fund signed an agreement to transfer the portfolio of guaranteed financing for financing entities to the Saudi Housing Guarantee Services Company “Damanat,” in partnership with a number of financing entities, with a value of guaranteed real estate loans amounting to 77 billion riyals ($20.5 billion). It is noteworthy that “Guarantees” has enabled more than 116,000 beneficiaries to own housing since its launch in 2018.
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