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Majid Al-Hogail, Minister of Municipal Rural Affairs and Housing
Saudi homeownership rate is as per plan, with 1.4 million families benefitting from the housing program, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail stated.
Saudi Arabia aims to raise this rate by 1% during 2023, Al-Hogail noted at the Budget Forum 2023 held today, Dec. 11.
He stated that the ministry was supported with lands in areas, where the rise in prices is greater than citizens’ affordability.
More than 300,000 units will be supplied in most Saudi cities. The largest focus will be on areas that have witnessed a significant rise in prices, with the aim of returning to normal levels, he highlighted.
A total of 50% of units will be provided in Riyadh to cope with the expected population growth in the capital city.
He pointed out that real estate financing’s contribution to the gross domestic product (GDP) surged to 29% currently from 7% in 2016.
Further, the Saudi Real Estate Refinance Co. (SRC) launched more sukuk, pushing its portfolio to over SAR 24 billion. It aims to inject an additional SAR 17 billion to reach SAR 37 billion.
During this year, a new guarantee company, with a capital of SAR 18 billion, will be established under the ministry’s various housing programs. It will come to help citizens obtain loans, and thus, enhance real estate financing’s growth.
Al-Hogail explained that users of Baladi platform reached 3.2 million so far, as digital services in the municipal sector are on the right track.
With the second updated version of the Baladi platform slated for launch in 2023, the Ministry of Municipal, Rural Affairs and Housing seeks to have a smart municipality. This is in order to boost the quality of services provided to citizens.
A total of 94% of municipal services are currently provided electronically. Work is underway to automate the remaining 6%, as the ministry seeks more maturity and procedures improvement, not just automation, the minister stressed.
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