Saudi Arabia plans to introduce more than half a million new housing units by 2030, following recent legal changes that restructured the real estate sector. Over 15 supportive laws were enacted in the past five years to boost transparency and improve the investment climate.
Majid Al-Hogail, the Minister of Municipal and Rural Affairs and Housing, shared this information at the opening of the third edition of the Real Estate Future Forum in Riyadh on Monday.
The event brings together representatives from over 85 countries, including 300 speakers from the public and private sectors, along with experts in economics and investment.
Al-Hogail highlighted the substantial role of banks and financial institutions, providing over SAR 650 billion ($173 billion) in real estate loans. State-supported loans reached around 750,000 contracts.
Since the launch of the housing program in 2018, the ministry has actively increased the real estate supply by offering over 450,000 residential units and plots of land.
“We aim to continue this effort in collaboration with leading real estate development companies, reaching around one million housing units by 2030,” stated Al-Hogail, citing companies like the National Housing Company and ROSHN.
The real estate sector contributes 12.2% to the non-oil GDP, while the construction and building sector contributes 11.3% as of Q3 2023.
Al-Hogail emphasized the sector’s significance, linking it to over 120 economic industries, making the real estate market an attractive investment and growth hub that can sustain prosperity.
Investment opportunities
Saudi Arabia’s real estate sector is increasingly appealing to both local and global investors, stressed Al-Hogail.
He noted the signing of agreements, including a significant deal with China worth over SAR 5 billion ($1.3 billion).
The minister also confirmed that more international partnerships are in the pipeline.
Real estate transformation
The forum featured a panel discussion on leadership in the transformation of the real estate industry.
Participants included Al-Hogail, Minister of Human Resources and Social Development Ahmed Al-Rajhi, Minister of Tourism Ahmed Al-Khateeb, Minister of Justice Walid Al-Samaani, and Chairman of the Capital Market Authority Mohammed bin Abdullah El-Kuwaiz.
Al-Rajhi highlighted a record increase in Saudis working in the private sector, rising from 1.7 million in 2019 to 2.3 million last year. Saudization efforts successfully brought in 361,000 new workers.
“We didn't have specific Saudization plans for professions and real estate activities. The number of Saudis in the sector was just 12,000,” Al-Rajhi remarked.
He noted a 200% increase in citizen employment across various professions like brokerage, sustainable construction, and arbitration.
On his part, Al-Khateeb shared that the tourism sector contributed 4.5% to the GDP last year, up from 3% in 2019.
He announced the arrival of five “Four Seasons” hotels in Saudi in the next three years, along with significant global resorts.
The Tourism Development Fund supported projects worth about SAR 25 billion riyals ($6.6 billion) for housing and entertainment, and more incentives will be revealed soon.
The minister emphasized Saudi Arabia’s appeal to tourists. The Kingdom is aiming to attract 150 million visitors by 2030 and for tourism to contribute SAR 750 billion ($200 billion) to the national economy.
