Saudi Arabia Vision 2030: Transforming Housing Sector Through Crucial Investments By Zekeri Laruba Idakwo

Saudi Arabia Vision 2030: Transforming Housing Sector Through Crucial Investments

By Zekeri Laruba Idakwo

I have witnessed unprecedented development in Saudi Arabia, which has surpassed its Middle Eastern counterparts in the kingdom’s commitment to enhancing citizens’ lives. While many regional countries prioritise investments in conflict, terrorism, and reliance on oil, Saudi Arabia stands out for its futuristic-thinking approach.

Saudi Arabia has made remarkable strides in the real estate sector, investing billions of dollars through public and private partnerships, aligning with its visionary 2030 roadmap. This strategic focus showcases the kingdom’s commitment to diversification and progress.

Between 2018 and 2020, the real estate and construction sector contributed a significant amount of about $30 billion to the economy. The Vision 2030 Housing Programs has achieved impressive milestones, including; 355 new contracts for real estate financing, over 40,000 homes provided to families in need through partnerships with non-governmental organisations.

Before Vision 2030, Saudi families faced lengthy waits of up to 15 years for housing support, with challenges including slow processing, high mortgage rates, and limited affordable options. Homeownership rates stagnated between 40% and 50% for decades. Launched in 2018, the Housing Program aims to make homeownership a reality for millions of Saudi families by streamlining access to financial support, digitising documentation, and easing processes. As a result, homeownership rates surged from 47% in 2016 to over 60% by 2020, exceeding set targets by 8%. By 2030, the kingdom expects nearly two-thirds of citizens to own their homes.

The Housing Program’s initiatives include:

Sakani: Providing personalised housing and financing solutions, supporting over a million families, with a third now living in their dream homes.

Ejar: An e-service protecting renters and landlords, registering over 4.5 million leases to date.

The housing sector’s transformation in Saudi Arabia extends beyond enhancing homeownership, aiming to stimulate economic growth and development. The real estate sector significantly contributes to the kingdom’s GDP, and the Housing Program is expected to generate sustainable job opportunities and boost private sector participation.

In 2020, private investments in the real estate sector surpassed $67 billion, demonstrating the kingdom’s commitment to housing development. Ongoing real estate projects address the current housing shortage, providing investment and job opportunities while creating vibrant neighborhoods that bring communities together.

Saudi Arabia is no doubt on track to achieve its 2030 goal of 70% homeownership. The Kingdom’s dedication to ensuring access to affordable, quality housing for all citizens is evident in the progress made. The Housing Program has revamped the sector by broadening financial access, simplifying regulations, and offering diverse options.

Additional measures include improving mortgage access, streamlining policies, increasing the supply of affordable housing units, and enhancing sector regulation.

Saudi Arabia’s Vision 2030 is revolutionising the housing sector through strategic investments and reforms, addressing past challenges and leveraging innovative solutions to make homeownership a reality for all families.