Sales of ready-to-move-in units under the “Sakani” program exceeded 11.9 billion riyals in 2020, benefiting more than 123,000 recipients who purchased ready-to-move-in properties on the market during the same year, while the financial incentives provided directly contributed to a 44.1% increase in mortgage loans issued by banks operating in Saudi Arabia, equivalent to 131 billion riyals during 2020; reaching a record high of 428.4 billion riyals by the end of the year, compared to 297.4 billion riyals at the end of 2019, according to a report by the Saudi Central Bank (SAMA).
Diverse Housing Options
"Sakani" has provided an online connection service with banks and financial institutions to obtain suitable real estate financing and take advantage of diverse housing options, including ready-to-move-in residential units, units under construction—most of which are located in residential suburbs across Saudi Arabia in partnership with the private sector—and self-construction on residential land; Beneficiaries can now receive immediate recommendations on the loan amounts offered by these institutions based on household income and existing financial obligations, ensuring the family’s ability to purchase a home.
Impact of the Reduction in Mortgage Down Payment
"Sakani" has worked to provide new financing solutions and housing initiatives that meet families“ needs and aspirations, in cooperation with the Saudi Central Bank, The most notable of these was the reduction of the down payment for mortgage financing from 30 % to 5 %, making mortgage financing available for the purchase of ready-to-move-in residential units on the market or from the Ministry’s completed projects, and offering subsidized mortgage loans for self-construction on residential land owned by citizens through the ”Self-Construction“ option, in addition to making subsidized financing available for the purchase of residential units under construction and residential land plots within the ”Sakani“ plans, and waiving the real estate transaction tax on the purchase of a first home for all citizens.
424,000 beneficiary families
These diverse initiatives and services have contributed to increasing the homeownership rate among Saudi families; Since its launch in 2017 through the end of 2020, the "Sakani“ program has provided a number of subsidized financing solutions to more than 424,000 households, with loans subsidized up to 100 % for the purchase of ready-to-move-in housing units and units under construction within projects in partnership with the private sector, as well as for self-construction. Additionally, the program facilitated reservations for more than 122,000 families to take advantage of the option to purchase housing units under construction for ”Sakani“ beneficiaries within the program’s projects, which are being implemented by a number of qualified real estate developers.
Mortgage loans have increased
Mortgage loans provided by banks in Saudi Arabia to companies and individuals had increased eightfold by the end of last year over the course of 11 years; standing at 53.75 billion riyals at the end of 2009, an increase of 374.7 billion riyals over the same period, while loans rose by 9.2 % by the end of the fourth quarter of last year, equivalent to 36.3 billion riyals; They stood at 392.1 billion riyals at the end of the third quarter of the same year, with 18 financing entities—including banks and institutions—helping to facilitate homeownership for Saudi families. This is part of the various initiatives being implemented by the "Sakani“ program to achieve the housing program’s goals of raising homeownership rates to 70 % by 2030.
