The Ministry of Housing has formed an alliance with major Korean companies to build 100,000 housing units, opening up vast opportunities for the private sector (both domestic and foreign) to compete in the construction of housing units, as the Ministry is set to complete a feasibility study within less than six months for the Housing Suburb Project – northeast of Riyadh – for which a contract has been signed with a Saudi-Korean alliance for its construction. The feasibility study will determine housing prices and the distribution of units among villas, apartments, or both.. It will also specify the project’s height and associated services and facilities, such as schools, government services, mosques, recreational areas, and parks.
Feasibility Studies
According to a source at the ministry, the new residential suburb will be the largest of its kind, comprising 100,000 housing units of varying sizes to suit those eligible for support, The source emphasized that the most notable feature of the project is that it is the first Saudi-Korean investment involving companies with distinguished expertise in the housing development sector, attested to by the quality of their products.
The new residential suburb, whose location was recently revealed by (Al-Riyadh), is situated at the intersection of Al-Thumama and Al-Janadriyah Roads, south of the National Festival of Heritage and Culture site, near King Khalid International Airport and the capital’s public transportation hub… in an area of expanding residential growth east of Riyadh.
Launching with 100,000 housing units
The memorandum of understanding signed by Housing Minister Majid bin Abdullah Al-Hogail in South Korea, which is considered the first fruit of the cooperation agreement between the Kingdom and South Korea, the signing of another memorandum of understanding between the Ministry of Housing and a Saudi-Korean alliance to develop 100,000 housing units in Riyadh over the next ten years.
The memorandum of understanding also covered all aspects of the housing industry, chief among them the exchange of expertise on rapid construction methods that help deliver attractive housing products in record time, as well as mechanisms to encourage investment in the housing sector. The MoU also included organizing joint workshops and exchange visits between specialists from both countries, as well as holding conferences and seminars that will help the Ministry of Housing, God willing, make a qualitative leap in providing housing products befitting Saudi citizens and their aspirations.
This memorandum stems from the strength of the Saudi economy and the confidence international companies have in it, particularly in the real estate sector, as these companies will invest in the implementation of this project. The Minister of Housing and his accompanying delegation were briefed on some successful Korean experiences and visited a number of projects by the two companies, and everyone listened to a detailed explanation from His Excellency the Korean Minister regarding these experiences.
Multiple areas of cooperation
It is worth noting that His Excellency Minister of Housing Majed Al-Hogail, during his recent visit to the South Korean capital Seoul, signed agreements with a consortium of Korean companies to construct 100,000 housing units (apartments and villas) in the Riyadh region, The agreements aim to establish joint cooperation in the housing sector, create channels for the exchange of administrative and technical expertise, and facilitate appropriate avenues for the participation of entities and companies affiliated with either party in the implementation of housing and infrastructure projects in the other party’s territory, The agreements also covered multiple areas of cooperation, most notably the exchange of expertise, information, and knowledge regarding housing development and management, the implementation of housing projects, the development of construction methods and techniques adopted in both countries, and the utilization of successful experiences in implementing housing policiesin both countries, as well as leveraging the extensive expertise of leading Korean housing companies in this field.
