Saudi Arabia plans to issue real estate sukuk in global markets worth up to 150 billion riyals (about 40 billion dollars) by 2030, in a move aimed at diversifying sources of financing and supporting development projects linked to the Kingdom's Vision 2030.The Kingdom plans to start an annual offering of real estate sukuk during the current year with a value of about 20 billion riyals, taking into account the timing of global markets and geopolitical developments that affect the cost of financing.

Minister of Municipalities and Housing Majid al-Hogail said in comments to the "East Economy with Bloomberg" program on the sidelines of the World Urban Forum in the Azerbaijani capital, Baku, Azerbaijan.

He explained that the launch of the program comes within the framework of taking advantage of new financing tools, while working to ease the pressure on the banking sector, which bears the burden of financing major projects within the objectives of Vision 2030.
In a related context, he referred to previous experiences in the sukuk market, including the program of the Saudi Real Estate Refinance Company of the Public Investment Fund, which launched an international sukuk program worth $ 5 billion on the London Stock Exchange and managed to issue $ 2 billion worth of sukuk amid a large demand from investors exceeding the supply by about six times.

The minister also stressed that the system of regulating the real estate market in the Kingdom has been completed through a package of measures, including the application of white land fees and the approval of the executive regulations for vacant property fees, as part of efforts to adjust the balance within the market.
He added that these policies are based on a set of indicators, such as the relationship between real estate prices and inflation rates, rental levels compared to household income, as well as real estate vacancy rates, allowing regulatory interventions when needed.

Real estate prices and vacancy rates are based on a number of indicators, including the relationship between real estate prices and inflation rates, rents compared to household income, as well as vacancy rates, allowing for regulatory interventions when needed.

Haqeel concluded his remarks by pointing out that the measures are already showing results, with a noticeable increase in the number of real estate licenses in Riyadh, which reflects an increase in supply, which, according to him, supports a greater balance between supply and demand in the real estate market.