During its annual iftar banquet, held yesterday at Al-Farida Hall, the Riyadh Cooperative Housing Association reaffirmed its commitment and focus on providing housing for its shareholders and founders, expressing its appreciation for the presence of His Royal Highness Prince Faisal bin Bandar bin Abdulaziz as the association’s honorary chairman, and also welcoming Prince Saud bin Salman bin Abdulaziz as a contributing member of the association.
In addition, the association’s president, Dr. Abdullah Al-Shadadi, revealed that housing cooperative associations in the Kingdom have opened their doors to partnering with the Ministry of Housing to help resolve part of the housing crisis, and that discussions are underway to secure a project. He said that the association has approached the ministry to acquire land north of Riyadh to build approximately 1,000 housing units of various sizes, at a cost of no less than 250 million riyals, after obtaining the land from the ministry to be distributed to eligible citizens.
Al-Shadadi noted that cooperative housing plays a role in addressing the Kingdom’s housing crisis, and there is no alternative but to provide all the necessary elements and conditions for serious cooperative participation in implementing the housing plan currently being developed by the Ministry, Global experience has proven that cooperative organizations specializing in housing have been and continue to be the path to the correct solution for the housing crisis, particularly in Europe, the Americas, Asia, and neighboring countries.
Amat Al-Shadadi unveiled the first of the Housing Association’s projects in Riyadh, which was self-financed by the association’s shareholders. It consists of a residential building in the Al-Narges neighborhood in northern Riyadh, and we have begun allocating it to the association’s contributing members, in addition to presenting other housing projects and proposed partnerships with the Ministries of Housing and Labor and Social Development to be allocated to eligible citizens and low-income recipients of social security benefits.
Al-Shadadi reviewed the second housing project—a partnership with the Ministry of Housing—and confirmed that the association is ready to begin it immediately. He described the project as a joint strategic initiative with the ministry, prepared by specialists collaborating with the association on the principles of professional project management and the preparation of technical and economic feasibility studies through a systematic work plan for the entire project. The Association will serve as the developer and strategic partner, noting that it operates according to a specific work plan and model that covers and meets the needs of the association’s shareholders and the beneficiaries of its projects, in full coordination with the Ministry through a specialized team from the association responsible for development and construction.
Al-Shadadi said that the Association will work to solve part of the housing problem by introducing a cooperative housing model with a modern approach characterized by social and investment solidarity and built on resources and capabilities shared between the Ministry and the Association, It will be a practical and unprecedented model, integrating international experiences in cooperative housing with Saudi cultural values while serving the goals of mutual support and public benefit, He noted that the Association will explore many avenues, the most important of which is ensuring that the project complies with the conditions and specifications of the Ministry and the Real Estate Development Fund so that it meets citizens" needs and provides them with affordable housing in accordance with strict and specific standards, with the Ministry providing the land and the Association handling development and construction, Furthermore, the project will be financed through a partnership between the Ministry of Housing and supporting entities, as per the plans; or through an investment loan provided by the Real Estate Development Fund to companies; or through partnerships with other construction and real estate development firms; or through off-plan sales, with the preparation of engineering plans and related procedures.
Dr. Al-Shadadi noted that the Minister of Commerce and Investment, Dr. Majid bin Abdullah Al-Qasabi, had promised to submit a recommendation to the Association that would enable it to achieve its goals and secure the Ministry’s support, He also reviewed the Association’s plans to provide social housing for citizens, expressing his willingness to cooperate with it to implement those plans and projects according to their established timelines. Among the most notable of these is the social security project for low-income individuals in collaboration with the Ministry of Labor and Social Development, The association has developed various models to meet the needs of this group, and it will also launch a stock offering and present its business plans, projects, and other future activities.
Al-Shadadi pointed out that home purchase prices and rents in major cities and governorates have reached astronomical levels that only a narrow segment of society can afford. Cooperative housing is a successful approach aimed at providing housing to citizens at the lowest possible cost, and to create integrated cooperative communities equipped with the public services necessary for that community to live a dignified life, so that the family becomes the primary unit of society—a functional, productive unit working to achieve common goals.
