The Ministry of Housing announced the launch of the second phase of the “Sakani” program, comprising a total of 17,923 housing and financing units distributed across all regions of the Kingdom, as part of the 280,000 housing and financing products the Ministry announced as its target for 2017, including 120,000 housing units of various sizes and prices in partnership with the private sector, 75,000 residential plots ready for construction, and 85,000 financing subsidies through the Real Estate Development Fund in partnership with banks and financial institutions.
28,000 housing and financing products
His Royal Highness Prince Saud bin Talal bin Badr, Advisor and General Supervisor of the Ministry’s Agency for Housing Support and Branches, explained that these products represent the second batch of the 280,000 housing and financing products announced by the Ministry as its target for the year 2017, in line with the National Transformation Program 2020, which aims to raise the homeownership rate from 47% to at least 52%, and as part of the Ministry’s strategic shift from being an implementer to a regulator, supervisor, and catalyst for the Kingdom’s real estate market. During a press conference held on this occasion, attended by His Excellency Minister of Housing Majid bin Abdullah Al-Hogail and a number of CEOs of banks and financial institutions, His Highness said: » Following the announcement by the Ministry of Housing and the Real Estate Development Fund regarding the allocation and delivery of 280,000 housing and financing products through the «Sakani» program—as the target for the year 2017—which are announced in monthly batches, today we are launching the second batch, which includes 17,923 housing and financing products covering all regions of the Kingdom across its various cities and provinces. This batch includes 4,223 housing units of the «villas,» which are characterized by their affordable prices and high quality and are suitable for all segments of society, as well as 6,000 residential plots ready for construction at no cost, in addition to 7,700 financing subsidies provided through the Real Estate Development Fund in partnership with a number of banks and financial institutions.»
Specific Mechanisms
He added that the Ministry operates according to specific mechanisms characterized by precision and clarity in selecting beneficiaries and determining priority, taking into account social and health circumstances as well as family size, noting that housing support covers various groups, including orphans, widows, and divorcees, and emphasizing that the first phase of the «Sakani» program—which included 15,653 units—was met with a high rate of acceptance among the designated beneficiaries, He noted that work is currently underway to complete all procedures in preparation for handing over the final units to them, emphasizing that matching the housing unit to the beneficiary’s needs and circumstances takes priority, followed by financial capacity and the housing options available that align with their preferences. The 4,223 housing units included in the second batch are distributed across several regions, with 1,044 villas in Riyadh, 839 in Makkah, 662 in Jazan, Al-Qassim 524 villas, Al-Jawf 521 villas, Al-Sharqiyah 270 villas, the Northern Border Province 248 villas, and Al-Baha 115 villas. Meanwhile, the residential plots—totaling 6,000—were distributed as follows: 3,175 in the Asir region, Riyadh (1,248 plots), Jazan (483 plots), Eastern Province (346 plots), Al-Jawf (337 plots), Tabuk (142 plots), Al-Qassim (98 plots), Northern Border Province (89 plots), and Al-Baha (82 plots). The Real Estate Development Fund also issued 7,700 financing grants in partnership with banks and financial institutions, distributed as follows: 1,958 in the Riyadh region, 1,402 in Makkah, Eastern Province 1,200, Al-Qassim 803, Madinah 574, Asir 562, Tabuk 296, Ha’il 221, Northern Border 195, Najran 189, Al-Baha 141, Al-Jawf 129, and Jazan 30.
Financial Support
In turn, Ayham Al-Youssef, General Supervisor of the Real Estate Development Fund, stated that the second phase of the «Sakani» program includes 7,700 financing grants in partnership with banks and financial institutions to support those on the Fund’s waiting lists, in accordance with the royal directive issued on 6 Dhu al-Hijjah 1436 AH to transform the Real Estate Development Fund into a financing institution, noting that this mechanism aligns with the National Transformation Program 2020 and Saudi Vision 2030 by activating partnerships with the private sector and increasing its contribution to GDP, noting that the Smart Support Mechanism will cover all those eligible for housing support, with the subsidy rate reaching 100% for low- and middle-income individuals eligible for financial support; this amount will be deposited monthly into the beneficiary’s account, representing the portion of financing costs to be covered. He noted that the Fund aims to provide 85,000 financing subsidies in 2017, to be allocated in monthly installments.
Bank Partnership
For his part, Talaat Hafez, Secretary-General of the Media and Banking Awareness Committee and official spokesperson for Saudi banks, emphasized that the partnership between the banks, the Ministry of Housing, and the Real Estate Development Fund serves as one of the drivers propelling development in the Kingdom, , noting that the banks that have signed partnership agreements with the Ministry of Housing and the Real Estate Development Fund are currently working to complete the necessary procedures to serve those eligible for financial support through more than 1,000 branches spread across all regions, cities, and provinces of the Kingdom.
