Participants at the Distinguished Cities Projects Conference discussed the impact of interest rate hikes—implemented by most central banks around the world, particularly the Saudi Central Bank (SAMA)—on the real estate finance sector, and also addressed statements made by officials at the conference regarding investment opportunities and regulatory development programs.

Expected Effects of Interest Rate Hikes

For his part, the CEO of the Housing Program, Nofal bin Saleh Al-Salamah, explained that the expected effects of the central bank’s interest rate hikes will not have a negative impact on the mortgage finance sector. He emphasized that the program is taking measures to help mitigate the negative effects of this hike, noting that the impact of the interest rate hike at this time will not be as significant as it was previously.

He noted the adoption of proactive initiatives and solutions in this regard, such as establishing a framework for the financing sector and creating the National Refinancing Company.

In addition to the integration between the Real Estate Development Fund and the financing sector, these safeguards will help mitigate the impact and prevent the sector from facing any significant pressures or repercussions, and will contribute to the supply of more housing units at affordable prices for beneficiaries.

Investment and Oversight Programs

Mohammed Al-Baqmi, a spokesperson for the Jeddah Municipality, said that the “Distinguished Cities Projects” exhibition showcased the most prominent projects aimed at improving quality of life, investment opportunities, and oversight development programs.

Discussions also covered the positive impact of Vision initiatives on the Kingdom’s cities, future economic and investment opportunities across various regions and cities, housing sustainability, and the challenges facing the development of Saudi cities.