His Excellency Majid bin Abdullah, Minister of Municipal, Rural, and Housing Affairs and Chairman of the Housing Program Committee Al-Hogail, concluded his official visit to the Chinese capital, Beijing, during which he met with Chinese Minister of Housing and Urban-Rural Development Ni Hong and President of the China International Contractors Association Fang Qiuqin, He also met with a number of heads of Chinese construction companies and banks to strengthen the partnership between the Kingdom and China in the construction, building, and real estate development sectors.
Strengthening Cooperation in the Real Estate Sector
During the meetings, the two sides discussed joint cooperation to develop housing policies and programs between the two countries, as well as the exchange of expertise and best practices in the areas of urban planning, sustainable urban development, and investment in construction technology, as well as future partnerships to establish real estate projects and infrastructure within residential communities by leveraging Chinese construction technology, in addition to exchanging expertise in urban management and applying best practices in this regard.
The meeting also reviewed current opportunities to attract a group of Chinese companies specializing in the construction, maintenance, and cleaning sectors to the Kingdom, with the aim of benefiting from the innovative practices in the contracting sector adopted by Chinese companies, as the Chinese side expressed its desire to benefit from the dynamic progress and advancements the Kingdom is witnessing across various fields, and its commitment to sharing its diverse experiences with Saudi professionals through the development of specialized training programs for workers in the construction sector in the Kingdom.
During his visit, Al-Haqil witnessed the signing of agreements and memorandums of understanding with a number of major Chinese construction companies, with the aim of capitalizing on the investment opportunities available in the Kingdom’s real estate sector, particularly in the residential communities and suburbs being developed by the National Housing Company, as part of efforts to achieve the Housing Program’s targets of raising the homeownership rate to 70% by 2030 and providing more housing options and financing solutions for Saudi families.
Strategic Partnership Between the Kingdom and China
The visit by His Excellency the Minister of Municipal, Rural Affairs, and Housing to Beijing reflects the exceptional level that Saudi- – China, following the conclusion of the “Comprehensive Strategic Partnership Agreement” between the two countries, signed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud—may God protect him— and Chinese President Xi Jinping during his visit to the Kingdom of Saudi Arabia in December 2022. The first fruits of this partnership were government agreements and memoranda of understanding for cooperation in several areas, including housing.
The Saudi-Chinese strategic partnership contributes to enhancing the dynamism of the Saudi real estate market as a result of cooperation with major local and international companies to attract investment in the housing sector, which impacts more than 120 activities and industries, provides more housing units for citizens at affordable prices and with suitable financing solutions, and boosts non-oil GDP—to which the real estate sector contributes 12.1 percent and the construction sector 11.2 percent— which will help achieve the Housing Program’s targets of raising the homeownership rate to 70% by 2030, up from 63.74% at the end of 2023.
It is worth noting that His Excellency the Minister of Municipal, Rural, and Housing Affairs conducted a number of official visits to strengthen international partnerships with major real estate developers and attract global companies in the construction sector andreal estate development, with the aim of accelerating the completion of housing units and providing appropriate financing solutions for citizens.
