The Kingdom of Saudi Arabia seeks to become the first country in the world to have a clear strategy in the housing sector and a specific target for home ownership, by driving the real estate sector in general and addressing the main challenges faced by the sector, which will contribute to achieving the housing program targets by raising the ownership rate to 70% by 2030 after it reached 63.74% at the end of 2023.
The official visit of His Excellency the Minister of Municipal, Rural Affairs and Housing and Chairman of the Housing Program Committee Majid bin Abdullah Al-Hogail to the People's Republic of China, which concluded on May 2, was an extension of the comprehensive strategic partnership agreement. His Excellency the Minister of Municipal and Rural Affairs and Housing and Chairman of the Housing Program Committee Majid bin Abdullah Al-Haqeel's official visit to the People's Republic of China, which concluded on May 2, was an extension of the comprehensive strategic partnership agreement between the Kingdom and China, where the visit witnessed the signing of many cooperation agreements and partnerships with many of the largest Chinese companies.
12 building materials factories
The announcement of National Housing Company to sign an agreement with the Chinese company CITIC to establish an industrial city and logistics zones with 12 factories for building materials within the Saudi-Chinese partnership represented a turning point in ensuring secure supply chains for building materials, contributing to the localization of building and construction products within the Kingdom, providing the necessary support for housing projects, producing high-quality and affordable housing units for citizens and creating job opportunities within the real estate sector.
While the industry is the cornerstone of the housing sector, it is also the cornerstone of the real estate sector. <While industry is a cornerstone of development and civilizational progress everywhere, and building materials are one of the important things in development and real estate development, so the establishment of 12 factories for building materials supply chains contributes to the quality of construction, raising the pace of completion of housing projects, in addition to reducing the prices of building materials to the end consumer.
Localization of the building materials industry
The localization of the building materials industry is of great importance for the transfer of expertise to train and employ Saudi youth, and provide them with the necessary skills and expertise to sustain the development of the sector and manpower, not only in major cities, but also in various regions, especially in light of the strong rise of real estate development in the Kingdom currently, and the need for all aspects of support.The localization of the building materials industry also aims to contribute to the quality of construction, increase the completion of housing projects, and reduce the prices of building materials for the end consumer. The agreements to establish factories to ensure building materials supply chains also aim to maximize the economic and developmental impact of the real estate sector, develop residential projects and raise their quality, promote national transformation in the building and construction sector, localize the building materials industry by attracting the experience of Chinese factories, provide production lines for projects, and raise the products of residential units in construction works.
Agreements to establish factories to ensure building materials supply chains also aim to maximize the economic and developmental impact of the real estate sector, develop residential projects and raise their quality, promote national transformation in the building and construction sector. The agreement between National Housing and China's CITIC Group aims to make the Kingdom an important center in the building and construction materials manufacturing sector to support the real estate sector, and also to serve as a starting point to support building materials supply chains to various countries of the world, and to invest the Kingdom's location to provide exceptional logistics services; which contributes to multiplying production and realizing the basic capabilities of the real estate sector at the local and international levels.
This comes under the auspices of the National Housing and CITIC Group, which aims to localize the building materials industry by attracting the experience of Chinese factories, providing production lines for projects, and raising the products of residential units for construction works at the local and international levels. This comes in light of the Kingdom's tireless efforts to support and empower real estate developers and develop their knowledge and skills, to raise the quality of their internal operational processes, and increase their compatibility with the requirements of the Saudi real estate market and its future trends and needs, which increases the level of competitiveness and achieves efficiency in the sector for the benefit of citizens, and achieving the vision's targets to reach an ownership rate of 70% by 2030.
This comes in light of the Kingdom's tireless efforts to support and empower real estate developers and develop their knowledge and skills.
