A sovereign wealth fund has gone a long way to establish a development company in the housing sector with a capital of up to 81 billion riyals, as part of government efforts led by the Economy and Development Council to support sectors that directly affect the citizen, especially housing.

Development of old neighborhoods

The new company established by the Public Investment Fund will develop the central Riyadh area, which includes about 15 square kilometers, spread over 15 old neighborhoods, in coordination with relevant government agencies in Riyadh, such as the Riyadh Development Authority and the regional municipality.

<p class="p2" dir="rtl

The company's plan and the direction of the current development of the central Riyadh area depends on expropriating the old neighborhoods and bearing the cost, which is expected to reach two billion riyals, while the Ministry of Housing will receive a share of the new site after expropriation, rehabilitation of the area, especially in services and infrastructure, such as water, sewage and electricity networks, development of superstructures that include increasing floors and re-studying the building factor.

The company's plan and the current development of the central Riyadh area depends on expropriating the old neighborhoods and bearing the cost of it.

Innovative styles

The Central Riyadh project will adopt innovative development patterns that take into account the preservation of the character of Riyadh, the building style of the capital, and governmental development projects.

<span style="p2

This important step will secure the capital's need for housing products, at a stage when the Ministry of Housing is expected to launch a number of individual support products and re-examine the current financing mechanism by financing facilities from banks and finance companies, after the Cabinet approved the real estate financing policies, which includes reassessing the percentage of the down payment for housing finance for individuals to support individuals, while at the same time supporting the development sector to increase supply and create affordable housing products.

The project will take innovative development patterns that take into account the nature of the capital, and governmental development projects.

More than 142thousand products

The Ministry of Housing is expected to provide 14 billion in more than 142 thousand land and loan products distributed among nine schemes in the central region, thirteen schemes in the western region, and seven schemes in the eastern region; the three regions that account for more than 60% of the total demand for housing products in the Kingdom - according to the distribution of housing support requests in the Kingdom's regions -.

The Ministry of Housing is expected to provide more than 142 thousand land and loan products distributed among nine schemes in the central region, thirteen in the western region, and seven in the eastern region.

This step between the two ministries (housing and electricity) comes as a translation of the Custodian of the Two Holy Mosques' order to allocate 20 billion riyals to support electricity and water projects in grant schemes in various regions of the Kingdom. The process of developing residential plans in various regions of the Kingdom will affect more than 3,700 plans that accommodate about 2.5 million residential plots of land.

International experiences

Dr. Ali bin Sulaiman Al-Attiyah, advisor to the Minister of Housing, had earlier explained that "finding solutions to the housing crisis requires first assessing the current situation accurately: "During the past two months, the ministry has studied the current situation of the housing crisis in the Kingdom, and to know its causes and where it originated, and we reviewed many international experiences in this aspect, especially in Turkey, Egypt, Morocco and others, to know the trends of these countries in solving their housing crisis, and we came out with a set of facts and information, which we believe are important when finding solutions to the housing crisis in the Kingdom, and we came today to meet you and meet with you, because we view real estate development companies as the real start of the Ministry of Housing."

Dr. Ali bin Sulaiman Al Attiyah, Advisor to the Minister of Housing, had previously explained that "finding solutions to the housing crisis requires a thorough assessment of the current situation.

<p class="p2

Attiyah revealed that he had meetings and contacts with a number of entities related to the housing crisis in the Kingdom, saying: "These entities include the Ministry of Municipal and Rural Affairs and the Ministry of Social Affairs, represented by the Owners Union, the Ministry of Commerce, the Ministry of Water and Electricity, and other entities that amounted to about 20 entities, with whom we discussed the housing crisis and how to find solutions to it, and the ideas between all of them came close and we felt great keenness to solve the crisis as soon as possible."

Attiyah revealed that he had meetings and contacts with a number of entities related to the housing crisis.