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IMF calls on Saudi Arabia to take measures and solutions to provide more housing and financing

International Monetary Fund

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The International Monetary Fund (IMF) called on the Kingdom to adopt a number of measures to ensure the mobilization of «white land», stressing the need to find solutions to ensure the provision of more affordable housing, mitigate the rise in land prices, and increase the supply of land for real estate development. The Fund also called on the Kingdom to find solutions in the medium term to provide long-term financing for real estate lending institutions, indicating that additional measures can be taken to accelerate housing supply and monitor the expansion of real estate financing, to provide more affordable housing.

The IMF advised the Kingdom to impose taxes on luxury real estate and white land, in addition to increasing fees on government services and raising the prices of energy products to increase its revenues and reduce its expenditures in the next phase.

The IMF expects the Kingdom to record a budget surplus this year at 2.5% of GDP, and stressed the Kingdom's ability to withstand the pressure of any decline in oil revenues, but the feasibility study of future investments is key to ensure greater control over state budget items.