Analysis: Muhammad al-Amin Jamous
More than 1.3 million eligible families are waiting for good news that will relieve them of the burden of trying to find a suitable solution to this problem.
Despite the variety of options currently offered by the Ministry of Housing or the Real Estate Fund, the majority of eligible families prefer the “Land and Loan” program among the housing options provided by the Ministry on its “Iskan” website.
This option puts the construction sector to the test in demonstrating its ability to keep pace with changes in the economic landscape, and will reveal in the near future the extent to which the sector is prepared to shoulder its responsibilities in construction and building operations—especially since the future promises growing demand for housing provided through the ”Land and Loan” program, in which citizens will oversee the construction process themselves.
In anticipation of the responsibilities that will fall on construction companies, Housing Minister Majid Al-Hogail held discussions with Labor Minister Mufarrij Al-Haqbani to facilitate and secure a labor force for the construction sector, a move that demonstrates the Housing Minister’s far-sighted vision and his commitment to resolving all issues hindering the provision of adequate housing, foremost among which is the “construction sector,” which is the main driving force behind any real estate development. Even more encouraging is that the minister, drawing on his practical experience in the field, understands that the solution to the problem must take into account all aspects of the issue.
Conversely, reports indicate that Saudi construction companies, just as they have successfully proven their worth domestically by executing major national projects and effectively contributing to the development boom, they have also achieved success abroad, particularly in neighboring Gulf countries. However, the question here is: Why is the sector facing difficulties in completing domestic projects despite the very capabilities that have driven development abroad? Experts emphasize the sector’s need for more skilled labor and a reevaluation of certain restrictive laws, systems, and regulations, especially since the Kingdom is home to some 3,000 construction firms classified according to technical standards, which take into account each firm’s capabilities and its ability to execute large and medium-sized projects. Experts affirm that construction companies in the Kingdom are capable of playing the role required of them in resolving the housing crisis and completing projects on schedule, despite the problems they face—problems they believe will not last long.
Construction and real estate development companies are meeting with Minister Hammam, who is drawing on the expertise of industry leaders to get the housing initiative back on track, placing them within the framework of collective responsibility for investing the 240 billion riyals allocated by the state to provide a radical solution to the housing shortage.
