His Excellency the Minister of Municipal and Rural Affairs and Housing, Mr. Majid bin Abdullah Al-Hogail, announced significant achievements in the Saudi housing sector, revealing that SAR 46.6 billion has been allocated to housing programs as part of a strategic collaboration between the Saudi Stock Exchange, the Ministry of Finance, and the Saudi Central Bank. This announcement was made during a dialogue session on the sidelines of the “Saudi Budget Forum 2026,” highlighting the progress made towards one of the key objectives of the Kingdom’s Vision 2030.
Historical background and context of Vision 2030
This substantial financial support comes as part of the Kingdom’s ongoing efforts to address the challenges facing the housing sector, which has been a top priority in national development plans. Prior to the launch of Vision 2030, the market faced challenges including difficulty in accessing suitable housing finance and a shortage of affordable housing units. With the launch of Vision 2030, the Housing Program was introduced as one of its key initiatives, aiming to increase homeownership among citizens to 70% by 2030. The program has focused on developing innovative financing solutions, streamlining procedures, and incentivizing the private sector to increase the housing supply.
Tangible achievements and local impact
Al-Haqil explained that the housing system successfully served more than 1.2 million beneficiaries by the end of this year, enabling 920,000 families to move into their homes, reflecting the direct social and economic impact of these programs. He added that this year alone saw more than 90,000 beneficiaries sign housing investment contracts, in addition to more than 20,000 contracts signed under the "Build-to-Rent" programs. The Ministry plans to maintain this momentum by adding more than 60,000 new housing units to these programs and aims to offer more than 100,000 units under off-plan sales programs next year, thus enhancing the housing supply and providing diverse options for citizens.
A historic opening: Foreign ownership of real estate and its expected impact
In a historic move aimed at boosting economic openness and attracting foreign direct investment, Minister Al-Haqil confirmed that the law allowing foreign ownership of real estate in Saudi Arabia will come into effect next January. This decision represents a qualitative leap in the Saudi real estate market and is expected to have multiple positive impacts
- At the local level: The decision will increase demand in the real estate market, and encourage developers to launch quality projects, which will contribute to reviving the construction sector and related sectors, and creating more job opportunities.
- At the regional and international levels, this law enhances the Kingdom's position as an attractive global investment hub and encourages the attraction of global talent and expertise to settle and work in Saudi Arabia. It also places the Saudi real estate market on the global investment map, thereby increasing transparency and competitiveness.
Al-Haqil pointed out that foreign ownership will include all regions of the Kingdom, with special regulations in four major cities: Riyadh, Jeddah, Mecca, and Medina. Specific areas will be designated where non-resident foreigners are allowed to own property, balancing development goals, attracting investment, and preserving the privacy of these cities.
Digital transformation in the real estate sector
In line with the global trend towards digitization, the minister revealed that the ministry is working on building 30% of its operations using artificial intelligence technologies, stressing that “the tokenization of real estate assets” will enhance the sector’s position in an attractive technological and legislative environment, thus increasing market efficiency and transparency.
