IMF commends Saudi housing program as effectively contributing to social, economic stability

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  • Sakani aims to raise the homeownership rate in the Kingdom to 70% by 2030
  • Number of households in the Kingdom that purchased their first homes reached 25,391 in the first three months of the year

JEDDAH: Saudi Arabia’s Housing Program is effectively contributing to social and economic stability for citizens amid rapid growth, according to the International Monetary Fund.

In its report following the conclusion of the Article IV Consultation 2024, the IMF said that the program, part of Saudi Arabia’s Vision 2030, has achieved several tangible successes, including a notable increase in homeownership rates to approximately 64 percent, with 90 percent service satisfaction among beneficiaries, and a diverse range of available housing options.

The report said that the Saudi economy is experiencing rapid growth, with a strong financial position, and highlighted that the Kingdom was the fastest-growing economy in the G20 group of nations in 2022. It commended the progress made toward achieving set targets, according to the Saudi Press Agency.

The housing sector in Saudi Arabia has experienced significant transformation in recent years, propelled by the ambitious goals of Vision 2030.

The Housing Program has launched several innovative initiatives offering housing and financing solutions to meet citizens’ needs. This includes the Sakani program under the Ministry of Municipalities and Housing, financing options provided by the Real Estate Development Fund, regulations established by the Real Estate General Authority, and the residential projects and suburbs developed by the National Housing Co.

These achievements reflect the Saudi leadership’s commitment to providing adequate housing for citizens as a top priority, thereby contributing to the continued growth of the country’s non-oil gross domestic product.

During the first quarter of 2024, Sakani’s housing options benefited 32,343 Saudi families, representing a 15 percent increase compared to the previous year.

In partnership with the Real Estate Development Fund and financial institutions, Sakani offers various housing support packages to encourage first-time homebuyers. This includes non-refundable financial assistance of SR100,000 ($26,659) or SR150,000.

The number of households in the Kingdom that purchased their first homes reached 25,391 in the first three months of the year, reflecting Sakani’s goal of providing diverse residential options and financial solutions.

Established in 2017 by the Saudi Ministry of Housing and the Real Estate Development Fund, Sakani aims to raise the homeownership rate in the Kingdom to 70 percent by 2030, aligning with the Vision 2030 economic diversification strategy.

Sakani’s figures indicate that 12,184 households benefited from the program in March, with 9,381 Saudi families securing their first residence.

In January, Sakani reported that over 100,000 Saudi families benefited from the initiative in 2023, with 98,475 of these families acquiring their first home during the year.