“We are no longer negotiating prices for 1,000 homes, but for 1 million homes," Ali Al-Ahmad, Chief Supply Chain Officer at Saudi Arabia’s Ministry of Municipalities and Housing, said during the session titled “A New Deal for Housing Finance” held within the framework of WUF13, APA-Economics reports.
“The discussions held in Baku over the last 3-4 days showed that we are all speaking the same language. Housing policy begins with land and then continues through a complete value chain that includes infrastructure, projects, construction companies, beneficiaries and services that improve quality of life,” he said.
Ali Al-Ahmad noted that Saudi Arabia classifies housing problems according to demand and supply directions.
According to him, citizens with a monthly income of 4,000 riyals, or approximately 1,000 US dollars, are considered eligible for preferential housing programs: “Together with local banks, the government provides subsidized loan packages for these individuals.”
The Saudi official stated that more than 13 banks in the country are currently providing preferential real estate loans, and over the last five years the volume of these loans has increased from 400 billion riyals to approximately 1 trillion riyals.
He noted that the government either subsidizes loan interest rates or provides non-refundable support amounting to 100,000-150,000 riyals to people purchasing housing.
Ali Al-Ahmad emphasized that a separate “Development Housing” program operates for citizens without income, and more than 200,000 families currently benefit from this program: “Of these houses, 109,000 were built directly by the ministry, while the rest were purchased from the private sector.”
He added that a centralized procurement platform called “SupplyPro” has been created to reduce housing prices: “We are now negotiating with manufacturers not for 1,000 homes, but for 1 million homes. The goal is to obtain the best price, protect the supply chain and, as a result, reduce the final cost of housing.”
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