Al-Hogail sees global desire to finance Saudi Arabia’s real estate projects

Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail

There is an international desire to finance Saudi Arabia’s real estate projects through diverse products, Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail, told Al Arabiya.

He added that the ministry aspires to issue real estate financing bonds (local and international) worth up to SAR 2 billion in 2024.

Saudi Real Estate Refinancing Co. (SRC) intends to issue bonds in the global market by Q2 or Q3 2024.

The ministry is working with the Financial Sector Development Program (FSDP) on a bundle of global incentives and treatments to be ready for issuance.

Al-Hogail pointed out that SRC has a mega financing portfolio with a vast experience since its launch in the local market, assuring that it is now ready to invest in this field.

With the launch of the Iskan program, Saudi banks contributed to the growth of real estate loans to 25% from 7%, with expectation to hit the global level at 27-30% through debt market (sukuk).

Home ownership in Saudi Arabia grows by 2% annually and has reached 62%, which is consistent with the planned figures.

He indicated that the ministry offers various programs to meet Saudi families’ needs and avoid impact of rising prices. This is in addition to the support that families receive.

He pointed out that the Ministry of Housing, when providing its products, focuses on prices ranging from SAR 750,000 to 1.25 million, covering the largest segment of society, and is keen not to rise above these prices, and to provide a variety of products for all segments.