Saudi Homeownership Rate Approaches 2030 Target
According to a recent report from the Ministry of Municipal and Rural Affairs and Housing, more than 205,000 off-plan housing units were licensed and launched in 2024, with over 60,000 units delivered. Additionally, Sakani, the government's housing initiative, made 165,000 plots of land available, allowing beneficiaries to build homes tailored to their future needs.
To support low-income families, the ministry provided over 50,000 housing units, reinforcing its commitment to sustainable social housing solutions. Efforts continue to diversify options and create integrated residential communities that meet citizens' needs. The Real Estate Development Fund (REDF) deposited SAR 11.9 billion ($3.1 billion) into the accounts of Sakani beneficiaries last year. The program offers digital services that help recipients customize their housing support and select optimal financing solutions.
By the end of 2024, more than 122,000 families had benefited from Sakani's housing support services. The 'Your Installment is Your Support' program, which offers flexible payment options for off-plan and self-construction homes, recorded 2,700 beneficiaries. Additionally, 107,000 housing finance contracts were signed, demonstrating the continued growth of the sector. Financing solutions with a reduced interest margin of 2.59% were provided to over 22,000 Sakani beneficiaries in the low-income category. Meanwhile, nearly 962 beneficiaries received subsidized installment plans, and 59,000 low-income families secured government-supported mortgage loans. In total, Sakani provided approximately 70,000 financing packages for off-plan, ready-built, and self-construction homes.
In its latest quarterly report, Sakani outlined key initiatives aimed at enabling Saudi families to own their first home. The program continues to expand housing options and financial solutions to improve homeownership rates, enhance citizens' quality of life, and align with Vision 2030 housing objectives. The report highlighted a variety of financial solutions used by families in late 2024, including off-plan units, self-construction, ready-built homes, and land support programs. By year-end, more than 107,000 financing contracts had been signed, with nearly 58,000 benefiting low-income families.
To cater to different financial needs, Sakani offers a range of customized financing solutions, including financial support packages, down payment assistance, in-kind support, reduced financing margins, affordable mortgage plans, flexible installment options, and mortgage guarantee programs.
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Arab News
12 minutes ago
- Arab News
Saudi Arabia's transportation boom opens doors for private investment
Saudi Arabia's transportation boom opens doors for private investment RIYADH: Saudi Arabia's rapidly expanding transportation sector is unlocking new investment opportunities for private players, both local and global, experts have told Arab News. Central to the Kingdom's Vision 2030 strategy, transportation development is seen as a key enabler for economic diversification and the drive to position Saudi Arabia as a global logistics, tourism, and business hub. With a growing emphasis on public-private partnerships, Minister of Transport and Logistic Services Saleh Al-Jasser announced during the third PIF Private Sector Forum, held in Riyadh in February, that private entities are expected to contribute around 80 percent of the targeted investments in the country's transport and logistics sector. He added that the total value of projects offered to the private sector — through privatization and other models — could reach SR240 billion ($63.95 billion). Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, told Arab News that public-private partnerships are at the core of this strategy. 'Privatization of key transport infrastructure, such as ports and airports, is creating new opportunities for private investment,' he said, adding: 'The development and management of cargo terminals through PPP agreements are attracting private efficiency and capital. The construction and engineering sectors are also benefiting, with numerous megaprojects like the Riyadh Metro and Neom's mobility network.' Alessandro Tricamo, partner at Oliver Wyman's transportation and services practice for India, the Middle East, and Africa, echoed similar sentiments and emphasized the importance of selecting suitable assets to attract investors. 'Globally, asset classes such as airports and seaports are typically considered bankable, with the potential to generate strong returns and attract private investment. Conversely, railways and public transport systems often require structured support from the government to become commercially viable,' said Tricamo. He added: 'In the Kingdom, there's still a need to refine how these projects are structured and presented to the private sector, as expectations are sometimes misaligned with market realities. Clear, realistic frameworks will help unlock greater private sector involvement and broaden the Kingdom's business landscape.' The Kingdom's logistics infrastructure is expanding rapidly. According to a report released by the General Authority for Statistics in December, the number of logistics facilities in the country has increased by 267 percent since 2021, with the Eastern Province leading in logistics hubs spanning 6.3 million sq. meters. 'Private companies are seizing opportunities in trucking, warehousing, freight forwarding, and e-commerce delivery services. Technology firms are also entering the market, offering solutions in AI, electric vehicles, and autonomous transport,' said Salem. He added: 'Overall, the transportation revolution in Saudi Arabia is creating a more diversified and competitive business environment. Private sector involvement is key to realizing the Kingdom's ambitious Vision 2030 goals.' Transportation as a growth enabler Anthoine Barthes, vice president of Al-Futtaim Automotive, told Arab News that transportation infrastructure underpins nearly every pillar of Vision 2030, acting as a foundation for economic growth. According to Barthes, transportation is not only about mobility but also about creating links between economic zones, facilitating trade, drawing investment, enhancing quality of life, and boosting tourism. 'A key objective is for Saudi Arabia to become a global logistics hub, and this requires state-of-the-art ports, efficient rail networks, extensive road infrastructure, and modern airports capable of handling significant cargo and passenger volumes,' said Barthes. He also pointed to the Riyadh Metro — with its six lines spanning 176 km — as evidence of the Kingdom's progress in developing effective public transport systems. 'These efforts, alongside continuous improvements to road infrastructure and the integration of smart city mobility solutions, are crucial for enhancing the quality of life, mitigating urban congestion, and fostering sustainable urban growth,' added Barthes. Salem noted that infrastructure development supports the growth of multiple industries, including tourism and entertainment, with road upgrades linking key cities to rising destinations such as Qiddiya and Amaala. He also highlighted how enhancements around Makkah and Madinah have improved accessibility for millions of religious visitors, reinforcing tourism and Umrah growth. Integrated logistics backbone Tricamo underlined that efficient logistics and supply chain management are fundamental to sustained economic development. 'A well-connected transport network that links urban and industrial centers and facilitates the smooth movement of goods and people is a key enabler of the Kingdom's broader economic ambitions. It directly impacts the reliability, speed, and cost-effectiveness of supply chains,' said Tricamo. Arthur D. Little's Salem believes that infrastructure modernization and the integration of advanced technologies are strengthening the Kingdom's global supply chain footprint. He pointed to Saudi Arabia's rise in the World Bank's Logistics Performance Index, climbing 17 spots to rank 38th globally in 2023. 'Vision 2030 also focuses on expanding multi-modal freight capacity. The rail network will grow from 3,650 km to 8,000 km, enhancing logistics. Air cargo capacity is set to increase to over 4.5 million tonnes annually by 2030, while Saudi ports will handle up to 40 million TEUs,' said Salem. He added: 'Additionally, 40 new logistics centers across 100 million sq. meters will attract global companies, positioning Saudi Arabia as a logistics hub. These efforts are expected to reduce logistics costs, improve reliability, and grow the sector to $57 billion by 2030.' Impact on the business landscape Barthes said ongoing advancements in the Kingdom's transport infrastructure are expected to reshape the business environment. He noted that reduced logistics costs, quicker deliveries, and agile supply chains will benefit a wide range of industries. 'A world-class infrastructure is a primary magnet for foreign direct investment. International companies are more willing to establish operations, knowing they can efficiently move goods and people,' said Barthes. Salem emphasized how transportation development enhances the ease of doing business and improves trade connectivity through upgraded logistics hubs. 'The growth of tourism, retail, and real estate sectors is another benefit. Better transportation networks make it easier for people to travel and for goods to be delivered, driving demand in these industries,' said the Arthur D. Little partner. He added that modernized ports, roads, and rail corridors are boosting trade volumes, while domestic improvements in connectivity are helping to meet growing internal demand across agriculture, retail, and construction. Technology-driven transformation Tricamo highlighted the vital role of digital innovation in shaping Saudi Arabia's future transport ecosystem. 'Digital solutions — from smart ticketing and real-time tracking management systems — will be essential for building a future-ready, user-centric transport ecosystem,' he said. Salem echoed these views, noting the Kingdom's strong push for smart infrastructure, digital logistics, and electric mobility. He added that electric vehicles are reshaping transportation, supported by investments in thousands of fast-charging points across 1,000 locations by 2030. The goal is to have 30 percent of vehicles in Riyadh electrified by then. 'Smart cities like Neom are integrating IoT sensors, AI-driven traffic management, and predictive congestion systems to optimize transportation. These technologies improve traffic flow, reduce accidents, and enhance the overall commuter experience. In logistics, automation and AI are being used to streamline freight operations, reduce errors, and optimize delivery routes,' said Salem. Overcoming challenges Salem acknowledged that the Kingdom faces hurdles such as overreliance on road transport, the country's vast geography, regulatory bottlenecks, skill shortages, and climate-related challenges. He emphasized that the government is proactively addressing these with targeted initiatives. 'To reduce reliance on roads, Saudi Arabia is investing heavily in rail and public transit projects like the Riyadh Metro. The vast size of the Kingdom is being addressed by extending transportation networks to remote areas, ensuring equitable access to modern infrastructure,' said Salem. He added that regulatory reforms, including the establishment of the National Center for Privatization, are streamlining approval processes and attracting private sector investment. 'Through partnerships with global firms, Saudi Arabia is transferring knowledge and building local expertise to overcome skills gaps,' said the Arthur D. Little partner. Tricamo pointed to the scale of investment as the primary challenge facing transport infrastructure expansion. 'In Saudi Arabia, the ambitious scope and accelerated timeline of Vision 2030 add further complexity, requiring multiple high-value infrastructure projects to be developed simultaneously. The private sector can play a key role in easing this burden,' he said. The Oliver Wyman partner concluded by emphasizing the need for careful asset selection to balance commercial viability and government support.
Arab News
42 minutes ago
- Arab News
Saudi Arabia's drive to build a defense powerhouse
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Using its own methodology, the Stockholm International Peace Research Institute estimates the figure slightly higher at $80.3 billion. The country has allocated about $78 billion for the military sector in its 2025 budget — 21 percent of government spending and 7.2 percent of gross domestic product — supporting its goals to diversify the economy and reduce oil dependence. GAMI is driving efforts to attract investment, support small and medium-sized enterprises, and develop a strong defense industry spanning aerospace, armored vehicles, and missile systems, as well as electronic warfare, and UAVs — boosting both national security and long-term industrial growth. Global defense spending hits $2.7tn According to its April 2024 report Trends in World Military Expenditure, SIPRI said global military spending exceeded $2.7 trillion in 2024, marking a decade of continuous annual growth and a 37 percent increase between 2015 and 2024. 'The 9.4 percent increase in 2024 was the steepest year-on-year rise since at least 1988. The global military burden — the share of the world's GDP devoted to military expenditure — increased to 2.5 percent in 2024. Average military expenditure as a share of government expenditure rose to 7.1 percent in 2024, and world military spending per person was the highest since 1990, at $334,' the report added. The US, China, Russia, Germany, and India are the top five military spenders, making up 60 percent of global defense expenditure. The US leads with $997 billion — more than three times China's $314 billion, while Russia's spending rose 38 percent to $149 billion. Germany and India spent $88.5 billion and $86.1 billion, respectively. SIPRI estimated Middle East military spending at $243 billion in 2024, up 15 percent from 2023. Saudi Arabia led the region with $80.3 billion, ranking seventh globally, just $1.5 billion behind the UK. 'Its spending was 1.5 percent higher than in 2023 but 20 percent lower than in 2015 when its oil revenues peaked,' the independent institute said. Sector key to economic diversification Khaled Ramadan, chairman of the International Center for Strategic Studies in Cairo and an economic expert, described the Saudi military industries sector as a cornerstone of the country's economic diversification efforts and a vital pillar of Vision 2030. 'Localizing military industries reduces reliance on imported weapons,' Ramadan said, emphasizing the sector's role beyond defense. 'It also supports advanced industries such as electronics, telecommunications, aviation technology, and advanced manufacturing, contributing broadly to non-oil economic growth.' amadan projected the military manufacturing sector will contribute SR14 billion ($3.7 billion) to the Kingdom's GDP by 2030, with military exports expected to reach $666 million. 'This will boost non-oil revenues and create more job opportunities for Saudi youth,' he said. He also said the sector had 300 licensed firms by 2024, reflecting rising investor interest, with 40,000 jobs expected by 2030, mainly in technical fields like engineering and electronics. 'This is in addition to skills development through specialized training programs conducted in partnership with global institutions to enhance competencies in technologies such as artificial intelligence and cyber warfare,' he said, adding the sector's growth boosts demand in manufacturing and tech, supports private jobs, cuts unemployment, and promotes hiring of young Saudis. Qualitative partnerships and technology transfer In May, Saudi Arabia produced its first THAAD missile components with US-based aerospace and defense company Lockheed Martin, while agreements with Turkish firms Baykar, Fergani Space, and Aselsan will boost UAV, space, and defense electronics capabilities. Moreover, the launch of BAE Systems Arabian Industries, formed by merging BAE Systems Saudi Development and Training with the Saudi Maintenance and Supply Chain Management Co., aims to accelerate localization in maintenance and technical services. Highlighting how vital global collaborations are to Saudi Arabia's military manufacturing goals, Ramadan pointed to partnerships with leaders like Lockheed Martin for THAAD missile components, Boeing for aircraft support, and France's CMN for HSI32 fast interceptor boats, providing access to advanced technologies and expertise. 'These partnerships are examples of a balanced strategy combining foreign technology acquisition with domestic capacity building,' he said. This approach is supported by the establishment of 21 research centers focused on developing military technologies, especially in electronic warfare and drones, targeted for 2030. Ramadan said local and foreign investments in military manufacturing are projected to reach SR37.5 billion by 2030, with SR6 billion allocated by GAMI specifically for research and development. He added that domestic military procurement has already reached SR13 billion, with local production covering drones, defense systems developed by sustainability-focused firms, and fast interceptor boats. Despite this progress, Ramadan said that achieving localization goals will require intensified investments and overcoming legal and technical obstacles. Talent development and inclusion Launched by Saudi Arabian Military Industries in 2024, the Women in Defense program supports sector growth by empowering Saudi females through training and leadership initiatives. Overall, the military industries sector is expected to generate 60,000 indirect job opportunities by the end of the decade, supporting broader economic diversification goals. The economic expert described this initiative as part of SAMI's broader collaboration with international universities to enhance national expertise in engineering and advanced manufacturing. Ramadan said that the sector's expansion is expected to create thousands of jobs, particularly in high-demand areas such as engineering and electronics, while driving the need for labor in related industries and strengthening private sector participation. SAMI's transformation as a catalyst SAMI marked 2024 as a turning point, launching the Kingdom's first combat management system, expanding its workforce to over 7,000, and securing global partnerships. Echoing Ramadan's insights, Youssef Saidi, research fellow at the Economic Research Forum and a member of the Saudi Economic Association, told Arab News that the Kingdom is undertaking ambitious and wide-ranging initiatives to attract foreign investment into the defense sector. 'The Saudi Arabian Military Industries is leading these efforts through strengthening strategic partnerships and joint ventures with major global companies,' Saidi said, adding that the Kingdom is firmly committed to technology transfer, local defense manufacturing, and investing in national talent and research and development as integral parts of international defense contracts. He further said that GAMI is working to foster an attractive investment climate, support manufacturers, and leverage Saudi Arabia's considerable defense spending to position the Kingdom as both a regional hub and a global exporter of military products. Reflecting on SAMI's development, Saidi highlighted the company's 'profound transformation and rapid growth' since its establishment, which has made it a cornerstone of Vision 2030. 'SAMI has achieved remarkable growth in its revenues and contracts, expanded its employee base by 633 percent to reach 2,500 male and female employees by 2022, and successfully entered the list of top 100 global defense companies, advancing 19 places to rank 79 in 2023,' he said. Saidi added that, supported by the Kingdom's status as one of the world's top defense spenders, these efforts have shifted Saudi Arabia from a major arms importer into an ambitious, self-reliant player and trusted partner, making it an 'international prize' for global defense companies seeking strategic and profitable partnerships.
Leaders
an hour ago
- Leaders
Norway's Wealth Fund to Announce Israeli Investment Measures, Rules Out Full Divestment
Norway's Finance Minister Jens Stoltenberg announced on Friday that the country's Sovereign Wealth Fund will unveil next week adjustments to how it manages its Israeli investments, according to Reuters. On Tuesday, the government revealed an urgent review of the fund's investments over ethical concerns related to the ongoing war in Gaza and Israel's military rule in the West Bank. 'I see several measures over time, but what can be addressed quickly, must be done quickly,' Stoltenberg told a press conference. Crucially, Stoltenberg did not specify what the measures might entail but emphasized that there would be no blanket divestment from all Israeli companies. 'If we did that, it would mean we are divesting from them because they are Israeli,' he added. The review came after local media reports that noted the fund had acquired a stake in Israeli jet engine manufacturer Bet Shemesh Engines Ltd, which provides services to Israel's armed forces, including the maintenance of fighter jets. As a result, the reports sparked political debate in Norway ahead of the September 8 elections. Stoltenberg stated that discussions between the Finance Ministry and the fund involved the use of external portfolio managers for certain holdings. Moreover, he noted that the Bet Shemesh investment was managed by an external manager, which he did not name. The fund also revealed that it uses three Israeli external fund managers for some of its holdings in the country. At the end of 2024, the fund held shares in 65 Israeli companies, valued at $1.95 billion, its records show. Meanwhile, the fund sold its stakes in an Israeli energy company and a telecoms group in 2024. At the same time, its ethics watchdog is also assessing whether to divest from five banks. Related Topics: Norway, Iceland: Evacuating Gaza is Illegal Forceful Displacement Saudi Embassy in Norway Issues New Instructions for Citizens, Visitors Saudi Ambassador to Norway Presents Credentials to King Harald V Short link : Post Views: 10
