Businessmen Association: Invitations to invest in real estate development in Saudi Arabia

This morning, the Egyptian delegation to the Egyptian Businessmen Association, headed by Eng. Fathallah Fawzy, began his visit to the Kingdom of Saudi Arabia, within the framework of participating in the third Saudi-Egyptian Forum in Riyadh, in coordination with the Real Estate Committee of the Federation of Saudi Chambers.

The head of the Egyptian delegation, Eng. Fathallah Fawzy, Vice-Chairman of the Board of Directors of the Egyptian Businessmen Association, Chairman of the Real Estate Committee of the Egyptian-Saudi Business Council, said that the association’s visit to the Kingdom and participation in the third Saudi-Egyptian Forum in Riyadh comes within the framework of working to increase opportunities for joint cooperation to develop projects in the Kingdom or In Egypt and taking advantage of the comparative advantage of each side, especially in achieving the urban renaissance in accordance with the vision of the two countries 2030.

For his part, Eng. Abdullah bin Muhammad Al-Badir, Deputy Minister of Municipal and Rural Affairs and Housing in the Kingdom of Saudi Arabia, said that the Kingdom’s vision, under the leadership of the Custodian of the Two Holy Mosques and Crown Prince Mohammed bin Salman, paid great attention to the housing program, which comes within the Kingdom’s 2030 vision for sustainable development.

Al-Bdeir added that the housing program began in 2018 with the great desire of the Saudi leadership to enable citizens to own housing by reaching 60% ownership rates in 2020 compared to 47% before the program during 3 years to serve 480,000 citizens.

He stressed that enabling the Saudi citizen to obtain real estate financing is one of the main pillars of the Ministry of Finance and Housing through the Real Estate Finance Fund, in addition to real estate financing through the private sector, which achieved the highest rate of beneficiaries of 20,000 Saudi citizens per month.

He added, the ministry was also interested in entering into a partnership with the private real estate developer to provide housing units through the establishment of a specialized company as an investment and real estate development arm that works on investing and developing lands, as this system enables the Saudi citizen to obtain land and financing together.

He pointed out that the ministry, in a short time, was able to provide 180,000 housing units, and achieved the target of 60% ownership in 2020 and it is targeted to reach 65% in 2025 and 70% in 2030.

He pointed out that the housing system in Saudi Arabia is a real estate development fund, which works as a financier alongside the National Housing Company and the General Real Estate Authority, which is concerned with legislation and regulatory procedures, as well as real estate refinancing companies and citizens’ guarantees.

He added that the housing program includes different segments, including the most needy, through a special program to provide units with the usufruct system without a specific period, pointing to the achievement of 60,000 beneficiaries from all segments and the attraction of real estate developers from the private sector, as the Kingdom made unprecedented achievements in a short period in enabling Saudis can own units and enter into partnership with the private sector to achieve sustainability to serve citizens.

The Deputy Minister of Municipal and Rural Affairs and Housing in the Kingdom of Saudi Arabia called on Egyptian real estate developers to invest in the Kingdom of Saudi Arabia and enter into a partnership with the state, stressing the Kingdom’s readiness to attract Egyptian developers and transfer the Egyptian real estate financing system to the Saudi real estate market.

Engineer Abdel Muttalib Mamdouh Emara, Vice President of the New Urban Communities Authority, said that the urban communities and new cities in Egypt have reached 56 new cities, inhabited by about 10 million people.

He added that Egypt’s vision 2030 is consistent with the vision of the Kingdom of Saudi Arabia in paying attention to low-income and different social strata to own housing units in the same style in Saudi Arabia, which is based on attaching lands and selling them to developers.

Emara explained that President Abdel-Fattah El-Sisi was interested in low-income people owning housing units through real estate financing starting from 2014, as it is targeted to reach one million units by the end of 2024, pointing to the completion of 650,000 housing units through state support for the value of land and facilities other than cash support from 5 Thousands to 35 and real estate financing for 20 years, which brought about social stability for low-income people in Egypt.

He added that the state had proposed many housing projects for the middle segments, including housing projects for Egypt with a total of 100,000 units, and housing Dar Misr and a paradise for about 60,000 units, as well as allowing the purchase of land.

Abdul Rahman Al-Taweel, Undersecretary of the Ministry of Municipal and Rural Affairs and Housing to stimulate the housing supply and real estate development, stressed the Kingdom’s keenness to support the localization of modern construction techniques and to enhance cooperation with Egypt in the areas of real estate development and to enter into partnership with real estate developers.

He added that the Kingdom has a specialized program to support real estate developers, in addition to agreements to control price changes within the permissible limits for inflation and based on governance to ensure price stability and the attractiveness of the real estate sector for investment in the Kingdom.

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