Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has launched a company that aims to digitise and develop the local real estate sector through a comprehensive digital platform.
The National Real Estate Registration Services Company (RER) will work with the Real Estate General Authority and other government entities to build a comprehensive real estate registration database covering data on property units in Saudi Arabia, PIF said in a statement on Sunday.
“The new company’s use of advanced digital solutions in its operations, enabling it to link its platform to all relevant government entities, will enhance reliability and transparency in real estate services and data in Saudi Arabia,” said Raid Ismail, co-head of Middle East and North Africa direct investments at PIF.
“This in turn will increase the attractiveness of the investment ecosystem, and grow the value of national real estate assets.”
Saudi Arabia has set an ambitious target of raising home ownership rates in the kingdom to 70 per cent by 2030 under the Sakani programme — a joint initiative between the Ministry of Housing and the Real Estate Development Fund.
The fund distributes land plots and arranges home loans for Saudi citizens seeking to build homes.
Home ownership rates in the kingdom have risen amid government support to its citizens.
According to the Ministry of Housing, the home ownership rate rose to 60 per cent in 2020 from 47 per cent in 2016, with the target exceeded by more than 8 per cent during the period.
The newly formed RER will also provide property registration services, PIF said.
It also aims to improve the quality of services and access for beneficiaries by developing procedures and mechanisms for registration.
The company will adopt digital services to create a real estate registration database that includes public, commercial, residential and agricultural units and their geolocation data.
“This move will contribute to the sustainable development of the sector and promote transparency in real estate services and transactions,” the statement said.
Setting up the company is in line with PIF’s strategy, which focuses on developing key sectors in Saudi Arabia, including real estate.
The move is also part of the fund’s initiative to use advanced technology to support the national economy in accomplishing Vision 2030 objectives to overhaul the economy and reduce its dependence on oil.