The housing programme is a welcome move that will help tackle the issue of affordable housing. Fahad Shadeed / Reuters
The housing programme is a welcome move that will help tackle the issue of affordable housing. Fahad Shadeed / Reuters

Saudi Arabia unveils new housing programme to boost home ownership



Saudi Arabia unveiled a 120 billion riyals new housing programme as the kingdom seeks to boost Saudi ownership of homes from 47 per cent to 70 per cent by 2030.

The kingdom’s programme includes an 18bn riyal loan-guarantee programme to boost access to funding, and 12.5bn riyals to support home down payments, all to be spent through 2030, Housing minister Majed Al Hogail told Bloomberg. Authorities want to expand the mortgage market by more than 70 per cent to reach 502bn riyals by 2020, largely through increased private-sector participation, he added. The government provides 65 per cent of home loans.

The housing programme is a welcome move that will help tackle the issue of affordable housing, analysts said.

“On the demand side, the issue has always been affordability,” said James Reeve, chief economist at Samba Financial Group, one of the biggest lenders in the kingdom. “That is, most Saudis want housing but cannot afford what is on offer. Since the passage of the mortgage law, bank mortgage lending has slowly picked up, and these latest measures should help to bolster lending still further.”

_____________

Read more:

_____________

Sixteen government institutions are taking part in the programme that aims to provide a wide choice of housing units at prices that suit various segments of Saudi families, state-run Saudi Press Agency said.

Saudi Arabia, the world’s biggest oil exporter, is implementing various initiatives as part of reforms aimed at overhauling the economy under Vision 2030, an overarching roadmap.

The government has unveiled a number of initiatives to address the housing issue.

The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, set up last year a real estate refinancing company that will help to pump liquidity into the real estate financing market, which is forecast to rise to 500bn riyals by 2026 from 280bn riyals in 2017. The company, which was launched in partnership with the ministry of housing and has received a licence from the Saudi central bank, the Saudi Arabian Monetary Authority (Sama), is expected to refinance up to 75bn riyals worth of mortgage debt over the next five years, reaching 170bn riyals by 2026.

Last year Sama revealed mortgage measures aimed at galvanising the housing market. Mortgage holders will be exempt from paying administrative fees when they switch between floating loan rate to fixed loan rate and they can also move from one mortgage lender to another at no extra cost, the kingdom's financial regulator said.

Sama also said last year it would allow mortgage finance companies to provide more funding to home purchases by raising the maximum loan-to-value ratio for home financing from 70 per cent to 85 per cent for citizens' first home ownership only. The bank licensed a national home finance company, Bidaya and introduced an affordable mortgage programme in conjunction with the ministry of finance. The government has also implemented a 2.5 per cent "white land tax" to prod land owners to develop idle plots for residential use rather than hold on to their undeveloped properties.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

ROUTE TO TITLE

Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2

The bio

Favourite food: Japanese

Favourite car: Lamborghini

Favourite hobby: Football

Favourite quote: If your dreams don’t scare you, they are not big enough

Favourite country: UAE

The biog

Occupation: Key marker and auto electrician

Hometown: Ghazala, Syria

Date of arrival in Abu Dhabi: May 15, 1978

Family: 11 siblings, a wife, three sons and one daughter

Favourite place in UAE: Abu Dhabi

Favourite hobby: I like to do a mix of things, like listening to poetry for example.

Favourite Syrian artist: Sabah Fakhri, a tenor from Aleppo

Favourite food: fresh fish

RESULTS

5pm: Sheikh Mansour bin Zayed Racing Festival – Handicap (PA) Dh100,000 (Turf) 2,200m
Winner: Suny Du Loup, Pat Dobbs (jockey), Hamad Al Marar (trainer)
5.30pm: Sheikh Mansour bin Zayed Racing Festival Cup – Conditions (PA) Dh150,000 (T) 1,600m
Winner: Nadia Du Loup, Antonio Fresu, Sulaiman Al Ghunaimi
6pm: Sheikha Fatima bint Mubarak Cup – Conditions (PA) Dh150,000 (T) 1,600m
Winner: Dareen, Dane O’Neill, Jean de Roualle
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup – Group 3 (PA) Dh500,000
Winner: AF Alwajel, Pat Dobbs, Ernst Oertel
7.15pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown – Group 1 (PA) Dh5,000,000 (T) 2,200m
Winner: First Classs, Ronan Thomas, Jean De Mieulle
8pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup – Listed (TB) Dh380,000 (T) 1,600m
Winner: San Donato, Pat Dobbs, Doug Watson
8.30pm: Wathba Stallions Cup – Handicap (PA) Dh100,000 (T) 1,600m
Winner: AF Rasam, Fernando Jara, Ernst Oertel

Teaching your child to save

Pre-school (three - five years)

You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.

Early childhood (six - eight years)

Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.

Middle childhood (nine - 11 years)

Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.

Young teens (12 - 14 years)

Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.

Teenage (15 - 18 years)

Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.

Young adulthood (19 - 22 years)

Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.

* JP Morgan Private Bank 

Results

2-15pm: Commercial Bank Of Dubai – Conditions (TB) Dh100,000 (Dirt) 1,400m; Winner: Al Habash, Patrick Cosgrave (jockey), Bhupat Seemar (trainer)

2.45pm: Al Shafar Investment – Handicap (TB) Dh80,000 (D) 1,200m; Winner: Day Approach, Ray Dawson, Ahmad bin Harmash

3.15pm: Dubai Real estate Centre – Handicap (TB) Dh80,000 (D) 1,600m; Winner: Celtic Prince, Richard Mullen, Rashed Bouresly

3.45pm: Jebel Ali Sprint by ARM Holding – Listed (TB) Dh500,000 (D) 1,000m; Winner: Khuzaam, Pat Dobbs, Doug Watson

4.15pm: Shadwell – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Tenbury Wells, Royston Ffrench, Salem bin Ghadayer

4.45pm: Jebel Ali Stakes by ARM Holding – Listed (TB) Dh500,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson

5.15pm: Jebel Ali Racecourse – Handicap (TB) Dh76,000 (D) 1,950m; Winner: Rougher, Pat Dobbs, Doug Watson

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Sheer grandeur

The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.

A clear distinction between the residences and the Raffles hotel with the amenities operated separately.

ENGLAND SQUAD

Goalkeepers Henderson, Pickford, Pope.

Defenders Alexander-Arnold, Chilwell, Coady, Dier, Gomez, Keane, Maguire, Maitland-Niles, Mings, Saka, Trippier, Walker.

Midfielders Henderson, Mount, Phillips, Rice, Ward-Prowse, Winks.

Forwards Abraham, Barnes, Calvert-Lewin, Grealish, Ings, Kane, Rashford, Sancho, Sterling.

The specs

Engine: four-litre V6 and 3.5-litre V6 twin-turbo

Transmission: six-speed and 10-speed

Power: 271 and 409 horsepower

Torque: 385 and 650Nm

Price: from Dh229,900 to Dh355,000

Specs – Taycan 4S

Engine: Electric

Transmission: 2-speed auto

Power: 571bhp

Torque: 650Nm

Price: Dh431,800

Specs – Panamera

Engine: 3-litre V6 with 100kW electric motor

Transmission: 2-speed auto

Power: 455bhp

Torque: 700Nm

Price: from Dh431,800

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded


Latest
Most Read
Top Videos

On The Money

Make money work for you with news, features and expert analysis

      By signing up, I agree to The National's privacy policy
      On The Money