The strategic plan of the Ministry of Municipal, Rural Affairs and Housing

 The strategic plan of the Ministry of Municipal, Rural Affairs and Housing 2020-2022

 

Strategy of the Ministry of Municipal, Rural Affairs and Housing

 

Vision 2030 comes with a comprehensive plan and specific goals that include all areas of the municipal and residential sectors, to create a vibrant society and build an economy that is characterized by diversity and sustainability. The year 2030, and improving the urban landscape by improving the quality of municipal services provided in Saudi cities, according to a sound vision and the support of wise leadership and an ambitious country that continues to achieve its goals.

Strategic pillars of the Ministry of Municipal, Rural Affairs and Housing

Spatial planning and urban landscape

1. Increase visual appeal
2. Improving the quality of living
3. Activating urban sustainability
4. Land and real estate management
5. Transparency in municipal property
6. Land management efficiency

Infrastructure

1. Coverage of infrastructure projects and maintenance
2. Efficient project delivery
3. Quality assurance of infrastructure projects
4. Hygiene and public health
5. Improve cleaning services
6. Improving public health services
7. Awareness and enforcement

stimulating offer

1. Stimulate the supply of housing units
2. Enhance land availability and reduce monopoly
3. Increase visual appeal

Enable the request

1.  Enabling the most needy families to obtain housing
2. Legislation and compliance
3. Activate stimuli to increase compliance
4. Developing the control system
5. Legislative effectiveness
6. Raising the efficiency of the real estate development system

financial sustainability

1. Ensuring that revenue from fees and fines is commensurate with the cost of services
2. privatization of municipal services
3. Developing investment revenues
4. Increasing the efficiency of capital and operating expenditures
5. Optimal budget planning

Institutional excellence

1. Attracting, developing and maintaining qualified cadres
2. Improving the level of institutional maturity
3. Developing institutional communication and raising awareness of the ministry's services and products
4. Enhancing social participation and responsibility
5. Activating innovation in providing services     

Digital transformation and data

1. Digital transformation and smart cities
2. Make use of the data
3. Improve the beneficiary experience

Initiatives and contributions of the Kingdom of Saudi Arabia to improve the field of housing

1. Listing and documenting lands and real estate units based on a unified cadastral reference and updated topographical maps to speed up the real estate registration.
2. Developing the municipal real estate investment system
3. Land joint investment agreements
4. Develop public benefit markets by operating them by the private sector
5. Studying and developing the sites of the invasions and peaceful historical sites in the cities of the guests of Rahman
6. Studying and designing a smart cities platform for managing municipal assets in the cities of Guests of Rahman (the integrated cloud center for control and leadership)
7. Improving the revenues of the Ministry of Municipal and Rural Affairs
8. Developing the smart environmental system in Makkah Al-Mukarramah and the holy sites
9. Studying, establishing and developing pedestrian roads linking the neighborhoods of Makkah Al-Mukarramah, the Grand Mosque and the holy sites
10. Studying, developing and improving the visual landscape in the cities of Diouf Al-Rahman
11. Studying the development of the municipal services system and other services related to rituals for the pilgrims
12. Study and development of slums adjacent to the central region in Makkah and Madinah
13. Studying, developing and preparing municipal facilities and services to serve the pilgrims
14. Establishing a center of excellence for urban design
15. Facilitating the procedures for obtaining municipal services, unifying and automating them, and enforcing the electronic link with the relevant authorities
16. Developing and operating technical work in the Ministry, secretariats and municipalities
17. development of the Farasan Islands
18. Development of population density
19. Evaluate and treat dangerous sites and prepare existing urban roads with the necessary traffic safety elements
20. An integrated policy program for the development of the transport system
21. Listing and documenting lands and real estate units based on a unified cadastral reference and updated topographical maps to speed up the real estate registration.
22. Developing the municipal real estate investment system

The Kingdom's achievements in the field of municipal and rural affairs and housing

• Providing various housing options and solutions that meet the desires of Saudi families

The housing programs offered by the housing program have worked to provide many financing solutions and housing options, which include: ready-made units, self-build units, units under construction, and free residential lands, to enable Saudi families to own their first home.

•  Abolition of the concept of waiting for housing support from 15 years to immediate entitlement

The waiting period for obtaining financing was up to 15 years from the time of submitting the application, and obtaining real estate financing became immediate, following the launch of the housing program and the development of financing solutions and improvement of procedures, whereby citizens can today benefit from housing products and obtain 0 to 5 loans riyals, with a subsidy rate of 100%.

• The growth of real estate financing contracts and recording unprecedented records

Enabling the citizen to obtain real estate financing immediately from banks and financing institutions without waiting, in addition to providing the necessary guarantees and support through the subsidized real estate financing product.

• The state bears the real estate disposal tax for the first residence

The state bears the real estate disposal tax up to one million riyals from the value of the citizen's first home, which contributes to reducing the financial burdens of owning a home.

• Establishing several entities to serve and support the housing system

The state has established many institutions with the aim of providing support and service to the housing sector and keeping pace with real estate development, including these institutions

•  National Housing Company
• Real Estate General Authority
• Saudi Real Estate Institute
• The Saudi Center for Real Estate Arbitration
• Organizing the rental sector and preserving the rights of its parties

Through the launch of the rental platform, which aims to develop the rental sector and regulate it to preserve the rights of the landlord, the tenant and the real estate broker, and the adoption of the unified contract as an executive document, to establish a regulated and reliable rental real estate market.

•  white land development.

The development of more than 411 million square meters of land has been targeted in the main cities: Riyadh, Jeddah, Dammam and Makkah, and a plan has been put in place to expand the application of fees to 17 other cities.

• Follow modern mechanisms in the new residential construction.

Accelerating the pace of development and contributing to cost reduction, as more than 62,000 housing units are being developed according to the approach of modern construction methods, and an integrated house has been successfully built using 3D printing for the first time in the Middle East as one of the future housing options.

Launching the real estate project (Roshen)

It is a national real estate development company wholly owned by the Public Investment Fund, working to develop integrated residential neighborhoods that provide a modern lifestyle according to the highest standards for the citizens of the Kingdom.

Programs of the Ministry of Municipal Affairs and Housing:

The Ministry of Municipal, Rural Affairs and Housing has achieved digital transformation in all fields, to enhance digital transformation and achieve the ministry's strategic objectives in the municipal and housing sectors according to a sustainable digital system that aims to reach leading services for smart and innovative digital cities that provide a prosperous life for customers, develop new business models and innovative customer journeys, and enable Investment opportunities in data and services, raising the level of customer satisfaction and participation, as well as providing unified and reliable data to improve the flexibility and efficiency of the digital system.

municipal programmes

The national portal of the municipal community

The "Baladi" portal was developed in cooperation with the various municipal sector entities to be the national portal that supports the municipal community. This portal includes all electronic services that help submit electronic applications to obtain the most frequently used licenses, as well as information services that help beneficiaries to make relevant decisions, which contributes to improving the level of satisfaction with the municipal sector entities. This is to achieve a main goal, which is to improve the quality of the level of municipal services provided to all the secretariats and municipalities of the Kingdom, and to activate the role of beneficiaries as active partners, while improving the level of their satisfaction and enhancing the level of transparency between the municipal sector entities. Municipal Investment Portal: In an effort to provide a unified database, to become the main reference for the investor looking for investment opportunities offered by the municipalities and municipalities, which have a significant impact on the development of the cities and villages of the Kingdom. The Ministry has designed an opportunity portal with modern and advanced technology, which provides many advantages, the most important of which is the ease of searching and accessing various opportunities with the least time and effort, without the hassle of traveling to the headquarters of the secretariats and municipalities to identify them. Investors can benefit from the services provided at the click of a button through the website or smart phone applications. The portal also provides feasible investment opportunities, diverse in its activity, size and locations, and investment opportunities that contribute to the development and development of the cities and villages of the Kingdom. The (Opportunities) platform is a modern portal that facilitates the search for opportunities and access to all their details. It also allows the purchase of bids and the signing of contracts electronically. The portal also provides feasible investment opportunities, diverse in its activity, size and locations, and investment opportunities that contribute to the development and development of the cities and villages of the Kingdom. The (Opportunities) platform is a modern portal that facilitates the search for opportunities and access to all their details. It also allows the purchase of bids and the signing of contracts electronically. The portal also provides feasible investment opportunities, diverse in its activity, size and locations, and investment opportunities that contribute to the development and development of the cities and villages of the Kingdom. The (Opportunities) platform is a modern portal that facilitates the search for opportunities and access to all their details. It also allows the purchase of bids and the signing of contracts electronically.

housing programmes

• Residential programme

In an effort to provide many housing solutions to citizens and facilitate the decision to own the first home, the government launched the (sakani) platform, by offering various real estate units in residential projects spread throughout the Kingdom, which can be owned with easy payment systems. This platform is a big step in the real estate field, and an opportunity for developers to set up multiple projects. To stimulate the real estate market and the economy in the Kingdom.

• rental program

In order to raise the efficiency of the real estate rental sector and enhance confidence in it, the Ministry launched the (Ejar) platform, which is an integrated electronic network that aims to regulate the real estate rental sector in the Kingdom of Saudi Arabia and preserve the rights of the parties to the rental process (tenant, landlord, real estate broker). A set of electronic solutions that contribute to the development, organization and facilitation of the real estate rental sector, in order to achieve balance in the sector and contribute to stimulating investment in it.

•  completion platform

The Kingdom has paid attention to improving the performance of the real estate sector and raising its contribution to the GDP, so it launched the Developer Services Center (Etmam platform), which aims to facilitate the procedures for conducting real estate development work through excellence in providing one-stop services for real estate developers, to become an integrated digital platform that speeds up operations Accreditation and approvals for real estate development with stakeholders, and providing integrated consulting solutions to real estate developers, in a way that contributes effectively to the development of the real estate development sector.

• Malak program  

It is a program that allows owners to create an association that includes all the owners of residential units with common parts, as this association facilitates their access to services, communication, and organization of the facility. The program also aims to manage buildings with common parts, and even to create a healthy and organized residential environment that creates a quality of life, well-being and joint comfort in the long term, which is achieved through the program’s keenness to regulate the relations between the owners of real estate units of joint ownership by developing and applying the approved systems and regulations.

• Wafi program

It is the authority legally authorized to issue licenses to engage in the activity of selling real estate units off-plan in the Kingdom of Saudi Arabia, and to issue registration certificates in the Real Estate Developers Register for real estate development companies, with the aim of preserving the rights of citizens, so that (Wafi) becomes the trustworthy incubator for real estate sector investments in the Kingdom in order to protect and achieve satisfaction. Beneficiaries and maintain their entitlements by organizing off-plan sales and rental activity in the real estate market.

•  Cooperative housing

The Cooperative Housing Program is one of the initiatives of the Ministry of Housing that contributes to achieving the Kingdom's Vision 2030, which aims to organize and stimulate the cooperative societies sector with housing purposes to contribute to providing affordable housing units, by developing and developing the legal foundations for cooperative housing, building the capacities of cooperative societies and spreading awareness, in The context of achieving a set of goals, namely; Spreading the culture of cooperative housing, stimulating and empowering housing cooperative societies, contributing to reducing the value of home ownership, developing the regulatory and legislative environment for housing cooperative societies, stimulating the real estate supply and raising productivity to provide cooperative housing products at the appropriate price and quality.

• Development housing

The Developmental Housing Program seeks to provide housing units for the most needy families in society, who are covered by the Ministry of Human Resources and Social Development "Social Security" and have a completed application in the housing support portal "Eskan". The housing units are provided to the most needy families through various options, including; The Ministry's housing units, which are available in all regions of the Kingdom, constructing and building new housing units, or through the direct purchase of suitable and available housing units. In order to ensure that the needs of families are quickly met, partnership agreements have been concluded with approximately 300 civil society organizations spread across all governorates of the Kingdom, to undertake the tasks of communication, visiting families, assisting them in determining suitable housing, following up on delivery, managing and operating housing units.

• sustainable construction

The Ministry of Housing seeks to find a number of solutions and initiatives that contribute to achieving its goals in increasing the percentage of citizens' ownership of housing units, and regulating the real estate sector. Accordingly, the Ministry launched the sustainable building platform, which aims to provide a number of services that contribute to the sustainability of housing units as follows:

Examination of construction quality,  where the building obtains an official certificate of execution quality after applying the quality mechanism of construction execution work through accredited examiners and after passing all examination stages

Examination of prefabricated buildings,  which is a mechanism for examining the quality of existing buildings through accredited examiners, according to which a detailed report is issued on the condition of the housing unit.

Building Sustainability Assessment  is a mechanism for evaluating a building's compliance with environmental sustainability standards. According to the evaluation, the building receives a classification that determines the degree of compliance of the building with sustainability standards.

The quality inspection service for contractors' compliance with the classification  allows contractors to obtain a report showing the contractors' commitment to quality and safety standards to preserve the urban landscape.

• Partnership program

The Partnership Program with the Private Sector (Sharakat) is the new strategy of the Ministry of Housing to create a vital partnership with the private sector to provide housing solutions and products that are compatible with the needs of citizens at competitive, subsidized prices. Its goals and strategy revolve around; Researching and studying agreements between the government and the private sectors, exchanging experiences and available assets between the two parties, providing the most appropriate services and products to achieve public benefit, approving the eligibility to participate in risks and resources, examining ways and means that can respond to the increasing housing demands and demands, finding optimal and appropriate housing products For the needs of the citizen, providing all the products that suit the Saudi citizen at a price that is commensurate with his income, and providing all this and more with the utmost quality.

• Saudi Real Estate Institute

The Saudi Real Estate Institute is one of the initiatives launched by the Ministry of Housing to achieve the vision of the Kingdom of Saudi Arabia 2030, as it constitutes the first educational entity specialized in the field of real estate sciences in the Kingdom, in cooperation with local and international partners and houses of expertise in the real estate field. The institute specializes in spreading international best practices in the real estate sector, and is considered the academic arm of the General Real Estate Authority. Saudi Arabia. The Modern Building Initiative The Modern Building Methods Initiative was launched as part of the housing system, to lay down the basic pillars to support the transformation process from traditional construction to modern construction, and to invest in advanced technologies and contribute mainly to keeping pace with industrial development and confirming the Kingdom's leadership in this field, in order to enable citizens to Finding housing that meets aspirations in record time with high quality and competitive cost. In the interest of implementation in accordance with the aspirations of the country and the citizen; The initiative is supervised by the Housing Program, the National Industry Development Program and Logistics Services, with the support of the private sector stimulus plan.

• Value added tax for the first residence

The noble Royal Decree No. (A/86) dated 4/18/1439 AH stipulates that the state shall bear the value-added tax of no more than an amount of (850,000 riyals) from the purchase price of a citizen’s first home, in order to reduce the cost of owning a suitable home for citizens. Real Estate Development Fund: In order to achieve integration with the Ministry of Municipal, Rural Affairs and Housing to implement its programs related to beneficiaries and work professionally to provide effective financing and investment solutions that enable segments of society to obtain adequate housing, the Real Estate Development Fund was launched, with the aim of providing and creating diverse and balanced financing programs to suit all segments of society, support financing and real estate investment through effective partnership with the public and private sectors, in addition to increasing the supply of residential products in quantity and quality, and achieving the quality of the housing product and the appropriate period of receipt.

Housing Program 2030

The housing program works to provide housing solutions and financing options to enable Saudi families to own suitable housing, either through ownership or usufruct, according to their needs and financial capabilities, in parallel with increasing the supply of housing options that are implemented at reasonable prices, less time and with high quality, and providing specialized housing programs for all groups. The most needy in society, and developing the legislative and regulatory environment for the housing sector to increase its economic impact and enhance its attractiveness to the private sector and develop local content, which contributes to creating job opportunities in the sector, and enhancing its participation in the gross domestic product.

housing program achievements

•  The housing program announced that it had achieved its strategic goal of reaching 60% ownership in 2020, compared to 47% before the launch of the program in 2016. The program also confirmed its continuation of achieving its goals by supporting Saudi families and enabling them to own or benefit from the first home.
• The program was able to cancel the concept of waiting for housing support and provide immediate entitlement to citizens by providing financing solutions and various housing options, which contributed to the benefit of more than 834 thousand Saudi families, of which more than 310 thousand families inhabited their homes.
• The program provided adequate housing for the most needy families, by providing more than 46,000 housing units in various regions of the Kingdom, and the Good Housing platform was launched, which is concerned with providing an opportunity to involve the community to provide a helping hand for charitable housing giving in cooperation with 121 charities, as the platform contributed to supporting More than 23,000 families, with community contributions exceeding 400 million riyals.
• The program adopted the use of modern construction techniques to accelerate the pace of development and contribute to reducing the cost, as the number of developed housing units reached more than 62 thousand housing units. The white land fee system was also applied to total areas exceeding 400 million square meters and the collection of more than 1.4 billion riyals to be invested in developing Infrastructure for housing projects.
• The housing program provided more than 141,000 housing units by activating partnership with real estate developers and strengthening partnership with banks and financing institutions, to facilitate the provision of real estate loans to Saudi families, which contributed to the growth of the number of real estate loans from 20,000 contracts in 2016 to 295,000 contracts in 2016. 2020, and the Saudi Real Estate Refinance Company was launched to enhance liquidity in the financing market.
• High contribution of the housing program to the GDP: High contribution of the housing program to the GDP: The contribution of the real estate and building and construction sectors amounted to 115 billion riyals, during the first period of the program 2018-2020. Where more than 39,000 direct job opportunities were created during the period 2018-2020. Non-governmental investment in the real estate sector amounted to more than 254 billion riyals in 2020. The real estate sector is the second largest catalyst for the growth of more than 120 economic activities, and provides the necessary foundations for building a vibrant community.
•  Facilitating the ownership procedures through a sakani application and the comprehensive sakani center:

Through the provision of advanced digital services and platforms characterized by their speed and ease, including: A residential application for smart phones: which allows immediate registration and entitlement, reservation of housing units, issuance of price offers, reservation of free lands and issuance of contracts thereof, while the application process has been downloaded more than 7 million times.

• Real estate advisor service: which provides recommendations and the best financing offers to beneficiaries, to facilitate appropriate financing decision-making by banks and financing institutions, as the total number of beneficiaries reached more than 800 thousand beneficiaries.
• Engineering designs and immediate issuance of building permits: which provided 25 typical engineering designs with the possibility of immediate issuance of building permits to reduce pre-construction procedures and at a lower cost.
•  Establishing a comprehensive housing center: and operating it in Riyadh, Jeddah and Al-Khobar to provide all housing options and solutions under one roof, as all projects of developers and financing agencies are located in the center to complete the procedures for the beneficiaries in one visit.

The housing sector succeeded, within a few years, in exceeding its targets by providing its services immediately to Saudi families, and reaching a home ownership rate of 60% in 2020. Perhaps the most prominent of the numbers brought by the statistic is something to be proud of. The percentage of homeownership increased to 62%, with a decrease in the percentage of rented housing to 35.49%.

 

Ministry Strategies Archive

 

 ​To review the Ministry's strategy for the year 2018-2020,  click here

 ​To view the Ministry's strategy for the year 2016-2018,  click here