RIYADH: Saudi Arabia’s real estate regulatory framework spurred significant growth in 2024, with 192 project licenses issued, totaling SR147 billion ($39 billion), according to a top official.
During the opening remarks of the fourth Real Estate Future Forum held in Riyadh, Saudi Minister of Municipalities and Housing Majid Al-Hogail said that the General Authority for Real Estate initiatives aims to enhance market transparency, attract investment, and regulate off-plan developments.
“The regulatory framework has contributed to significant growth over the past year, with the issuance of 192 licenses for projects exceeding a total value of SR147 billion, equivalent to $39 billion,” Al-Hogail said.
He added: “With the launch of real estate legislative initiatives, we have seen growth across all relevant fields. This regulatory framework aims to facilitate and regulate off-plan real estate project development provisions, from the licensing process to project completion.”
The forum is a unique platform uniting investors, consultants, and decision-makers from 120 countries under one umbrella.
It features over 500 speakers from both the public and private sectors, aiming to not only discuss the future of real estate but also shape a clear, unified vision that reflects shared ambitions and aspirations.
“The forum creates international high-quality opportunities to explore our real estate sector and enhance the quality of life, based on sustainable cities equipped with services that meet the expectations of residents in the Kingdom,” Al-Hogail said.
He added: “We are committed to continuing our efforts to ensure the sustainability of the real estate sector, attracting more international investments while creating a highly regulated environment that turns challenges into opportunities.”
Al-Hogail said that Saudi Arabia’s real estate sector has evolved from traditional urban development to become a key driver of both economic and social progress, with a strong focus on sustainability and innovation.
“We are at a crossroads where experience, innovation, and agility converge, turning dreams into reality. Our message to investors and innovators is clear — that the Kingdom is not just a place inclusive to project,” he said.
The minister also said that over the past several years, more than 20 key real estate regulations have been introduced by the General Authority for Real Estate, enhancing market transparency, attractiveness, and authenticity.
“These regulations have positioned the Saudi real estate market as one of the fastest-growing sectors globally, as highlighted in the 2024 Global Real Estate Transparency Index report,” Al-Hogail said.
Al-Hogail told Arab News on the sidelines of the event that Saudi Arabia's real estate sector has seen significant growth in recent years, fueled by regulatory reforms and enhanced market transparency.
He said Saudi Arabia is now ranked among the highest in terms of market transparency. These developments signal how attractive the Saudi market has become for developers and investors, the minister added.
“Today, the head of the CMA announced new regulations allowing foreign investment in local companies," Al-Hogail said.
Abdullah Al-Hammad, CEO of the Real Estate General Authority, said that the real estate sector’s contribution to the gross domestic product reached 12 percent, reflecting its growing importance in the national economy.
“The real estate sector achieved the highest participation rate in the labor market, with 25 percent of the participants in the social insurance system,” Al-Hammad said, emphasizing the sector’s role in employment generation and economic diversification.
He also said that more than 1130 licenses for foreign real estate investments were issued during the third quarter of 2024, demonstrating increased international interest in the Saudi market.
The first day of the event included announcements including the National Housing Company launching its new technology-focused company, NHC Innovation, to provide innovative real estate and municipal solutions and develop new technologies that meet market aspirations.
Announced by the CEO of NHC Mohammed bin Saleh Al-Buty, the new company will serve as an innovative technological arm, utilizing the latest technologies and best practices to develop solutions that contribute to sustainable growth.
The strategic expansion represents a significant move toward delivering technological solutions that meet market ambitions and enhance excellence and competitiveness in the real estate and municipal sectors.
NHC Innovation is set to develop and operate more than 400 services across 10 digital real estate platforms, serving over 19 million users.
These platforms include Sakani, Balady, Ejar, Forsah, and others, offering smart and advanced solutions to enable digital transformation in the real estate and municipal sectors.
The company focuses on providing innovative services that cater to evolving market needs while emphasizing sustainability and technological advancement.
This aligns with the objectives of Saudi Arabia’s digital transformation strategy, positioning the Kingdom as a global hub that supports competitiveness in the technology sector.
The minister of municipalities and housing, the minister of industry and mineral resources, and the CEO of NHC participated in the signing ceremonies of agreements between the company and government entities and the private sector, with a total value of approximately SR30 billion.
One of the agreements is a memorandum of understanding signed between Asir Region Municipality and AMEK Group in tourism creation and adventures for up to SR600 million.
The Ministry of Industry and Mineral Resources also signed an MoU to collaborate on supply chains and industrial link programs to support and lead local content in the real estate development sector
King Abdulaziz City for Science and Technology also signed an MoU, in cooperation with Al Saif Company which focuses on collaboration in developing construction and building using off-site construction technologies.
The NHC signed supply chain service agreements with several real estate development companies to enhance the success of real estate development projects and ensure the sustainability of quality and efficiency.
The company also signed an open purchase agreement with Zamil Air Conditioners Factory and Alfanar Construction Systems, to secure supply chains for air conditioning works, and ensure a steady supply for construction needs.
The Kingdom’s Vision 2030 reforms have positioned the country as a leader in real estate development, combining innovation, sustainability, and economic growth.
In a press statement, Al-Hogail stated the event reinforced the importance of the public sector in attracting investments and discussing ideas that will significantly advance the real estate sector.
“In 2024, we recorded substantial growth in the real estate sector, reaching 6.49 percent, an increase of 14 percent compared to last year. We also observed growth in the construction sector, reaching 5.49 percent, reflecting a 7 percent increase from the previous year,” he said.
Al-Hogail added: “According to economic modeling and experts, the municipal sector achieved a 14 percent participation rate, further emphasizing the significant developmental role Saudi Arabia is playing across its sectors.”
Regarding the housing sector, the minister stated that 2025 will be a landmark year for the delivery of residential units.
“We aim to provide more than 20,000 housing units priced at less than SR450,000 for citizens eligible for financial support, offering them special pricing. This initiative will help achieve market price balance,” Al-Hogail said.
He continued: “Furthermore, we plan to deliver over 140,000 housing units in collaboration with private sector partners, with an average price of less than SR850,000 in major cities. This will greatly contribute to the economic and developmental momentum, impacting supply chains and accelerating project implementation.”
In response to inquiries about policies, supply chains, and agreement signings, Al-Hogail noted that these aspects are part of the acceleration of construction and development.
“We have signed agreements with many local factories to establish manufacturing facilities within housing projects, such as Khuzam and Al-Fursan, ensuring that these projects proceed on schedule and provide a wide range of products to citizens,” he said.
The minister laid emphasis on the Kingdom’s commitment to increasing homeownership rates as part of its broader efforts, which aims to provide affordable housing solutions for citizens and create a sustainable living environment.
As part of these efforts, the government is also focusing on privatizing the municipal sector to enhance efficiency and service delivery
