Saudi Arabia to see up to $21bn investment in housing this year

Saudi Arabia’s Ministry of Housing wants 60 percent of Saudis to own homes by 2020. Above, a newly-constructed residential area in Dammam. (Shutterstock)
Updated 08 March 2019
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Saudi Arabia to see up to $21bn investment in housing this year

  • Home ownership growing 6-7% annually, says Minister of Housing Majed Al-Hogail
  • Minister hopes to raise home ownership to 15,000 new households per month by 2020

RIYADH: Saudi Arabia’s housing minister said on Wednesday he expects investments in the real estate financing sector to reach between SR60 billion and SR80 billion ($21.33 billion) in 2019.

Real estate financing for January hit SR4.7 billion, and coming months were expected to see even bigger figures, Majed Al-Hogail told Reuters on the sidelines of a housing conference in Riyadh.

The ministry wants 60 percent of Saudis to own homes by 2020. It is working with local banks to facilitate financing and help developers increase the supply of affordable units.

The private sector is now financing 100 percent of housing market needs, up from 35 percent previously, the minister said on stage at the conference. He said banks provide 93 percent of real estate financing, with real estate financing firms covering the rest.

Saudi home ownership is growing between 6 and 7 percent annually, Al-Hogail said.

He also said he hopes to raise home ownership to 15,000 new households per month by 2020, from a little over 10,000 per month now.

“The average supply of housing units in the Saudi real estate market is between 350 to 375 thousand units across the Kingdom,” he told Reuters. Ninety thousand families access the market yearly, he said, and the government hopes to raise the percentage of home ownership by 7 percent annually.

The Saudi government wants to increase activity in the real estate market as it moves to revitalize the economy, and is taking steps to reform the sector as part of its Vision 2030 strategic plan.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 19 June 2019
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Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.