Real Estate Development Fund distributes 3,000 plots to citizens in Hail

Updated 18 December 2012
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Real Estate Development Fund distributes 3,000 plots to citizens in Hail

The Real Estate Development Fund (REDF) has distributed 3,000 plots to citizens in Hail province as part of the government’s efforts to ease the housing shortage in the Kingdom.
The REDF implemented the land grant project in collaboration with the Ministry of Municipal and Rural Affairs. 
Hail is the first province to benefit from the joint program that was launched two months ago.
The preference in the land grant is given to applicants whose names appeared on a list of people selected for REDF’s housing loans. As such, this grant removed the obstacle for a number of citizens who could have been denied their right to build their own homes after receiving REDF loans worth SR 500,000.
The land grant is finalized only after the municipal authorities’ approval and only after they ensure that the beneficiary did not get a land grant on an earlier occasion, Al-Eqtisadiah business daily reported yesterday. 
The new program is expected to bring down property prices and break the hold of real state businessmen on property prices, according to reports. The program also permits the construction of houses at any location; hence it does not constrain the beneficiary to a land plot decided by the real estate businessmen with vested interests.
Hail Gov. Prince Saud bin Abdul Mohsen had earlier urged the fund managers and the Hail municipality to speed up the land grant process in the province.
The program has also asked 16 mayoralties and 244 smaller municipalities to complete the formalities needed for the land grants and to ensure all the applicants for housing loans are fully qualified for the loan.
Fawaz Al-Shamri, director of the Real Estate Development Fund in Hail, reassured citizens that the land grant project would be effective immediately in Hail, thereby allowing the applicants, whose loans were approved, to commence the construction of their houses as soon as possible. 
Economic consultant Abdullah Al-Ajaji said the construction of 500,000 housing units ordered by Custodian of the Two Holy Mosques King Abdullah at a cost of SR 250 billion would help reduce real estate prices and rents.
Another factor that has kept the house prices high is the spiraling land price. 
Unemployment among Saudis is also said to be one of the reasons that intensified the country’s housing crisis. 
According to some studies the housing demand will continue to outstrip supply, requiring SR 500 billion in financing to construct 1.25 million houses by 2014. 
Total real estate financing is also forecast to reach SR 60 billion by 2013.
Hasan Al-Yamani, director at the Abdul Latif Jameel Real Estate Installments, said recently that the new mortgage law would have a moderating effect on the Saudi real estate market over the short to medium-term, allowing up to 80 percent of Saudi citizens to become first-time homeowners.


Qiddiya Investment Company officially established as standalone company

Updated 10 min 22 sec ago
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Qiddiya Investment Company officially established as standalone company

  • The Public Investment Fund has announced Qiddiya as one of three giga-projects and part of Saudi’s Vision 2030
  • Covering 334 square kilometers – 2.5 times the size of Walt Disney World – Qiddiya will shape Saudi Arabia’s multi-sector economy

RIYADH: Qiddiya, the entertainment, sport and cultural destination being built 40 kilometers outside Riyadh, has officially been incorporated as a standalone company as the Qiddiya Investment Company (QIC).
The move cements another key component in its progress toward phase one of completion, scheduled for 2022.
On the heels of the official Qiddiya ground-breaking ceremony last month, the Saudi Ministry of Commerce and Investment has officially incorporated and registered the project as a closed joint-stock company, wholly owned by the Kingdom’s Public Investment Fund (PIF) and subject to Saudi Arabian law.
The project was announced by Crown Prince Mohammed bin Salman on April 7, 2017.
The Public Investment Fund has announced Qiddiya as one of three giga-projects and part of Saudi’s Vision 2030 to create “a vibrant society, a thriving economy and an ambitious nation.”
Covering 334 square kilometers – 2.5 times the size of Walt Disney World – Qiddiya will shape Saudi Arabia’s multi-sector economy, help secure sustainable growth and improve the quality of services to citizens.
By providing a world-class entertainment option inside the Kingdom, QIC will allow the domestic economy to recapture a market share of the $30 billion spent annually by Saudis on foreign tourism. These funds will remain in the Kingdom to be reinvested for the benefit of citizens.
“Incorporation is a key milestone as we move from planning to performance. As a fully independent entity, we will draft our own budget and re-commit ourselves to our responsibilities, as we move forward with this project that has the potential to enrich the lives of all Saudis,” said Michael Reininger, CEO for Qiddiya.
“This step brings us closer to the day when we can satisfy the demand of a powerful and untapped Saudi market for new and accessible activities. It is for these future visitors – the nearly two thirds of the Kingdom’s population under 35, the more than 7 million people who reside within 40 kilometers of our location on the doorstep of Riyadh – that we at Qiddiya Investment Company aspire to build a better future filled with culture, sports, entertainment, and opportunity,” he said.
The ground-breaking ceremony was on 28th April, 2018, an event attended by King Salman and Crown Prince Mohammad bin Salman.