The Council of Saudi Chambers (CSC) is preparing to hold the third Saudi Arabian-International Real Estate Conference (SAIREC-3) in Riyadh.

Local and foreign consultants in the field of real estate will take part in the event, opening on May 19.

The conference is also expected to attract a wide range of government officials and decision-makers from local and global banks and companies.

The conference takes place with the support of Commerce and Industry Minister Tawfiq Al-Rabiah.

The event will provide a platform to decision-makers from the public and private sectors for discussion, said CSC Chairman Abdullah Al-Mobty.

It will also be an opportunity to exchange experiences with the participants for the implementation of viable projects.

The conference agenda includes focusing on the reality of the sector and its future plans and prospects.

It would also dwell on mechanisms to develop the investment environment and define the role of regulators and licensing bodies in easing procedural or legislative constraints in the sector.

The financing and mortgaging systems will be dealt by experts and bankers, who would also speak on the economic impact following the implementation of this system.

Al-Mobty said the Saudi real estate sector has recently witnessed a number of changes.

“One of the main decisions is the royal decree allocating lands for housing and provision for loans to citizens.

The Ministry of Housing has apportioned SR 250 billion to build 500,000 housing units across the Kingdom. Recently, the Kingdom approved the mortgage law.

According to a recent study, the Kingdom needs 300,000 residential units every year over the next 15 years.

In Riyadh, the lack of affordable homes is especially acute. There is a shortage of 225,000 residential units.

Established by a Royal Decree No.(23), dated 11-6-1974H. Real Estate Development Fund (REDF) started its activities at the beginning of fiscal year 1975 to provide loans to citizens to help them construct their own homes and for investment purposes.

It commenced operations with a capital of SR 250 million and later increased to SR 82,769 million.

During the first 25 years, REDF has granted 443,842 private loans as well as 2,488 investment loans, with a total value of SR 120,144 million, resulting in the construction of 555,866 residential units. REDF’s services have so far reached 3,976 cities, villages and remote areas all over the Kingdom.

“The Kingdom’s real estate market, estimated at SR 55 billion, is the largest in the region and its development would boost the country’s economy,” Hamad Al-Shuweir, chairman of the National Real Estate Council of the CSC, said.

He said 60 percent of the Saudi population is below the age of 18 years and the country would need a large number of houses when they have families.

Al-Shuwair said that there is no cause for hesitation for financial institutions in providing funds to the real estate business since the mortgage scheme would provide the necessary security for their investments in the sector.