RIYADH, 27 October 2003 — In a move to provide housing facilities to needy Saudis, Riyadh Governor Prince Salman launched a housing project here last night. The move is intended to provide amenities for citizens and to alleviate poverty in the Kingdom which has already set aside a SR200 million fund and set up a working group to prepare a strategy to combat poverty.
Prince Salman inaugurated the project by laying the foundation stone for the Prince Salman Charitable Housing Project in the Al-Badea Quarter here. He donated SR3 million to the remaining three phases of the project. Speaking on the occasion, Dr. Abdul Aziz ibn Muhammad Al-Muqrin said, “Government agencies are mapping out a future strategy to cater to the housing needs of the growing population of Riyadh in general and the population of the country in particular.
“Coping with the housing problems of the capital which is expected to grow at a rate of eight percent annually during the next decade has been our priority,” he said.
Referring to the growth of Riyadh, a report released on the occasion said that the population will exceed 10.5 million in 2022, requiring some 1.5 million additional housing units. The total area of Riyadh will also expand proportionately and grow to some 1,800 sq km during the next few decades from its current area of 800 sq km.
Though several government agencies have helped Saudi citizens to own houses, the problem seems to be compounded by the heavy influx of Saudis and expatriates to the Kingdom’s urban centers.
One agency helping to build houses is the Real Estate Development Fund (REDF) which extends housing loans to Saudi citizens. The loan covers more than 70 percent of the construction costs of the housing units. The REDF, with a working capital of over SR74 billion, offers two types of loan — private and investment.
More than 3,415 cities and villages all across the Kingdom have benefited from REDF loan facilities so far. “Every Saudi citizen is entitled to get a private loan, which can be used to finance the construction of a housing unit for residential purposes,” said the report, adding that private loans were also offered to orphans, widows and divorcees on a priority basis.
Last night’s event was attended by members of the royal family, a number of local businessmen, high-ranking officials and local building planners. Many businessmen and companies have also donated substantially to the housing project.
