Saudi Arabia’s housing minister Majed al-Hogail gave an interview with Bloomberg last week in which he discussed the government’s plans to create its own development company and start a mortgage-guarantee fund to encourage banks to increase lending for Saudis.
“‘We are looking to improve the productivity of the local developers’ but also trying to attract international developers and teaming consultants and builders for some projects,” according to Bloomberg.
Housing and real estate is a challenge for Saudi Arabia as it attempts to find housing for its soaring youth population. One of the first acts by the government was to impose a tax on unused lands, which incentivizes property owners to develop the land or sell it to those who will.
The government is also eyeing mortgage reform and new international partners for the development of affordable housing, though U.S. companies were not part of international partners in talks with Saudi officials for these mega-projects, according to the Bloomberg report.
[Click here to read the full overview of Bloomberg’s conversation with Majed al-Hogail]
