Observers are voicing their concerns over housing supply and financing opportunities, as Saudi Arabia’s population continues to expand at a rapid pace. And so, on January 16, the public and private sector joined together to discuss ways of tackling the pressing issue of housing finance in the kingdom. Saudi Arabia has a rapidly expanding population with annual growth rates in the region of 2.2% to 2.5%. Riyadh alone is estimated to need 270,000 housing units. Officials estimate that the kingdom needs to build more than 1.5 million units by 2015 if it is to keep up with demographic change. The kingdom’s residential property development has not attracted investment levels seen in other Gulf countries. It is widely accepted that the root of this lies in issues relating to financing. John Sfakianakis, SABB’s chief economist, told a two-day Saudi Arabia housing finance conference that housing represented just 7% of the kingdom’s
