Residential Real Estate Development in Saudi Arabia

Abstract

The decline of world energy consumption in recent years has contributed to dramatic reductions in oil production and, thus, the national revenue for Saudi Arabia, which in turn greatly affects housing development in the country. This paper examines the performance of a housing finance agency established by the government of Saudi Arabia to promote housing production in the private sector. A descriptive analysis of the agency's recent activities shows that the agency has made a significant contribution to the provision of housing stock in Saudi Arabia. Yet real estate development has slowed due to the recent economic recession. Suggestions for urban planners and policy makers on modifying the existing finance policies needed to alleviate the difficulties and to maintain a high level of development are presented.