Housing Policy Recommendations for Saudi Arabia

Client 

Saudi Ministry of Housing >   Omrania >


Client Type 

Government

Year 

2013


Status 

Completed

Project Summary

The Ministry of Housing in Saudi Arabia (MOH) commissioned Omrania to develop the master planning for 26 new residential communities in the western region of the Kingdom.  Part of the contract’s package included advising the MOH on outlines of a national housing policy based on international best practices.  Our team (pre-LUGARIT) subcontracted from Omrania this part of the package.  


The project presents a comprehensive analysis of the housing sector in Saudi Arabia, informed by global trends and best practices. The study aims to establish a theoretical framework for developing a housing policy in Saudi Arabia, focusing on affordable housing and leveraging international experiences to understand and improve the local housing sector.


The study observes the shift in the role of governments worldwide in housing, from being direct providers to facilitators. It highlights the limitations of supply-support policies, which often result in resource wastage and benefit unintended recipients, leading to market inflation and speculation. In contrast, demand-support policies, despite initial price fluctuations, offer better access to housing for target groups. However, the study notes that broader structural challenges, such as funding mechanisms, tenure guarantees, and administrative decentralization, significantly impact the housing sector.


In analyzing Saudi Arabia's housing sector, the study identifies several key findings:



The study concludes with several recommendations to improve housing policy in Saudi Arabia:



In essence, the study emphasizes the need for a balanced, decentralized approach to housing policy in Saudi Arabia, focusing on demand-support policies, legal and administrative reforms, and public participation to address the diverse needs of the population and stimulate economic growth.


Project Team

Header Photo

Panorama of Riyadh, Saudi Arabia.  Photo © adznano3 - via ShutterStockLink >