j

A Comparative Analysis of Affordable

Housing in Saudi Arabia
By
By

Dr. Adel S. Al-Dosary

Presented
Presented To
To

Low Cost Building Systems in Urban

Settlement Symposium
May
May 16-19,
16-19, 2005,Amman,
2005,Amman, Jordan
Jordan
١

Outline of Presentation 1 of 25

Ô
Ô Introduction
Introduction -- problem
problem statement,
statement, objective,
objective, scope
scope of
of
study,
study, methodology
methodology and
and limitations
limitations of
of the
the study
study
Ô
Ô Inputs
Inputs and
and players
players in
in affordable
affordable housing
housing provision
provision

Ô
Ô Housing
Housing statistics
statistics &
& supply
supply mechanism
mechanism in
in
Saudi Arabia
Saudi Arabia
Ô
Ô Definition
Definition of
of “Affordable”
“Affordable” Housing
Housing
Developed
Developed Countries
Countries
Developing
Developing Countries
Countries
Ô
Ô Definition
Definition of
of affordable
affordable housing
housing in
in local
local context
context
Ô
Ô Literature
Literature Review
Review -- Salient
Salient features
features of
of affordable
affordable housing
housing
programs
programs in
in developed
developed and
and developing
developing countries
countries
Ô
Ô Conclusion
Conclusion -- Need
Need for
for research
research ofof different
different parameters
parameters of
of
affordable
affordable housing
housing in
in the
the local
local context
context
Ô
Ô Recommendations.
Recommendations.

١
 Introduction 2 of 25

Ô
Ô Housing
Housing is
is among
among the
the basic
basic human
human necessities
necessities

Ô
ÔGeneral
General characteristics
characteristics ofof housing
housing include
include average
average
monthly
monthly housing costs (rent, taxes, utilities), typology
housing costs (rent, taxes, utilities), typology and
and
condition
condition of
of the
the housing
housing units.
units.

Ô
Ô These
These influence
influence housing
housing location,
location, standards
standards and
and
‘affordability’
‘affordability’

Ô
ÔAA base
base definition
definition of
of affordability
affordability can
can be
be stated
stated as
as the
the
ability
ability of
of aa household
household toto purchase
purchase aa home
home based
based on
on
median
median monthly
monthly income.
income.

Ô
ÔThis
This ability
ability implies
implies that
that other
other essential
essential living
living costs
costs are
are
not
not affected
affected due
due to
to the
the expenditure
expenditure on
on housing.
housing.

Introduction 3 of 25

Ô
Ô Basic
Basic parameters
parameters of
of housing
housing affordability
affordability include:
include:
Land
Land
Labor
Labor and
and Material
Material Costs
Costs
Zoning
Zoning Ordinances
Ordinances and
and Land
Land Use
Use Policies
Policies
Development
Development and
and Construction
Construction Fees
Fees
Building
Building Codes
Codes and
and Standards
Standards
Taxes
Taxes and
and Finance
Finance
Community
Community Participation.
Participation.
Ô
Ô This
This study
study will
will be
be limited
limited to
to comparison
comparison of
of housing
housing cost
cost
to
to household
household income – this means a concentration
concentration on
on
housing
housing finance
finance institutions
institutions and
and mechanisms.
mechanisms.

Ô Relevance:
Ô Relevance: the
the current
current situation
situation of
of housing
housing provision
provision and
and
the
the sense
sense of
of impending
impending housing
housing crisis
crisis calls
calls for
for a
a look
look at
at
housing
housing affordability
affordability in
in Saudi
Saudi Arabia
Arabia very
very Seriously
Seriously ..

٢
 Introduction 4 of 25

Ô
Ô objective
objective of
of the
the study:
study:
to
to define
define affordability
affordability of
of housing
housing in
in the
the local
local context
context
with
with emphasis
emphasis onon housing
housing ownership
ownership and
and arrive
arrive at
at
directions
directions for
for future
future research.
research.
Ô
Ô methodology
methodology and
and limitations
limitations of
of the
the study:
study:
use
use available
available statistics
statistics to
to define
define affordability.
affordability.
review
review literature
literature to
to identify
identify definitions,
definitions, policies
policies and
and
implementation
implementation strategies
strategies in
in vogue
vogue globally.
globally.
To
To arrive
arrive at
at guidelines
guidelines from
from case-studies.
case-studies.
Ô
Ô significance
significance and
and application
application of
of the
the study:
study:
literature
literature on
on the
the subject
subject is
is sparse
sparse in
in the
the local
local
context
context and
and there
there is
is a
a need
need to
to bridge
bridge the
the gap
gap
between
between global
global knowledge
knowledge andand local
local application.
application.
the
the study
study is
is limited
limited to
to housing
housing finance
finance other
other
parameters
parameters also
also need
need an
an in-depth
in-depth analysis.
analysis.

Housing in Saudi Arabia 5 of 25

Ô
Ô history:
history:
a
a conscious
conscious housing
housing policy
policy in
in KSA
KSA evolved
evolved in
in the
the
1970’s.
1970’s. the
the oil
oil boom
boom prompted
prompted public
public spending
spending and
and
infusion
infusion ofof enormous
enormous funds
funds into
into infrastructure
infrastructure
building
building and
and financing
financing for
for constructing
constructing homes.
homes.

Ô
Ô principal
principal players
players and
and functions:
functions:
government
government –– real real estate,
estate, construction,
construction, finance
finance
private
private sector
sector –– construction,
construction, furnishing
furnishing and
and finance
finance
citizens
citizens -- construction.
construction.
Ô
Ô urban
urban areas:
areas:
faced
faced aa huge
huge influx
influx due
due to
to rapid
rapid development
development andand
urbanization
urbanization reached levels of up to 80%
reached levels of up to 80% in
in a
a span
span
of
of three
three decades
decades –– aa huge
huge demand
demand for
for middle
middle and
and
low-income housing arose.
low-income housing arose.

٣
 Principal Housing Typologies & Financers 6 of 25

Ô
Ô Detached
Detached Villas
Villas –– most
most popular
popular among affluent classes
funded
funded by
by REDF
REDF loans
loans or
or Savings.
Savings.

Ô
Ô Traditional
Traditional attached
attached houses
houses –– not
not very
very popular
popular due
due to
to
changing
changing demographic
demographic structure
structure and
and
life
life styles
styles –– funded
funded by
by mostly
mostly collective
collective
family
family savings.
savings.

Ô
Ô Apartments
Apartments – built by government,
government, real
real estate
estate developers
developers
Funded
Funded by government or
by government or private
private
sector
sector speculators.
speculators.

Ô
Ô Housing
Housing Compounds
Compounds – mostly private
private owned
owned and
and catering
catering
to expatriates.
to expatriates.
Funded
Funded by
by Pvt.
Pvt. Firms
Firms or
or ministries.
ministries.

Affordable Housing Concepts

ƒ Affordable Housing: Housing costs equal to or less that 30%

of household income.
ƒ • Example: $18,000 annual income = $1,500 monthly income.
ƒ Affordable housing is $450 or less/month.
ƒ • Minimum wage is $5.15/hr ($10,712/yr): That makes
ƒ Affordable housing is $268/mo or less.
ƒ Assume that the Fair Market Rent for a 2-bedroom
apartment is $730/month. At $5.15/hour, you need to work
ƒ 109 hours per week or earn minimum of $13.98/hour for 40
hour week for 2-bedroom apartment to be affordable.

٤
 Area Median Income

ƒ The Department of Housing & Urban development

computes and publishes the “Area Median Income”
(AMI) for all parts of the US.
ƒ HUD Household
ƒ Income categories Household incomes
ƒ Very-low income Less than 50% AMI
ƒ Low income Less than 80% AMI
ƒ Moderate income Less than 120% AMI

Housing Determinants 7 of 25

Finance:
REDF
Banks
Employers (Pvt.)
Informal loans Land:
Labor:
MOMRA
Skilled
Royal Court
Unskilled
Real estate firms
Professionals
Pvt.Owners
Housing
Bldg. Materials: Services:
Ministries Municipalities
Pvt. Manufacturers Ministry of Agri.
Suppliers Ministry of PTT.
Elect. Companies

٥
 Demographics and Housing Statistics 8 of 25

Population Distribution
0-14 Years 65+ Years
50
45
(%) Age Distribution
40
35
30
25
20
15
10
5
0
1940 1960 1980 2000 2020 2040 2060
Years

The
The increasing
increasing percentage
percentage of
of young
young population
population

١١

9 of 25
Demographics and Housing Statistics
Population in Urban Areas

10000
Population in Thousand

8000

6000

4000

2000

0
1950 1960 1970 1980 1990 2000 2010 2020
Years

Urbanization
Urbanization is
is currently
currently around
around 80%
80% and
and increasing
increasing

١٢

٦
 Demographics and Housing Statistics 10 of 25

Constructed during the Cumulative Stock up to

Sixth Development End of Sixth Structure
Executing Agency Plan Development Plan (No of Stock
of Units) (Percent)

Government Housing:

- Ministry of Public Works & - 24540 0.8%

Housing

- Government Agencies (for - 221000 7.1%

employees)

Sub-
Sub-Total - 245540 7.9%

Private Sector:

REDF Finance 33,300 573,000 18.3%

Self Finance 250,000 2,308,000 73.8%

Sub-
Sub-Total 283,300 2,881,000 92.1%

Total 283,300 3,126,540 100.0%

Public
Public sector
sector share
share of
of the
the housing
housing market
market is
is very
very small
small
١٣

Demographics and Housing Statistics 11 of 25

House Rent-to-Income Ratio in Cities

50
45.4
45
39.5
40
34.4
35 31.4
30
Ratio

25
19.1 18.2
20
15
10
5
0
Arab Africa Asia- LAC HIC Transition
States Pacific
Regions

Arab
Arab states
states have
have the
the highest
highest Rent-
Rent- Income
Income Ratio
Ratio

١٤

٧
 Demographics and Housing Statistics 12 of 25

House Price to Income Ratio

14
12.5
12 11.3 10.9
Price to Income Ratio
10

8 6.8
5.8 5.4
6

0
Africa Asia- Arab Transition HIC LAC
Pacific States

Regions

The
The cost
cost of
of a
a house
house is
is to
to about
about 10
10 years
years of
of cumulative
cumulative
earnings
earnings for
for a
a 7000SR
7000SR median
median household
household income
income family
family

١٥

Demographics and Housing statistics 13 of 25

The
The comparison
comparison of
of GDP
GDP gives
gives an
an idea
idea of
of living
living standards
standards in
in
comparison
comparison to
to developed
developed and
and developing
developing countries.
countries. Helps
Helps
in
in the
the comparison
comparison of
of definitions
definitions of
of housing
housing affordability.
affordability.

١٦

٨
 Definition of Affordable Housing 14 of 25

Ô
Ô In
In Developed
Developed Countries
Countries ––
It
It is
is generally
generally accepted
accepted that
that it
it means
means “housing
“housing that
that
can
can be be purchased
purchased by by families
families earning
earning between
between
30%
30% and
and 80%
80% ofof the
the community’s
community’s median
median income”.
income”.
Ô In
Ô In Developing
Developing Countries
Countries ––
Due
Due to
to the
the relatively
relatively low
low per
per capita
capita incomes
incomes ““ it
it is
is
generally means “housing that is provided for
generally means “housing that is provided for the the
lower
lower middle
middle and
and low-income
low-income groups
groups who
who need
need
assistance
assistance or supplements to fulfill housing needs”.
or supplements to fulfill housing needs”.
Ô In
Ô In Saudi
Saudi Arabia
Arabia ––
The
The statistics
statistics and
and costs
costs ofof housing
housing acquisition
acquisition
show
show that
that vast
vast majority
majority of
of households
households that
that have
have an
an
average
average median
median monthly
monthly income
income of
of about
about 7000SAR
7000SAR
or
or less,
less, have
have toto spend
spend much
much more
more than
than 30%
30% of
of
income
income for
for housing
housing acquisition,
acquisition, hence
hence liable
liable for
for
assistance.
assistance.
EXTENSIVE
EXTENSIVE MARKET
MARKET RESEARCH
RESEARCH IS
IS NEEDED
NEEDED TO
TO ASCERTAIN
ASCERTAIN
ACTUAL
ACTUAL COSTS
COSTS AND
AND FIX
FIX AFFORDABILITY
AFFORDABILITY BRACKETS.
BRACKETS.
١٧

Principal Housing finance providers in KSA 15 of 25

Ô
Ô Middle
Middle &
& Low-income
Low-income households
households were
were provided
provided
assistance
assistance through
through ––
Free
Free land
land grant
grant program
program and
and
REDF
REDF Loans.
Loans.
High
High rise
rise public
public housing.
housing.
Housing
Housing by
by charitable
charitable institutions
institutions
Ô
Ô Ministries
Ministries –– Various
Various ministries
ministries have
have provided
provided either
either
Housing
Housing or
or loans
loans to
to their
their employees.
employees.
Universities.
Universities.
Ô
Ô the
the private
private sector
sector ––
Developers,
Developers, independently
independently or
or with
with assistance
assistance
from
from government.
government.
Joint
Joint stock
stock companies
companies
Institutions
Institutions like
like ARAMCO,SCECO,
ARAMCO,SCECO, SaudiSaudi Real-
Real-
Estate
Estate Company.
Company.
Informal
Informal financing
financing and
and individual
individual savings.
savings.

١٨

٩
 Inputs to Housing Affordability - shortcomings in KSA 16 of 25

Ô
Ô Land
Land supply
supply –– Policies
Policies fall
fall short
short at
at provision
provision of
of land
land for
for
affordable
affordable housing.
housing.
lack
lack of
of measures
measures to
to optimize
optimize services,
services, as
as it
it is
is
a
a major
major contribution
contribution to
to cost.
cost.
Ô Labor
Ô Labor &
& Standards
Standards –– Indigenous
Indigenous labor
labor and
and technologies
technologies
are
are limited to the small proportion of
limited to the small proportion of
professional
professional labor.
labor.
lack
lack of
of codes
codes and
and standards
standards is
is also
also adding
adding to
to
the
the costs
costs of
of housing
housing construction.
construction.
municipalities
municipalities play
play a
a limited
limited role.
role.
Ô
Ô Building
Building Materials
Materials –Construction
–Construction material
material affordability
affordability
and
and quality is not addressed, this
quality is not addressed, this is
is an
an area
area
to encourage private sector participation.
to encourage private sector participation.
Ô
Ô Services
Services – Policies and laws governing services do not
recognize
recognize the
the aspect
aspect of
of sustainability
sustainability and
and
adversely
adversely affect housing affordability.
affect housing affordability.
١٩

Inputs to Housing Affordability - shortcomings in KSA 17 of 25

Ô
Ô Finance
Finance ––
1.
1. Cost
Cost of
of even
even a
a modest
modest house
house represents
represents the
the
accumulated
accumulated savings
savings of
of median
median households
households for
for over
over
20years.
20years.
2.
2. The
The public
public sector
sector caters
caters to
to a
a very
very small
small portion
portion of
of
the
the affordable
affordable housing
housing requirement.
requirement.
3.
3. The
The private
private sector
sector finances
finances over
over 90%
90% of
of the
the housing
housing
but
but has
has no
no specific
specific mechanisms
mechanisms toto address
address the
the
issue
issue of
of housing
housing affordability.
affordability.
4.
4. The
The presence
presence ofof extensive
extensive infrastructure
infrastructure and
and
facilities
facilities is
is not
not utilized
utilized to
to address
address the
the issue.
issue.
5.
5. There
There is
is a
a lack
lack of
of discussion
discussion and
and literature
literature on
on the
the
issue
issue of
of affordability
affordability of
of housing
housing in
in Saudi
Saudi Arabia.
Arabia.
EACH
EACH OF
OF THE
THE ABOVE
ABOVE MENTIONED
MENTIONED INPUTS
INPUTS TO
TO HOUSING
HOUSING
AFFORDABILITY
AFFORDABILITY NEED TO EXTENSIVELY RESEARCHED IN
NEED TO EXTENSIVELY RESEARCHED IN
THE
THE LIGHT
LIGHT OF
OF GLOBAL
GLOBAL DEVELOPMENTS.
DEVELOPMENTS.
٢٠

١٠
 Findings of case studies - Developed countries 18 of 25

Ô
Ô The
The affordable
affordable housing
housing financial
financial institutions
institutions in
in
developed
developed countries are quite complex and
countries are quite complex and involve,
involve,
1.
1. Private
Private Developers,
Developers,
2.
2. Local
Local Governments
Governments and
and
3.
3. Central
Central Government
Government Agencies.
Agencies.
Ô
Ô Levels
Levels of
of equity
equity participation,
participation, amounts
amounts ofof lending,
lending, risks
risks
involved
involved in investment for all parties, are all spelled
in investment for all parties, are all spelled out
out
as
as policies.
policies.
Ô
Ô Well
Well established
established institutions
institutions help
help easy
easy implementation
implementation
of
of policies.
policies.
Ô
Ô Most
Most countries
countries are
are concentrating
concentrating on
on fine
fine tuning
tuning their
their
mechanisms to suit financial market trends.
mechanisms to suit financial market trends.
Ô
Ô Several
Several approaches
approaches are
are being
being tried
tried to
to improve
improve housing
housing
affordability.
affordability.

٢١

Findings of case studies - Developed countries 19 of 25

Ô
Ô some
some of
of the
the notable
notable approaches
approaches and
and innovations
innovations are
are ––
1.
1. Lowering
Lowering risk
risk for
for lending
lending institutions
institutions through
through
insurance
insurance oror guarantees
guarantees or or lowering
lowering of
of down
down
payment
payment by
by granting
granting of
of higher
higher loans.
loans.
2.
2. Involving
Involving all
all levels
levels of
of government
government through
through taxation
taxation
subsidies.
subsidies.
3.
3. Community
Community based
based non-profit
non-profit organizations
organizations are
are being
being
organized
organized atat local
local levels
levels to
to assist
assist in
in affordable
affordable
housing
housing provision.
provision.
4.
4. The
The main
main ingredients
ingredients of of land
land finance
finance and
and
management
management expertise
expertise are
are pooled
pooled together
together by
by
voluntary
voluntary organizations
organizations through
through creating
creating a a nexus
nexus
between
between government,
government, private
private and
and non-profit
non-profit players.
players.
5.
5. Tax-credits
Tax-credits to
to developers
developers in
in return
return for
for provision
provision of
of
affordable
affordable housing
housing units.
units.

٢٢

١١
 Findings of case studies - Developed countries 20 of 25

6.
6. Conversion
Conversion of of unused
unused buildings
buildings and
and refurbishment
refurbishment ofof
dilapidated
dilapidated units
units to
to increase
increase the
the supply
supply of
of
affordable
affordable housing
housing units
units in
in city
city centers
centers and
and historic
historic
cores.
cores.
7.
7. Distribution
Distribution of
of sites
sites for affordable housing to
facilitate
facilitate integration
integration with
with society
society and
and maintain
maintain the
the
market
market value.
value.
8.
8. A
A strong
strong political
political will
will is
is essential
essential to
to enforce
enforce policies
policies
and
and bring together government and private sectors.
bring together government and private sectors.
9.
9. At
At the
the grass-roots
grass-roots societies
societies with
with a
a co-operative
co-operative
outlook
outlook can
can help
help organize
organize loans,
loans, build
build housing
housing units
units
and
and foster
foster savings.
savings.
10.
10. Certain
Certain autonomy
autonomy toto local
local governments
governments toto deal
deal
effectively
effectively with regional peculiarities and players.
with regional peculiarities and players.
11.
11. Planning
Planning tools
tools like
like land-use
land-use can
can be
be effectively
effectively
employed
employed to
to include
include affordable
affordable housing
housing in
in new
new
developments.
developments.
٢٣

Findings of case studies - Developing countries 21 of 25

Ô
Ô The
The urbanization
urbanization of
of developing
developing countries
countries from
from about
about
18%
18% in
in the
the 50’s
50’s to
to more
more than
than 50%
50% inin 2000
2000 has
has put
put
immense
immense pressure
pressure on
on the
the supply
supply of
of housing.
housing.
Ô
Ô In
In the
the absence
absence of
of good
good infrastructure
infrastructure and
and rudimentary
rudimentary
formal
formal sector mechanisms, the largest segment
sector mechanisms, the largest segment of
of
society
society comprising
comprising the
the mid
mid and
and low-income
low-income households
households
depend
depend on
on incremental
incremental housing
housing market
market which
which is
is more
more
informal.
informal.
Ô
Ô The
The formal
formal sector
sector caters
caters to
to a
a small
small segment
segment of
of upper
upper
middle
middle class
class and
and public
public sector
sector employees.
employees.
Ô
Ô Some
Some experiments
experiments in
in the
the informal
informal sector
sector are
are notable
notable
for
for their success even in
their success even in the
the absence
absence of
of government
government
support.
support.
Ô
Ô Housing
Housing non-affordability
non-affordability is
is mainly
mainly due
due to
to bureaucratic
bureaucratic
hurdles,
hurdles, antiquated
antiquated planning
planning norms,
norms, lack
lack of
of access
access to
to
easy
easy credit,
credit, technology,
technology, materials
materials and
and information.
information.
٢٤

١٢
 Conclusion – Ideas and Recommendations 22 of 25

Ô
Ô adaptations
adaptations to
to conditions
conditions of
of insecurity
insecurity and
and
development
development ofof the
the informal
informal sector
sector have
have lessons
lessons for
for the
the
provision
provision of
of affordable
affordable housing.
housing.
1. In
1. In the
the backdrop
backdrop of of the
the huge
huge housing
housing demand
demand andand
unemployment
unemployment integrated
integrated approach
approach toto housing
housing and
and
employment
employment has has emerged
emerged as
as a
a viable
viable solution.
solution.
2.
2. The
The effectiveness
effectiveness of of the
the informal
informal sector
sector in in
affordability
affordability is is due
due to,
to, choice
choice of of sites
sites for
for
settlements,
settlements, selective
selective speculation
speculation byby developers
developers to to
offset
offset infrastructure
infrastructure costs
costs and
and curbing
curbing speculation
speculation
by
by compelling
compelling immediate
immediate occupancy
occupancy
3.
3. Informal sector strikes a balance
Informal sector strikes a balance inin the
the trade
trade of
of
between
between housing quality and price. This lack
housing quality and price. This lack of
of
flexibility
flexibility in
in the
the formal
formal sector
sector is
is a
a major
major hurdle
hurdle in
in
housing
housing affordability
affordability
4.
4. The
The idea
idea ofof Mutual
Mutual Self-Help
Self-Help groups
groups with
with revolving
revolving
funds
funds and
and help
help with
with expertise
expertise for
for aa community
community helps
helps
in
in increasing
increasing affordability
affordability and
and foster
foster savings.
savings.
٢٥

Conclusion – Ideas and Recommendations 23 of 25

Ô
Ô Saudi
Saudi Arabia
Arabia inin the
the past
past few
few decades
decades has has built
built good
good
infrastructure
infrastructure and developed public sector agencies.
and developed public sector agencies.
Many
Many of of the
the features
features of of affordable
affordable housing
housing finance
finance
observed
observed from case-studies can be
from case-studies can be effectively
effectively
introduced
introduced due due to to this
this elaborate
elaborate infrastructure
infrastructure and and
strong social network.
strong social network.
1. In
1. In the
the backdrop
backdrop of of the
the huge
huge housing
housing demand
demand and and
unemployment
unemployment integrated
integrated approach
approach to to housing
housing and
and
employment
employment can can be be explored.
explored.
2.
2. Some
Some features
features fromfrom the
the informal
informal sector
sector fror
fror housing
housing
affordability
affordability like,
like, choice
choice of of sites
sites for
for settlements,
settlements,
selective
selective speculation
speculation by by developers
developers to to offset
offset
infrastructure
infrastructure costscosts andand curbing
curbing speculation
speculation by by
compelling
compelling immediate
immediate occupancy
occupancy can can bebe adopted
adopted as as
uidelines
uidelines for
for policies.
policies.
3.
3. Informal
Informal sector
sector strikes
strikes a a balance
balance in in the
the trade
trade of
of
between
between housing
housing quality
quality and
and price.
price. This
This lack
lack of
of
flexibility
flexibility in
in the
the formal
formal sector
sector isis a
a major
major hurdle
hurdle in
in
housing
housing affordability
affordability
٢٦

١٣
 Conclusion – Ideas and Recommendations 24 of 25

4.
4. Concepts
Concepts of
of mutual
mutual self
self help
help can
can be
be explored
explored even
even if
if
at
at an
an experimental
experimental scale
scale to
to ascertain
ascertain suitability.
suitability.
5.
5. Effective
Effective management
management of of resources
resources and
and interaction
interaction
between
between different
different players
players inin the
the housing
housing sector
sector
implies
implies a a certain
certain amount
amount of of autonomy
autonomy toto local
local
bodies
bodies at
at the
the level
level of
of the
the municipalities.
municipalities.
6.
6. In
In the
the formal
formal sector
sector many
many ofof the
the approaches
approaches like
like
insurance
insurance cover for mortgages, employing land-use
cover for mortgages, employing land-use
tools
tools for
for ensuring
ensuring affordable
affordable housing
housing provision
provision are
are
potentially practical.
potentially practical.
7.
7. Non-government
Non-government organizations
organizations cancan help
help at
at grass-
grass-
roots
roots level
level implementation
implementation of of strategies.
strategies.
Ô
Ô Saudi
Saudi Arabia
Arabia inin the
the past
past few
few decades
decades hashas built
built good
good
infrastructure
infrastructure andand developed
developed public
public sector
sector agencies.
agencies.
Many
Many ofof the
the features
features ofof affordable
affordable housing
housing finance
finance
observed
observed fromfrom case-studies
case-studies can can be be effectively
effectively
introduced
introduced duedue toto this
this elaborate
elaborate infrastructure
infrastructure and
and
strong
strong social
social network.
network.
٢٧

25 of 25

End-note

We have attempted to identify the parameters that

affect housing affordability and identify the bracket
needing housing assistance.
Further research is necessary to give an in-depth
analysis of each of the inputs and players role in
“housing affordability” in the context of Saudi Arabia.

٢٨

١٤