11/12/2013
During a seminar organized by the East Chamber Housing Committee yesterday under the auspices of His Excellency
Housing Minister: firing draft mechanism for residential products and network (rent) to regulate the sector
AlRashid: 124 billion riyals amount of funding for the building and construction sectors and Mortgage
Al-Qahtani: The Ministry of Justice has custody of the frozen instruments totaling about 30 million meters in the Eastern Province
Specialists participants in the Symposium said ' housing and real estate financing ' organized by the Chamber Headquarters in Dammam on Wednesday 11 December 2013 under the auspices of his Excellency the Minister of housing Shaweesh bin Saud Al-dweihi need to deal with the issue of housing in a manner objective economic process especially in funding as solutions to the problem of the scarcity of housing. Stressing the issue of banks created huge real estate finance companies and independent, with local and foreign investors, in particular, that the requirements of the Foundation's capital is relatively small at around 200 million.
He said the Minister of housing Dr Shaweesh bin Saud Al-dweihi during the symposium that the State interest in the housing sector and its support, reflected in its generous support for the provision of residential products to citizens to accommodate increasing growth in demand, and a comprehensive vision and a clear plan to regulate the sector, through the preparation of a national housing strategy, which examined scientifically thorough all the challenges facing this pieces and programs have been developed to meet these challenges, taking into account international experience in this area with a view to reaching an effective housing sector Contribute to the national development of the Kingdom, all groups in society can obtain adequate housing through sustainable and stable housing market.
The strategy includes an integrated set of actions designed to achieve multiple balance in housing conditions in the various regions, taking into account the resources available, the sectoral strategy for housing in conjunction with other strategies. Indicating that this strategy is aimed at ensuring equal opportunities in the housing market for all sections of the population and contribute to the establishment of a viable housing market growth and self-sufficiency, as well as to achieve consistency between supply and demand for housing and housing policies and integrated urban development policies. The Minister went on to say: ' the housing sector in the past saw a very important events and organized actions in different areas, The issuance of mortgage and finance systems, and royal order to stop distribution of municipal grants and delivery plans as well as all Government land for housing to the Housing Ministry for planning and implementation of infrastructure, and giving citizens residential land developer and construction loans as due and priority setting mechanism, which the Ministry provided sufficient flexibility to develop integrated housing policies and housing programs that are supported by multiple different needs, and helped her to focus on the provision of infrastructure and increasing the stock of land to cope with the increasing housing needs.
The Housing Ministry is about to launch two important national organization of the sector, the first draft of the mechanism for determining eligibility and priority that determines the eligible for subsidized housing products and determine their priorities through clear and transparent criteria and balanced justice for all categories of citizens, and secondly: rental and network project which aims to organize and develop rental housing sector in the Kingdom to ensure the rights of the tenant and landlord and tenant reach unity needed for the smoothest through electronic platform includes a set of document nodes and e-payment, Which will enhance confidence in housing rental sector and encourage further investment. He stressed that the Housing Ministry is sparing no effort to provide housing for citizens has already produced residential units within the 48 projects covering areas of the Kingdom, has been completed and underway in others, with delivery of these units starts, respectively, after the approval of the merit and priority.
He said that the Ministry has launched a land development projects and infrastructure in many locations in the Kingdom and other projects under design and currently, 80 sites with a total area of more than 106 million square meters, at the level of the eastern region a number of projects are being implemented in the Dammam area of 10 million square meters, Ahsa, Qatif box meters to 1,900,000 space 1,100,000 square meters, to develop infrastructure to accommodate about 16,000 housing units within the program of land and loan, including land developed for implementation Service facilities according to the competence of each, in addition to construction projects include the news presenter and Hafr Al Baten, a housing project of about 200,000 square meters, consisting of 272 units, And extruded housing project 211 housing units, the housing project Batin includes 900 housing units, Al-Ahsa (1) 328-unit Al-Ahsa (2) 172. .. The design was awarded a number of projects in the eastern region of Abqaiq province area (802224 m2) can accommodate 760, Noayriyah County area (549666 m2) to accommodate 540, province of Hafr Al-Batin area (7069, 99 m2) can accommodate 7,000 unit, Hasa area (6132150 m2) can accommodate 6000 unit, province of upper village area 185493 square meters can accommodate 200 units and Al Khafji area 3340101 square meters accommodate 2540 and Dammam area of 10 million square meters can accommodate 9,000 Unit other than the ongoing project, and will be immediately after the completion of the design of previous projects for implementation of infrastructure.
The most recommended by the national housing strategy effective partnership with the private sector and take advantage of its capabilities with the Ministry in organizing its work and overcome obstacles. In this context, the Ministry is now working on providing appropriate regulatory frameworks and mechanisms for partnership with the private sector in Housing Ministry had begun already in workshops with developers is invitations to the National Committee for real estate by the Council of Saudi Chambers and listened to their ideas and offered them its vision soon will also organize other workshops with them, in order to access the methods of the partnership that meets the public interest and enable citizens to obtain suitable housing.
He said that the Ministry is seeking to design an effective form of partnership within a framework of transparency and competitive climate, including the hiring and assignment of responsibilities and operational plans. The Royal order of transforming land grants to the Housing Ministry had founded a new era and a different responsibility transferred to build housing units to citizens directly or through the real estate developers, which requires the willingness of the private sector for their share in the construction of these units through a process through which citizens can contract with real estate developers to build quality housing units.
He noted the important role played by the real estate development fund to diversify his roles to provide new financing alternatives and increase the number of loans for citizens to other years only to 142 thousand loans totaling nearly $ 72 billion, and work is underway on the development of working procedures and to facilitate progress and facilitate the collection of payments and achieve sustainable funding and easing conditions for the area and property for the benefit of the greatest possible number of citizens.
The Chairman of the Chamber Abdul Rahman bin Rashed Said, the importance of this seminar comes from recognizing the need to stand in front of a system of legislation, regulations and decisions and private initiatives in the housing sector, and re-read and review, disclosure of the impact of the mortgage on the development situation of the sector, with a view to scientific solutions are not able to confront the reality that housing is an annual capacity of 250,000 units, but also overcome the challenges, and move to a forward looking welcome and pave the way towards Seriously addressed, to cope with big paradigm shift in the legislative and regulatory arena, which resulted in the adoption of our Government for a package of real estate systems, particularly systems for mortgage, leasing and real estate finance.
Al-Rashed said the role played by the financial sector in supporting the future of the housing and construction sectors. Saying that we are currently witnessing remarkable growth for that role with bank financing for the building and construction sector and real estate financing nearly 124 billion by the end of the third quarter of this year, 80 billion for construction and 44 billion for the mortgage sector, although we aim to double this figure by means of Government support to meet the growing demand for the housing sector. Rashid noted that ' themes and issues, addresses the Symposium sessions, do not reflect the importance of the issue considered by the Symposium, but largely reflects the aspiration of the Symposium, and to achieve its objectives, the significant growth in the private sector in conjunction with the accreditation of the national housing strategy and can create opportunities for collaboration where looked forward to strengthening the partnership business with the Housing Ministry to achieve its objectives and to support their activities and programs. The Chairman of the Chamber real estate Committee, Dr. Ayedh Alqahtani said that real estate companies played a major role in the development of schemes in the eastern region, where the spaces developed during the past 10 years toward 1.8 billion square meters, adding that real estate companies pumped large sums of 2 trillion riyals in the market, indicating that real estate developers have contributed to the 75 housing units in the private sector.
He said that the issue of monopoly in real estate in the eastern region are linked to three others, including the continuing Ministry of Municipal Affairs and urban scale in determining, for the need to change the scope of urban territories, particularly since the urban range in Eastern region does not exceed 2, 8 in range, with up to 33 in the Riyadh region, 14, 5, in the Western region, pointing out that the land withheld by Aramco, represent a key factor in the continued limited supply in the real estate sector in the eastern region, for The Housing Ministry to handle this file. And the dawn that the Justice Department had custody of the frozen instruments amounting to some 30 million square meters of area in the eastern region alone, the Housing Ministry also urged greater efforts to solve this important file. At the end of the meeting the Minister of housing Dr Shaweesh bin Saud Al-duweihi honored the participants in the Symposium and he was handed commemorative gift from the Chamber by Chairman Abdul Rahman bin Rashed Alrashed .
