Transformation of the Saudi Housing Sector through an Enabling Approach to Affordable Housing

Abstract

Access to affordable housing has a significant impact on the quality of lives of households and the overall well-being of communities. The enabling approach is recognized internationally as a mechanism for housing delivery, shifting the government’s role from that of a direct provider to that of an enabler within housing markets. In line with its Vision 2030, Saudi Arabia aims to transition its role from a direct housing provider to an enabler. This study aimed to assess the extent to which enabling strategies have been implemented within the Saudi Arabian context. This research was conducted based on a desktop study of the key literature, analysis of secondary data, and content analysis of the collected documents to address the research aim. The study found that housing costs, traditional land tenure, and insufficient financing are major housing challenges, intensified by high lending interest, lack of investor diversity in housing types, and lack of long-term funding from financiers. Also, slum developments are limited to providing street access, without addressing the overall conditions and the level of services. In addition, the costs of obtaining permits and implementing building regulations have contributed to housing shortages in the country. On the other hand, real estate developers of different scales undergo a classification and qualification system to increase their capacity for housing supply. To address these challenges, the Saudi government has implemented an enabling approach, serving as a provider for low-income and vulnerable groups through the Developmental Housing Program. The government also encourages local manufacturing of building materials to boost the construction industry. The present study recommends that the government enhance existing instruments to enable access to affordable housing.