The Public Investment Fund of Saudi Arabia, has established a company with the aim of developing and digitizing the local real estate market. PIF stated that the National Real Estate Registration Services Company (RER) will collaborate with the Real Estate General Authority and other governmental bodies to develop a thorough real estate registration database containing detailed information on property units in Saudi Arabia.
According to Raid Ismail, co-head of Middle East and North Africa direct investments at PIF, “The new company’s use of advanced digital solutions in its operations, enabling it to link its platform to all relevant government entities, will enhance reliability and transparency in real estate services and data in Saudi Arabia.” This in turn will increase the attractiveness of the investment ecosystem, and grow the value of national real estate assets.
Saudi Arabia has set an ambitious target of raising home ownership rates in the kingdom to 70 per cent by 2030 under the Sakani program. The fund will distribute land plots and arrange home loans for Saudi citizens seeking to build homes. The initiative has led to an increase in home ownership rates in the kingdom. The Ministry of Housing reports that the percentage of homeowners increased from 47% in 2016 to 60% in 2020, exceeding the goal by more than 8% during that time. According to PIF, the newly established RER will also offer services for property registration.
In order to construct a real estate registration database including public, commercial, residential, and agricultural units as well as their geolocation information, the company will use digital services. This step will improve openness in real estate services and transactions and contribute to the sector’s sustainable development.