By : Mohamed Elkholy
Saudi Arabia Ministry of Municipal, Rural Affairs and Housing signed a Memorandum of Understanding (MOU) with LOGIC Consulting, the leading company specialising in comprehensive strategic consulting and governance services in the Middle East. The announcement of the MoU was made in the presence of H.E. Eng. Abdullah bin Mohammed AlBudair, the Deputy Minister of Municipal, Rural Affairs and Housing, during the Cityscape Global Exhibition held in Riyadh from September 10 to 13, 2023. The key objective of the MOU is to offer support and empowerment services to uplift the capabilities of the real estate contactors and developers within the country and the Saudi government vision 2030.
The MOU was signed by Saudi Arabia Ministry of Municipal, Rural Affairs and Housing, which was represented by Abdul Rahman bin Abdullah Al-Taweel, the Undersecretary of the Ministry of Municipal, Rural Affairs and Housing for the Agency for Stimulating Housing Supply and Real Estate Development and Amr Osman, the Chairman of LOGIC Consulting.
The partnership aligns with the Ministry’s relentless efforts to uplift the capabilities of the real estate contractors and developers who work for projects overseen by the Ministry in Saudi Arabia. The commitment comes in line with “Providing support and empowerment services to enhance the effectiveness of real estate developers” initiative. Furthermore, it signifies the Ministry’s goal to raise the number of real estate contactors by fostering their transformation into real estate developers.
Abdul Rahman bin Abdullah Al-Taweel, the Undersecretary of the Ministry of Municipal, Rural Affairs and Housing for the Agency for Stimulating Housing Supply and Real Estate Development, highlighted that the cooperation agreement between both parties will support real estate developers in the Kingdom. The partnership will pave way to boost efficiency and performance of developers by providing a wide array of services which helps enhance their capabilities and tools to streamline their journey. As a result, this collaborative approach is poised to effectively address the escalating demand for residential units among the Kingdom's citizens. Al-Taweel underscored the pivotal role that such partnerships with the private sector play in fostering top-tier and enduring initiatives aimed at advancing the real estate industry, aligning with the aspirations of Saudi Vision 2030. Moreover, he highlighted that collaborating with distinguished consulting firms specialising in administrative expertise, like LOGIC Consulting, will lead to the development of highly effective strategies for augmenting the efficiency and capabilities of real estate developers within the Kingdom. This, in turn, will guarantee the sustained viability of the Ministry's support services provided to real estate developers, thereby stimulating housing supply and elevating the overall performance of the real estate development market.
Amr Osman, Chairman of LOGIC Consulting, a well-established name in strategic consulting and governance in the region, expressed his happiness in signing the MOU with Ministry of Municipal, Rural Affairs and Housing of Saudi Arabia. In addition, he conveyed his appreciation for the Ministry's faith in the company's abilities, which is a major driving force behind its continued commitment to offering consultancy services that are in line with the goals of Saudi Vision 2030. Amr Osman highlighted that the timing of this MOU is significant, particularly given that the company is commemorating its 25th anniversary since its establishment in 1998.
For his part, Mostafa El Ghorab, KSA Country Manager at LOGIC Consulting, stated that in order to provide the Ministry with top-notch consulting services, the company plans to draw on its 25 years of expertise in the region offering consulting services across a variety of industries, including both government sector and private enterprises in the MENA region. The objective is to establish the company as a reliable and authoritative source for consultations and tailored solutions aimed at enhancing the long-term sustainability of clients' enterprises.
The Ministry has successfully provided 180,000 housing units within a relatively short timeframe. The ambitious goal of the Ministry is to achieve a homeownership rate of 65% by 2025 and further increase it to 70% by 2030. It aligns with the objectives of Saudi Vision 2030, which is led by the Custodian of the Two Holy Mosques and His Highness the Crown Prince. By placing an emphasis on the housing program, the country established a dedicated program to bolster real estate developers, coupled with formal agreements designed to effectively manage price fluctuations within acceptable inflationary parameters. This strategic approach is geared towards sustaining stability in real estate prices and augmenting the appeal of the real estate sector within the Kingdom as a prime destination for investment.
The real estate sector in Saudi Arabia has witnessed extensive modernisation and advancement, which has been steered by a series of programs and initiatives introduced by the country. These measures had a transformative impact on the housing sector, which encompass the regulation of the real estate market, expanded access to financing, simplified regulatory procedures, a diversified range of housing options to meet diverse population needs and a substantial increase in overall housing supply. These endeavours have laid the foundation for realising a pivotal goal of Saudi Vision 2030, that is raising the rate of family homeownership to 70% by the year 2030. Furthermore, these programs have yielded significant outcomes, effectively addressing demands of the residential market in the Kingdom. They have also created a multitude of employment and investment prospects and succeeded in drawing developers and private sector collaborators, all working towards delivering housing solutions that cater to the diverse needs of individuals throughout the Kingdom.