Saudi Arabia launches real estate stimulus program to boost sector

21/11/2025 04:06 AST

Saudi Arabia's Ministry of Municipalities and Housing has launched a new "Real Estate Stimulus" program aimed at boosting sector sustainability, unlocking investment opportunities and accelerating development across the Kingdom.

Minister Majid Al-Hogail unveiled the initiative, which is designed to convert land into high-quality development prospects through digital tools that integrate landowners, developers, investors and financiers on a single platform. The system provides site analysis, feasibility assessments and investment facilitation, helping increase market efficiency and transparency.

Al-Hogail also sponsored the first incentivized agreement under the program - a deal between a landowner and a developer for a 130,000 sq. meter plot in Riyadh's Al-Ared district. The project will deliver around 1,200 residential units within a mixed-use scheme featuring housing, commercial, administrative and hospitality components.

The National Housing Co. said the initiative represents a major step in advancing the Kingdom's real estate ecosystem, supporting an integrated investment environment that enables stakeholders to secure sustainable returns. The company added that the digital framework enhances transparency, shortens development cycles and strengthens Saudi Arabia's position as an attractive destination for domestic and international investors.

The stimulus program is part of broader NHC efforts to empower the real estate sector through innovative solutions that expand growth opportunities and encourage new partnerships across the industry.

Alongside the program's launch, the ministry signed a cooperation agreement with NetZero during Cityscape 2025 to support environmental sustainability initiatives. The partnership focuses on expanding vegetation cover, reducing carbon emissions and advancing the goals of Saudi Vision 2030, the Saudi Green Initiative and the Middle East Green Initiative.

Under the agreement, both sides will collaborate on smart afforestation projects, technical advisory services for urban forests, environmental studies, and digital documentation of natural assets - including smart maps and detailed afforestation data.

The partnership will also introduce environmental competitions and awards for municipalities to promote sustainable practices, as well as workshops and public awareness campaigns to engage communities in green initiatives. NetZero will work with municipalities on sustainable afforestation programs, attract private sector partnerships to enhance environmental spending efficiency, and issue periodic reports on emissions reduction and carbon credit generation in line with national regulations.

Logistics sector
The Makkah Province Development Authority has signed a memorandum of understanding with the National Housing Co. to advance logistics development across the region.

Under the agreement, both sides will develop joint work streams aimed at strengthening logistics services and building a more resilient, responsive environment for future development. The MoU includes studying the establishment of integrated logistics zones in strategic locations, complete with modern operational facilities, warehouses, logistics offices, and support services to boost the region's ability to attract industrial and service activities linked to the transport network.

The partnership also seeks to enhance connectivity between industrial zones and major land, sea, and air transport hubs, helping streamline the movement of goods, reduce operational times, and increase supply chain efficiency.

The initiative aligns with the region's strategy to support key economic sectors and offer logistics solutions that meet public and private sector needs. By creating an attractive environment for local and international investment, the agreement strengthens regional competitiveness, elevates economic readiness, and supports quality-of-life initiatives and broader development goals.

The MoU builds on the MPDA's ongoing efforts to develop the regional business ecosystem and advance national plans to modernize infrastructure through strategic partnerships that deliver integrated development solutions for residents and businesses.

Housing units
NHC has signed an agreement with Saleh Abdullah Almuhana Co. to develop 1,290 residential units within the Al-Woroud destination in Al-Ahsa governorate.

Valued at more than SR651 million ($173.5 million), the project supports NHC's ongoing efforts to expand housing options and enhance quality of life across the Kingdom.

The agreement will advance the development of Al-Woroud through a diverse range of residential designs tailored to meet various needs. The destination is one of NHC's flagship urban projects in Al-Ahsa, featuring modern infrastructure and integrated community and commercial services - reinforcing the company's commitment to sustainable, well-planned living environments.

The partnership also underscores NHC's focus on strengthening collaboration with the private sector, both locally and internationally, to accelerate urban development in Saudi cities.