ECONOMY

Saudi Arabia to provide 1 million housing units through soft loans

Saudi Arabia has kept economic indicators high despite the drop in oil prices. (Archives)

The Saudi Deputy Crown Prince Mohammed Bin Salman said on Tuesday that the government will provide over 1 million housing units through soft loans or the Saudi Real Estate Development Fund.

During an interview broadcasted on Al Arabiya TV in parallel with Saudi TV, the Prince said that a housing program will launch during the third quarter of 2017.

This comes as part of the Council of Economic Affairs and Development 10 strategic programs to achieve Saudi Vision 2030, which was approved by the Council of Ministers in April 2016.

Read also: Mohammed bin Salman: No one is above the law, nor prince or minister

Vision 2030

“Vision 2030 will be implemented through programs divided into different time periods,” he explained, adding that Vision 2030 is expected to drop unemployment by seven percent.

Prince Mohammed explained that the Saudi citizen account will aim to compensate citizens for any rise in the prices.

“We try to support the widest possible segments of society,” he said.

Prince Mohammed added that the government was committed to providing medical treatment to its citizens but would not necessarily manage hospitals.

“Development of the health sector is very complex,” the prince said.

Meanwhile, the Deputy Crown Prince said that non-oil related income doubled in the past two years during.

He stated that Saudi kept economic indicators high despite the drop in oil prices and that there has been a “higher than expected increase” in non-oil revenues in the first quarter of 2017. Additionally the Prince said that the public debt will not exceed 30 percent of the GDP.

Read also: Saudi Deputy Crown Prince explains new Hajj service

Aramco

The Saudi Prince said that the most important element of the Public Investment Fund is the Aramco IPO. He said that Saudi Aramco’s offering will provide a large cash flow to the Public Investment Fund, explaining that Public Investment Fund depends on its assets and not on the public budget.

“Aramco’s revenue will help us find other investment opportunities,” Prince Mohammed bin Salman said.

The government declared that it will set an oil production ceiling after Aramco’s IPO and that approximately five percent of the company’s shares will be sold, adding that the Public investment fund will spend $133 bln over three years after Aramco IPO.

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Last Update: Wednesday, 3 May 2017 KSA 15:38 - GMT 12:38
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