Supply Chains and Localizing Industries.. Economic Growth and Real Estate Boom

We take pride in the Kingdom's efforts to become one of the leading countries in the world with a clear strategy in the housing sector and a specific goal for homeownership. By increasing the ownership rate to 70% by 2030, up from 63.74% at the end of 2023, the Kingdom will contribute to achieving the targets of the Housing Program.

As the National Housing Company (NHC), we are proud to be at the forefront of the real estate development sector. Our ongoing efforts are focused on delivering over 300,000 housing units by the end of 2025, spanning nine suburbs and six residential communities. This expansive project, covering an area exceeding 100 million square meters, will provide homes for over 1.5 million citizens. We aim to not only meet housing needs but also secure high-quality supply chains and promote sustainable construction materials.

NHC's leadership in the real estate development sector and its strategic role in achieving the Housing Program's targets have propelled us to find proactive solutions. Our initiatives secure supply chains and support local content while localizing industries. We firmly believe in the sustainable impact of these efforts, not just on achieving economic targets but also on fostering a conducive environment for foreign investments.

To reinforce this, we launched the "Material Platform" at NHC in 2023 to support local content and enhance the efficiency of the local industry. Transactions on the platform have exceeded 2 billion riyals, and over 140 agreements with more than 90 local manufacturers and suppliers have been made since its launch. These agreements have contributed to securing construction materials for our projects and achieving savings for developers and contractors exceeding 20%.

This year, we also launched the "Raka'az Program," which recently won the CIPS MENA Award for the local content category. The program aims to enhance local content in our projects and has achieved a 54% utilization rate of local content, contracting with over 2,000 local enterprises.

Additionally, we signed an important agreement with the Chinese CITIC Group to establish an industrial city and logistics zones that include 20 factories to meet the material needs of our projects. The value of this partnership is 3 billion riyals, which will effectively improve project quality, enhance local production, and create around 10,000 job opportunities.

This industrial city is expected to significantly impact the economic and developmental aspects of the real estate sector, with a value reaching 33 billion riyals.

The National Housing Supply Chain Forum was launched to achieve these figures, announcing its ambitious targets to bolster our national economy in the real estate market. The forum resulted in the signing of 77 agreements, including five memorandums of understanding for creating industrial zones, 20 agreements with companies interested in investing in industrial areas, and 23 agreements for open purchasing. Additionally, 28 deals were made by real estate developers and contractors through the Materials Platform to purchase construction materials from industrial areas.

We concluded the forum by celebrating our successful partners in this distinguished real estate event, and we are proud of the partnerships that have contributed to achieving our shared vision of building a developed and sustainable future for present and future generations. We look forward to finding innovative solutions to secure supply chains by partnering with leading global companies and attracting international investments in the real estate sector. Our goal is to implement integrated urban projects according to the highest standards, which will enhance the national transformation in the construction sector and contribute to the growth of the national economy.