The Saudi real estate sector has seen a substantial increase in Saudi employment with over 26,000 citizens now working in the industry. That is a significant leap from just 12,000 in July 2021, marking a 116 percent surge. Saudi Arabia’s Minister of Human Resources and Social Development, H.E. Eng. Ahmad bin Sulaiman AlRajhi, stressed the importance of the ministry’s integration with the government system and the private sector in creating economic and job opportunities for citizens. The number of Saudis working in the private sector increased from 1.7 million in 2019 to 2.3 million in 2023. That is a record number achieved for the first time and includes 361,000 who have never worked previously.
Saudi Arabia’s real estate sector
During the Real Estate Future Forum in Riyadh, AlRajhi stressed that before July 2021 the ministry did not think of localizing real estate professions. Back then, the number of Saudis working in the real estate sector did not exceed 12,000. However, after implementing the decision, the number witnessed an exponential increase reaching over 26,000. That increase is seen in the 12 real estate professions, whether in mediation, sustainable construction, or arbitration.
He also highlighted that these numbers prove the competence of citizens in the labor market. Moreover, AlRajhi stressed the importance of empowerment and partnership with the private sector to provide job opportunities for young people. He also acknowledged the real estate development companies that contributed to creating these jobs for Saudi citizens in the real estate sector.
AlRajhi credited this increase to the ministry’s efforts in fostering job opportunities in real estate. This includes establishing 12 sectoral councils for skill development, notably in construction and real estate. Moreover, the ministry initiated the Waad national training campaign. This campaign, in collaboration with the private sector, aims to train 1.15 million Saudis by the end of 2025.
Incentives and support programs
The ministry provided several incentives and support programs to help the private sector and real estate industry increase the number of Saudi employees. Some programs include on-the-job training and internal courses. Moreover, it supported establishments by paying 50 percent of the salary with a maximum of (SAR3,000).
AlRajhi indicated that the government has 123 programs to provide support and subsidies. The largest among these cater to social security beneficiaries, individuals with disabilities, and citizen’s account holders. In 2023, funding for these key programs exceeded SAR86 billion.
Additionally, AlRajhi emphasized the “housing and empowerment” initiative which targets 1,000 social security-registered families. The program seeks to transition these families from dependency to self-sufficiency.
Read: Riyadh’s Real Estate Future Forum reveals industry trends
Registered companies
More than 1,100 companies have registered on the National Social Responsibility Platform, contributing more than SR1 billion in 10 months. Particularly, the housing sector benefits from significant corporate support, with 21 initiatives worth over SAR677 million, aiding the ministry’s most underprivileged segments.
AlRajhi revealed that the number of non-profit organizations had increased from 1,440 before Vision 2030 to 4,400, with a growth rate of 227 percent. Moreover, the target is to increase the number by 30 percent during 2024. The minister praised the non-profit sector for its contributions through housing institutions and real estate associations that support the most underprivileged families. For example, this includes the agreement between the Ministry of Municipal and Rural Affairs and Housing, real estate associations, and the Developmental Housing Corporation, which resulted in securing 16,000 housing units for families most in need.
For more news on real estate, click here.
