Sophistication and Availability of Private Sector Developers in the Context of Affordable Housing Projects in Saudi Arabia

In cases where the national affordable housing policy objectives call for private sector participation such as in Saudi Arabia, an oft-overlooked dynamic is whether there exists a sufficient number of private sector developers with the appropriate capabilities in order to execute the proposed program.

In cases where it is determined that there is a lack of sufficient capacity of private sector developers relative to the type and number of units that needs to be delivered, then a comprehensive training and technical certification program can be considered. Assigning government resources to create and then execute a technical certification and training program to bring private sector developers ‘’up to par’’ to a level wherein they can feasibly participate in PPP contracts to develop affordable housing, is often a key step to consider when developing an affordable housing policy.

Part 2 of TCN’s White Paper on Affordable Housing in the Kingdom of Saudi Arabia will provide more details on the above and will be released shortly.