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WHO ARE IN NEED FOR ASSISTANCE TO HAVE HOMES?

When we speak about the poor, we should not convene the housing problem to them. The problem of obtaining a home affects a larger group of people. Government and private sectors' employees and low-paid professionals cannot, by their own salaries, save enough money to build homes for their families. This study, therefore addresses the role of the Saudi Government in providing assistance to poor people and low-income groups working for both the private and public sectors. Housing the urban poor and low-income groups required the undertaking of large-scale projects. Different agencies have taken part in providing housing either through ownership or rent. Free-land plot program, for example, give low-income people land to build their own homes through loans given by the Real Estate Development Fund. Besides the housing projects undertaken by the Government, big companies have financed home ownership programs for their employees. The private sector was also encouraged to build low-cost housing for affordable rent, putting into consideration the continuing rural-urban migration, and robust population growth. One of the most important goals of the housing development and providing the poor and low-income groups with houses is correlated with founding urban life patterns which make available employment opportunities, social and health care, as well as healthy and hygienic environment especially in residential areas.

Let me give examples of Large-Scale Housing projects.

1 - ARAMCO HOUSING PROGRAMME:

As the workforce expanded due to the increase in oil industry activities, the temporary field comps were developed into permanent dwellings. Consequently, ARAMCO planned and built a new town next to each camp to provide housing to the workforce.

In 1953, ARAMCO introduced a new Home Ownership Program for its employees. This program encouraged the employees to build or purchase houses in the Eastern Province, first in Dammam and then in AL-Khobar. Then the company developed building lots on land provided by the government for free distribution to employees. Most of the Saudi employees preferred to buy their homes in Dammam and Al-Khobar.

In the same year the company launched a Housing Loan Plan to assist its Saudi employees in securing funds to build or purchase family housing in their local communities. The schedule of loans was closely related to salary level. Low-paid employees were eligible to borrow up to a maximum of SR 20,000 while those in higher-income groups could borrow up to SR 80,000. Loans were repaid by regular monthly salary deductions up to 20 percent.

In addition to this scheme, ARAMCO established a Guaranteed Rental Plan. To encourage local contractors to build housing for sale to its Saudi employees, the company guaranteed to pay the rent for a five year period on any such properties which contractors failed to sell. The housing loan scheme and the guaranteed rental plan enabled the company's employees to live with their families in their local communities in all cities and towns of the Eastern Province.

2 - Al-MALAZ PROJECT:

In 1953, the Government of Saudi Arabia decided to move government offices from Makkah and Jeddah to Riyadh and to build offices for the ministries along King Abdulaziz Road. The government felt the immediate need to provide housing for all the government employees transferred to Riyadh in 1957.

The site chosen for their housing was Al-Malaz located 4.5 km north east of the city center. The housing project was initiated by the Ministry of Finance and National Economy in cooperation with Riyadh Municipality, In the beginning the Al-Malaz housing project consisted of 754 detached dwelling units (villas) and 180 apartment units in three apartment buildings. The detached houses were built and sold to employees on a loan-term payment basis and the apartments were rented on a permanent basis. The site covers an area of 500 hectares. It began to grow as a city by itself and was called New Riyadh. The pattern of its planning and development has become a model for every neighborhood, town and city in Saudi Arabia.

3 - THE GOVERNMENT HAS ESTABLISHED THE SAUDI REAL ESTATE COMPANY WITH A CAPITAL OF SR600 MILLION:

This is a joint-stock company with the Government subscribing to the majority of shares. The company has built housing complexes, some of which are apartment blocks for rent, and the other are villa type, which have been sold to Saudi citizens. This scheme has well contributed to the housing stock.

4 - Universities:

The Universities have built sufficient housing units for their students and staff. Students live in dormitories, while the teaching staff are leased detached houses for reasonable rents.

5 – Ministry of Foreign Affairs:

When the Ministry of Foreign Affairs headquarters was transferred from Jeddah to Riyadh, the Government built 700 villas which were leased to the Ministry's employees at a reasonable rent. The transfer of the Ministry was postponed for lack of facilities to accommodate foreign embassies and their staff. For that purpose the Diplomatic Quarters was built. It is a superb enclave with the most modern infrastructure and public services. Once the project was completed, foreign embassies and the Ministry were transferred to Riyadh in the mid-eighties.

6 – MINISTRIES OF DEFENCE AND INTERIOR AND THE NATIONAL GUARD HOUSING PROJECTS:

The three Government authorities erected housing projects for their military personnel in military towns throughout the Kingdom. The Saudi Arabian Airlines (SAUDIA) also built special self-contained towns for its employees and King Khaled international Airport built a superb village for its workforce's accommodation.

7 - THE ROYAL COMMISSION FOR JUBAIL AND YANBU:

When Jubail (west coast) and Yanbu (east coast) were built as industrial, the Saudi Government established a residential town for each. The employees were sold homes, or given plots to build their own homes. The large companies in both cities also built houses for their own employees.

These are only examples of large-scale housing projects which contributed to solving housing problems of public and private sectors employees and others.