The Saudi real estate sector has witnessed a substantial rise in local employment, with over 26,000 citizens currently employed in the industry. This represents a noteworthy increase from the 12,000 recorded in July 2021, marking a significant surge of 116 percent. Emphasizing the ministry’s crucial role in fostering economic growth and job opportunities for citizens, Saudi Arabia’s Minister of Human Resources and Social Development, H.E. Eng. Ahmad bin Sulaiman AlRajhi, highlights the importance of effective integration between the ministry, the government, and the private sector.
In a remarkable achievement, the number of Saudis employed in the private sector has escalated from 1.7 million in 2019 to 2.3 million in 2023. This record-breaking figure includes 361,000 individuals who had never been part of the workforce before. The minister underscores the significance of these collaborative efforts in driving employment opportunities and contributing to the overall economic development of Saudi Arabia.
In Riyadh’s Real Estate Future Forum, AlRajhi emphasized a significant shift in the Saudi real estate sector. Before July 2021, the Ministry had not considered localizing real estate professions, and the number of Saudis employed in the sector was limited to 12,000. However, following the implementation of the decision to localize real estate professions, there was a remarkable surge, with the number exceeding 26,000. This increase encompasses various real estate professions, including mediation, sustainable construction, and arbitration.
The rising numbers underscore the competence of Saudi citizens in the labor market, emphasizing the success of the localization initiative. AlRajhi highlighted the crucial role of empowerment and collaboration with the private sector in creating job opportunities for the youth. He commended real estate development companies for their contributions to generating employment opportunities for Saudi citizens within the real estate sector.
AlRajhi attributed this substantial increase to the ministry’s proactive efforts in fostering job opportunities within the real estate field. These initiatives involve the establishment of 12 sectoral councils dedicated to skill development, particularly in construction and real estate. Additionally, the ministry launched the Waad national training campaign, a collaborative effort with the private sector, aiming to train 1.15 million Saudis by the end of 2025.
In its efforts to boost the employment of Saudi citizens in the private sector and real estate industry, the ministry has implemented various incentives and support programs. These initiatives encompass on-the-job training and internal courses, aiming to enhance the skill set of Saudi employees. Furthermore, the ministry has extended support to establishments by covering 50 percent of the salary, capped at SAR3,000.
AlRajhi highlighted that the government has established 123 programs designed to offer support and subsidies. Notably, these programs target social security beneficiaries, individuals with disabilities, and citizen’s account holders. In the year 2023 alone, the funding allocated to these critical programs surpassed SAR86 billion.
Moreover, AlRajhi underscored the significance of the “housing and empowerment” initiative, specifically designed for 1,000 social security-registered families. This initiative aims to facilitate the transition of these families from dependency to self-sufficiency, aligning with broader goals of social and economic empowerment.
Numerous companies, surpassing 1,100 in number, have registered on the National Social Responsibility Platform, collectively contributing over SAR 1 billion in the span of 10 months. A noteworthy portion of this corporate support, exceeding SAR 677 million, is directed towards the housing sector. This support is channeled through 21 initiatives, playing a vital role in assisting the ministry in addressing the needs of the most underprivileged segments of the population.
AlRajhi disclosed that the number of non-profit organizations has seen a remarkable increase from 1,440 before the implementation of Vision 2030 to 4,400, reflecting a substantial growth rate of 227 percent. Additionally, the target is set to further increase this number by 30 percent during the year 2024. The minister commended the non-profit sector for its significant contributions, particularly through housing institutions and real estate associations, which play a crucial role in supporting the most vulnerable families. An exemplary collaboration is the agreement between the Ministry of Municipal and Rural Affairs and Housing, real estate associations, and the Developmental Housing Corporation, resulting in the provision of 16,000 housing units for families facing the greatest needs.
