Saudi Arabia enacts new housing support regulations: Eligibility, conditions, explained

Saudi Arabia has launched a major overhaul of its housing support framework with the official enforcement of new executive regulations . Approved by the Cabinet and published in the official gazette Umm Al-Qura , the reforms introduce a precise and transparent system to define eligibility, prioritize applicants, allocate support, and enforce compliance. This move aligns with Vision 2030’s broader goals of improving quality of life and ensuring equitable access to adequate housing.

Eligibility rules redefined under Saudi Arabia’s new housing support framework

The updated regulations lay down specific and strict criteria for eligibility. To qualify for state-provided housing support under the new system, applicants must meet the following conditions:

• Nationality & Residency : Only Saudi nationals are eligible, and their families must reside within the Kingdom. Time spent abroad is only counted if it’s for work, education, or medical treatment.
• Ownership Restrictions: Neither the applicant nor their family members can own a suitable residential property at the time of application or within the year before signing a support contract.
• Asset Threshold: The total value of a family’s assets must not exceed SAR 5 million (approx. USD 1.3 million). Exemptions are made for smaller personal assets like vehicles and minor land holdings.
• Special Eligibility Categories:
  The regulations allow certain groups to apply independently:
  
• Widowed and divorced women
• Unmarried women aged 25 and above
• Persons with disabilities
• Individuals suffering from chronic or serious illnesses

These groups may apply without needing to be attached to a primary family household application.

Saudi Arabia introduces points based system for fair allocation of housing support

A key feature of the new framework is a points-based system that ranks applicants by urgency and need. The distribution of points directly influences priority in support allocation.

• Income based points:
  
• Families with monthly incomes under SAR 3,000 receive the highest priority, with 20 points awarded for standard housing and 10 points for designated residential communities.
  
• Additional factors for points:
  
• Family size
• Marital status
• Humanitarian or health conditions (e.g., terminal illnesses)
• Whether the applicant is a woman leading a household
  
• Tiebreakers in case of equal points:
  
• Larger family size
• Lower income
• Older age of the applicant

This system ensures that support is both needs-based and efficiently distributed to those in the most critical circumstances.

Housing allocation and repayment terms set by Saudi Arabia’s housing regulations

Support will be offered in various forms, including housing units, residential land, or financing options. The regulations clearly define the terms for receiving and repaying support:

• Priority in Allocation: Preference is given to applicants who can afford to repay the monthly installments. If not, a guarantor or family co-signer is required.
• Repayment conditions:
  
• Monthly installments must not exceed 33% of the family’s income
• The repayment period is capped at 25 years
• The applicant must be no older than 65 years at the end of the repayment term
• Construction timelines for land recipients:
  
• Construction must begin within 1 year
• Completion is required within 3 years
• Non-compliance may result in forfeiture of support

These measures are designed to ensure practical, enforceable commitments from beneficiaries while safeguarding the integrity of public housing resources.

Oversight, transparency, and grievance redressal in Saudi Arabia’s housing policy

To ensure compliance and prevent misuse, the regulations include strict data accuracy controls and enforcement provisions:

• Mandatory Updates: Applicants must update their housing support account within 15 days of any change in circumstances that may affect eligibility.
• Fraud prevention:
  
• Any contract based on false or misleading information will be canceled
• Repayment of all granted funds or assets will be enforced
• Administrative enforcement:
  
• The Ministry of Municipal and Rural Affairs and Housing has the authority to suspend or reject applications if documentation is incomplete or deadlines are missed
• Appeals process:
  
• A Grievance Committee of at least three members will handle appeals
• Beneficiaries must file grievances within 60 days of being notified of a decision

This approach underscores the Kingdom’s commitment to both fairness and accountability in public service delivery.