Saudi ‘Alternative Financing’: Better Liquidity & Loans for Citizens

The Kingdom of Saudi Arabia is continuing its efforts to improve the quality of life for its citizens by launching several programmes and initiatives aimed at driving sustainable development across various sectors, particularly in the housing sector, by providing flexible financing solutions to help Saudis own their first homes.

The percentage of Saudi families who own a home has increased significantly as a result of these efforts, surpassing the 2025 target and approaching the 2030 aim of 70%.

With the introduction of the Alternative Financing Programme to support the real estate financing market and boost the capacity of financing institutions to offer Saudi families a broader range of financing options, the Kingdom continues to develop financing solutions to serve its citizens better and increase their chances of becoming homeowners.

The Alternative Financing Programme’s launch

In keeping with the objectives of the Kingdom’s Vision 2030, Saudi Arabia’s Real Estate Development Fund has introduced the Alternative Financing Programme as a means of assisting more people in acquiring their first residence.

To empower citizens to own their homes through a variety of housing and financing options, the Kingdom has launched several programmes and initiatives, including the “Sakani” programme, which is in collaboration with the Real Estate Development Fund, real estate developers, and financial institutions.

Today, however, the strategy seems to be a little different: to enhance the capacities of the two primary players in the equation—citizens and banks/financial institutions—by offering a financing mechanism that enables banks and other financing organisations to increase their ability to finance real estate.

How the Ingenious Programme Operates

Based on the information currently available, the programme’s idea is to allow the Real Estate Development Fund to provide member banks with additional funding. This enables these banks to give residents more mortgage financing, reaching more people who want to buy homes and boosting the market for first-time homeowners.

To put it another way, the alternative financing programme seeks to increase the banking sector’s liquidity to help the financing institution overcome its difficulties and improve its lending capacity, thereby assisting the end-user (the citizen) in attaining sustainable homeownership.

Consequently, it can be said that the relevant authorities are working to diversify finance and housing options to give citizens more choices and chances to become homeowners. The “Alternative Financing” initiative, which aims to boost homeownership rates and improve the efficiency of the real estate market, appears in this context as one of the new supportive measures intended to expand the housing sector and improve quality of life.

The Kingdom’s attempts to raise the standard of living and make Saudi cities more appealing also include the growth of the housing sector. In addition to promoting urban planning and the urban landscape and improving the Kingdom’s reputation outside, housing, services, and urban infrastructure are essential components of a city’s competitiveness and capacity to draw inhabitants and investments.

Read more: The PIF’s 2026-2030 Strategy on KSA’s New Priorities

Tripartite Strategic Collaboration

The Real Estate Development Fund, the National Commercial Bank (NCB), and the National Housing Company (NHC), each of which specialises in a particular function, formed a tripartite collaboration to launch the initiative.

The partners’ primary responsibilities are to integrate the housing and financing aspects. Through the National Commercial Bank, which then distributes the funding to recipients, the Real Estate Development Fund supplies the funds required for mortgage issuance.

In the meantime, the National Housing Company offers specific housing units in Riyadh, Dammam, and Jeddah to people who want to become homeowners. The programme’s fundamental idea is to offer housing items and liquidity at the same time. It is important to note that the programme offers qualified recipients financing alternatives with monthly instalments beginning at 699 Saudi Riyals, as well as instant finance approval for the purchase of a home.

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Homeownership Rate Approaches 2030 Target

The percentage of Saudi households who own their homes reached over 66.24% in 2025, surpassing the goal established for that year at 65% and getting closer to the 2030 aim of 70%, according to the most recent official statistics.

According to the Ministry of Municipalities and Housing, 8,761 Saudi families benefited from housing support services in February 2026 alone as a result of initiatives that helped them become homeowners. Between the start of this year and the end of February, 17,188 households benefited from these services, and 14,160 families were able to move into their new houses during that time.

A novel strategy for increasing housing and finance options seems to be the alternative financing scheme. Experts predict that if it is effective, it will significantly enhance Saudi households’ homeownership rate and help them reach the 2030 target of 70% when combined with an increase in the housing supply.

Read more: Homeownership Assistance via the Real Estate Fund: 5.3 Billion Riyals