Riyadh: Saudi Arabia has introduced state guarantees for the sale of unbuilt housing units, as announced by Ali Al-Ahmad, the Chief Director for Supply Chain at the Ministry of Municipalities and Housing, during the 'A New Deal for Housing Finance' session at WUF13.

According to Azeri-Press News Agency, the 'WAFI' program, now active in Saudi Arabia, has established a state guarantee and oversight framework for selling unbuilt apartments. This initiative allows citizens to purchase apartments in advance, with delivery expected approximately 36 months later.

Ali Al-Ahmad explained that the government oversees all financial transactions and the construction process, ensuring that payments made by citizens are securely and transparently transferred to construction companies.

The introduction of the program has markedly boosted private sector confidence, as Al-Ahmad highlighted, noting a 200% increase in private sector participation in housing finance alongside the state. Furthermore, following the program's implementation, 13 banks in Saudi Arabia have set up dedicated divisions for financing unbuilt housing projects.