The Public Investment Fund (PIF) has launched “SARCC,” a smart residential community company, to meet the increasing demand for housing needs of workers residing in the Kingdom.
Local Investment
The new company aims to develop and operate residential complexes for all categories of workers across the Kingdom. It will provide its services for both public and private project laborers nationwide.
Experts say this move will increase the supply of housing solutions amid upcoming global events in Saudi Arabia which will further drive up demand, including “Expo 2030” and “World Cup 2034,” as well as other mega-projects currently underway.
It is worth noting that the rise in rental prices locally remains the “biggest factor” exacerbating domestic inflation in recent months.
This comes as global companies continue to establish regional headquarters in Saudi Arabia, increasing demand for housing from their employees while supply slows.
So what
The Saudi Sovereign Fund noted that “SARCC” will contribute to the development of the country’s real estate sector.
This will come as the company enhances labor housing standards through its investments.
SARCC aims to develop and operate projects that meet international standards issued by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) of the World Bank.
SARCC will support the fund’s efforts to develop infrastructure and services associated with construction and real estate development projects in the Kingdom, including “Roshn Group,” “Saudi Downtown Company,” and “New Square Development Company.”
This aligns with the government’s goal of increasing homeownership among Saudi families to 70% by 2030.
Some context
The Public Investment Fund is one of the largest sovereign wealth funds in the world, with assets nearing one trillion dollars. It is one of Saudi Arabia’s main investment arms, with plans to diversify the Kingdom’s economy and reduce its dependence on oil.
Since 2017, the fund has launched around 95 companies, aiming to build a diversified portfolio across 13 strategic sectors at both local and international levels.
It also has injected some SAR 150 billion annually into the local economy.
