"Real Estate Development Fund" support, which ordered by King Abdullah Bin Abdul Aziz (the Custodian of the Two Holy Mosques – May God Support him) increased the number of owned houses by the citizens who depend on this Fund. The 40 billion riyal support is meant to help more than 130000 citizens to own houses by building or purchasing. In both cases, this loan will contribute to the ownership by 50% - 80% of the houses cost. This support represents 20% of the total expenses of "Real Estate Development Fund" since it is established according to the Royal Decree No. 23 dated 11/6/1394 a.h. (1/7/1974 A.D). This fund aims at "providing proper and healthy residences and solving the housing problem in all areas through the following: allowing easy long-term loans for the citizens in order to finance their own houses; those loans will be paid by annual premiums for 25 years plus some advantages for the collection in the due time. It allows mid-term loans for Saudi investors to build residence complexes, libraries and exhibitions. It distributes units of the housing projects in some areas for the citizens who want it instead of loans. Despite of government orientation toward the solution of providing up-for-sale houses, this requires massive efforts of the private sector to provide houses for middle-income and low-income citizens especially nowadays as the plots prices are high, and the over-population which exceeds 8% annually in some cities (the highest percent in the world). There are many citizens who cannot afford the money to purchase a plot because of its high price in downtown or even in the outskirts of the cities whose prices increased recently: the average price for a plot is nearly 500000 riyal which is considered very high to the mid-income and low-income citizens as there are no substitutions like real estate financing or easy residences. It becomes worse for those citizens as the prices are going up while the plots are running out in cities; in addition to the few numbers of proper and cheap houses for the citizens and the decrease of financing against Real Estate Fund loans.
