«السيادي» السعودي يستثمر في مساكن العمالة لتلبية طلبات المشاريع العملاقة

"PIF" Invests in Labor Housing to Meet the Demands of Mega-Projects

PIF's New Venture: SARK

The Public Investment Fund (PIF) has decided to invest in labor housing and inject more residential complexes for all workers involved in major construction and development projects in Saudi Arabia. Experts have characterized this move as a significant step toward increasing the supply of housing solutions in line with upcoming global events, including Expo 2030 and hosting the 2034 World Cup, in addition to the ongoing mega-projects.

To achieve this, PIF has announced the establishment of "SARK" (Smart Housing Company),a company specializing in the development and operation of residential complexes for all categories of workers in the Kingdom's major construction and development projects. PIF has stated that SARK aims to meet the growing demand for housing solutions for workers and provide its services to public and private projects nationwide.

Addressing the Housing Shortage and Benefits for the Real Estate Sector

Real estate specialists believe that SARK will introduce a considerable number of residential complexes for all workers, alleviating pressure on residential units for families and increasing the supply of housing products. This, in turn, will contribute to lowering prices and achieving the Kingdom's target of increasing homeownership for Saudi families to 70% by 2030.

Khalid Al-Mubayyed, CEO of "Manasat" real estate, believes that one of the biggest challenges facing development is the increasing demand for labor needed for the mega-projects underway in the Kingdom. He highlighted the importance of providing suitable housing for this workforce, as the market currently faces a shortage of suitable housing or lack of suitability for workers in these projects.

Al-Mubayyed affirmed to "Asharq Al-Awsat" that PIF's announcement of a real estate development company specializing in this type of housing is a positive and beneficial decision for the real estate market and will address the issue of labor housing in unsuitable areas.

Meeting the Demands of Mega-Projects and Global Events

Ahmed Omar Basoudan, a real estate specialist, told "Asharq Al-Awsat" that PIF's establishment of SARK aligns with the scale of the ongoing mega-projects, along with the global events the Kingdom will host in the coming period, including Expo 2030 and the 2034 World Cup. He emphasized that these events will require a significant number of workers in construction and development, meeting international standards.

Basoudan added that the new company will reduce the presence of workers in housing units belonging to families, as they will move to the new specialized complexes, thus increasing the supply of housing products and raising the homeownership rate for families to 70%, in line with the 2030 targets.

He further mentioned that PIF is always seeking opportunities to invest in development projects and strive to achieve the goals of Vision 2030 by launching new companies in promising sectors. He pointed out the entry into housing projects to increase supply and alleviate pressure on housing, aimed at developing infrastructure and supporting services related to construction and real estate development projects in the Kingdom.

According to Basoudan, PIF focuses on all new and promising sectors, including the real estate market. It has previously launched "Roshen Group," "Downtown Saudi Arabia," and "New Square Development Company" after identifying significant opportunities in this sector within the Saudi market.

SARK's Role in Transforming the Housing Sector

According to a statement issued by PIF, SARK will play a significant role in the development of the sector in the Kingdom, investing in the sector and establishing and operating housing complexes for various categories of workers. Through its investments, it will enhance the standards of worker housing by developing and operating projects that meet international standards issued by the European Bank for Reconstruction and Development and the International Finance Corporation, part of the World Bank.

SARK will strengthen the role of the private sector by enabling investment and extended partnerships across the value chain of the sector, including service providers in various fields such as construction, catering, transportation, and retail.

The company will contribute to attracting skilled individuals and partnerships to various sectors in the Kingdom, including major construction and construction projects, by providing high-quality and modern housing with the best amenities, facilities, and services for work teams.

Meeting Housing Demands and Driving Transformation

Khalid Jawhar, Director of the "Musharak" Project Portfolio Management Division at PIF, stated: "Housing complexes for workers represent a significant opportunity given the demand that far exceeds the supply in the local market. SARK will contribute to meeting the requirements of housing solutions in the Kingdom and creating more business opportunities for the private sector. With the rising growth of construction and construction projects nationwide, PIF continues to play its role in driving transformation and development in basic infrastructure."

The announcement of SARK will support PIF's efforts to develop infrastructure and supporting services related to construction and real estate development projects in the Kingdom, including "Roshen Group," "Downtown Saudi Arabia," and "New Square Development Company."