Saudi Arabia aims to raise mortgage market to SR502bn by 2020

Majed Al-Hogail
Updated 14 March 2018
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Saudi Arabia aims to raise mortgage market to SR502bn by 2020

RIYADH: Saudi Arabia has announced plans to boost the size of the mortgage market to SR502 billion by 2020 as part of a comprehensive plan to provide housing finance to its citizens.
The announcement, which aims to ensure the construction of 1.2 million housing units across the country before 2030, was made by Majed Al-Hogail, minister of housing, on Wednesday.
Al-Hogail, who was speaking at a major housing finance conference, said that “we are working to facilitate access to housing finance so that Saudi citizens can own housing units.”
Al-Hogail said that the “Saudi government is exerting all efforts to raise the household ownership ratio to 70 percent by 2030.”
“Vision 2030 calls for addressing housing issues and to provide enough affordable homes to satisfy demand,” said the minister, while pledging to support government agencies as well as private institutions working in the housing sector.
The move by the Housing Ministry is significant as only about 47 percent of Saudis own homes. There is a shortfall of 100,000 to 200,000 homes each year. Almost a third of Saudis are under the age of 15 and more than a half are under 25, which indicates the need for a steady flow of affordable housing.
Khalid Al-Amoudi, general supervisor of the Real Estate Development Fund (REDF), said it would be transformed into a financial institution to support the housing sector.
On the sidelines of the conference, Bidaya Home Finance (BHF) announced the establishment of its inaugural SR500 million sukuk program under the auspices of the Capital Market Authority of Saudi Arabia.
“This landmark initiative represents the first real-estate focused, non-banking financial institution in the Kingdom to establish such a sukuk program for the purpose of tapping the Islamic debt capital markets,” said Mazin Bin Ahmed Al-Ghunaim, BHF chief.
The conference, the first of its kind, was hosted by REDF in cooperation with Euromoney, an international organizer of conferences for capital markets and cross-border investment.


How Saudi Arabia’s five Founding Day symbols tell a 299-year story

Updated 22 February 2026
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How Saudi Arabia’s five Founding Day symbols tell a 299-year story

  • The flag, the palm, the Arabian horse, the souq and the falcon are symbols that connect Saudi Arabia to its roots
  • Researcher Ismail Abdullah Hejles explains how the Kingdom’s symbols anchor identity, heritage and continuity

RIYADH: As Saudi Arabia prepares to mark its 299th anniversary this Founding Day — commemorating the establishment of the First Saudi State by Imam Muhammed bin Saud in 1727 CE — the moment invites reflection not only on history, but on the symbols that distill that history into enduring meaning.

Beyond ceremony and celebration, the Kingdom’s official Founding Day emblems tell a deeper story: of survival in a harsh landscape, of state-building against the odds, and of values carried forward across nearly three centuries. Together, they form a visual language that binds past to present and projects confidence into the future.

The five Founding Day symbols — the green flag, the palm tree, the Arabian horse, the souq, and the falcon — do not serve a purely celebratory function, Ismail Abdullah Hejles, a Saudi researcher in traditional architecture, told Arab News. Rather, they carry an intellectual and cultural role that connects society to its roots.

“Nations that understand their symbols and identity understand themselves and are better equipped to continue their journey with confidence and balance,” he said.

The Saudi flag. (SPA)

The Saudi flag, a representation of unity and sovereignty, embodies the values upon which the state was founded and reflects the continuity of the nation, linking its past to its present. The current design was adopted in 1937, refining historical banners from the first and second Saudi states.

The Shahada, the Islamic declaration of faith, symbolizes the Kingdom’s foundation on Islamic values, while justice and safety are echoed through the sword, which represents the unification of the Kingdom during the reign of the late King Abdulaziz Al-Saud.

The flag’s green color is traditionally associated with Islam, reflecting continuity and faith as central pillars of the Saudi state.

Additionally, the palm tree and the crossed swords — now synonymous with Saudi Arabia — officially appeared in the Kingdom’s emblem around 1950 following unification. Together, they express strength, justice, and the protection of unity.

The Saudi emblem

“The choice was not arbitrary,” Hejles said. “It brought together strength (the sword) and life and sustainability (the palm). It reflects a careful balance of firmness and generosity.”

The palm tree’s symbolic presence, however, predates the modern state, stretching back to the ancient civilizations of the Arabian Peninsula.

“In the simple oases, the palm tree was life, and the swords were dignity. The palm offered shade and sustenance, the swords protected the land and the name. Between the shade of the palm and the edge of the sword, the story of a nation takes place.”

The palm tree served numerous functions essential to the sustainability of civilizations. Its dates were a nutritious food; its fronds were used for roofing; its trunk built walls; its fiber made ropes; and it provided fuel and shade for communities.

In places such as Qatif and Al-Ahsa, the palm tree formed a complete life system with almost no waste. (SPA)

In places such as Qatif and Al-Ahsa, the palm formed a complete life system with almost no waste. It was not merely an agricultural symbol, but a genuine model of sustainability long before the term itself was coined, Hejles said.

Mentioned in the Qur’an more than 20 times, always associated with generosity and abundance, the palm formed the backbone of the agricultural economy in eastern Arabia.

“The souq (traditional market) was not merely a place of trade but a space for social interaction, knowledge exchange, and solidarity,” Hejles said. Through it, economic activity flourished and relationships between communities were strengthened.

A civilizational concept that emerged centuries before Islam, the souq arose from a simple human need: exchange. (Supplied)

“Nomads and desert dwellers possessed surplus goods and sought what they lacked through barter.”

A civilizational concept that emerged centuries before Islam, the souq arose from a simple human need: exchange. That exchange generated social mobility and fostered a culture of openness, which later contributed to the rise of cities.

A civilizational concept that emerged centuries before Islam, the souq arose from a simple human need: exchange. (Supplied)

In the pre-Islamic era, seasonal markets such as Souq ‘Ukaz, Souq Majanna, and Souq Dhu Al-Majaz were not only commercial hubs, but also literary forums, political arenas, and spaces for reconciliation and arbitration.

Once Islam was adopted, Souq Al-Madinah was established on principles prohibiting monopoly, forbidding fraud, and ensuring justice.

In the Saudi state, the souq evolved from traditional mud-and-wood covered bazaars into modern shopping centers and large commercial complexes. “Yet, the concept remained the same: a place of encounter before it is a place of sale,” Hejles said.

A civilizational concept that emerged centuries before Islam, the souq arose from a simple human need: exchange. (Supplied)

The Arabian horse, another Founding Day symbol, is associated with authenticity and courage. It accompanied the early stages of state-building, travel, and defense, becoming a symbol of strength and pride in Arab heritage.

The Arabs’ oldest companion, the Arabian horse is one of the oldest and purest breeds in the world. It was bred on the Arabian Peninsula for extreme endurance, speed, and agility.

Thanks to their lung capacity, endurance, and strong feet and bones, these horses could cover long distances in harsh desert conditions and survive on minimal resources, sometimes fed only dates and camel’s milk.

To protect them against theft and harsh weather, they were sometimes brought inside family tents, which led to the development of intense bonds with their owners. Arabian horses are known to be fearless and loyal, capable of protecting their masters in battle.

The Arabs’ companion, the Arabian horse is one of the oldest and purest breeds in the world. It was bred on the Arabian Peninsula for extreme endurance, speed, and agility. (SPA photo)

They also possessed a “war-sense,” allowing them to act intelligently in combat, known as well to have a high spirit in battle.

In Saudi Arabia, Arabian horses were vital in travel, trade, and warfare. Today, they symbolize nobility, pride, courage, and honor — reflecting and continuing the Kingdom’s equestrian legacy.

And finally, vigilance, insight, and high ambition are represented by the falcon. “It is tied to the practice of falconry, which requires patience and skill, and today symbolizes the continuity of heritage and elevated aspirations,” Hejles said.

The falcon was not merely a hobby but a hunting tool in a harsh desert environment, a companion to the Bedouin, and a symbol of strength, precision, and patience. (AN photo/AN Huda Bashatah)

Falconry was not merely a hobby, but a hunting tool in a harsh desert environment — a companion to the Bedouin and a symbol of strength, precision, and patience. The long training required to master falconry fostered discipline and strong leadership in its practitioners.

Over time, the falcon became associated with prestige and courage, linked to Bedouin identity and nobility, and embedded in poetry and storytelling.

A heritage passed through generations, falconry is now inscribed on UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity, with Saudi Arabia and other participating countries, reinforcing its global cultural significance.

The falcon was not merely a hobby but a hunting tool in a harsh desert environment, a companion to the Bedouin, and a symbol of strength, precision, and patience. (SPA)

“These symbols were not chosen for their visual appeal,” Hejles said. “They were chosen because they were tested across centuries of lived experience.”

Representing more than their individual images, they are collectively an expression of the Saudi citizen’s relationship with land, environment, dignity, and continuity.