IslamicFinance.de

After years of giving away land to citizens, the Saudi Arabian government is left with almost no space of its own to develop in urban areas. That will delay building as the government chooses between buying back city plots whose price has been inflated by speculation or paying a premium to build in the desert. Saudi authorities plan to address the lack of available urban land as part of a national housing strategy that includes measures to combat land speculation and incentives to build. To meet its affordable housing needs, Saudi Arabia must either build in the desert or force urban landowners to develop their empty lots.