Influence of Saudi Vision 2030 on housing-related macroeconomic variables

Abstract

Purpose This study aims to explore the effect of Saudi Vision 2030 and its government initiatives on macroeconomic variables related to housing. Design/methodology/approach This exploratory study used an empirical–analytical approach. Based on secondary data, a set of hypotheses was contrasted to verify whether there has been any change in the trends of macroeconomic variables related to housing after Saudi Vision 2030 entered into force. Findings The results show that the trend of percentage of housing ownership went from a continuous decrease to accelerated growth since the implementation of Saudi Vision 2030. However, the effect of these advances is not observed in non-oil gross domestic product (GDP) or in the economic activities of the construction, real estate and financial services sectors. Research limitations/implications This study notes that despite successful housing outcomes, it appears that Saudi Vision 2030 does not have a positive impact on non-oil GDP. Consequently, government entities should review the degree to which other economic activities contribute to non-oil GDP. A limitation of the study was that the GDP of housing construction and marketing and that of granting mortgage loans were not specifically available, nor were data on public and private investment made for implementing government initiatives. Originality/value To the best of the authors’ knowledge, this is the first study to explore the effect of Saudi Vision 2030 on housing and its contribution to the economy.