By Staff writer
The kingdom will reportedly rely on the private sector to help build new homes as it attempts to balance the state budget
Saudi Arabia plans to launch an $800m social housing project in partnership with the private sector, according to local media.
The government will call on investors to partake in the project via either build-operate-transfer (BOT) or public-private partnerships (PPP), Arab News reported.
The new homes would be provided to widows and orphans in cooperation with the Ministry of Housing and charities.
The daily said the government would provide $800m in funding, but did not specify how much would be sought from investors.
Under the BOT system, investors would fund the construction and receive financial returns from the sale or rent of the completed homes.
Saudi Arabia, the wealthiest Gulf state, is turning to private investors as it seeks to better manage its spending as lower oil prices strain the state budget.
The kingdom has a significant housing shortage of tens of thousands of homes.