Housing Program Transformation

Designing Saudi Arabia’s First Rental Support Insurance Model

Overview

A national initiative to redesign how rental defaults are managed across the Kingdom — shifting from government-funded support toward a sustainable, insurance-backed model. Protecting 140,000+ renters through a data-driven safety net.

Client Real Estate General Authority

Timeline 2025 Phase I

Role Innovation Analyst

The Challenge

Saudi Arabia’s rental market relied heavily on profits from the EJAR platform to cover tenant defaults. The Royal Court mandated a transition toward a more resilient, market-driven financial mechanism ensuring long-term sustainability and reduced government expenditure.

Methodology

Understanding the Landscape

The rental support program is a program issued by Cabinet Resolution No. (405) to support citizens unable to pay housing rent. The program is funded through the state budget, gifts, donations, subsidies, and savings from EJAR.

Understanding the current data is critical as we transition from government-funded support to a sustainable model.

I collected all the data and visualized it to identify gaps, allocate resources effectively, and ensure that no renter is left without support.

On each contract, EJAR collects some amount for operations on which 30% of the amount can be used for rental support program.

How Might We Design a Sustainable
and Efficient Support System ✦

Through different tools, I proposed multiple solutions to move towards a sustainable support system.

💰

Use of Financial Surplus

Allocate surplus funds to provide temporary housing solutions in cooperation with the Sakan Foundation, or invest a portion of them, by developing investment strategies aimed at increasing profits from these funds.

🛡️

Use of Insurance Policy

An insurance policy that aims to ensure the owner receives the amount due in the event that the beneficiary is late in making payments. These products vary depending on the type of insurance and specific terms.

Approved Solution by MOH

An insurance policy owned by the Authority that covers a specific percentage according to agreed-upon terms.

Analysing a Sustainable Insurance Options

65% of beneficiaries fall under the lowest support bracket (0–9,999 SAR), yet they receive only 33% of total support.
Higher brackets (20K+) represent just 10% of people but consume 30%+ of funds.
Data analysis confirms the feasible insurance limit can be optimized up to 35,000 SAR.

Premium Payment 50,458,490

Deductible Payment 62,607,600

Total Payment for Insurance 113,066,090

Total Payment the Authority will pay for Insurance is 113 M.

While the direct support amount required is: 151 M.
In the coming years, the support amount will increase by high percentage - However the forecasting model of the Insurance has moderate increase.
Thus, we are achieving our goal of sustainable renter support program.

Impact

This initiative will become Saudi Arabia's first rental insurance model, modernizing how the country handles default risk. Globally, it will create a benchmark.

65% reduction in expected government spending
Increasing number of renters covered sustainably
50,000+ cases modeled for real-risk pricing
Clear decision direction delivered to ministers
Framework ready for national rollout