Antecedentes nacionales

The Kingdom of Saudi Arabia has made efforts for over two decades to provide housing for different groups within society (Al-Mayouf & Al-Khayy 2011).

Housing in Saudi Arabia can be classified into three main categories: public housing, private housing, and charitable housing. Aziz Al-Rahman (1993) noted that the Kingdom dedicated significant resources in private and public housing, services, rehabilitation and development programmes. This is of course not different from what exists in many other countries. However, the real difference here has been the

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provision of free loans to citizens through the Real Estate Development Fund (Al-Maghlouth, 2007). It is worth mentioning that the purchase of a house through free loans is in line with Islamic law for the provision of adequate housing for the Muslim individuals. This is one of the most important duties of the government (Al-Mayouf &

Al-Khayy, 2011).

In 2012, the Council of Ministers approved the right of Saudi women to obtain a mortgage from the Real Estate Development Fund. This approval meant that if they were responsible for the family, it was their right to have access to housing.

Moreover, this decision replaced a previous ruling, which stated that only a particular category of women (divorced, widowed or unmarried women over the age of forty) could do so. This new decision made it possible for all women, married (the husband need not be a Saudi national) or unmarried to obtain a mortgage from the Development Fund as long as they are responsible for the household (Arabian business, 2012).

Up to now however, there is no evidence that women have been able to take out loans. This lack of evidence is not surprising, given that in the past, a woman did not have the right to take a loan from the Fund without the support of a guarantor, a process which took a long time (Aldahilan, 2012). Hilali, general supervisor of the women's services in the Secretariat of Riyadh and a specialist in women’s issues, confirmed that a large population of women bear both the family’s financial and psychological burdens. Rent costs consume a large part of their income and they are left with little at the end of the month. Therefore, if the housing cost is resolved, the women’s economic situation will greatly improve (ibid).

Dr. Tariq Fadaaq, a member of the Shura Council⁹, believes it is important to find a specific definition of the poverty line in Saudi Arabia in order to devise regulations concerning housing benefit, bank and real estate loans. Fadaaq notes that this will help achieve social justice by prioritizing housing loans to the poor (Al-baridi, 2014). Surprisingly, this does not seem to happen.

9 According to the Almaany Arabic Dictionary of English Translation Shura means a consultative council. The shura council consists of opinion makers consulted by the government in the country’s affairs.

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Saudi Arabia is often considered to be one of the wealthier countries within the Middle East, bringing in close to $300 billion in oil per annum. In 1970, the population of Saudi Arabia sat at 6 million and has soared to 27 million 2010, and close to 25% of the Kingdom’s population are considered to be living in poverty (Sullivan, 2013). Recent data has shown that around four million Saudis live on less than $530 a month, which is below the $17 per day poverty line in Saudi Arabia.

In terms of social spending, the royal family is often seen making large donations to charities – a significant amount of which is invested in housing programs. However, with the number of those living in poverty increasing, the plans to build more housing and create unemployment benefits will most likely not be sufficient.

The Saudi government provides free education and healthcare to all citizens, certain individuals can also qualify for social welfare programs, and there are also schemes that offer free burials to poorer families (Sullivan, 2013). The Saudi government also pays pensions and assistance to the elderly, disabled and orphans. In addition, as Saudi Arabia is a Muslim country, there is a large focus on charitable donations through the Islamic system of zakat.

However, despite all the aid that is supposedly on offer for all those who need it most, there are still concerns over widespread corruption and, due to loopholes within the legal system, many of those in poverty who most need help lack access to it. Those struggling to access welfare services tend to be women. According to Islamic law, men provide for the family and therefore a widow or divorcee often finds herself without a steady income due to no man being present (Sullivan, 2013). In addition, women are often unable to generate their own income due to strict Islamic rules, which limit women’s opportunities to find work.

Housing is not simply a place to live. Rather, it should also be a place that offers tranquillity, security and safety where individuals find themselves and achieve their environmental, economic and security needs. For these reasons housing is considered one of the most important components of any state’s national strategy.

Therefore, any economic problem related to the state or community cannot be

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addressed unless development plans were set to solve the housing problem (Al-Ahmadi, 2004). The problem of providing housing is not limited only to the poor, but it also includes low-income individuals employed in the government and private sectors. These people’s low monthly incomes make it difficult to save money to build or own a house for their family in the near future. Therefore, large projects were initiated to provide housing for both poor and low-income individuals either for private ownership or for low-cost rent (Fadaak, 2001).

The Saudi government helps people living in poverty in three ways, the first of which is through the social security ministry agency (Al-Dogalibi 2006). This provision is implemented specifically in Makkah, Jeddah, and Madinah, and the buildings are known as Rubats. This addresses the problem of poverty and the rehabilitation of people trapped in the cycle of poverty. Lack of affordable housing is the main reason for those who live in poverty. For example, huge proportions of people in receipt of benefit from the government do not own their houses. Studies have shown that only 36% of them own their houses, which mean that 64% are paying rent out of the money given to them by social security. Therefore, a family of seven with an annual aid income of 16,200.00 SAR (approximately $3863) will have to spend a minimum of 8,000.00 SAR (approximately $1,907) on rent leaving them with only 8,200.00 SAR (approximately $1955) to spend on other family needs. This means that the family monthly budget is 683.00 SAR (approximately $162 which is not enough to buy food as well as to pay for water, phone and electricity bills let alone to cover their school and occasional expenses. Moreover, it is worth mentioning here that some of them risk eviction from their homes, if rental payments were delayed or not paid.

The second governmental initiative involves setting up a housing charity fund to provide adequate housing for the needy and to coordinate the activities of other charities involved in housing projects, so as to ensure their distribution throughout the Kingdom, giving priority to areas with a high number of people living in poverty (ibid).

The housing charity tries to eliminate the problem of poverty and lack of ownership of suitable housing by providing affordable repayment instalments for

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needy families. The housing charity sometimes provides housing for a nominal fee or for free of charge depending on the people’s financial circumstances. In addition to the construction of residential complexes, the housing charity raises the physical, social and health standards of the region’s low-income residents. Many of the Kingdom’s housing associations and institutions have an obligation to provide accommodations for all those who do not own a house. These institutions such as King Abdullah bin Abdulaziz Foundation, Developmental Housing Foundation, Prince Sultan and the King Faisal Foundation, and Project Prince Salman work alongside other associations and institutions with the aim of providing full coverage for housing (Bahammam, 2008).

The housing charity project is characteristically less expensive than other housing projects, wherein a variety of residential unit design considerations include the requirements of Saudi families in terms of the number of rooms for family members and the necessary facilities and privacy requirements (ibid).

2.5 Women and Poverty