Housing Program Transformation
Housing Program Transformation
Housing Program Transformation
Housing Program Transformation
Designing Saudi Arabia’s First Rental Support Insurance Model
Overview
Overview
Overview
A national initiative transforming rental default management in the Kingdom—shifting from government support to a sustainable, insurance-backed model. Designed to protect tenants, secure landlords, reduce public spending, and enable a data-driven safety net for 140,000+ renters.
A national initiative transforming rental default management in the Kingdom—shifting from government support to a sustainable, insurance-backed model. Designed to protect tenants, secure landlords, reduce public spending, and enable a data-driven safety net for 140,000+ renters.
A national initiative transforming rental default management in the Kingdom—shifting from government support to a sustainable, insurance-backed model. Designed to protect tenants, secure landlords, reduce public spending, and enable a data-driven safety net for 140,000+ renters.
Client
Client
Client
Real Estate General Authority
Real Estate General Authority
Real Estate General Authority
Year
Year
Year
2015
2015
2015
My Role
My Role
My Role
Innovation Consultant
Innovation Consultant
Innovation Consultant
The Challenge
The Challenge
The Challenge
Saudia Arabia’s rental market relied heavily on profits from EJAR platform to cover tenant defaults. The Royal Court wanted an alternative option for long-term sustainability of rental defaults.
Saudia Arabia’s rental market relied heavily on profits from EJAR platform to cover tenant defaults. The Royal Court wanted an alternative option for long-term sustainability of rental defaults.
Saudia Arabia’s rental market relied heavily on profits from EJAR platform to cover tenant defaults. The Royal Court wanted an alternative option for long-term sustainability of rental defaults.
Methodology
Methodology
Methodology
Understanding the Landscape
Understanding the Landscape
Understanding the Landscape
The Rental Support Program, established by Cabinet Resolution No. 405, assists citizens unable to pay rent. It is funded through the state budget, donations, subsidies, and savings from EJAR.
The Rental Support Program, established by Cabinet Resolution No. 405, assists citizens unable to pay rent. It is funded through the state budget, donations, subsidies, and savings from EJAR.
The Rental Support Program, established by Cabinet Resolution No. 405, assists citizens unable to pay rent. It is funded through the state budget, donations, subsidies, and savings from EJAR.
Understanding the data was key to shifting from government-funded support to a sustainable model. I analyzed and visualized it to uncover gaps, optimize resource allocation, and ensure no renter is left unsupported
Understanding the data was key to shifting from government-funded support to a sustainable model. I analyzed and visualized it to uncover gaps, optimize resource allocation, and ensure no renter is left unsupported
Understanding the data was key to shifting from government-funded support to a sustainable model. I analyzed and visualized it to uncover gaps, optimize resource allocation, and ensure no renter is left unsupported
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
Total Amount Collected in 2024
Total Amount Collected in 2024
589 M
589 M
589 M
Amount Available for Support in 2024
Amount Available for Support in 2024
176 M
176 M
176 M
Data Forecast
Data Forecast
Data Forecast
I performed data and market analysis, and forecasted:
I performed data and market analysis, and forecasted:
EJAR funds
EJAR funds
Number of Defaults
Number of Defaults
Average Rent
Average Rent
Amount Required for Support
Amount Required for Support
How Might We Design a Sustainable and Efficient Support System
How Might We Design a Sustainable and Efficient Support System
How Might We Design a Sustainable and Efficient Support System
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
On each contract, EJAR collects operational fees, of which 30% can be allocated to the Rental Support Program.
Use of Financial Surplus
Use of Financial Surplus
Use of Financial Surplus
Allocate surplus funds to temporary housing in partnership with the Sakani Foundation, or invest them through targeted strategies to maximize returns.
Allocate surplus funds to temporary housing in partnership with the Sakani Foundation, or invest them through targeted strategies to maximize returns.
Allocate surplus funds to temporary housing in partnership with the Sakani Foundation, or invest them through targeted strategies to maximize returns.
Use of Insurance Policy
Use of Insurance Policy
Use of Insurance Policy
An insurance policy designed to guarantee landlords receive due payments if tenants default, with coverage varying based on policy type and terms.
An insurance policy designed to guarantee landlords receive due payments if tenants default, with coverage varying based on policy type and terms.
An insurance policy designed to guarantee landlords receive due payments if tenants default, with coverage varying based on policy type and terms.
Approved Solution by MOH
Approved Solution by MOH
Approved Solution by MOH
An insurance policy owned by the Authority that covers a specific percentage according to agreed-upon terms.
An insurance policy owned by the Authority that covers a specific percentage according to agreed-upon terms.
An insurance policy owned by the Authority that covers a specific percentage according to agreed-upon terms.
Analyzing Insurance Options
Analyzing Insurance Options
Analyzing Insurance Options
65% of beneficiaries fall within the lowest support bracket
(0–9,999 SAR) yet receive only 33% of total support.
65% of beneficiaries fall within the lowest support bracket
(0–9,999 SAR) yet receive only 33% of total support.
65% of beneficiaries fall within the lowest support bracket
(0–9,999 SAR) yet receive only 33% of total support.
65% of beneficiaries fall within the lowest support bracket (0–9,999 SAR) yet receive only 33% of total support.
Higher brackets (20K+) represent just 10% of beneficiaries but consume over 30% of the funds.
Higher brackets (20K+) represent just 10% of beneficiaries but consume over 30% of the funds.
Higher brackets (20K+) represent just 10% of beneficiaries but consume over 30% of the funds.
This analysis informed an optimal insurance coverage limit of up to 35,000 SAR.
This analysis informed an optimal insurance coverage limit of up to 35,000 SAR.
This analysis informed an optimal insurance coverage limit of up to 35,000 SAR.
Premium Payment
Premium Payment
Premium Payment
50,458,490
50,458,490
50,458,490
Deductible Payment
Deductible Payment
Deductible Payment
62,607,600
62,607,600
62,607,600
Total Payment for Insurance
Total Payment for Insurance
Total Payment for Insurance
113,066,090
113,066,090
113,066,090
Insurance cost: 113M vs. 151M for direct support
Insurance cost: 113M vs. 151M for direct support
Insurance cost: 113M vs. 151M for direct support
Direct support projected to grow significantly over time
Direct support projected to grow significantly over time
Direct support projected to grow significantly over time
Insurance forecasts show moderate, controlled growth
Insurance forecasts show moderate, controlled growth
Insurance forecasts show moderate, controlled growth
Impact Achieved
Impact Achieved
Impact Achieved
This initiative will establish Saudi Arabia’s first rental insurance model, modernizing default risk management and setting a global benchmark.
This initiative will establish Saudi Arabia’s first rental insurance model, modernizing default risk management and setting a global benchmark.
This initiative will establish Saudi Arabia’s first rental insurance model, modernizing default risk management and setting a global benchmark.
65% reduction in expected government spending
65% reduction in expected government spending
65% reduction in expected government spending
Growing number of renters covered sustainably
Growing number of renters covered sustainably
Growing number of renters covered sustainably
50,000+ cases modeled for real-risk pricing
50,000+ cases modeled for real-risk pricing
50,000+ cases modeled for real-risk pricing
Clear, data-driven direction provided to ministers
Clear, data-driven direction provided to ministers
Clear, data-driven direction provided to ministers
Framework ready for national rollout
Framework ready for national rollout
Framework ready for national rollout
What This Project Shows About Me
What This Project Shows About Me
What This Project Shows About Me
What This Project Shows About Me