Modern Construction Initiative

The Modern Construction Initiative is an initiative launched by the Ministry of Municipalities and Housing as part of the integrated housing ecosystem in the Kingdom of Saudi Arabia. It aims to support the transition from traditional construction to modern construction methods, enabling citizens to find high-quality housing at competitive costs in a short time. This is achieved by supporting investment in advanced technologies and contributing to keeping pace with industrial development. The initiative operates under the supervision of the Housing Program and the National Industrial Development and Logistics Program, with support from the Private Sector Stimulus Plan.

The Modern Construction Initiative aims to develop and localize the building technology industry in the Kingdom, maximizing the use of local content. It seeks to adopt modern construction technology in projects, ensure the construction of affordable housing units by reducing building costs, increase annual construction capacity by accelerating execution speed, improve the building quality, increase the factories' productivity, and contribute to creating suitable job opportunities.

The Modern Construction Initiative works to localize the construction technology industry by incentivizing local and international investors. It supports real estate developers and encourages them to adopt modern construction technologies to provide the best housing solutions. Additionally, the initiative provides necessary support to construction technology contractors to enhance and improve their capabilities. Furthermore, it aims to increase awareness among citizens about modern construction technologies and their benefits.

The Modern Construction Initiative aims to stimulate construction methods by improving the supply and demand for six approved modern building techniques in the Kingdom: precast concrete systems, lightweight cellular concrete, tunnel formworks, insulated concrete forms, lightweight prefabricated units and structures, and prefabricated concrete units.

The Modern Construction Initiative has contributed to supporting more than twenty-two Saudi factories and increasing their production capacity to over forty thousand units annually. It has increased the percentage of modern construction methods used within the housing system to 58 percent, prepared and launched specialized training courses for modern construction methods, and provided training for more than four hundred young Saudis. Additionally, the initiative has localized and implemented advanced fourth-generation construction technologies. On August 21, 2022, the Agency for Housing Supply Stimulus and Real Estate Development, represented by the Modern Construction Initiative and in collaboration with the Saudi Industrial Development Fund, announced its supervision of the signing of contracts to finance four factories for modern construction methods.