With the real estate loans in Saudi Arabia, which exceeded the 950 billion Riyals barrier by the end of the first quarter of this year, the idea of fragmenting these loans began to improve unconventional liquidity in the real estate market in the kingdom. The idea offered by the head of the Capital Market Authority, Muhammad Al -qweiz, in the ‘Future Real Estate Forum’ last January, depends on the conversion of real estate slains into competent securities, in a move aimed at liberalizing liquidity and accelerating real estate without waiting for years to recover for years. Mohamed Al -khusr, chairman of the Board of Directors of the ‘Innothe Real Estate’, saw in an interview with ‘Al -Sharq’ that the Saudi Banks’ real estate loans have become a necessity to increase the liquidity in the next phase, adding that it will help banks to maintain the loan to the real estate of the real estate. reflected on the real estate property, which will reflect the real estate. growth. Al -kharras stressed that the dangers of hiding in the Saudi property market are very low, and the situation will not be driven to a mortgage crisis in 2008, and in the opinion, it is based on the fact that 95% of real estate loans for individuals are granted to those who earn the first housing, who earn the unit. Al -kharsa pointed out that stitching operations will attract institutions in search of long -term and low -risk investments, such as pension and insurance companies and hedge funds, and are also expected to attract investors from outside the kingdom. An increase in real estate financing for individuals The amount of real estate financing provided by Saudi banks to individuals has increased by about 16% since the beginning of the year compared to the same period last year, as it benefited 46.8 billion rows, which benefited from the financing power in the first quarter. Hamid Bin Hamri, CEO of “Tamkeen for Investment and Real Estate Development”, expected the mortgage loan to export real estate for individuals exporting from the Kingdom’s banks to about 95 billion Riyals by the end of 2025, an increase of 10% compared to last year. In the opposite direction, the financing of individuals in June fell by 28% on a monthly basis to 5.3 billion Riyals, which is the lowest in a year. The Financial Analysis Unit in Al -iqtisadiah explained the haven for seasonal factors related to the summer holidays and the slowdown in construction work during the summer months due to high temperatures. However, Bin Hamri attributes the slowdown in real estate financing for individuals to the high interest rates, and the banks have emphasized the conditions to grant mortgages to individuals, but he expected an improvement in the coming period by financing initiatives, either from government or banks, as well as government guarantees. The impact of a decision not to own -saudis on the property and with regard to the decision to allow foreigners to own the property in Saudi Arabia, Bin Hamri believes it will reflect positively to the property sector, and will attract more buyers, or expect residents inside or outside the country, and he expected the impact of the market to expand the bank. Last month, the Saudi Cabinet approved a system of non -Saudis ownership of real estate in the kingdom, and the new system is expected to be applied 180 days after its publication in the official Government Gazette, which means it will be in effect in January 2026. The Saudi government is trying to increase the percentage of Saudi citizens who have housing by 2030, while this percentage reached 65.4% by the end of last year, according to a 2024 report, which monitors the performance of vision indicators. Faisal Duraani, the partner and head of the research department in Middle East in “Knight Frank”, said in a previous interview with “Al Sharq” that the Saudi real estate market will need foreign buyers after reaching targets that will ensure the ownership of the future in the future in the future.
Stimulate the high financing of real estate Saudi banks to provide?
