Saudi Arabia: Real estate loans to individuals reach 73% in 10 months

Photo via Asharq Alawsat

Published 02 Dec,2020 via Asharq Alawsat (English Edition) - The Saudi Central Bank (SAMA) said on Tuesday that private banks have provided nearly 97 percent of the value of real estate financing contracts to individuals in October, three percent of which came through real estate finance companies.

SAMA noted that the total amount provided for new housing financing contracts for individuals has doubled since the beginning of 2020 until October, with a value exceeding 109.2 billion riyals (USD 29.1 billion).

In a statistical bulletin issued on Tuesday, SAMA stated that the number of real estate loans rose during the first ten months of 2020 to 73 percent compared to the same period in 2019.

It added that in October, housing financing achieved a 20 percent increase in the number of contracts compared to the same month of 2019, and 35 percent rise in financing, registering the third highest surge in terms of the number of contracts and financing, with about 25.900 new financing contracts worth 12.5 billion riyals (USD 3.3 billion).

“The programs launched by the government during the pandemic did not stop there. They also contributed to maintaining the financial strength of the banking sector, as reflected by the financial health indicators,” Talaat Hafiz, the Secretary-General for Banking Awareness and the Spokesman for Saudi Banks, told Asharq Al-Awsat.

He said the total financing granted by banks and financing companies to small, medium and micro enterprises by the end of the third quarter of 2020 amounted to 158 billion riyals (USD 42 billion), constituting 7.8 percent of the total facilitations granted to the private sector.

Hafiz went on to say that the Kingdom has provided a model in supporting the private sector, including individuals and investors, amid the Covid-19 pandemic, with the aim to mitigate its negative effects on the economy, the development and the banking sector.

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