By Thabit Shehata
Riyadh-Mubasher: Saudi banks have financed the local real estate sector with SAR 623.4 billion ($170 billion) in the last five years from 2011 to 2015, at an annual average of around SAR 124.7 billion, according to data compiled by Mubasher.
The loans offered to retail customers reached SAR 362.67 billion, or roughly 58% of the total financing, at an annual average of SAR 72.5 billion.
The corporate customers accounted for SAR 260.76 billion, representing approx. 42% of the total loans, at an annual average of SAR 52.15 billion.
The Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank, is gearing up for launching the first real estate refinancing company by the end of 2016.
The financing accelerated over the last five years as the retail and corporate loans totalled SAR 70.2 billion in 2011, SAR 88 billion in 2012, SAR 119.75 billion in 2013, SAR 158.98 billion in 2014 and SAR 186.46 billion at the end of 2015.
Translated by Abdul Maguid Aboshahla
