Mortgage lending currently accounts for only 2 per cent of national GDP

April 10, 2010

The Kingdom of Saudi Arabia is set to enact a new mortgage law within the next few months which has the potential to increase housing demand by as much as 50 per cent. The upcoming set of legislation will especially boost the under-served low- and middle-income markets by clearly outlining mortgage policies and introducing more mortgage options as well as allowing banks to further diversify their portfolios by engaging in property investments.

“Unlike other Gulf states, Saudi Arabia’s real estate sector is not undergoing market correction as its housing demand remains very high. Jeddah alone has already rolled out a strategic plan to build almost a million units by 2030 to cope with rural migration and an expanding expatriate population. There is still so much room for growth and the new mortgage law will add much-needed order as the low- and middle-income sectors begin to gain more buying confidence,” said Deep Marwaha, Event Director of Cityscape Saudi Arabia.

Under the Patronage of HRH Prince Misha’al Bin Majed Bin Abdul Aziz, Governor of Jeddah, Cityscape Jeddah 2010 is Endorsed by the Ministry of Commerce and Industry and Supported by the Jeddah Chamber of Commerce and Industry. Cityscape Jeddah is the Kingdom's premier real estate investment & development event taking place from 7 to 9 June 2010 at the Jeddah Center for Forums and Events and will introduce regional and international developers and investors to existing and potential property developments within the Saudi real estate sector. A focal point of the event is the 2nd annual Saudi Arabia Real Estate Investment and Development Conference, which will be held under the theme ‘Transparency, Investment Models and Future Partnerships.’

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