Saudi bank deposits hit $245 billion
Riyadh, October 27, 2009
The total deposits in Saudi banks hit $245 billion at the end of June 2009 as a result of their efforts to attract more deposits and address higher demand for Islamic banking services, a report said.
BMG Financial Group in its report said demand deposits constituted 43 per cent of the total deposits. About 79 per cent of demand and saving deposits are secured from the private sector, as opposed to 21 percent from government entities, the report added.
In addition, bank lending to the Kingdom’s private sector rose for the first time in three months in February, albeit a mere 0.2 per cent, according to a report by an information partner of REIDIN.com, a leading global online information services provider.
The information was published on Rebis, a one-stop shop information portal launched by REIDIN.com that provides a bigger picture of the real estate industry by covering the micro and macro environment that stimulate the sector dynamics.
Recent reports also revealed that Saudi Arabia is preparing to introduce its first mortgage law by the end of the year, with more companies in the Kingdom now providing home finance including the Arab National Bank, SABB and Al Rajhi Bank, as well as Saudi Home Loans.
This move is expected to attract lenders from across the region seeking to join the Gulf’s largest new housing market, and increase demand for housing by up to 50 per cent.
Amidst the positive projection for Saudi Arabia’s banking and real estate sectors, there are a total of 335 projects currently under construction in the Kingdom, according to REIDIN.com Project Database.
“The excellent state of the Saudi Arabian economy in this recessionary period is reflected by its stable banking sector, and we are optimistic that this will have significant impact on the Kingdom’s real estate industry,” said Ahmet Kayhan, CEO, REIDIN.com.
The Project Database further shows the breakdown of the total number of Saudi developments in the construction phase, with 53 classified as residential, 25 as offices, 2 as retail projects, and 38 as mixed-use; while 43 fall under infrastructure, 22under hospitality, 1 under industrial, and 151 are categorised under other types of projects.
Despite its significant number of on-going projects and being the largest oil exporter and the biggest economy in the Gulf, studies reveal that only one in five Saudis owns a home.
In line with this, the Jeddah-based National Commercial Bank has estimated that the Kingdom needs to spend about $180 billion by 2015 to build new homes. As part of its commitment to the Saudi market, REIDIN.com aims to provide relevant information on the latest industry updates to Saudi buyers and sellers.
'Our product portfolio is the result of our commitment to delivering accurate and up-to-date industry information on the local and regional real estate markets to give players a precise overview of the current situation and help them make the right decision.'
'To date, we have launched four products, which address specific needs of our customers. We are investing in the development of more products that will provide up to date information on other important sectors such as the banking industry, while implementing various new features in our existing products,' Kayhan added.-TradeArabia News Service