Sama moves to curb rise in housing rents
Riyadh, June 11, 2014
The Saudi Arabian Monetary Agency (Sama) is set to issue real estate financing licenses to some banks and other financing institutions, in a move to curb the spiralling housing rent in the kingdom, said a report.
The move would halt the unreasonable rise in the housing rent rates noticed over the past five year, which in some towns had leapt by as much as 100 per cent, said the Arab News report.
“The latest issuing of real estate financing licenses will enable an estimated 40 per cent Saudis to own houses by benefiting from the growing financing facilities,” Abdullah Al-Ahmer, the former head of the real estate committee at the Jeddah Chamber of Commerce and Industry, was quoted as saying.
He believed that the financing solutions offered by real estate financing establishments following the implementation of the mortgage would lead to the rejuvenation of the real estate sector and invite more investments to the sector.
The institutions for which the Sama has recently issued licenses include the Saudi Investment Bank, Ajel for Financing Sevices, Deutche Gulf Financing, the Inma Bank, Saudi Hollandi Bank and Bank Al-Jazirah.
The total number of financing institutions which have been issued licenses for real estate financing is 12 banks and eight financing companies, while primary approval has been issued to 10 other financing companies, added the report.