Gulf residents owe $32.5bn in outstanding mortgages – study

Gulf residents owe an estimated $32.5bn in outstanding debt on mortgages, according to new figures from research and advisory firm Lafferty Group.

In data seen by Arabian Business, London-based Lafferty estimates that residents of the six GCC nations have seen the level of outstanding credit on mortgages rise by 83 percent since 2002, when there was $5.6bn of outstanding debt.

Meanwhile non-mortgage debt, which includes personal loans, vehicle loans and credit cards, stands at an estimated $106.5bn, the research shows.

The figures are based on research conducted by Lafferty’s World Cards Intelligence unit, which compiles market and competitor intelligence on credit cards and consumer finance across 65 markets worldwide.

Official data from the Dubai Land Department showed that the Dubai mortgage market slumped by 73 percent last year.

In Saudi Arabia, meanwhile, the Shura Council is currently reviewing parts of a draft mortgage law intended to spur lending in the Kingdom. The implementation of the law is expected to increase demand for housing by around 50 percent.
    
Saudi Arabia, the Middle East's biggest economy, needs 1.2 million new homes by 2015, according to Deutsche Bank research, with the enactment of the proposed mortgage law seen boosting demand by an additional 55,000 units a year.