By Courtney Trenwith
More than 10,000 people will receive the loans to help fund 12,018 properties across kingdom
Saudi Arabia has approved SR5bn ($1.3bn) worth of housing loans to citizens.
More than 10,000 people will receive the loans to help fund 12,018 properties to be built across the kingdom, a statement on Saudi Press Agency said.
It is the third round of housing loans issued this year as the kingdom attempts to draw down its housing crisis amid a rapid rise in the country’s population, which has surpassed 28m.
In April, King Abdullah granted plots of land and housing loans to a large number of Saudis who did not already own a home.
It followed the allocation of SR250bn to build 500,000 housing units.
The loans are also expected to give a short-term boost to construction and jobs.
A year ago, the Shoura Council also approved a new mortgage law in a bid to make it easier and more attractive for individuals to borrow to fund a home.
The details were not made public but are believed to be a change to the former legislation that required housing loans to be taken out against salaries rather than the property.
Mortgage lending accounted for only 6 percent of the kingdom’s overall loans at the time but was expected to significantly increase following the new law.