By Staff Writer
Kingdom is aiming to increase home ownership to 70% by 2030
The monthly report issued on Friday by the Saudi Arabian Monetary Authority (SAMA) revealed that 12,949 mortgage contracts worth 5,653 billion Saudi riyals ($1.507 billion) were signed in the month of May, a surge of 212 percent in terms of volume and 122 percent increase in value, compared to May last year, according to a report by the Saudi Press Agency (SPA).
SAMA said the number of mortgages signed in the first five months of 2019 was 58,809 contract worth 27,019 billion Saudi riyals, compared to about 18 thousand contracts worth 11,680 billion Saudi riyals during the same period last year.
The report said 92 percent of the value of mortgage contracts was provided by Saudi commercial banks, with the rest coming from other financial companies.
Saudi Housing Minister Majid Al-Hogail told Arab News website the kingdom aims to increase local home ownership rates to 70 percent by 2030.
“The private sector’s contribution to mortgage financing did not exceed 35 percent in the past whereas it has reached 100 percent today. We also aspire for the investments in the mortgage finance sector to reach SR60 billion this year, which will facilitate ownership, benefiting from the available financing facilities for citizens,” the minister was quoted as saying in March.