The volume of real estate loans provided by the Saudi banks to individuals and corporate amounted to SR123.4 billion in the first quarter of the current year, local media said quoting data released by the Saudi Arabian Monetary Agency ( SAMA ).
According to the SAMA report, real estate loans given to individuals rose by 33 percent in Q1, 2014, to SR76.8 billion compared to SR57.9 billion in the same period last year.
Meanwhile, consumer loans in the Kingdom rose by 9 percent to SR333.75 billion in Q1 compared to the figures of the same period last year (2013). These loans are designed to purchase car, equipment, property , and house furniture.
On the other hand, loans for credit cards grew by 13 percent by the end of Q1 to reach SR8.87 billion compared with SR7.84 billion in the same period last year, the report said.
In this context, experts expected that the volume of real estate loans is poised to register highest records in the next five years due to the growing demand on housing units and lands, notably after the approval of property financing and mortgage systems last year and Saudi banks’ plans to raise their capitals to more than SR39 billion.
In 2013, nine banks in the Kingdom announced their plans to increase their capitals to more than SR31 billion in addition to issuance of Islamic sukuk (bonds) worth SR8 billion in a bid to boost their capability for lending and meeting Basel III requirements, the media said.
Originally published on www.thenational.ae