Saudi Mortgage

Executive Summary

What is this report about?
In Saudi Arabia, the mortgage financing activity is carried out mostly by the 14 banks and five licensed real estate finance companies. Additionally, the Ministry of Finance, for similar purpose, has established the Real Estate Development Fund (REDF). REDF is a specialized credit institution (SCI) which plays an important role in credit intermediation for real estate in Saudi Arabia alongside the banking sector. The outlook for the mortgage industry is positive due to the factors such as demography, urbanization rate and high income levels. These are expected to increase the housing demand. The report provides a detailed analysis of Saudi's Mortgage industry.

Who will benefit and why?
The report will benefit anyone tracking the Saudi Mortgage industry, and its many players; especially banks, home finance companies, regulators and government agencies, investment bankers and economists. This report would help these entities to gain in-depth understanding about the industry.

How exhaustive is this report?
We have analyzed the housing market in Saudi Arabia and how it continues to face the crisis of supply shortage, ever-increasing demand and low penetration of mortgage financing for home purchases. The report also examines how banks and REDF continue to be the dominant players in the mortgage space despite the presence of several real estate finance companies. We have also discussed the Saudi mortgage industry's lending size and provide forecasts for outstanding mortgages by 2020. Finally, we enumerate the growth drivers, key challenges and how establishing government backed entity & secondary market would benefit the Saudi mortgage industry.