SAUDI ARABIA. Total deposits with Saudi banks has hit US$245 billion at the end of June 2009, according to a report by BMG Financial Group, as a result of their efforts to attract more deposits and address higher demand for Islamic banking services, which provide low cost of funding and high profit margins.
In addition, bank lending to the Kingdom’s private sector rose for the first time in three months in February, albeit a mere 0.2%, according to a report by an information partner of REIDIN.com, the world’s first and leading global online information services provider.
The information was published on REBIS, a one-stop shop information portal launched by REIDIN.com that provides a bigger picture of the real estate industry by covering the micro and macro environment that stimulate the sector dynamics.
Recent reports also revealed that Saudi Arabia is preparing to introduce its first mortgage law by the end of the year, with more companies in the Kingdom now providing home finance including the Arab National Bank, SABB and Al Rajhi Bank, as well as Saudi Home Loans.
This move is expected to attract lenders from across the region seeking to join the Gulf’s largest new housing market, and increase demand for housing by up to 50%.
Amidst the positive projection for Saudi Arabia’s banking and real estate sectors, there are a total of 335 projects currently under construction in the Kingdom, according to REIDIN.com Project Database.
“The excellent state of the Saudi Arabian economy in this recessionary period is reflected by its stable banking sector, and we are optimistic that this will have significant impact on the Kingdom’s real estate industry,” said Ahmet Kayhan, CEO, REIDIN.com.
“In anticipation of this, we have set our commitment towards helping Saudi-based investors by providing them with up-to-date market information, which will guide them in their decision-making – from which type of properties to invest in to the investments with the highest return possibility.”
The Project Database further shows the breakdown of the total number of KSA developments in the construction phase, with 53 classified as residential, 25 as offices, 2 as retail projects, and 38 as mixed-use; while 43 fall under infrastructure, 22under hospitality, 1 under industrial, and 151 are categorised under other types of projects.
Despite its significant number of on-going projects and being the largest oil exporter and the biggest economy in the Gulf, studies reveal that only one in five Saudis owns a home. In line with this, the Jeddah-based National Commercial Bank has estimated that the Kingdom needs to spend about US$180 billion by 2015 to build new homes.
As part of its commitment to the KSA market, REIDIN.com aims to provide relevant information on the latest industry updates to Saudi buyers and sellers.
“Our product portfolio is the result of our commitment to delivering accurate and up-to-date industry information on the local and regional real estate markets to give players a precise overview of the current situation and help them make the right decision.
To date, we have launched four products, which address specific needs of our customers. We are investing in the development of more products that will provide up to date information on other important sectors such as the banking industry, while implementing various new features in our existing products,” concluded Kayhan.
In addition to ‘REBIS’ and ‘INDEXFocus’, REIDIN.com also offers ‘RETAILFocus’, a product that delivers an up-to-date database of malls, shopping centres, tenants, projects and retail real estate deals along with retail real estate news and research reports.
Furthermore, the company also offers ‘DUBAIFocus’, ‘the most detailed and up-to-date information source on real estate investment deals for the Dubai market based on a comprehensive database going back to 1973. It also incorporates time-saving functions such as heat maps, graphing facilities and customised chart and analysis tools.