RIYADH: Saudi Arabia is facing a huge housing shortage as demand continues to outstrip supply requiring SR 500 billion in financing to construct 1.25 million houses by 2014. Total real estate financing is also forecast to reach SR 60 billion by 2013, as a result of growth in total real estate lending by SR 17 billion in the second quarter of this year alone, leading experts to comment that the implementation of the Kingdom's newly approved mortgage law may be a prime solution to the housing crisis.
"With the landmark approval of the Saudi mortgage law in July, the Kingdom's population quadrupling over the last four decades, requiring 4.6 million houses by 2020, I expect that the mortgage law will have a moderating effect on the Saudi real estate market over the short-to-medium-term, allowing up to 80 percent of Saudi citizens to become first-time homeowners," said Hasan Al-Yamani, director at Abdul Latif Jameel (ALJ) Real Estate Installments at the Riyadh Urban Development and Real Estate Investment Event 2012.
He further stated that due to the rapid increase of real estate prices in recent years, particularly within the major cities, both Saudis and non-Saudi residents are in urgent need of financing in order to own property. This is why Abdul Latif Jameel Company has introduced real estate financing for both Saudis and residents in order for them to be able to own their desired homes through a trustworthy and Shariah-compliant company, while offering peace of mind to its customers.
Customers can now enter into a lease agreement with ALJ Real Estate Installment Co. with the promise of ownership at the end of the agreed term, which can be up to 15 years.
In response to the housing crisis, the Saudi government has taken a resolute approach in investing in the housing sector through the implementation of the newly established Ministry of Housing and the allocation of SR 250 million ($ 67 billion) to build an initial 500,000 new housing units.
Saudi housing projects need SR 500 billion by 2020
Saudi housing projects need SR 500 billion by 2020
Oman inflation at 1.6%, latest figures show
RIYADH: Oman’s consumer price index rose by 1.6 percent in December compared with the same month a year earlier, reflecting moderate inflationary pressures at year’s end.
Average inflation for the January–December 2025 period increased by 1 percent, according to official data.
Figures released by the National Center for Statistics and Information showed that miscellaneous personal goods and services recorded the sharpest price increase, rising by 10 percent year on year.
This was followed by transport at 2.8 percent, restaurants and hotels at 2.6 percent, and furniture, household equipment and routine maintenance at 2.4 percent, as well as education at 2.2 percent.
Food and non-alcoholic beverages prices increased by 1.1 percent, while clothing and footwear rose by 0.2 percent and health by 0.1 percent. In contrast, prices in the culture and recreation group declined by 0.1 percent.
Housing, water, electricity, gas and other fuels, as well as tobacco and communications, remained unchanged over the period.
Within the food and non-alcoholic beverages category, December prices compared with the same month of 2024 showed notable increases in fish and seafood at 6 percent and fruits at 4 percent.
Sugar, jam, honey and confectionery rose by 3.5 percent, milk, cheese and eggs by 2.1 percent, and non-alcoholic beverages by 0.9 percent.
Meat prices increased by 0.8 percent, bread and cereals, oils and fats by 0.7 percent, and other unclassified food products by 0.4 percent, while vegetable prices fell by 5.8 percent.
Regionally, Al Dhahirah governorate recorded the highest inflation rate at 2.5 percent by the end of December compared with a year earlier.
Inflation also rose by 2.1 percent in Al Dakhiliyah, 1.7 percent in Muscat and Al Buraimi, and 1.5 percent in South Al Batinah.
South Al Sharqiyah and Musandam each posted increases of 1.1 percent, while North Al Sharqiyah and North Al Batinah rose by 0.9 percent. Al Wusta and Dhofar recorded inflation of 0.8 percent.
The report highlights the relative importance of expenditure groups within the consumer price index basket, underscoring why movements in certain categories have a greater impact on overall inflation.
Housing, water, electricity, gas and other fuels carry the largest weight at 31.7, followed by food and non-alcoholic beverages at 20.6 and transport at 14.5.
Together, these three groups account for more than two-thirds of the CPI basket, meaning price stability in housing and utilities can significantly moderate headline inflation even when sharper increases are recorded in smaller-weight categories such as miscellaneous goods and services.
The analysis also notes that around 56,640 individual price quotations were collected from 3,907 sources across the Sultanate during the reference period.
In addition, rental data were gathered from a dedicated sample of 1,509 rented housing units, providing a detailed and representative measure of housing costs, which remain the most heavily weighted component of the inflation basket.
