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
Saudi stock market opens its doors to foreign investors
RIYADH: Foreigners will be able to invest directly in Saudi Arabia’s stock market from Feb. 1, the Kingdom’s Capital Market Authority has announced.
The CMA’s board has approved a regulatory change which will mean the capital market, across all its segments, will be accessible to investors from around the world for direct participation.
According to a statement, the approved amendments aim to expand and diversify the base of those permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
International investors' ownership in the capital market exceeded SR590 billion ($157.32 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SR519 billion during the same period — an annual rise of 4 percent.
“The approved amendments eliminated the concept of the Qualified Foreign Investor in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements,” said the CMA, adding: “It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.”
In July, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. These included natural foreign investors residing in one of the Gulf Cooperation Council countries, as well as those who had previously resided in the Kingdom or in any GCC country.
This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
