Samba expects the construction sector to boom next year
Samba's report on key sectors in the Kingdom expects the Saudi economy to recover from last year's near-stagnation as a result of the global financial crisis, and that the construction sector will achieve good performance during the current and next year. The report pointed out that the sector will receive a strong boost if the mortgage law is approved, which will contribute to providing sufficient liquidity to increase construction activity and demand for materials significantly.

The report stated that based on asset growth, the sector's performance should improve in the current year. Banks are highly liquid and are now looking at ways to grow their loan books (albeit cautiously), while private sector loan demand is accelerating. However, with abundant liquidity and growing competition, loan spreads are starting to narrow again, and this is likely to affect profitability this year.

The report noted that the sector is expected to get a boost if the mortgage law is approved, which will contribute to providing sufficient liquidity to increase construction traffic and demand for materials significantly.