Majid Al-Hogail, Minister of Municipal, Rural Affairs, and Housing, revealed that Saudi Arabia’s mortgage system has reached maturity, noting that it serves more than 700,000 people.

Al-Hogail explained during his participation in 2022 Budget Forum last Monday, that the maturity of the financing system has also resulted in greater financing efficiency, as the financing ratio stood at 7.6% in 2019, and currently stands at 4.5% after accounting for banks" profit margins, as the banks" profit margin has decreased from 3.92% to 1.62% currently, compared to the best global rates of 1.5%. Al-Hogail praised the role of the Saudi Refinancing Company, which purchased more than 27 billion riyals worth of portfolios and returned 13 billion riyals to the sector to maintain liquidity in the financing market.

Al-Hogail affirmed the Ministry’s intention to build 300,000 housing units, which are expected to be constructed over the next five years in partnership with the private sector, including 147,000 units in Riyadh, noting that 210,000 Saudi families have benefited from the housing program this year, of which 166,000 have moved into their homes, and stating that the housing program has served more than 1.1 million Saudi families.