A paradigm shift in real estate financing
The real estate finance sector in the Kingdom of Saudi Arabia is promised a major qualitative and quantitative leap after the approval of the financing and mortgage system as well as after the competent authorities granted a number of banks, institutions and financing companies licenses to practice real estate finance in accordance with the principles of Islamic law, thus the competent authorities have given these entities great opportunities to contribute to the solution of the housing crisis and achieve the aspirations of citizens to own homes that relieve them of the long suffering from rents that have been increasing year after year.

It is known that more than 70 percent of citizens do not own their own housing, according to the latest statistics, which means that it is necessary to combine public and private efforts to solve the housing crisis that has lasted for many years. Amlak newspaper has been keeping abreast of all that is going on in the arenas, as it conducted a number of public opinion polls among a number of real estate professionals and specialists to take their views on the present and future of real estate financing in light of the new legislation and laws that, God willing, foresee a bright future, if the financing and mortgage system is properly implemented away from the obstruction, procrastination and delay that exacerbated the housing crisis that has remained in place for many years.

The qualitative leap in real estate financing is also the possibility of transferring financing and consumer loans to the field of real estate financing. The mortgage and financing system will face great challenges with the increase in consumer loans, which reached 254 billion according to recent statistics, especially since the housing sector in Saudi Arabia needs more than 275 thousand housing units annually. Financing bodies should not hesitate to seize this opportunity, which brings them estimated profits and achieves a large number of citizens to own lifetime homes that relieve them from the burden of rising rents, which in a number of cities reached astronomical figures that burdened the low-income citizen. We should be optimistic about the bright future of real estate finance, which will contribute significantly to solving the housing crisis. We also call on major companies to contribute to providing housing for their employees.