Nov 23 2011
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MENA home finance market set for double digit growth
Manama, Bahrain: The MENA mortgage market is set for double digit growth, experts concluded this morning, 23 November 2011, at the MENA Mortgage and Affordable Housing Congress, hosted at the Radisson Blu Hotel, Manama, Bahrain. The event, from the organizers of Cityscape, is held under the patronage of the Central Bank of Bahrain , and in partnership with Sakana Holistic Housing Solutions and Naseej Properties.
'The MENA population is growing at a rate of 2.1%, which is high in comparison to world population growth; and with approximately 60% of the population under 25 years of age, home ownership demand is huge. Regional Governments in the post-Arab Spring era will be increasingly focused on housing and we believe that the market is likely to witness double digit growth over the next few years provided regulations evolve quickly to address the affordable housing segment,' said R Lakshmanan, CEO of Sakana Holistic Housing Solutions , a key partner of the event with Naseej Properties.
When compared with international markets, negligible amounts of GDP are allocated to mortgages in MENA countries. 'While in countries such as the UK and the US, outstanding mortgage stock accounts for c.100% of GDP, this figure drops to just under 1% on average in North Africa, 7% in the UAE, and just 2% in Saudi Arabia. As these figures show, there is enormous potential for growth in the home financing market in the Middle East, and we foresee phenomenal growth for the sector in the coming years,' said Alex Gemici, Managing Partner of Greenstone Equity Partners.
Insufficient regulatory frameworks were especially highlighted as a challenge to the industry. 'This region needs to lead the rest of the world in showing how Islamic home finance is done - as the largest Islamic mortgage financiers operate in this region. And what is really required is an adequate property law/regulations that are compatible with, and develop, Islamic finance' said Oliver Agha, Partner at Agha & Co/Agha & Shamsi, the region's frist Shari'ah compliant law firms.
The MENA Mortgage and Affordable Housing Congress continues on 24 November 2011. For more information visit www.menahousingcongress.com or call +971 (0)4 407 2528.
Cityscape first took place in 2002 in Dubai and since then, the brand has grown to be the largest real estate event brand globally. Since its launch, Cityscape has welcomed over 400,000 real estate professionals and investors from over 160 countries through its doors.
Cityscape's portfolio of global exhibitions, conferences, seminars and business breakfasts brings together a large cross-section of real estate professionals. These include: international investors, developers, government and investment authorities, leading architects, designers, consultants and others involved in the design and construction of real estate.
The Cityscape portfolio includes Cityscape Global, Cityscape Abu Dhabi, Cityscape Egypt, Cityscape Jeddah, Cityscape Riyadh, the World Architecture Congress, the World Architecture Congress Saudi Arabia, Retail City, Retail City Egypt, Future Cities and the ABC Expo.
Alongside the events, Cityscape also has a global online real estate community - CityscapeConnect.com - which provides real estate professionals with the opportunity to network 24/7. Furthermore, Cityscape publishes the Cityscape Magazine to help real estate investors and professionals with key strategic business decisions. You will find up to the minute news stories, features, interviews with industry leaders, market data, project status and extensive industry research.
Sakana Holistic Housing Solutions , Bahrain commenced operations in December 2006 as a dedicated provider of Sharia'a compliant mortgage finance. Sakana demonstrated significant growth since inception and has broadened its holistic focus by adding property consulting and property development to its portfolio. Sakana is an Islamic finance company regulated by the Central Bank of Bahrain . Sakana is owned by Capinnova Investment Bank (wholly owned subsidiary of BBK) and Ithmaar Bank.
Sakana is a member of the Waqf Fund for Research, Education and Training in Islamic Finance and Bahrain Property Development Association (BaPDA).
For more information, please visit www.sakanaonline.com.
As the MENA region's first fully-integrated real estate and property development company, Naseej encompasses the entire value chain from concept to completion. Headquartered in the Kingdom of Bahrain, and capitalised at US$ 286 million, the Company was established by prominent private and public sector investors to act as pioneering catalyst for addressing the region's affordable housing needs, with an initial primary focus on Bahrain.
The core activities of Naseej comprise design and master planning; development and construction; building components; mortgage facilitation; and asset management. Demand-driven, the Company is committed to delivering value-based real estate solutions through insight and innovation; applying pragmatism when meeting new challenges; providing real benefits to individuals and societies and individuals; and building the foundations of prosperity for future generations.
This note is intended as a guide only, for journalists regarding the significance of the different terminology for an Islamic lender.
Sakana Holistic Housing Solutions is an Islamic financial institution. As such, please consider using the following suggested preferred terminology:
Lender / Lending / Lend
Issued by Sakana
© Press Release 2011
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