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Mortgage loans provided to retail and corporate clients by Saudi Arabia's commercial banks jumped in the second quarter by 27% to SAR 638.26 billion ($170 billion) from SAR 502.73 billion a year ago, new data issued by the Saudi Central Bank (SAMA) showed.
However, new residential retail mortgages in July fell by more than 23% to SAR 7.18 billion from SAR 9.38 billion in the same period last year. Month-on-month, retail mortgages fell 45% from SAR 13.12 billion in June.
Saudi Arabia has pushed home ownership as part of its Vision 2030 strategy and retail mortgages have jumped as the government expanded the number of lenders. The percentage of Saudi's homeowners jumped to 62% from 47% between 2016 and 2020, according to government figures. The objective is to hit 70% by 2030.
The push has been supported by attractive mortgage rates made available under programmes such as Wafi, an off-plan sales and rent program, and Sakani, a home ownership initiative.
(Reporting by Brinda Darasha; editing by Cleofe Maceda)
