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Real estate loans in KSA leap 25% in Q4-19

Real estate loans in KSA leap 25% in Q4-19
Loans amounted to SAR 317.27 billion in Q4-19

Riyadh – Mubasher: Credit facilities granted by commercial banks and real estate finance companies to Saudi nationals soared by 24.6% or SAR 62.2 billion ($16.7 billion) year-on-year (YoY) during the fourth quarter (Q4) of 2019.      

The total value of loans amounted to SAR 317.27 billion ($84.50 billion) in Q4-19, compared to SAR 254.68 billion ($84.50 billion) in the corresponding period in 2018, according to recent data from the Saudi Arabian Monetary Agency (SAMA). 

Quarter-on-quarter (QoQ), real estate loans signalled their highest level over the last year as they increased by 7.7% in Q4-19 when compared to SAR 294.52 billion ($78.45 billion) in Q3.  

Commercial banks accounted for 93.7% of the grand total value during Q4-19, leaping by 24.66% on an annual basis to SAR 297.4 billion ($79.21 billion) when compared to SAR 238.544 billion ($63.54 billion) for the same period in the year before.

Loans provided by real estate finance companies grew by 23.3% YoY in Q4-19 to stand at SAR 19.9 billion ($5.30 billion) from SAR 16.13 billion ($4.3 billion) in Q4-18.

In addition, credit facilities granted by commercial banks to individuals accounted for more than 62.44% of the total, at SAR 198.1 billion ($52.76 billion).

Loans granted to individuals rose by 42.22% YoY during Q4-19 when compared to Q4-18, which saw a total of SAR 140.3 billion ($37.37 billion).  

Moreover, credit facilities provided by commercial banks to businesses expanded to SAR 99.3 billion ($26.45 billion) by the end of Q4-19, compared to SAR 98.3 billion ($26.18 billion) in Q4-18.

At the level of finance firms, individuals secured 85% of the total loans in Q4-19 at SAR 16.9 billion ($4.5 billion), when compared to SAR 13.34 billion ($3.55 billion) in the prior-year period.    

In the meantime, loans provided to businesses surged to SAR 3 billion ($800 million) in Q4-19 from SAR 2.8 billion ($754 million) in Q4-18.

Translated by: Amal A. Wahaab