Saudi Arabia’s Financial Sector Development Program 2020 seeks to raise the share of mortgages in bank financing to 16 percent by 2020 from 7 percent in 2016, according to an official statement by the Saudi Arabian Monetary Authority (SAMA).
The value of outstanding mortgages will be increased from SAR 304 billion in 2018 to SAR 502 billion in 2020, in order to fulfill the housing needs of Saudi nationals.
The new program will “significantly impact” financial institutions, the private sector, and individuals, said Ahmed AlKholifey, SAMA governor.
“This will manifest itself in the form of greater transparency in the financial ecosystem, facilitation of loans given through financial institutions, [and] increased share of SME financing by banks for its current level of 2 percent up to 5 percent,” he said.
The blueprint also seeks to increase the share of the non-cash deals from 18 percent in 2016 to 28 percent by 2020.
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