Capital market offered SAR 100 bln finance to real estate developers from 2017 to mid-2022: ElKuwaiz

Chairman of the Capital Market Authority (CMA), Mohammed ElKuwaiz

Chairman of the Capital Market Authority (CMA), Mohammed ElKuwaiz, said the capital market offered SAR 100 billion finance to all categories of real estate developers between 2017 and mid-2022, while banks provided SAR 138 billion.

The capital market’s contribution to the financing economy, particularly the real estate sector, is accelerating, given its weight in the Kingdom’s economy, ElKuwaiz added while participating in the Real Estate Future Forum.

The real estate, and building and construction sectors are together the largest non-oil sector and the second biggest industry in terms of employment, following the commercial sector. The biggest challenge to the real estate industry is huge capital, in addition to different types of capital and financing.

Moreover, this finance is extended by the real estate funds sector, where total assets stood at SAR 142 billion. This sector ranks among the Kingdom’s largest in terms of asset management by growth and diversification.

On the other hand, ElKuwaiz explained that the offering and listing of finance firms and real estate developers empower their growth and allow them to raise more finance.

The debt market is another option for finance, he added, noting that listed companies have an easier access to it, as the debt issuance is similar to a public offering.

The fintech is one of the new financing methods. The fintech sector includes many business profiles that can serve the sector, such as crowdfunding platforms, which mainly enable smaller developers to raise funds fast, ElKuwaiz concluded.