Saudi Arabia seeing Islamic mortgage uptake

Tue, 03 Jan 2012
The popularity of Islamic mortgages in Saudi Arabia could be set to rise as a result of the approach being increasingly favoured in the region.

Indeed, there are now five companies offering such services in the kingdom, Arab News reports.

These include Deutsche Gulf Finance, Tamweel, Amlak, Saudi Home Loans Company and a proposed Islamic mortgage firm from the Islamic Corporation for the Development of the Private Sector (ICD).

The latter of which serves as the private sector funding arm of the Islamic Development Bank Group.

Khaled al-Aboodi, chief executive officer of the ICD, stated: "We will focus on the Saudi market. The housing sector is the big mover in the kingdom."

The industry figure explained the government has announced significant spending in the market over the next decade, while the demography of the region is also very young.

This represents an opportunity for the sector to flourish in the coming years, he went on to point out.

Last month, the Business Times reported that 2012 could be a big 12 months for Islamic mortgages, with the valuation of the niche industry likely to surpass £1.28 billion in the near future.
Salaam-u-Allaikum
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