Making Of A Boom - Zawya

Saudi Arabia's housing sector is only just warming up but the profits of listed Saudi companies show the sector's immense potential. If only the authorities would pass the mortgage law.

Profits of Saudi property managers listed on the Tadawul index rose 30% year-on-year and quarter-on-quarter. Income rose SR465-million in the second quarter, compared to SR347million during the same period last year, buoyed by a surge in real estate loans in the past three quarters, rising 20 to 30% year-on-year.

"This is despite the reluctance of banks to lend to the sector, and the delay in final approval of the mortgage law," says Manama-based SICO in a report on the performance of listed Saudi real estate companies.

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