A monitoring conducted by “Okaz” based on government reports revealed that loans from financing companies of all categories recorded their highest historical levels in the past year 2022, and the loans that recorded their highest historical levels included “residential real estate, commercial real estate, vehicle financing, credit card financing, and personal financing.” and unrated loans.
Leading Home Loans
Monitoring “Okaz” showed that the total value of financing granted by financing companies recorded the highest price in its history in the past year 2022, as the value of those financing amounted to 75.75 billion riyals, an increase of 39.95% in a year, after the value of those financing in 2020 amounted to about 54.13 billion. Rial.
Real estate (housing) financing accounted for 29.68% of the total financing provided last year, as the value of those financing amounted to about 22.48 billion riyals, while vehicle financing came in second place, amounting to about 19.32 billion riyals, equivalent to about 25.5% of the total financing. Personal finance came in third place, with a value of 19.2 billion riyals, equivalent to 25.34%.
The value of unclassified financing amounted to about 9.26 billion riyals, while commercial real estate financing came in the penultimate position with a value of 4.55 billion riyals, equivalent to 6.01%. Finally, credit card financing came at a value of 942 million riyals.
Bank financing decline
In a related context, the report of the Saudi Central Bank (SAMA) showed that new residential real estate financing for individuals provided by (banks) declined significantly last year, as the value of financing amounted to about 120.27 billion riyals, a decline of 21.15% compared to 2021, with a decrease in the value of financing. Equivalent to 32.27 billion riyals.
The number of financing contracts decreased to 154,392 contracts, compared to 201,481 financing contracts in 2021, and “villas, apartments, and lands” financing recorded collective declines in their value, as the value of land financing decreased by 67.56% to reach 9.07 billion riyals, after It was about 27.95 billion riyals in 2021, and villa financing, which accounts for the highest share of real estate financing for individuals provided by banks, declined to 83.67 billion riyals after it was about 96.19 billion riyals in 2021, and the declines of “apartments” recorded the lowest percentage compared to lands and villas, and amounted to Its value is 27.24 billion riyals, a decrease of 4.09%, as its value in 2021 was about 28.4 billion riyals.
Abdul Rahman Al-Misbahi (Jeddah) @ sobhe90