In cooperation with local businessmen, banks, real estate investors and the Riyadh Chamber of Commerce and Industry recently began preparations to establish a new real estate financing stock company before the current year’s end.
The new “Saudi Real Estate Financing Company” has an estimated value of 500,000 Saudi riyals ($133 million), with are to be provided by the company’s investors, according to London based Al-Sharq Al-Awsat daily.
Once operations begin, the firm will lease property in return for periodic installments, expected to be somewhat higher than the market value. At the end of the contract, the real estate will become property of the renter.
Real estate is a booming industry in Saudi Arabia, with official sources reporting that some 30 percent of personal income is allocated to housing in Riyadh. Last year, nearly 504,000 residential apartments were available for rent in Riyadh, with demand exceeding supply by an additional 49,000. –(MENA Report)
© 2001 Mena Report (www.menareport.com)
