Housing finance in Saudi Arabia*

In Saudi Arabia, availability of finance for home construction from public sources has substantially decreased during the past several years. In light of the prevailing high demand for housing, this situation has created a serious shortage of housing finance. This shortage is exacerbated by the lack of private credit for housing construction which is attributed to the underdeveloped Saudi financial and capital markets. The Saudi government is encouraged to help establish the necessary organisational infrastructure so that private savings can also flow into housing construction.