Saudi Arabia recorded 48 billion Saudi riyals ($12.89bn) worth of residential mortgage contracts in the first quarter of 2021 to hit a five-year high as business activity and demand picked up in the Arab world’s biggest economy, according to a report by global property consultancy Knight Frank.
The increase, which includes both home and land contracts, comes as residential sales activity in the kingdom recovers to pre-coronavirus levels, the report said.
"The vast apparatus that is Vision 2030 is percolating through to the kingdom's residential market, with rising residential mortgage rates helping the government to realise its ambitions of higher home ownership rates,” said Faisal Durrani, head of Middle East research at Knight Frank.
“Indeed, at 60 per cent at present, the government has already surpassed its 2020 target by 8 per cent and is well on course to achieving 70 per cent home ownership by 2030."
A total of 38,285 mortgages were issued for the purchase of villas and town houses in the first quarter, according to the report.
Mortgage contracts in April also rose to their highest level in five years as residents continued to buy homes.
Saudi Arabia has set an ambitious target of raising home ownership rates in the kingdom to 70 per cent by 2030 under the Sakani programme – a joint initiative between the Ministry of Housing and the Real Estate Development Fund.
The fund distributes land plots and arranges home loans for Saudi citizens seeking to build homes.
About 1.1 million families have benefitted from the Sakani programme, according to Knight Frank.
"Initiatives such as Sakani, which was first launched in 2017 to boost home ownership through a landmark housing allocation programme, plus the Wafi programme that allows off-plan sales, are transforming Saudi Arabia's residential landscape,” said Mr Durrani.
The kingdom also exempted property deals from VAT in October last year and introduced a 5 per cent property transaction tax.
Saudi Arabia plans to add more than 500,000 units to Riyadh’s housing stock by 2030, which is 100,000 units less than Dubai’s current housing stock, according to the report.
In December, community developer Roshn, which is backed by the kingdom’s Public Investment Fund, announced plans to build 30,000 homes at a 20-square-kilometre residential project in Riyadh.
Saudi Crown Prince Mohammed bin Salman also allocated 20 million square metres of residential land for the construction of 53,000 homes in Riyadh in May.
Earlier this week, the PIF-owned Saudi Real Estate Refinance Company signed a partnership agreement with the Arab National Bank to provide long-term liquidity in the home-financing market and boost home ownership by Saudi citizens.
“Home buyers and lenders are clearly feeling more confident about life as the post-Covid recovery starts to [set] in," said Mr Durrani.
UAE squad to face Ireland
Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind
The Case For Trump
By Victor Davis Hanson
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
MATCH INFO
Chelsea 1 (Hudson-Odoi 90 1')
Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')
Man of the match: Ilkay Gundogan (Man City)
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
