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Decline in Interest Rates Expands Opportunities for Real Estate Refinancing in Saudi Arabia

Opportunities have expanded for real estate refinancing in Saudi Arabia as interest rates are dropping due to the Covid-19 pandemic. (SPA)
Opportunities have expanded for real estate refinancing in Saudi Arabia as interest rates are dropping due to the Covid-19 pandemic. (SPA)
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Decline in Interest Rates Expands Opportunities for Real Estate Refinancing in Saudi Arabia

Opportunities have expanded for real estate refinancing in Saudi Arabia as interest rates are dropping due to the Covid-19 pandemic. (SPA)
Opportunities have expanded for real estate refinancing in Saudi Arabia as interest rates are dropping due to the Covid-19 pandemic. (SPA)

Opportunities have expanded for real estate refinancing in Saudi Arabia as interest rates are declining due to the repercussions of the Covid-19 pandemic.

Specialists have called for taking advantage of the variety of financing solutions available, especially long-term mortgage loans, to increase Saudi home ownership.

The Saudi Real Estate Refinance Company - a state-run company that provides real estate financing services - estimated the activity to grow from 290 billion riyals to 500 billion riyals (USD 133.3 billion) this year, and to reach 800 billion riyals (USD 213.3 billion) over the next ten years.

According to Fabrice Susini, CEO of the Saudi Real Estate Refinance Company, the Saudi government has introduced some prudent support packages with the aim of stimulating the economy, but added that the losses caused by the Covid-19 pandemic would not be fully compensated.

Amid the current circumstances, consumers in Saudi Arabia must start searching for means that contribute to alleviating their financial burdens, he underlined.

“In every crisis, there is an opportunity,” Susini said, noting that the present opportunity was the low interest rates.

He stressed in this regard that the Saudi Real Estate Refinance Company had the main objective to “help citizens climb the housing ladder.”

Current efforts allow homeowners to compensate for the financial shocks that impacted them during the Covid-19 crisis, and present them with an opportunity to plan for their future, he added.

These developments come amid declining profit rates on housing finance by about 100 basis points over the past two years, while the Saudi Real Estate Refinance Company reduced mortgage finance rates three times in the past year, in order to encourage home ownership.

Susini said he believes that the current measures would contribute to increasing the rate of home acquisition in the Kingdom, noting that the government has played an efficient role in providing a suitable environment for its citizens so that home ownership becomes a basic right, not a privilege.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.