Hindrances to the Financing of Affordable Housing in Kingdom of Saudi Arabia
Emirates Journal for Engineering Research
Download Document| Date Published | 2009 |
| Version | |
| Primary Author | Bhzad Sidawi |
| Other Authors | |
| Theme | |
| Country | Saudi Arabia |
Abstract
The demand for affordable housing has largely increased in the past decades in Saudi Arabia due to the increase of population, inflation and variation in income levels. Islamic banks which had emerged in Saudi Arabia as early as 1980’s, joint-stock companies, charities and government organizations such as Real Estate Development Fund REDF are providing finance to the prospected home buyers. Little evidence is found regarding the volume of funding of the affordable housing at present that is provided by main financial organizations such as banks. A survey have been undertaken to find out the contribution of banks and REDF to the funding of affordable housing. The study found that the present financing system is not capable to meet the present and future demand of low-income home buyers. It investigates what banks are doing to improve their lending services and whether they have efficient plans to tackle the shortage of future funding. The study should motivate banks, charities and other financing organizations, investors and decision makers to consider and explore approaches that are capable to provide sufficient funding to the low-income clients. The argument raised by this research would set conceptual foundations that could be used by future research to analyse the misconception and misconduct in the financing methodology of affordable housing.