Role of Banks in Real Estate Financing in Saudi Arabia Research Paper

Role of Banks in Real Estate Financing in Saudi Arabia - Research Paper Example The real estate boom in the Kingdom of Saudi Arabia has attracted banks to fund the projects in this sector. Banks financing real estate create a win-win scenario for the owners as well as the banks. There are other financiers in real estate including the Saudi Arabia Government. The terms and conditions for the banks and other real estate financiers vary depending on the project and location. Banks have been playing an important role in financing real estate sector in Saudi Arabia increasing the current boom in the sector, lending banks and the real estate owners profit from this arrangement which may be affected by economic and political factors bringing up some challenges which can adversely affect the profitability to the two partners. The real Estate Sector The real estate sector is one of the fastest growing in the world if not the fastest. It is the only sector in the world that has defied the norm currently. Despite recession and economic slow down in most of the countries in the world, the real estate sector continues to grow at a remarkable pace. This has led to increased prices for both developed properties and undeveloped land. Some of the top hotspot markets for real estate in the world today are: China: The most populous country in the world has been getting high demand for housing. Hong Kong, one of the fastest growing