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  • 20-12-22

    Al Rajhi Capital: Saudi construction industry to regain as Giga ventures accelerate

    (MENAFN) Saudi Arabia’s construction industry has indicated signs of regain in the July-September period of this year as became obvious after the surge in domestic cement sales capacities, an analysis report by Riyadh-located financial services company Al Rajhi Capital indicated.

    The nation’s sales of domestic cement surged by 5.4 percent on a yearly basis from July to November this year whereas the ongoing offtake of additional residential loans, in line with the reducing of construction material prices, supported the regain of the construction industry, according to the report.

    It also mentioned that Saudi Arabia carried on recoding of robust surge in residential mortgages with the new agreements amounting to SR10.7 billion (USD2.84 billion) a month during the first 10 months of this year.

    “Going forward, we expect the strong offtake in mortgages to continue, as we expect the new mortgage to average SR7 billion per month in 2023, with the overall residential mortgage growing at a CAGR of 12 percent between 2022 and 2024,” the analysts stated in the report.

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