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FINANCIAL NEWS
Saudi central bank to set up property price index
16 Dec 2012
(MENAFN) The Saudi Arabian Monetary Agency (SAMA) plans to set up a real estate price index to be a benchmark and reference, reported Arab News.
According to Mohammed Al-Shaya, the general manager of a financial supervisory company, the new index will aid in avoiding a property crisis in the future.
The property sector is the second-biggest contributor to the Kingdom’s economy, with 9.5 percent of total GDP, as its volume exceeds USD266 billion with an annual growth of 6 percent.
Land prices in the country are high, representing nearly 60 percent of the total cost for constructing a house, hence, resulting in a real problem in the property sector.
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