SAUDI ARABIA: The implementation of a new legal framework for mortgage financing is credit positive for the kingdom’s banks, as it is expected to enhance asset growth potential, strengthen profitability of retail franchises and increase diversification of financing portfolios, said Moody’s.
“We expect that the implementation of the new laws, in conjunction with pent-up demand and the government’s supply-side initiatives for social housing, will create a sizable new asset class for banks,” it said.