30.09.2008 - High and dry in Saudi property boom
From FT: “Getting a bank loan was virtually impossible. Looking for a place to rent was not much easier,’’ says the 26-year-old lawyer. He struck up a friendship with a real estate broker handling a building and visited him every day for a month to ensure he did not lose the opportunity. Oil-rich Saudi Arabia may be the biggest construction market in the Middle East today, as it uses petrodollars to build whole cities and accompanying infrastructure. Luxury apartment blocks throng even the holy city, Mecca . But, for young Saudis, who make up the majority of the population, finding affordable housing, and financing it, is a struggle. Much of the construction is beyond the reach of the average Saudi in a country where people at the start of their career earn only SR5,000 ($1,300) a month. Many projects are gated communities, luxury hotels and villas, or involve the expansion of infrastructure..... Full Article: Source
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