Following the second “Real Estate Brokerage Forum 2025,” which occurred at the Riyadh International Convention and Exhibition Centre, the General Real Estate Authority (GESA) disclosed the figure, according to the Saudi Press Agency.

The Kingdom’s ambitious economic diversification agenda, “Vision 2030,” is revolutionising the real estate market in Saudi Arabia by increasing homeownership from roughly 63.7% in 2023 to 70% by 2030. By increasing bank participation, the plan aims to double mortgage activity, diversify financing, and increase mortgage lending.

In his keynote address, Tayseer Al-Mufarrej, the authority’s general director of strategic communication and official spokesperson, emphasised the system’s impact, stating that it has resulted in over eight million real estate transactions, the licensing of over 86,000 brokers, and the approval of 75 digital platforms that house over 685,000 authorised listings.

The “Real Estate Brokerage Law,” which was introduced in 2022 and aims to professionalise real estate transactions through standardised contracts, broker licensing, and stricter oversight to increase transparency and protect consumers, is what is driving the change.

“Al-Mufarrej noted that the system had brought about a fundamental transformation in the structure of the sector by turning brokerage into a licensed profession governed by regulations and defined responsibilities and obligations,” the Saudi Press Agency reported further.

In its first year, transactions increased by 17%, reaching SR605 billion in deals. Tens of thousands of individual and corporate brokers, as well as digital platforms, were licensed as a result. Real estate loans by Saudi Arabia’s commercial banks, on the other hand, climbed to a record SR922.2 billion (USD 245.9 billion) in the first quarter of 2025, marking an annual increase of just over 15%. Based on data from the Kingdom’s central bank, also known as SAMA, this expansion has been the fastest year-on-year growth in nearly two years, and underscores a robust resurgence in property financing.

There was a surge in lending to commercial real estate projects even as home mortgages, which still form the lion’s share, grew at a more moderate pace. Saudi banks’ retail mortgages, which are primarily home loans to individuals, accounted for about 75.8% of total outstanding real estate credit in the first quarter, reaching SR698.8 billion.

This represents an 11.7% year-on-year rise. Corporate real estate loans (the funding provided to developers and commercial ventures) grew nearly 27.5% over the same period to SR223.4 billion, outpacing the retail segment’s growth several times over.

Although smaller in absolute terms, the corporate real estate portfolio has been expanding at its fastest pace in almost a decade, according to SAMA data, boosting its share of total real estate credit to roughly 24%, while signalling a significant shift in banks’ lending focus.

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Huw Evans, director-general of  Association of British Insurers told the media, “There are winners and losers in the way the market works currently, with those who switch insurance providers every year often ending up with lower prices. The FCA has confirmed that insurers have not made excessive profits.” 

The ban is in fact expected to stop automatic renewal, according to the regulator. The reason for the ban is because car and home insurance markets are not beneficial for customers. It is reported that consumer group Which? was open to the new rules introduced by the authority. 

In fact, insurers and brokers have already started to address the issue associated with price differences between new and existing customers in the industry. It is reported that industry has observed more than 8.5 million ‘pricing interventions’ in home and motor insurance worth £641 million. However, several insurance companies across the country will begin to adhere to the rules introduced by the Financial Conduct Authority. 

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Jaya Smitha Menon

February 17,2015: With 61 years of experience, Nihal Senaratne is a doyen of the insurance industry in Sri Lanka. His career and the insurance sector in Sri Lanka began almost at the same time; and he has played a significant role in shaping the industry. From the days when the industry took baby steps as one of the most important regional hubs for the British insurance industry to the time it was nationalised and then privatised, Senaratne has seen the industry grow, reel under the pressure of terrorism and again stabilise to the current position. He played a role in the de-centralisation of the industry in 1988.  At present, he is chairman of Senaratne Insurance Brokers (Pvt) Ltd., which he incorporated in September 1979. He holds leadership roles in various industry bodies locally and globally and is a prominent speaker at various international industry conferences.

Nihal Senaratne

Tell us about your entry into the insurance industry.

I started my career at the age of 19 on February 1, 1953, having been recruited straight from school as a trainee assistant manager in the insurance department of a British agency house, representing several overseas insurers, mainly the Liverpool and London and Globe Insurance Company Limited. In those days, Sri Lanka was just a regional hub of the British insurance industry. In 1961, following an ultra-socialist government coming into power in Sri Lanka, life insurance was nationalised, followed by general insurance in 1964. I completed my CII examinations in England, and at the age of 22 received my ACII diploma, following which, I returned to Colombo.

In 1988, insurance was de-nationalised following exhaustive discussions initiated by the Ceylon Chamber of Commerce through their Insurance Advisory Committee of which I was the chairman.  At the same time, insurance brokers, as such, were statutorily recognised and my company was one of the first institutions to receive a broker licence. I started Senaratne Insurance Brokers (Pvt) Ltd. in September 1979.

Which insurers do you work with?

We work with 21 insurance companies operating in Sri Lanka of which 12 are registered as composite insurers, three are registered to carry on only long-term insurance business and six companies registered to carry on general insurance business. We work with all the insurance companies in this market, depending on client requirements and the claim payment culture.

What is your take on the insurance market in Sri Lanka?

Competition amongst the insurers in this country is rife. As a result, it is the people who benefit. However, what is of some concern is the over reliance on reinsurance, where material damage cover is concerned. For example, on the fire side, over 80% of the premium is ceded overseas. This situation, perhaps, reflects an inbred weakness in underwriting, or more so fear of risk taking. This situation needs to be corrected and may well come about with the proposed risk-based capital system to be introduced shortly.

What is your take on the insurance market globally?

Most insurers/reinsurers have made good profits in 2014. Rates are declining, particularly in the European markets, which, of course, is favourable to emerging economies, such as Sri Lanka.  Even as things stand, most treaties that apply here seem to be absorbing rates, which, to my mind, are sometimes impossibly low.

What are the challenges you face?

The challenges we face at present are rebating of premiums on a direct basis by some insurers which certainly hurts our business and, of course, the recent decision by the government to allow institutional agents (previously disallowed).

How did you tide through the global financial crisis of 2008?

Fortunately, the global crisis that you mention did not affect us as such. But we had a different crisis — terrorism, which was finally eliminated only in the first half of 2009.

How do you deal with growing compliance needs?

We have no real problem with compliance, as the requirements imposed are reasonable.  Personally, I do not advocate that the industry should be bound hand and foot with rules and regulations, which would inhibit progress. But, as long as the law has been prescribed, I believe that this must be observed by all concerned. Ideally, there should be more self-regulation on the part of the insurers and intermediaries alike thus, reducing the burden thrust on the regulatory authority. In my view, a regulator should not be cast in the mould of a policeman but, more so, as a facilitator for market development. In other words, the regulator should be there, not to smother but to mother the institutions under his supervision. If any country is seriously viewing a path towards globalisation of the financial sector, efforts must be first made to develop the market, and thereafter regulations should be put in place. It should not happen the other way around, as generally happens in most developing countries.

Tell us your plans for the future?

Our growth plans include encouraging insurers to come up with innovative products. To start with, we ourselves came up with funeral expenses insurance, which an insurer agreed to underwrite. It was launched a few months ago, jointly with the insurer concerned. We are currently in the process of setting up a price comparison website in order to garner additional business opportunities.

How do you see the industry shaping in the next 5 years?

As I see it, there is now a lot of foreign investment, both in the hospitality industry and otherwise, which, to my mind, will be further encouraged by the recent change in government here in Sri Lanka.  In this backdrop, I see the industry growing sharply.

What are the current industry trends you observe?

The unfortunate trend, which continues unabated, is some insurers aiming merely at market share by direct contact with prospective clients at the expense of intermediaries but, it is hoped that, such companies will soon realise the immense benefit that an insurance broker brings into the picture both by way of  service as well as technical input.

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Miriam Mannak

February 12, 2105: Natural resources must benefit local communities and human development, not just corporate viability. In order to achieve that, the extractive industry should put a bigger emphasis on local content. That was one of the topics on the agenda at Investing in Africa Mining Indaba, which took place in South Africa from February 9-11.

“Natural resources must be used to develop human capabilities and empower communities. We need to think of the future. Oil, gas and other resources are endowments to a country, and they will be so forever. If you are not able to find ways they can benefit future generations, then you should keep them off the ground,” said Steve Kayizzi-Mugerwa, Director of the African Development Bank’s Development Research department.

He spoke on the second day of the Mining Indaba in Cape Town, which with 7,000 attendees is the world’s largest mining and investment conference.

Adopting stronger local content policies is one of the ways companies working in mining, oil and gas sector can foster greater levels of socioeconomic and human development, Kayizzi-Mugerwa added. This is sometimes easier said than done. Africa, for instance, struggles with a persistent shortage of appropriate skills.

“Local content is important, but it is often hampered by a lack of local capabilities and skills shortages as well financial challenges and infrastructure gaps,” explained economist John Anyanwu, adding that the skills issue is not impossible to overcome. One of the solutions is for companies to develop the required skills oneself, for instance as part of one’s corporate social investment programme.

“When wanting to foster local content, you have to do a skill analysis, determine what you want to achieve, and know how you want to achieve it,” he explained. Based on this, corporates can come up with “an incentivised, voluntary, and inclusive human development plan for the purpose of empowering individuals” and providing them with the skills the company needs.

Whilst mining, oil and gas firms have a distinct role to play in ensuring natural resources benefit communities and foster human development, governments too have a responsibility. “Revenues from oil, gas and minerals should be linked to human development.

It is vital,” said Sheila Khama, Director of the Africa Natural Resources Centre at the African Development Bank (AfDB) and the former CEO of the Botswana branch of diamond company De Beers. 

Ayo Ajayi, director of the Africa Team of the Bill & Melinda Gates Foundation, agreed and stressed that governments of mining countries have the duty to spend taxes earned from the extractive sector appropriately. “Human development doesn’t depend on whether governments get revenue from natural resources, but on how these revenues are spent,” he said.Ajayi added that there are various channels mining revenue can be spent on to foster human development.

Ayo Ajayi

“Revenue can, for instance, be spent through the public sector, on social services like health and education, or on infrastructure and construction, which indirectly supports job creation and fosters GDP growth.”

Also Read:

Investors losing interest in South Africa

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