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Borrowers are involved in identifying the obstacles to obtaining financing from banks because of the conditions they say are difficult and unfair, but I see that they are realistic, objective and prudential. This is because banks are keen on shareholders' funds if borrowers do not pay for loans. Consider this debt. Some economists and economists, including real estate professionals, expect that citizens will need to borrow from banks to get enough finance to buy real estate that we expect to go through a correction wave between 20% and 40% across the Kingdom. The correction varies from region to region and from city to city. To a city. The expected real estate correction encourages investors and real estate developers to obtain real estate loans to develop residential and commercial land because they expect a strong renaissance of real estate, especially residential ones, in the long term. Another scenario is borrowing from banks to exploit the opportunities in the Saudi stock market, where the value of some leading and other stocks has reached attractive levels, which have made citizens accept personal loans to invest in equities at attractive prices. A large percentage of citizens



lost their money in the stock market and want to compensate them by buying useful shares to sell them after rising prices. The per capita income in the Kingdom has declined in the last seven years. This may be one of the most common reasons why citizens have taken personal loans to pay bills for basic necessities of life. Naturally, interest on personal loans increases when demand increases, especially as banks are eager to make high profits from personal loans to cover bad loans. It is obvious that the high interest rates on loans are governed by the supply and demand and strategic direction of the banks' personal lending, not to mention the high risk ratio. We also know that foreign banks that have entered or intend to enter the Saudi banking market do not want to invest in retail services such as personal loans for many difficulties,





Bank loans



including how to chase the defaulters for payment after they know a lot about the experience of Saudi banks in this regard. This has increased the local banks' monopoly on personal loans. Unless strict and prudent regulations are issued to lend to Saudi banks, loans will tire citizens, especially in real estate. Here is the responsibility of the Saudi Arabian Monetary Agency for more governance that preserves shareholders' equity in banks and encourages them to lend without harming borrowers and lending banks. The loosening of lending will lead to a bubble that threatens the Saudi economy and leads to a spark that starts with the banking sector to spread to other economic sectors such as real estate, retail and other sectors, directly and indirectly, as in the United States in 2008, 2009 and 2010.




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