As per MRFR analysis, the GCC Mortgage Lending Market Size was estimated at 67.31 (USD Billion) in 2023.The GCC Mortgage Lending Market is expected to grow from 70.25(USD Billion) in 2024 to 112.5 (USD Billion) by 2035. The GCC Mortgage Lending Market CAGR (growth rate) is expected to be around 4.374% during the forecast period (2025 - 2035).
Key GCC Mortgage Lending Market Trends Highlighted
Numerous regionally specific aspects are influencing the noteworthy trends in the GCC mortgage lending market. The increasing demand for residential real estate, which is being driven by urbanization and population increase in the Gulf Cooperation Council countries, is one of the main market drivers.
Increased expatriate populations and attempts at economic diversification have resulted in a boom in property building projects in places like Dubai and Riyadh, which has further fueled the mortgage industry. Citizens are also being encouraged to invest in real estate by government initiatives including attractive financing choices and incentives that are meant to increase homeownership rates.
As financial institutions develop their products to appeal to a populace that is increasingly tech-savvy, opportunities are opening up. Online platforms are increasingly being used for mortgage applications and approvals, which enables lenders to expedite procedures and drastically cut down on turnaround times.
Additionally, the launch of mortgage products that adhere to Sharia law accommodates the distinct tastes of the community, offering a promising path for market expansion. More favorable lending terms for customers have recently resulted from the trend of heightened competition among banks and other financial organizations.A more client-centric approach to mortgage financing is being fostered by the increased emphasis on customer service and customized financial solutions as these companies compete for market share.
All things considered, these patterns show a dynamic change in the GCC mortgage lending market, which is emphasized by changing customer demands, cutting-edge financial products, and encouraging government programs meant to improve the housing industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
GCC Mortgage Lending Market Drivers
Growing Population and Urbanization in GCC Region
The Gulf Cooperation Council (GCC) countries have been experiencing rapid population growth and urbanization, which are significant drivers for the GCC Mortgage Lending Market. According to the United Nations, the population in GCC countries is projected to reach approximately 62 million by 2030, up from around 50 million in 2020.
This population surge, particularly in urban areas such as Riyadh, Dubai, and Doha, is increasing the demand for residential housing. The Dubai Land Department (DLD) reported a 25% increase in real estate transactions in 2021 compared to the previous year, further highlighting the growing interest in property ownership.
As more individuals seek housing, the demand for mortgage financing is expected to rise substantially. Major banks in the region, such as Qatar National Bank and Emirates NBD, are expanding their mortgage products to cater to this growing market, indicating a robust future for the GCC Mortgage Lending Market.
Government Initiatives and Subsidies
Government programs and initiatives aimed at enhancing homeownership rates significantly influence the GCC Mortgage Lending Market. For instance, the Saudi Arabian government launched the Sakani program, which aims to provide affordable housing solutions and financing options to the citizens.
As reported by the Ministry of Housing in Saudi Arabia, over 300,000 housing units were funded through this program in 2022. Additionally, many GCC nations are offering subsidized mortgage rates, making it easier for individuals to obtain financing.
Such proactive government policies not only foster higher homeownership rates but also stimulate growth in the mortgage lending sector, thereby reinforcing the potential for sustained development in the GCC Mortgage Lending Market.
Increasing Foreign Investment in Real Estate
The attractiveness of GCC countries as investment destinations has led to a significant influx of foreign capital into the real estate market. According to reports from the Dubai Investment Development Agency, foreign investments in Dubai's real estate market surged to approximately USD 5.7 billion in 2022, reflecting an increase of 18% from the previous year.This trend is expected to continue, driven by favorable regulations, such as long-term residency options for investors and the availability of various financing products from local banks.
The influx of foreign buyers leads to heightened activity within the mortgage lending sector as banks in the GCC region create tailored mortgage solutions to meet the specific needs of international clients. This growing trend positively impacts the GCC Mortgage Lending Market, enhancing its prospects for expansion.
Mortgage Lending Market Loan Type Insights
The Loan Type segment within the GCC Mortgage Lending Market encompasses various categories that cater to distinct borrower needs, driving significant consumer engagement. Among these, the Fixed-Rate Mortgage stands out due to its stability, allowing borrowers to enjoy predictable repayment plans, which is particularly appealing in the dynamic economic environment of the GCC region.
The Adjustable-Rate Mortgage is another popular choice, especially for those seeking lower initial payments; however, its variable nature requires borrowers to prepare for potential fluctuations in interest rates. Interest-Only Mortgages are also gaining traction, as they offer lower initial costs, attracting investors and those looking to manage cash flow better.
Furthermore, FHA Loans and VA Loans play crucial roles in promoting homeownership by providing attractive terms for first-time buyers and veterans, respectively, while enhancing access to affordable financing.Overall, the segmentation of Loan Type within the GCC Mortgage Lending Market reflects a diverse array of offerings, each with unique advantages that cater to a range of financial situations and borrower preferences.
As consumer awareness and confidence in the real estate market continue to grow, these Loan Types will remain pivotal in shaping the trajectory of mortgage lending within the GCC, with each category presenting distinct growth opportunities and challenges specific to the region's economic landscape.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mortgage Lending Market Lending Institution Insights
The Lending Institution segment within the GCC Mortgage Lending Market plays a crucial role in the overall financial ecosystem, facilitating residential housing finance across the region. Banks dominate this sector, providing a wide array of mortgage products, built on established customer trust and extensive product offerings, which significantly contribute to overall market growth.
Credit Unions, albeit smaller in size, foster local community relationships and often offer tailored mortgage solutions, enhancing accessibility for members. Mortgage Companies have emerged as significant players by streamlining the lending process through innovative technology, catering to the increasing demand for efficient service.
Additionally, Online Lenders are reshaping the landscape with their digital-first approach, capitalizing on the growing trend of e-commerce in finance, making mortgages more accessible to a tech-savvy population.
This diversification within the Lending Institution segment helps meet varying consumer needs, supporting the broader growth of the GCC Mortgage Lending Market and reflecting a responsive adaptation to market trends and challenges.The combined influence of these entities fosters healthy competition and encourages the expansion of mortgage options available to consumers across the Gulf region.
Mortgage Lending Market Borrower Type Insights
The Borrower Type segment of the GCC Mortgage Lending Market plays a pivotal role in shaping the overall dynamics of the industry. This segment comprises various categories, including First-Time Homebuyers, Move-Up Buyers, Investors, and Refiners, each addressing distinct needs and opportunities within the market.
First-Time Homebuyers are often driven by government incentives and initiatives aimed at promoting home ownership, which supports the regional commitment to affordable housing solutions. Move-Up Buyers typically reflect an increasing economic confidence, leveraging equity gained from their previous homes to invest in larger or more suitable properties, thus contributing to market liquidity and growth.
Investors actively seek properties as a profitable avenue, drawing interest from both local and international markets, particularly given the region's attractive rental yields. Refiners, on the other hand, benefit from favorable interest rates and often engage with mortgage products to capitalize on existing property values, facilitating greater financial flexibility.
This segmentation drives the overall growth and evolution of the GCC Mortgage Lending Market, reflecting the diverse preferences and financial strategies of borrowers within the region. As demographic shifts and increased urbanization continue, this segment is likely to evolve, adapting to the needs of a new generation of buyers and investors.
Mortgage Lending Market Property Type Insights
The GCC Mortgage Lending Market, particularly in the Property Type segment, is experiencing notable growth driven by an increasing demand for various types of properties. The residential segment has garnered significant attention, benefitting from a growing population and urbanization trends within GCC countries, leading to a surge in housing needs.
Commercial properties are also seeing a rise in demand due to improvements in the region’s business environment and investment opportunities, catering to various businesses and retail developments, contributing significantly to the market dynamics.
Land acquisition has become crucial as urban areas expand, driven by infrastructure projects and economic diversification initiatives. Meanwhile, the industrial property market is thriving, supported by the GCC’s focus on enhancing manufacturing capabilities and logistics to reduce reliance on oil-based economies.
These segments collectively present substantial opportunities for lenders, as they respond to the financing needs associated with real estate development, economic growth, and a favorable investment climate in the region.The diversity in property types further enhances the GCC Mortgage Lending Market segmentation, enabling stakeholders to tailor their offerings effectively to meet varied customer demands and stimulate market growth.
GCC Mortgage Lending Market Key Players and Competitive Insights
The competitive insights of the GCC Mortgage Lending Market reveal a dynamic landscape characterized by diverse players, regulatory frameworks, and evolving consumer preferences. The mortgage lending sector within the Gulf Cooperation Council countries has seen significant transformations due to a rise in population, urbanization, and a growing demand for housing.
Financial institutions are continually adapting their strategic approaches to cater to this increasing demand while maintaining competitive interest rates and enhanced service offerings.
Factors such as economic diversification, government initiatives to promote home ownership, and digital innovations are reshaping the market, making it critical for banks to differentiate themselves and innovate in their product offerings to capture market share and meet consumer expectations effectively.
Key Companies in the GCC Mortgage Lending Market Include:
GCC Mortgage Lending Market Developments
Due to strong housing demand and government-backed housing policies, Saudi National Bank reported an impressive 19 percent year-over-year increase in first-quarter profit in April 2025. This was driven by a surge in real estate lending, with outstanding real estate credit—including retail mortgages worth approximately SAR 698.8 billion—rising by over 11.7 percent and nearly 15 percent in total real estate loans.
In order to help banks manage duration and balance sheet capital restrictions and to provide liquidity to the mortgage industry, the Saudi Real Estate Refinance Company (SRC), supported by the Public Investment Fund, purchased a SAR 3.4 billion portfolio of SNB mortgage loans in November 2024.
QNB, FAB, SNB, Emirates NBD, and Al Rajhi all recorded high net interest income and sustained loan growth in late 2024, according to GCC-wide lending trends. QNB anticipates 5.5–7.5 percent annual loan growth into 2025, while Al Rajhi's expansion is approaching 9.9 percent, further solidifying their dominant positions in mortgage financing and broad credit.
With mortgage transaction values soaring 90 percent in 2024, Qatar's banking regulators and institutions like QNB prepared for further expansion of cross-border mortgage services in March 2025, ahead of Kuwaiti mortgage reforms anticipated in mid-2025. Longer tenures and new loan-to-value (up to 80 percent) caps were introduced to support affordability and risk management.
GCC Mortgage Lending Market Segmentation Insights
Mortgage Lending Market Loan Type Outlook
Mortgage Lending Market Lending Institution Outlook
Mortgage Lending Market Borrower Type Outlook
Mortgage Lending Market Property Type Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 67.31(USD Billion) |
| MARKET SIZE 2024 | 70.25(USD Billion) |
| MARKET SIZE 2035 | 112.5(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.374% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Bank Al Jazira, Bank of Bahrain and Kuwait, National Bank of Kuwait, Saudi National Bank, First Abu Dhabi Bank, Union National Bank, Commercial Bank of Dubai, Qatar National Bank, Al Rajhi Bank, Abu Dhabi Commercial Bank, Samba Financial Group, RAK Bank, Emirates NBD, Arab National Bank |
| SEGMENTS COVERED | Loan Type, Lending Institution, Borrower Type, Property Type |
| KEY MARKET OPPORTUNITIES | Rising expatriate population, Digital mortgage solutions, Government housing initiatives, Increasing real estate demand, Innovative financing models |
| KEY MARKET DYNAMICS | regulatory changes, increasing consumer demand, competitive interest rates, economic diversification efforts, evolving digital platforms |
| COUNTRIES COVERED | GCC |
Frequently Asked Questions (FAQ) :
The GCC Mortgage Lending Market is expected to be valued at 70.25 USD Billion in 2024.
By 2035, the GCC Mortgage Lending Market is projected to reach a valuation of 112.5 USD Billion.
The expected CAGR for the GCC Mortgage Lending Market from 2025 to 2035 is 4.374%.
The Fixed-Rate Mortgage is expected to dominate the market with a value of 30.5 USD Billion in 2024.
Adjustable-Rate Mortgages are projected to be valued at 24.0 USD Billion in 2035.
Major players include Bank Al Jazira, National Bank of Kuwait, and First Abu Dhabi Bank, among others.
FHA Loans are expected to reach a total market value of 15.75 USD Billion by 2035.
The market faces challenges related to regulatory changes and economic fluctuations.
The Interest-Only Mortgage segment is projected to grow to 8.75 USD Billion by 2035.
Emerging trends include increasing digitalization and a rise in demand for flexible mortgage options.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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