Message from Qarar

As per the UAE’s directive, the Qarar team is continuing to work regular business hours – albeit remotely.
Please be assured it is business as usual and we are in full contact with our clients and partners. We are continuing to drive our projects forward, and delivering our expertise and guidance on credit risk management and advanced analytics to the banking and finance industry during this challenging period. We’re in this together.

What action can banks take?


Mortgage lending in the Kingdom of Saudi Arabia (KSA) has undergone many changes over the last decade. Strong initial growth was affected by the introduction of new regulations, which ultimately led to a stable normal growth trajectory. More recently, as part of the National Transformation Programme 2020, the government has made an explicit effort to stimulate the housing market by applying various mechanisms for improving development quality, encouraging competition through free switching between banks, strengthening financing support, and increasing the maximum loan to value (LTV) rate for certain segments. Due to the nature of this long-term secured loan financial instrument, it is critical for property to be evaluated, appraised and financed with a long-term outlook in mind.

Property Re-evaluation Services 

Valuations are the foundation of mortgage lending decisions for banks. Movement in market forces impact house prices, which directly impacts the coverage or collateral of your mortgage portfolio.

Property re-evaluation services helps you get an informed, independent advice ranging from re-valuating mortgage portfolios to bench-marking your origination policy. You are provided re-assurance on your current mortgage portfolio coverage and how your originations policy compares to the rest of the market. This also assists you by incorporating learning’s from re-evaluations into enhancing your lending policies. An analysis of your mortgage portfolio will answer questions on:

  • Are your Capital (LGD) Calculations accurate?
  • Are your mortgage valuations done in line with the market?
  • Are you sufficiently covered by your collateral to withstand market fluctuations?
  • Are your LTV`s in line with what the market offers?
  • Are your mortgages priced according to the latest market trends?
  • Are you selling mortgages in good, stable growth areas?

Property Re-evaluation Services includes the following elements

  • Scorecard development
  • Portfolio risk management and exposure
  • Pricing adjustments
  • IFRS 9 segment priority
  • Growing the right portfolio segments
  • Marketing focus

Secondary to measuring overall market trends, a client can also request a portfolio analysis. This analysis can be used to benchmark a company’s own portfolio within certain market segments, providing insight into the dimensions below:

  • Average loan amount
  • Property type
  • Property size
  • Property region
  • Loan to value
  • Origination LTV compared to current LTV
  • Whether the LTV increased or decreased over time