Tuesday, October 30, 2012
Home vs. Loans
Yazeed Alamoudi
English 113B
professor
bieber
23 October 2012
Home
vs. Loans
There is always much debate whether
owning a home is priority or is it just something we suffer to get but we don’t
really need. Between the dreams of owning a home and the reality of renting one
the Saudi dream come. Owning a home became a dream for most of the Saudi
citizens. Despite the fact that Saudi Arabia is one of the richest oil countries
in the world, owning homes became a major issue in the country. A growing population,
low income comparing with houses prices and limited access and very long
waiting list getting loans are the main reasons for this issue. The government
should find very fast effective solutions to the problem since the problem has
started long time ago and the country should buy SR 1.4 trillion in the next 10
years to catch up with housing development demands (menafn.com).
The country has
been facing this problem over the last ten years. Arabian business newspaper
said that “Saudi Arabia needs 150,000 housing units annually as demand for
residential property is soaring, while a long awaited mortgage law will not
solve the top oil exporter's housing problem”. (arabianbusiness.com).
Saudi Arabia is one of the biggest
countries in the Middle East, and the population grows very fast in such a
place. This growing population caused an issue for the country since they
haven’t planed earlier for this growth. The country found itself shocked
recently by the increasing number of citizens. The increasing in population
shouldn’t be unexpected phenomenon since Saudi Arabia is one of the largest
Muslim countries in the world .The country follow the Islamic religion rules which encourage people to have more kids and family. Also the
religion allows men to have more than one wife –under some circumstances -
that’s mean more kids and families. As a fast effective move to solve this issue,
King Abdullh approved building 500,000 low cost housing units. According to
specialists, that was a great late move which would help solving part of the
problem, but it won’t solve it completely.
Saudi citizens suffer from the big
gap between their income and houses price. Recently, it became impossible to
cover a house price without getting loans or saving money for couple of years.
Getting loans also hard and citizens has to go throw a long waiting list. “Some
subsidized loans were available through the Real Estate Development Fund
(REDF), a state-funded entity. But they had a very long waiting list, and loan
amounts were not necessarily sufficient to cover construction costs. As part of
the fiscal package that was introduced earlier this year, the funding to the
REDF was increased, and the loan amount rose. In addition, new mortgage
legislation is expected to be passed soon, which should significantly improve
the housing finance framework” (imf.org)
There
is too much social pressure when it comes to owning a house. In the Saudi
culture, owning a home is very important thing that too many other things rely
on. For example, owning a home is the first step to get marry in the country.
Families are more likely to give their daughter to the man who owns a house. On
the other hand, it’s almost became impossible to get marry if you don’t own one
or you still renting. Owning homes issue effected young Saudi men in the first
place. Nowadays, a hug number of Saudi men – since they are culturally
responsible about owning homes- starting their life by taking loans from banks
, and spending the rest of their life regretting marriage and buying for these
loans. Instead of being a dream, and
place full of happiness, homes became a nightmare for Saudi. Renting an
apartment or homes doesn’t seem like a great idea in the country for many
reasons. The feeling of instability is the main reason why Saudi prefers to not
rent. Changing in the prices from time to time, breaking the contract and
dealing with the greediness of homes owners who force renters to sign and give
them the right to change the price at any time.
Saudi houses are expensive because it is specially designed in a
totally different way than the other hoses in the world. The design relies in
some religious and culture aspects. For instance, female’s rooms are more
likely to have a backyard view and usually the bathrooms are inside the room.
That gives the female more freedom and her space. There are two main living
rooms- or guest room as Saudi likes to call it- in most of the Saudi houses.
One of the living rooms is usually located at the right side of the house, and
it has its own entrance, while the other one is located at the left side of the
house with another entrance. The purpose of this unique design is to separates
men from women and to give women more privacy. Many Saudis like to build a small room at the
back yard of their houses so men can smoke hookah and watch soccer games
without bothering women inside the house.
Works Cited
Reuters.
“Saudi needs 150,000 housing units a year-LaSalle”. www.arabianbusiness.com/saudi-needs-150-000-housing-units-year-lasalle-357477.html.
Wednesday, 20 October 2010 10:16 PM.
IMFSurvey
Magazine. “Saudi Arabia Addressing Jobs,
Housing as Economy Rebounds”.
www.imf.org/external/pubs/ft/survey/so/2011/int092111b.htm.
September 21, 2011.
MENAFN
Arab News. “Saudi Arabia needs to solve housing problem”.
http://www.menafn.com/menafn/1093567816/Saudi-Arabia-needs-to-solve-housing-problem.
Wednesday,10 October 2012.
فيلم مونوبولي (Monopoly Short Film (ENG SUB
This Movie discuss the Housing problem in Saudi in a mix of documentary and comedian style
this movie is taking the opinions of housing experts in Saudi,, enjoy the Monopoly
Mohammed Omar Sources
Saudi Arabia. Ministry of Economy and Planning.
Publications. Executive Summary. Riyadh: n.p., 2012. Print.
The Ministry of Economy and Planning publishes an executive summary for the plans every year in the Website of http://www.mep.gov.sa/
This Summary talks about the government movement on legislations and achievements in housing, education, health and many other economical achievements.
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Second source: Bloomberg published an article that deal with the financial problems that Saudi face in the housing markets,, and the insufficient funds in mortgages
link: http://www.bloomberg.com/news/2012-07-04/saudi-mortgage-law-opens-kingdom-to-home-lending-surge.html
Saudi Housing by Mohammed Alzahrani
Mohammed
Alzahrani
ENGL113b
Prof.
Beiber
October
30, 2012
The Saudi Housing Problem
The
home is the most important thing for the middle class people in Saudi Arabia because
it represents the social life of the typical middle class family. Although,
Saudi Arabia has a strong economy with a lot of natural resources and financial
facilities, the Saudi people face a housing problem that might affect the Saudi
society and exposure it to socioeconomic problems. The problem of housing is
complicated because of the low lack of investment, high rate of unemployment,
the finance problem, and the high prices of building materials.
Population distribution is considered one
the main problems that affect the house owning in Saudi Arabia. The ministry of
Economy and Planning in Saudi Arabia reveal the annual report of the human
development, and it shows that more than three fifths of the populations live
in major cities of the kingdom (MEP). There are 13 provinces in Saudi Arabia
and each province contains between three to five cities. However, that affects house
owning because more than 60% of the populations live in three cities of Riyadh,
Jeddah, and Dammam that will result an increasing in the prices of homes in
these cities. In consequence, the market of building materials is affected from
the high demand in the three main cities and that result to the raising the
prices in these cities, which defiantly, affect the people who are trying to
own a house.
The
low lack of investment in properties and the low supply of properties is an
obstruction that affects house owning in Saudi. Properties Businessmen chose the alternative
investments such as, stocks markets and technological investment; that have a
better profit. The businessmen changed their investment field from the
properties to other kind of investment because the prices of building materials
such as cement, wood, steel, ceramic, accessories, and other materials have
raised to illegitimate prices. That increasing occurs in the main cities
nevertheless, the small cities in the kingdom get the same prices from the
factories in the main cities. Also, most of the Saudi businessmen are looking
for the fastest way to get a good profit; however, that means a consideration
of the mathematical law of proportion and fit by the businessmen, this law
applied with deliberating the fact of many people can’t afford homes and the
investment of prosperities takes a long time to get a good profit; and a short
time to get a reasonable profit. From other point of view, people put the price
of houses in consideration because they think it is useless to pay huge amount
of money in a small house with low quality of infrastructure such as plumbing,
and electrical wires.
The shortage of financial resources is
a main cause of less house owning in Saudi. Most of people use different
financial facilities such as loans and savings to build or buy a house. The
Islamic law takes a place in Saudi, and it forbid the loans that contain any interest
rates. Therefore, most of Saudi follow the Islamic law and avoid using loans
with rates. Even though, the Islamic law forbids interest rates, Saudi Banks deal
with a loan that contains rates of interest to follow the international systems
of banking. Also, the banks offer other kind of loans which doesn’t deal with
interest of rate, for instance, when a customer ask from the bank to buy 1
kilogram of Gold with $70,000 and sell with $63,000 in the market, and the
customer pay it to the bank monthly. The good thing about this loan is to get
financial resource but the problem that this amount of money will allow the
customer to facilitate 20% of the home project if the average home price is
$350,000. The financing is a huge problem in Saudi that has to be solved to let
people live in houses.
The Saudis can’t afford homes
because they have to spend money on unnecessary materials in house building.
The Saudi Homes contain a lot of frills decoration to show the cultural
background in home designing. For example, most of the Saudi families use
marble for the inside floors and the outside face of the home to show the
luxury of the home, and that in fact cost especially, if we know that the
square meter of marble cost almost a $ 300 at least. Also, other example, when
the area of the land is a 1,20
the Saudi family use the area to build a
big house on it that contain extra rooms, and useless area. In my opinion, if
Saudis use the idea of building simple houses that contain an excellent
infrastructure, with using cheap strong materials, like wood, painting, and
wood floor, the home will be affordable
the Saudi family use the area to build a
big house on it that contain extra rooms, and useless area. In my opinion, if
Saudis use the idea of building simple houses that contain an excellent
infrastructure, with using cheap strong materials, like wood, painting, and
wood floor, the home will be affordable
The government legislate many laws and provide
support for housing problem.
Because
Saudi Arabia is an absolute monarchy, the king is the only one who legislate
laws and that was a big problem because this dilemma needs specialists and
experts that know what do to solve it. So in 2011, The King announced $ 66.7
billion for housing (Alsharif), that allow
building 2 million houses and selling it to the people, and the people pay a monthly
amount of $288 for 25 years. This project is building 500,000 houses a year for
the next four years. The government solution is useful for the current time and
the short future of the next 5 years; because the new regulations and
development plans gives the people an access to own houses for the short term
without considering another legislations that regulate the properties market
for the next decades. For instance, the government ought to take actions toward
the illegitimate increasing for the building materials. Furthermore, Zainab
Fattah, quote for Naveed Siddiqui, the chief
executive officer of Capitals Group International “The government will have to allow non-banking financial
institutions such as mortgage companies to come in to stimulate the market.” (Fattah)
In conclusion, house is the most
important to the Saudi people because it is the only thing that represents the
Saudi family. The house ought to be easier to get by decreasing and controlling
the prices of building materials therefore, will result a decreasing in houses
prices. Also, the government made a good improvement for the next few years but
they should enroll in planning for the housing marketing for the next decades
to regulate the market and legislate laws.
Mecca
Mecca
Mecca is the purest and the
most blessed area in the earth. It’s in the center of the world and in the west
side of Saudi Arabia. Mecca is located in the Hejaz
region. The city lies inland 73 kilometers east of Jeddah, in the narrow, sandy
Valley of Abraham. The Holy City is 277 meters (909 feet) above sea level. The
focal point of Mecca is the Kaaba, the "House of God" believed by.
Muslims people all over the world visit Mecca for its comfortable
atmosphere and amazing architecture and the most important reason is to do
their Islam duties (pilgrimage and aumrah). Mecca
is home to the holiest site in Islam: Masjid al-Haram. With a population of 1.7
million, Mecca is host to millions of Muslim pilgrim since the 7th century. Its
importance to Islam can be directly linked to the prophet Muhammad. Mecca is
the home of the most Muslims in the world. All of them have their own home, but
still Mecca is different to most of us. Because of the religious importance of
Mecca, this city is more than the location it’s the spherical home for many
Muslims. More over, the special home is the daily were nationality ethnicity
and language no matter, all Muslims feel they belong there.
The Holy Mosque's
architecture shows the Islamic decoration, which had been done by famous men in
the Islamic history. It’s a wide three-floor mosque, floors are covered with
special white marble that absorb the heat allowing people to walk barefoot.
Inside the mosque there is (The Holy Kaaba) which is a cube-shaped
Anthropomorphic standing in the middle and Muslims are circling it, praying,
and seeking blessings. The most sacred place in Islam
is the Kaaba in Mecca, Saudi Arabia. The Kaaba
Althuukair 2
is a mosque (built by Abraham
according to Muslim tradition) built around a black stone. Its importance to Islam can be directly
linked to the prophet Muhammad.
Most of the people in this world have been traveled to another
country. We all get exited before we traveled to another country. Also, no one
decide to travel to another country to visit or to do a business before
checking the availably, and have a plan to where will he will go and what he
will do over there and think about the cost and how much he will going to spend
overt here. Most of us go to a new place to know what its is. When we were
there maybe we will like it and maybe not, which it mean maybe we will come
back to it and maybe not. In the other hand, I feel Mecca is different. From my
point when I need to travel to Mecca I never had a plan before I visit it.
Also, I never had a plan what I will do and where o will be sleep. For example,
when I decide to travel to London I have to make a plan where I will go over
there, how long I will stay, who I am going with and how much I am going to
spend. However, when I decide to go to Mecca I have never think about any of
these because no one ever think what he will do in his home. I remember one
time I was with three of my friend have some conversation and we start to talk
about Mecca and how all of us missing that place. At the same time we decide to
go to Mecca tomorrow. Once we just have deciding I call and do a reservation,
all of us were agree to go to Mecca tomorrow. I just call my mother and told
her that I will go to Mecca tomorrow, my mother and my father never told me you
cant go to Mecca because all of them know what is Mecca mean to me. We went
there and stay for three days at the same place. We stay at the same place from
the morning until the night no one of us get boring. We don’t know each other
and we don’t speak the same language, but once we are in Mecca we all like a
brothers.
Althuukair 3
“Millions
of pilgrims arrive this week in Mecca” Habboush. Millions of people at this
time are going go be on Mecca because of Hajj. This time of the season is very
important time for every Muslims, they came from all around the world to the
same place. Since they are at Mecca there is no different between any of them,
no different between the prince and the poor people, no different between the collars.
All of us the same, were the same clothes, do the same thing, sleep and walk
next to each other no different all of us the same came to do the same thing. "I feel proud to be here because it's a
visual message that Muslims are united. People speaking in all kind of
languages pray to the one God,"Habboush. I believe I can see how we treat
each other if we were in Mecca. I can see how the people over there are happy
from there ayes. A lot o people don’t have a good income in their life but
still they save some of their money to come to Mecca. I have an experience with
the same this situation. One day I met one of my old friend I didn’t saw him
from a long time I was maybe four or five years. When I met him he was always
talk about Mecca and how he need to visit Mecca, I ask him did he visit Mecca
or not? His answer comes fast and he said no but it my dream to go there. The
first things that I was think when he told me. I needed to make a surprise and
get a ticket for him. That day when I gave it to him he said only one thing,
which is thank you Turki, you made my dream come true.
“The black
granite Kaaba, the cubical structure that stands as the holiest center of
Islam, features at its eastern vertex a small black stone about the size of a
grapefruit, the al-hajar al-aswad, which may or may not have fallen to earth in
the time of Adam and Eve” Burnett. Kaaba means a lot to me. Kaaba is one of the
most beautiful things I ever saw in my life. Once I saw the Kaaba my eyes start
to tear. Once I saw the Kaaba I feel safe and confortable in different ways
that I never feel it before. I face the Kaaba five times a day at least,
wherever I was I have to face it five times a day at least. I remember
once when I was in Mecca me
and my friend was in the Masjid
al-Haram, it was at seven p.m. we decide to meet each other at the dinner and
they left but me I was sitting by my self without talking to
Althuukair 4
anyone. Also, I was close all my phones
because I know when we will meet each other. At this time I just need to be
with my self and be quit. One I saw my watch it was twelve mid nights. I went
to the hotel very fast but my entire friend were asked my where I was because
we was having dinner together and they try to call me but my phones was turned
of. I just told them sorry I didn’t feel about the time at all I was just
sitting and see the Kaaba and drink from Zam Zam water. “Zam Zam water has scientifically been proven to contain
healing qualities due to its higher content of Calcium and Magnesium Salts and
also the natural fluorides that encompass a germicidal action.” Khanam. Zam Zam water there from a long
time. I never heard that Zam Zam run out from the water. The taste of the water
different than the regular water but is very delicious.
Mecca
means to me the most important and amazing place that I ever know and visit in
my life. Mecca the only place that I can consider it is my home, actually I
considered it my home. No one can know how is the feeling on me for that place.
Before I came to study in America I went to Mecca every month I went to Mecca.
Mecca is the first place that I think to visit when I feel sad and I need to
talk to someone I just go to Mecca. I believe when I talk about what I feel
over there is that there is someone leasing to me and answering me its like
talking to my self for a few hours. Mecca means to me everything that I can’t
live without it.
I
conclusion, Mecca is one of the important things in my life. I can’t imagine my
life without Mecca. Most of the Muslims believe that Mecca is the place that
the Muslims are belonging to. Muslims from different country comes to this
place to do the pilgrimage
and aumrah. At this place there is no different between any of us. For example,
when we all were in the Masjid al-Haram and stand to pray, all of us stand next
to each other, there is no place for the princes and place for the poor people
all of us the be the same at Mecca.
Althuukair
5
Work
Cited
Burnett, D.
Graham. "Everyman's qibla." The Wilson Quarterly 33.1 (2009):
82. Gale Opposing Viewpoints In Context. Web. 29 Oct. 2012.
Habboush,
Mahmoud. "Hajj: Pilgrims Arrive In Mecca Amid Regional Turmoil." The
Huffington Post.
TheHuffingtonPost.com, 22 Oct. 2012. Web. 23 Oct. 2012.
<http://www.huffingtonpost.com>
Khanam, Amera. "Facts,
History and Significance of Zam Zam Water." Facts, History and
Significance of Zam Zam Water. N.p., 15 Aug. 2011. Web. 30 Oct. 2012. <http://spirituality.knoji.com
>
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