Housing and Credit

The Challenge

Youth need credit to start a business, buy a house, or pay for the initial start up cost of forming a family. Their need for credit often goes unmet because individuals at the start of their adult life lack collateral, steady jobs, or reputation capital  to qualify for obtaining credit. Left alone, credit markets in the Middle East fail in their most important mission which is to allow individuals to smooth their consumption by borrowing against future income. 

The Opportunity

Of the various need for credit, housing stands out because of the role it plays in the transition to adulthood. The ability for the young to live independently is critical for their sense of fulfillment and participation in adult life. With an increase in investments and a growing GDP, the region is well positioned to explore reforms in housing and credit to ease financial and social pressures faced by young people.

A Fact

In the Middle East, a house cost eight times the average annual income.
 

  Personal Journey