Mortgage markets in Middle East and North African countries: Market development, poverty reduction, and growth

This paper argues that making affordable home mortgage loans available to a large cross-section of the population will serve both the redistributive and growth-enhancing objectives of poverty reduction policies. The current state of housing and mortgage markets in selected Middle East and North African countries (Algeria, Egypt, Jordan, Morocco, and Tunisia) is examined. The study evaluates Turkey and Mexico as middle-income comparator countries. Historical experience of the US is also described. Simulations based on US parameters provide some guide to the effects on economic growth of alleviating housing shortages by improving access to mortgage financing.