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Riyadh, February 05, 2020 AD, SPA
His Excellency, Minister of Housing, Chairman of the Board of Directors of the Real Estate Development Fund, Majid bin Abdullah Al-Hogail, witnessed today the signing of an agreement to launch a real estate loan program supported by the Real Estate Development Fund and First Abu Dhabi Bank, at the Fund’s headquarters in Riyadh. Through the agreement, the bank provides financing solutions to the beneficiaries of the “Sakani” program from the Ministry of Housing and the Real Estate Development Fund.
The agreement was signed by the Real Estate Fund General Supervisor Mansour Bin Madi, while it was signed by the First Abu Dhabi Bank, CEO of the bank’s branch in the Kingdom, Laith Al-Shaiban.
The General Supervisor of the Real Estate Development Fund, Mansour Bin Madi, stated that in the framework of the partnership between the real estate fund and the financing entities from banks and approved financing institutions, this agreement comes with Abu Dhabi Bank, with the aim of providing financing services within the supported real estate loan program, based on the Fund’s keenness to diversify The financing and housing options are from authorized entities in the Kingdom, welcoming the cooperation that brings together the Real Estate Fund with First Abu Dhabi Bank.
Bin Madhi emphasized that the partnership model with the financing agencies resulted in more than 230,000 beneficiaries benefiting from the “subsidized loan” until the end of last January, explaining that the subsidized real estate loan program includes many financing and housing solutions, including the purchase of a ready housing unit from the market, Buying a residential unit under construction, in addition to self-construction, mortgaging the property and converting the existing loan into a subsidized one.
On his part, CEO of First Abu Dhabi Bank, Laith Al-Shaiban, said that the bank is keen to have an active role during this stage in which the housing and finance sector in the Kingdom is witnessing a historic shift and a great mobility, indicating that the signing of this agreement aimed at facilitating access to housing for citizens It is part of his contributions and development role, in the pursuit of the Kingdom’s 2030 vision.
Al-Shaiban stressed that the Saudi real estate finance market is a promising market, as it made a quantum leap in providing financing solutions to Saudi citizens, due to the regulations and legislations enacted by the Saudi Arabian Monetary Agency, indicating that this encouraged Abu Dhabi Bank to launch the subsidized mortgage program, which is considered Programs that encourage families to own housing, valuing the role of the Real Estate Development Fund in facilitating the procedures for subsidized loans and the multiplicity of financing options from banks and financing institutions in the Saudi market, noting that under this agreement Abu Dhabi Bank receives in the Kingdom requests for invited housing finance .
He stated that First Abu Dhabi Bank had launched its banking operations in the Kingdom of Saudi Arabia in May 2019 with the opening of its branch in Riyadh, to subsequently enhance its presence in the Kingdom in the same year by opening two additional branches in both Khobar and Jeddah.
It is noteworthy that the subsidized real estate loan program launched by the Real Estate Development Fund is a financing of up to 500,000 riyals, backed by profits of up to 100% for those whose salaries are less than 14,000 riyals, for beneficiaries registered on the “residential” listings of the Ministry of Housing and the Real Estate Development Fund, as well The “subsidized loan” program has invented a number of initiatives that contributed to the citizen’s possession of his first home, such as the Military Support Service initiative, the Civilian Support Initiative, the Residential Renovation Initiative, and the Real Estate Adviser service.
