Riyadh-Amlak

The Fund is conducting a study to develop a new mechanism to help secure housing for applicants based on their income level, and the challenge currently facing the Fund is that there are individuals who are eligible for loans but are unable to build due to the scarcity and high cost of land.

This was explained by the Director General of the Real Estate Development Fund, Mohammed bin Ali Al-Abdani, during his participation in the workshop titled «The Real Estate Development Fund’s Operating Mechanism Under Mortgage Regulations and How the Fund Can Contribute to Solving Housing Problems,» organized by the Riyadh Chamber of Commerce and Industry, represented by its Real Estate Committee, last week at the Chamber’s headquarters. He noted that the Fund has signed an agreement with the Ministry of Municipal and Rural Affairs stipulating that land will be transferred only to those who obtain a loan from the Fund, emphasizing that this will help ensure citizens do not sell the land granted to them. He explained that, in its efforts to solve the housing problem, the Fund has developed numerous financing programs to assist citizens and enable them to own their homes through affordable means,noting that they are open to receiving proposals from various entities in the real estate sector that help achieve the government’s objectives in resolving the housing issue.
He said, »The Fund’s efforts during the past period have contributed to the provision of approximately 1.4 million housing units worth 291 billion riyals ,« noting that the Fund will continue its efforts in this regard thanks to the support it receives from the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, and His Royal Highness the Crown Prince—may God protect them both.
The Director General of the Real Estate Development Fund stated that the past phase saw the launch of several financing programs, such as the property purchase program with a guarantor and the supplementary financing program, in addition to a number of programs currently under consideration, explaining that the strategic objectives of the new lending programs are to ensure that every citizen has access to decent and suitable housing regardless of income level, as well as to address the problem arising from the Fund’s loans being insufficient to provide housing, and to offer that take into account income disparities among the Fund’s loan beneficiaries, as well as to accommodate all beneficiaries on the loan waiting list, increase the housing supply, and reduce prices.
For his part, Hamad bin Ali Al-Shuwaier, Chairman of the Real Estate Committee at the Council of Saudi Chambers, highlighted the role played by the Fund in addressing the housing issue through the financing programs it has introduced, emphasizing the Fund’s role in bridging the housing gap through the substantial financial support provided by the Custodian of the Two Holy Mosques to the Fund to strengthen its capabilities and enable it to fulfill its role in providing housing for citizens, He emphasized that the issuance of real estate regulations will alleviate the concerns of financing entities, leading to the development of the real estate sector and the entry of new companies, which will have a significant impact on solving the housing problem—a problem he described as requiring the concerted efforts of all entities involved in the real estate sector in both the public and private sectors.