With a profit margin of 0%, the Real Estate Development Fund launched a campaign targeting citizens who have applied to the Fund—specifically, all citizens with an income of 14,000 riyals or less (up from the previous 11,000) to support all those registered on the fund’s waiting lists over the next five years; the loan amount is 500,000 riyals, in cooperation with banks and specialized mortgage finance companies.
The program applies to all registrants
The Fund announced that this program will apply to all those previously registered with the Real Estate Fund, while also requiring all applicants to update their information through the Fund’s website in order to benefit from the support. This step comes after the Real Estate Fund announced the removal of the family size requirement for obtaining subsidized financing, and the Fund emphasized in its campaign that the subsidized product is compliant with Sharia law.
This initiative aims to expand the pool of beneficiaries of the Fund’s services and meets the aspirations of large segments of eligible individuals, especially since the program focused on two key points: raising the income ceiling for those eligible for support to 14,000 and removing the family size requirement for obtaining subsidized financing. As a result, we expect a significant increase in the number of people eligible for support.
Simplifying and Clarifying the Support Mechanism
The Real Estate Fund’s new regulations came days after the order by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz —may God preserve him—to reinstate the allowances and incentives previously paid to government employees across all sectors. The Real Estate Development Fund has approved the disbursement of subsidized financing to beneficiaries with monthly incomes of 14,000 riyals or less, without any interest charges on the financing. The Fund covers 100% of the financing interest for all individuals with a monthly income of 14,000 riyals or less, to make it easier for them, and to accommodate the largest number of beneficiaries. The requirement regarding family size for receiving support has been eliminated, and eligibility is now based solely on monthly income, with the aim of simplifying the support mechanism and making it clear to all citizens, so that full support reaches the largest possible number of beneficiaries.
The decision covers 85% beneficiaries
The Real Estate Development Fund expects the new decision to cover 85% beneficiaries who receive financing at a zero percent profit margin and who meet the new support criteria. and who have already paid a portion of the profit; the difference will be refunded to their accounts along with future monthly subsidy payments. The new policy aims to increase the number of people eligible for the Fund’s support, as well as to ease their financial burden by exempting them from any interest they would have otherwise incurred, provided their salary is 14,000 riyals or less, whereas the previous interest-exempt salary threshold was less than 11,000 riyals, which had strained the budgets of families receiving support from the fund.
