Real estate financing aims to create a systematic mechanism to finance housing in the Kingdom and solve its crisis that has lasted for many years in a way that preserves the rights of all parties and is compatible with Islamic Sharia. Real estate financing (within the mortgage and mortgage financing systems) helps to create a boom in the size of the real estate market, and there are large numbers of properties in the Kingdom that will meet the conditions of the mortgage and financing system, and will provide options for a large sector of citizens and real estate. The pace of the real estate market accelerated after the Saudi Arabian Monetary Agency (SAMA) published the executive regulations of the financing systems. SAMA also recently issued licenses to local companies and banks to practice one or more real estate financing activities in all regions of the Kingdom. A number of Saudi banks, real estate finance institutions and companies have launched their marketing campaigns to attract new customers and offer their best facilities and innovative products after obtaining the necessary licenses to practice real estate finance legally. Amlak newspaper conducted a wide survey among a number of businessmen, real estate and officials of banks, institutions and financing companies, where I took their views on real estate financing according to the new regulations that foresee a bright and prosperous future, God willing. What did they say?

Limited positive impact
Engineer Abdul Rahim Al-Tuwaijri, CEO of Mizat Real Estate Development Company, confirmed that financing with its new regulations will have a positive but limited impact as purchasing power is weak and income is low for a large percentage of citizens, and with a 30% down payment requirement, it is difficult for many to obtain it, and I believe that the new financing is not a panacea. The new financing is not a panacea, but it will help alleviate the crisis and will increase financial institutions lending, which increases competition and reduces the interest rate on the beneficiary, and unfortunately the average price of our housing is equivalent to 10 years of income for those with average incomes, while in countries with a high ownership rate you find it up to 5 years.And the current sale of good villas is in the segment whose income is higher than the average.
The importance of real estate financing
Engineer Abdul Rahman Al-Amin, President of Al-Rafahia Real Estate Company - Jeddah - confirms that real estate financing, if applied legally, will work to achieve a large part of the aspirations of citizens to own the home of a lifetime, because real estate financing represents the most important part in solving the housing crisis in Saudi Arabia, and providing adequate housing is the most important challenge facing the real estate sector and real estate investors in Saudi Arabia as well as the state in particular.

He said that there is cautious optimism and anticipation after the completion of all aspects of real estate financing and after a large number of banks and financing institutions have fulfilled all legal and administrative aspects, adding that the construction sector is expected to witness a qualitative leap after «housing» embarked on the construction of 500 thousand housing units, calling for consecrating the culture of real estate financing for all parties and encouraging financiers to enter strongly in the field of real estate financing.

Housing crisis and financing
Engineer Abdullah Al Kathiri, Director of Boon Engineering Company, confirmed that banks and real estate financing institutions are strongly preparing to achieve a historic leap through a strong launch in the field of real estate financing, because the demand for real estate financing will multiply significantly, after we witnessed the beginning of citizens with a great demand for real estate financing programs, explaining that the financing bodies that obtained an official license began to implement their marketing campaigns and provide great facilities to attract the largest number of customers, and this would create a kind of strong competition between financing parties and thus there are several options for citizens who want to own the home of a lifetime. He added : I expect the real estate to witness a gradual decline in prices due to the presence of many offers.
Wide options
Abdul Rahman Al Babtain, Vice President of Al Babtain Real Estate Company, explained that real estate financing provides wide options for citizens who wish to own suitable housing for their families (the home of a lifetime), after the mechanisms of the real estate financing system are clear in a legal manner that satisfies all parties, and I believe that the many options enable citizens to choose what suits them, and I believe that all concerned parties have completed their preparations and prepared themselves in a satisfactory manner and actually began to enter the residential and real estate financing market in the Kingdom, so I expect the real estate market to witness great competition, with expectations of a relative decline in real estate prices and white lands. If this happens, there is no doubt that this will be an advanced step towards organizing the housing and real estate market in a scientific manner, because there is frankly a great chaos in the real estate market and there are certain parties that control prices.
Financing market
Well-known businessman Abdulaziz Al-Yabas, real estate developer and CEO of Bayt Real Estate Development Company, expected that the real estate financing market will witness strong battles in the interest of the citizen, especially after some Gulf and other financing entities began to flock to the real estate and financing market in the Kingdom because it is frankly a large market and can absorb residential and real estate financing in a wide and spacious and the competition is now clear between banks and there are better banks than banks in facilitating the citizen and low percentage, so I see that companies and small financing institutions merge to establish large companies in order to face the challenges of the next stage that is taking place in the real estate market. He also revealed to Emlak newspaper that there are many housing units now available that have not been inhabited and not sold, and there are empty apartments in several locations, but the citizen cannot buy because of low income and the association of some with other debts, as well as many housing units, which are the most offered in the market from apartments that are not accepted by the Real Estate Development Fund under the pretext that they are small or do not meet the specifications despite the fact that those living in them now exceed 80% of citizens.

History of real estate financing
Hamad Al-Qahtani, investment manager at Capital Lights Company, said. He pointed out that real estate financing was practiced by some banks and financing institutions in the Kingdom during the past period, but it was not in a codified manner, and it became more organized after the approval of the mortgage and mortgage financing systems and after the publication of the executive regulations, and this is undoubtedly an advanced step towards organizing the housing market in a practical way and away from chaos, and companies can raise the expected financing volume and are assured of the amounts they will pump into the real estate finance market, because there are legal guarantees for all parties, mortgage and mortgage financing is more guaranteed and safer.

65 1TP3

65 % do not have housing
Mr. Ali Al Awad, a businessman and real estate marketing expert, called for the need to evaluate the performance of real estate financing every (6) months in order to address mistakes to ensure that they are not repeated in the future.
Al-Awad revealed that more than 65% of Saudi citizens do not own housing, according to the latest statistics, and this shows the extent of the great crisis in the field of housing, and this is not only the responsibility of the state, which makes great efforts in this field, but there is a national role for businessmen, companies and national institutions, whether they are institutions, financing banks, real estate development or construction, each of which has a role to play and does not fail to perform its role under the pretext that the other party does not play its role as it should, as the mistake of others is not justified to deliberately make a mistake.

Funding is not the only solution
Businessman Nasser Al-Sanea, a real estate investor, disagreed with all opinions, saying: «Mortgage financing does not represent a radical solution to the housing crisis and I believe that it solves only ten percent of the crisis, because the conditions of banks and financing institutions do not apply to the vast majority of citizens, so mortgage financing will not solve all real estate and housing issues and crises, it is not a magic wand, there are complex legal procedures and many people are not fully aware of the details of the law and the consequences of its application, so I see that the most useful solutions are that real estate development and construction companies adopt to implement giant housing complexes and then find a legal formula from us The biggest crises
Engineer Abdullah Al-Names, who started quietly in his speech, emphasizes that he has a Real Estate Development Fund loan for 4 years and I cannot benefit from it because there are no housing units according to the conditions that apply to him and I cannot buy land to build and the housing crisis is a chronic crisis and is considered the biggest crisis for many years, and the state - God bless it -Led by the Custodian of the Two Holy Mosques, he said, «The crisis has always troubled a large sector of Saudi society without ever losing sight of it and increasing with the increase in the population, and we continued to provide solutions towards the rise in real estate prices with the lack of supply and the increase in demand for real estate units and the high percentage of those who do not own private housing, but unfortunately we did not reach radical solutions.»Therefore, we have to face our issues clearly and work on solving them in a practical and scientific way.