Amlak - SPA: His Excellency the Minister of Housing, Mr. Majid bin Abdullah Al-Hogail, and His Excellency the Minister of Commerce and Investment and Acting Minister of Municipal and Rural Affairs, Majid bin Abdullah bin Othman Al-Qasabi, signed a cooperation agreement today at the headquarters of the Ministry of Commerce and Investment, under which the “Sakani” program will provide housing services to employees of the Ministry of Municipal and Rural Affairs and employees of the Ministry of Commerce and Investment. (Housing Financing)
The agreement covers the following agencies affiliated with the Ministry of Commerce and Investment: (the General Authority for Foreign Trade, the General Authority for Small and Medium Enterprises, the General Authority for Investment, the Saudi Authority for Accredited Residents, the Saudi Standards, Metrology and Quality Organization, the Saudi Convention and Exhibition Authority, the Saudi Organization for Certified Public Accountants, the Intellectual Property Authority, the Engineers Authority, the Contractors Authority, and the Saudi Center for Competitiveness), in addition to entities affiliated with the Ministry of Municipal and Rural Affairs comprising citizens listed on the Ministry of Housing and the Real Estate Development Fund’s registries, as part of the Institutional Housing Management initiative launched by the Ministry of Housing to support employees of other government agencies and provide assistance and incentives for first-time home ownership, The agreement includes coordination between the program, the Ministry of Municipal and Rural Affairs, and the Ministry of Commerce and Investment to offer special deals to their employees.
Exemption or reduction of administrative fees
This includes a special discount on the profit margin for those with a monthly income exceeding 14,000 riyals, and for those with salaries below 14,000 riyals, full support for profits from the total financing amount, up to 500,000 riyals, as well as exemptions or reductions on administrative fees through the financing institutions that will be present at the “Sakani” housing exhibition, to be held at the headquarters of the two ministries, to showcase mortgage programs and products through the “Sakani” program, The exhibition will also feature a number of real estate developers showcasing their housing projects to employees of the two ministries during the exhibition period.
The agreement also includes the “Sakani” program providing real estate advisory services at the headquarters of the Ministries of ”Municipal Affairs” and ”Commerce” to offer the best financing recommendations and real estate solutions, as well as to develop housing financing solutions for their employees, in addition to the presence of Instant Eligibility staff to verify registration status. The agreement aims to activate the partnership between government sectors to provide distinguished services to their employees and create an attractive work environment, as well as to benefit from the services provided by other government agencies.For his part, Abdullah bin Abdulrahman bin Saeed, Supervisor of Institutional Housing, said: “Through such agreements, we seek to reach all citizens, streamline and expedite procedures, and save time by establishing permanent and temporary service points within government agencies to provide all services that contribute to first-time homeownership.”
Today’s participation by the Ministry of Municipal and Rural Affairs and the Ministry of Commerce and Investment complements previous agreements with King Faisal Specialist Hospital and Research Center, the Ministry of Labor and Social Development, the Ministry of Transport, the Ministry of Health, the Ministry of Civil Service, and the Ministry of Justice—namely,Ministry of Communications and Information Technology."
The partnership between the Ministry of Housing, the Real Estate Fund, banks, and financing companies has streamlined the process for beneficiaries of the "Sakani" program to purchase their first home by taking advantage of the various housing options available through the "Sakani" app, in line with the Kingdom’s Vision 2030, which emphasizes private-sector participation in development. (Mortgage Loans)
Activating the Role of Banks in Lending
The relationship with local banks and finance companies marked a new turning point in the trajectory of mortgage lending and brought to life the true meaning of the banks" role in development. This has facilitated the home-ownership journey, and shortening waiting lists from an average of 12 years prior to 2017 to immediate approval in 2019. The Ministry of Housing has assumed the role of oversight and monitoring, as well as enacting legislation and regulations governing the real estate market.
Various Subsidized Options
The partnership with financing institutions offers a variety of subsidized options; whereas previously, options were limited to purchasing ready-to-move-in homes with unsubsidized mortgages, subsidized mortgage loans now provide beneficiaries with the option to purchase ready-built units, units under construction, and self-built homes, in addition to offering interest-free loans to active-duty military personnel, as well as civilians and retirees in certain age groups.3 Categories of Beneficiaries
Subsidized mortgage loans, offered through banks and financial institutions, serve three categories of beneficiaries who can obtain support directly from the financing entities. These include government sector employees (both civilian and military), private sector employees, as well as self-employed individuals and entrepreneurs.
12 Banks and 5 Companies Offering Mortgage Loans
The list included 12 banks: Al-Inmaa, Al-Rajhi, Al-Arabi, and Saudi Fransi, Al-Bilad, Riyadh, Al-Ahli, SAB, Al-Jazira, Samba, Al-Awal, Saudi Investment, and five financing companies: Bidayah, Deutsche, Dar Al-Tamleek, Saudi Housing Finance Company, and Amlak.
Beneficiaries can log in to their accounts on the "Sakani' app for smart devices and select the appropriate bank or financing company after receiving advice from the real estate advisor service, and then complete the home ownership process with ease and convenience.
Some links to news and reports from Amlak Real Estate Newspaper, Issue 187
Housing Finance – Real Estate Projects – Investment Opportunities –
Real Estate Financing – Aramco Stocks – Construction – Housing Financing
Editor-in-Chief Abdulaziz Al-Issa explains the story behind the Amlak Real Estate newspaper logo
The “Sakani” online platform receives over 15 million visits, including 702,000 app downloads
The Kingdom’s transportation sector jumps to first place globally in terms of ease of doing business
Al-Rajhi REIT acquires educational properties with a purchase value of 210 million riyals
Malakiya Investment Company Acquires "Hotel Apartments" in Riyadh for 50 Million Riyals
“Arabian Business Saudi Arabia” magazine awards Riyad Bank the "Fastest-Growing Bank of 2019" award
Minister of Housing Calls on the Private Sector to Support the "Jood Al-Iskan" Initiative
Housing Financing
Al Rajhi Bank Concludes the "Corporate Bank Credit Risk Management“ Program
Al-Inmaa Bank Meets Global Standards for Business Continuity
Reports Project Financing for 1.22 Million Homes Under Saudi Vision 2030
Analysis: Optimism Prevails Among REITs in the Saudi Market Over 9 Months
Housing units in the ”Jawhara Al-Rasifa” residential project delivered on schedule
12 Banks and 5 Finance Companies Streamline the Mortgage Process
Housing program serves employees of the Ministries of “Commerce” and “Municipal and Rural Affairs”
Housing Financing
