To support and empower real estate developers, the Real Estate Development Fund has signed a framework agreement with Riyad Bank to facilitate access by real estate companies and institutions to support and real estate financing from financial institutions, as part of “Tatweer” program, which aims to develop high-quality residential projects at competitive prices that meet the needs and preferences of “Sakani” beneficiaries under the subsidized mortgage program.
The "Tatweer" program is an extension of the Fund’s efforts to achieve the objectives of the Housing Program —one of the programs under the Kingdom’s Vision 2030—to enhance the supply of residential real estate suitable for Saudi families and stimulate demand through a series of regulations and legislation that incentivize and regulate the market via user-friendly electronic procedures, by strengthening effective partnerships with the private sector to increase the homeownership rate to 70% by 2030—in line with the Housing Program’s targets.
The agreement was signed on behalf of the Fund by CEO Mansour bin Madi, and on behalf of Riyad Bank by CEO Tariq Al-Sadhan, This is the first agreement the Fund has signed with a financial institution under the "Tatweer" program to support the real estate sector and facilitate the entry of a new segment of sector entities that have not previously dealt with financial institutions.
Mansour bin Madi, CEO of the Real Estate Development Fund, explained that the agreement aligns with the efforts of the Housing Program—one of the programs under the Kingdom’s Vision 2030 —and reaffirms the Fund’s leading role in developing the residential real estate sector within the housing system across all regions of the Kingdom, in close partnership with accredited financing institutions in the real estate finance market under the subsidized mortgage program, to provide affordable, high-quality financing and housing options that meet the needs of “Sakani” program beneficiaries. He noted that the "Tatweer" program aims to remove obstacles facing the real estate sector to promote market balance, increase the supply of real estate, and create financing programs that support companies and institutions operating in the residential real estate development sector, and to encourage financial institutions to work with them to secure the necessary financing for the development and construction of residential projects in the Kingdom’s real estate market.
For his part, Riyad Bank CEO Tariq Al-Sadhan expressed the bank’s pride in the close and ongoing partnership between Riyad Bank and the Real Estate Development Fund, emphasizing that, through this agreement, the bank seeks to provide all forms of support to companies and institutions in the Kingdom’s real estate sector, enabling them to expand the construction of high-quality housing projects, This agreement underscores the bank’s leading role in providing the best financing and housing solutions to beneficiaries of the housing program, thereby serving the interests of the nation and its citizens and contributing to increasing the rate of home ownership among citizens in line with the Vision.
It is worth noting that the Real Estate Development Fund recently announced the launch of the “Tatweer” program, which is designed to support balanced urban development across various regions of the Kingdom to achieve the objectives of the Housing Program —one of the Vision 2030 programs—and to diversify financing and housing options for housing subsidy beneficiaries, as well as to increase the supply of ready-to-move-in and under-construction residential units. It also contributes to the development of high-quality infrastructure and housing projects, and fosters significant competition among real estate development companies in meeting housing needs, with the goal of raising the home ownership rate among Saudi families to 70% by the end of 2030.
