The CEO of “Real Estate Development Fund” Mansour bin Madi, revealed that the Kingdom’s retail mortgage market recorded more than 674 billion riyals during the period from January 2022 through last November, achieving a record increase of 130% compared to the 2017 transition phase, when it stood at 287 billion riyals. He highlighted the success of the Housing Program—one of the Kingdom’s Vision 2030 initiatives—and its inspiring ability to create a real estate financing market that has bolstered growth opportunities and enabled the innovation and development of financing and housing solutions aligned with the goal of increasing homeownership rates among citizens.
He elaborated during his participation in a panel discussion titled “The Role of Banks and Financial Institutions in Supporting the Real Estate and Housing Sectors Amid Changing Circumstances,” as part of Future of Real Estate Forum in its second edition—currently being held in Riyadh—that these achievements represent a major transformation and advancement in the Kingdom’s finance sector, and enriches the future vision for the real estate finance market. This is attributed to the Fund’s contribution in providing quality solutions to strengthen the real estate finance market through the “Tatweer” to enable real estate developers to create competitive, high-quality projects, in addition to supporting the real estate finance companies and institutions sector through the Real Estate Financiers Financing Program.
Regarding the supportive role of the Real Estate Development Fund in the real estate finance market, Bin Madhi said: “The Real Estate Fund is a key arm of the Kingdom’s real estate finance market and a strategic supporter of the sector, helping to achieve the goals of the housing program. He described its contribution as effective and pioneering, driving the growth of the real estate and financing sectors, particularly through the signing of more than 150 agreements aimed at enhancing the sustainability of housing support programs, and to build and strengthen partnerships with the public and private sectors, so that Saudi families can enjoy diverse financing and housing options tailored to their purchasing power and their need for suitable housing.
In the context of the opportunities the Fund has provided to the real estate finance market, the CEO of the Real Estate Fund highlighted a number of these programs and opportunities in partnership with financing institutions, including the Subsidized Loan Program, which offers a mortgage of up to 500,000 with a profit subsidy of up to 100%, the Housing Support Packages Program, which grants beneficiaries immediate, non-repayable support of up to 100,000 riyals; the Financing Guarantees Program; and the Concessional Mortgage Program, in addition to the Real Estate Advisor Platform, which has provided more than 1.2 million financing and housing recommendations to beneficiaries. These initiatives are part of ongoing efforts to improve housing affordability and achieve the objectives of the Housing Program —one of the programs under the Kingdom’s Vision 2030—by providing opportunities for Saudi families to own suitable housing.
The CEO of the Real Estate Fund highlighted these capabilities, which are supported by digital governance in line with the highest international standards, contributing to the execution of more than 10 million digital transactions through 43 e-services. He noted that the Fund’s programs and services have been integrated with more than 103 e-services, within the housing system and financing institutions, which has accelerated the pace at which citizens are acquiring their homes and enabled more than 684,000 families to sign their financing contracts by the end of 2022.
