The Director General of the Real Estate Development Fund, Engineer Yusuf bin Abdullah Al-Zaghibi, revealed during a press conference that the Fund is set to launch a new product—a loan guarantee—in the coming days, The Fund is expected to finalize the details of the accelerated loan for citizens who have applied to the Real Estate Fund under the land-ownership condition this coming Thursday during a comprehensive meeting with all local banks and real estate finance companies, This will include determining the type of product—whether it will be a lease or a murabaha—and the launch date of the loan, which is expected to benefit half of those eligible for the loan who are currently on the waiting lists.

The Fund’s Director General specified that the repayment period for the financing institution upon receiving the accelerated loan (as a “good loan”) is ten years or fifteen years, depending on the borrower’s preference, provided that the Real Estate Fund pays the murabaha percentage in advance to the Fund. Upon completion of the borrower’s loan repayment, the borrower will repay the murabaha margin (expected not to exceed 2%) to the Real Estate Fund over a period of ten years; in the event of death, the murabaha margin owed to the Fund is waived.

Engineer Al-Zaghibi emphasized that the accelerated loan program is expected to benefit 200,000 citizens on the waiting lists if repayment is made over ten years, and 300,000 citizens on the waiting lists if repayment is made over fifteen years, provided the borrower has no financial issues with financial institutions. He noted that there are currently 435,000 citizens on the waiting lists, and 125,000 citizens who have been approved but have not yet received their loans.