The new general policies for real estate financing, which came within the new regulations for the housing sector and home ownership support, approved by the Council of Ministers, showed an important aspect related to the guarantees that government agencies concerned with enabling housing tend to adopt, through government guarantees for citizens wishing to obtain real estate financing, or for developers wishing to develop large areas of land to build housing units, focusing on building affordable units suitable for those targeted by government support programs.<\/p>\n
Finance Payment Guarantee<\/b><\/span><\/p>\n The most prominent programs were the introduction of a down payment guarantee for citizens wishing to obtain a mortgage from a private financing institution, whereby 20% of the total down payment amount of 30% of the financing value of the residential unit is guaranteed, with the citizen bearing 10% of the total down payment.<\/p>\n Guarantee programs come in real estate financing. As one of the means of government support to support the real estate development sector, which has suffered from the reluctance of many financial institutions to finance housing construction, due to the risk of land price fluctuations and the inability of some banks to understand the needs of real estate developers, in which some specialized real estate finance companies, such as Amlak International Finance Company, which has financed more than 70 real estate development companies in various cities of the Kingdom, have succeeded.<\/p>\n Real Estate Finance Policies<\/b><\/span><\/p>\n As part of its decisions to support housing and citizen ownership, the Council of Ministers approved the (General Policies for Real Estate Finance) where the decision included the formation of a ministerial committee from: Finance, Housing, Justice, Commerce, Industry, Economy and Planning, the Saudi Arabian Monetary Agency (SAMA), and the Capital Market Authority, from the Ministry of Housing's ability and its interaction with market variables, the need of consumers for financing products, and not limiting them to one entity \u00abthe Monetary Agency\u00bb, so that the ministerial committee will be the advisory council that sets the executive plans to reach the strategic goals set by the general policies for real estate financing, and follow up the implementation of these plans, linking them with specific time periods and performance measurement indicators, and the implementation of policies in conjunction with creating a real estate credit register and identifying the target segments of the financing.<\/p>\n Financing organizations<\/b><\/span><\/p>\n The main tasks of the ministerial committee were\u00a0 <\/span>In considering reducing or maintaining the percentage of the down payment for individual financing by financial institutions, depending on market variables and demand. The Real Estate Fund provides guarantees for borrowers from banks and real estate finance companies.<\/p>\n Therefore, we find that\u00a0 <\/span>Directing attention towards the development of the real estate sector, as if it were a primary sector, as it seems at present, and not supporting other productive sectors such as industry, services and tourism, actually raises the degree of caution and caution, lest the real estate activity turns into a main engine of the economy, driving growth and consequently absorbing financial and human resources at the expense of the basic productive sectors, whose growth is supposed to lead to growth in the real estate sector, and not the other way around.<\/p>\n Real Estate Finance and Complementary Policies<\/b><\/span><\/p>\n The adoption of general policies for real estate financing, which can be categorized within the framework of financial policies in general, actually calls for us to pay attention to other complementary policies other than financial policies in the real estate sector, including economic policies that include reducing the costs of building materials and labor, encouraging charitable and cooperative real estate projects, as well as urban policies such as applying the Saudi building code in real estate projects, redeveloping old neighborhoods and slums, and other policies that are no less important and influential than financial policies.<\/p>","protected":false},"excerpt":{"rendered":" Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>\u0623\u0638\u0647\u0631\u062a \u0627\u0644\u0633\u064a\u0627\u0633\u0627\u062a \u0627\u0644\u0639\u0627\u0645\u0629 \u0644\u0644\u062a\u0645\u0648\u064a\u0644 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u0627\u0644\u062c\u062f\u064a\u062f\u0629 \u0648\u0627\u0644\u062a\u064a \u062c\u0627\u0621\u062a \u0636\u0645\u0646 \u0627\u0644\u062a\u0646\u0638\u064a\u0645\u0627\u062a \u0627\u0644\u062c\u062f\u064a\u062f\u0629 \u0644\u0642\u0637\u0627\u0639 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