RIYADH: In a move to bolster housing accessibility, Saudi Arabia’s Real Estate Development Fund has inked a strategic financing agreement with Al Rajhi Bank, the Saudi Press Agency reported.
The initiative aims to boost Saudi citizens’ homeownership by providing financing packages through the Kingdom’s housing program.
The move also incorporates state support in absorbing property transaction taxes for first-time homebuyers, capped at a home value of SR1 million ($266,623).
A vital feature of this deal allows Sakani participants to receive immediate, non-repayable financial aid, scaling up to SR150,000.
Further benefits include support for under-construction housing units and a set of additional financial solutions such as Moyasar payments and Saudi Mortgage Guarantees.
This agreement propels the Kingdom’s ambition to augment housing affordability, aligning with the overarching objectives of Saudi Vision 2030’s Housing Program.
REDF CEO Mansour bin Madi and Al Rajhi Bank CEO Waleed Al-Mogbel signed the agreement.
The deal was signed in the presence of Majid Al-Hogail, the Saudi minister of municipal and rural affairs and housing and chairman of the REDF.
“The agreement fortifies our strategic partnership with financial entities and broadens the range of housing support solutions, targeting beneficiaries of the Sakani program,” said Madi.
He added that the program is tailored to serve beneficiaries with diverse financial capabilities, offering various housing solutions.
Al-Mogbel stated that the alliance between the bank and the REDF enriches the financial and housing options available to Sakani beneficiaries.
“The agreement opens new avenues for Saudi families to own suitable housing, leveraging multiple options that the bank currently provides,” Al-Mogbel added.
As Saudi Arabia strides toward fulfilling its Vision 2030 agenda, housing emerges as a pivotal aspect of economic and social development.
With such multi-faceted support, the deal augments housing affordability and improves the quality of life for countless Saudi families.
In March, Saudi Real Estate Refinance Co., a wholly owned company of the Public Investment Fund, signed an agreement with Al Rajhi Bank to refinance more than SR5 billion real estate financing portfolio.
The deal is the largest the company had signed and was a milestone in its strategic approach to support the housing market in the Kingdom by providing flexible mortgage solutions to citizens.
Source: Arab News