Author: GHAZANFAR ALI KHANTue, 2017-12-19 03:00ID: 1513639672673110000
RIYADH: In an effort to address the housing needs of Saudi citizens, the Saudi Real Estate Refinance Company (SRC) signed a strategic partnership refinancing deal of SR1 billion ($266.6 million) with Deutsche Gulf Finance (DGF), the leading real estate financing company, on Sunday.
The move will help to “unlock” the Saudi housing finance market by increasing liquidity to enable lenders to offer more accessible home-buying solutions.
“This is an exciting first step toward our goal of unlocking the Saudi housing market and increasing home ownership among citizens,” said Majed Al-Hogail, minister of housing.
Al-Hogail said that “this type of cooperation and partnership is what Vision 2030 intends to build on as we develop and expand our economy.”
Speaking to Arab News on Monday, Fabrice Susini, SRC chief executive, said: “This is the first deal of its kind, signed by the SRC, which is owned by Public Investment Fund (PIF), to assist financial institutions so that they can increase mortgage financing availability to Saudis.
“This transaction is just the first in a series that will see SRC increase available funding for housing needs,” he added.
The portfolio acquisition and short-term financing transaction, which includes a warehousing facility, will allow DGF to improve lending ability within the Kingdom. Notably, DGF offers a variety of financing solutions to encourage real estate ownership among Saudis through innovative Shariah-compliant products.
Spelling out the details of the partnership deal, Suliman Azzabin, DGF chief executive, said: “We are delighted to have been selected by the SRC to sign the first strategic partnership agreement as a way to reinforce the public and private sector partnerships.”
“We are all collaborating to implement the goals of the National Transformational Plan (NTP) 2020 and realize the Vision 2030 by increasing homeownership and reducing the financing costs by providing the needed liquidity to more people,” he added.
The landmark deal reiterates the commitment of the Kingdom’s Ministry of Housing to offer more accessible housing finance solutions, which would directly benefit homebuyers and facilitate market growth.
Main category: Saudi ArabiaTags: Saudi ArabiaSaudi realestatesRiyadhJeddahrelated_nodes: New initiatives to support Saudi real estate sectorNon-resident foreign investors ‘can trade in Saudi real estate funds’
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