The Guarantees Program offered by the Real Estate Development Fund in Saudi Arabia has recorded the benefit of more than 107,000 beneficiaries for obtaining supported housing loans since its launch until the end of 2021. The program aligns with the housing program goals, which is part of Saudi Vision 2030, aiming to achieve 70% homeownership among citizens by the end of 2030, and to provide sustainable housing and financing solutions through the construction of supportive systems and regulations. The program seeks to enhance the beneficiaries' opportunities for owning suitable housing and to encourage financing entities to offer supported housing loans.
The CEO of the Real Estate Development Fund, Mansour bin Madi, stated that the Guarantees Program, which began in 2017, was created to find financing solutions for eligible housing support applicants who were rejected credit-wise by financing entities, as reported by the Saudi Press Agency (SPA). He added that the total number of beneficiaries from the Guarantees Program reached 107,688, representing 18% of the total 600,000 beneficiaries who have benefited from various financing and housing solutions under the supported housing loan program until the end of 2021.
Bin Madi explained that the program provides facilities for beneficiaries who are not accepted credit-wise by financing entities due to low monthly income or because they lack a steady monthly income due to their job status or working in the private sector, according to specific procedures and regulations that enable beneficiaries to receive housing support, positively impacting the rate at which citizens own their homes.
The CEO of the Real Estate Fund noted that enhancing the regulatory and legislative environment for the housing financing sector in the Kingdom contributed to the success of supporting programs and initiatives in partnership with financing entities and property developers. He pointed out that the fund is currently working on transforming the Guarantees Program into a company with a capital of 18 billion riyals.
He further clarified that the Real Estate Fund is keen to enhance the opportunities for beneficiaries of "Sakani" to obtain the "supported loan," through programs, initiatives, and enablers that provide various financing and housing options, confirming the continuity of the "supported loan" and the monthly support deposit, aiming for balanced urban development in line with Saudi Vision 2030 targets.
It is noteworthy that the Real Estate Development Fund offers a loan of 500,000 riyals with profit support of up to 100%, through various financing and housing solutions including (self-construction and purchasing ready or under-construction housing units) with over 18 approved financing entities. Additionally, the fund has provided more than 33.5 billion riyals in monthly support for over 600,000 beneficiaries from June 2017 to the end of 2021.
