In the latest step in the string of economic reforms announced by King Salman the Saudi government plans to convert the state-owned housing fund to a bank.
The Saudi government aims solving the shortage of housing units problem in KSA. The Real Estate Development Fund will offer financing solutions to wide array of citizens in cooperation with the private sector.
Previously, the fund has offered interest-free loans to eligible citizens for residential construction. The head of the Real Estate Development Fund Youssef Al Zughaibi suggested that the fund will expand in the future covering mortgages for existing homes.
The Real Estate Development fund in KSA has 40 branches scattered all around Saudi Arabia. The fund’s capital size is estimated to be 183 billion SAR which is equivalent to 49 billion dollars according to its website.