Al-Hogail OKs board of SAR 18 bln mortgage firm

Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail

Saudi Arabia’s Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail approved the board of directors of Riyadh-based Saudi Mortgage Guarantees Co. 

The new firm is wholly owned by the Saudi Real Estate Development Fund (REDF) and is capitalized at SAR 18 billion, Saudi Press Agency reported.

REDF CEO Mansour Bin Madi is Chairman of the new board of directors.

The new mortgage unit came as part of REDF’s strategic plans to boost housing and financing solutions, along with developing the housing mortgage market in the Kingdom in partnership with other financing institutions and banks. This is besides setting up a secondary mortgage market to increase efficiency, in line with the goals of the housing program under Vision 2030.

Bin Madi indicated that the new firm will issue housing mortgages under the citizen homeownership program, in a bid to further bolster the real estate industry’s off-plan housing projects.

Additionally, the regulatory environment in Saudi Arabia enabled the successful implementation of programs and initiatives as well as the setup of the new mortgage unit that complements the Saudi mortgage program, which started in 2018 and enabled more than 113,000 beneficiaries to own homes until Q1 2023.