Saudi trade ministry green lights SAR 900 mln mortgage firm

The Saudi Ministry of Commerce and Industry said it has approved the formation of Bidaya Home Finance Co., a SAR 900 million closed joint stock mortgage firm, in which the state’s Public Investment Fund (PIF) will own 22.2 percent of shares.

The Islamic Corporation for Development of the Private Sector (ICD), a member of the Islamic Development Bank Group, will assume a 20 percent stake in the lender’s capital, which is divided into 90 million shares at 10 riyals per share.

The Riyadh-based company has also been approved by Saudi Arabian Monetary Agency (SAMA), the country’s central bank.

Bidaya is expected to officially launch by the end of this year, and is part of a strategic plan to increase access to finance for middle-income home buyers, following the kingdom’s recent housing shortage crisis.