Saudi Arabia to create housing refinancing company

Saudi Arabia will set up a company to refinance up to SAR 50 billion ($13.3 billion) for the country’s housing sector over the next five years, housing minister Majed al-Hogail said on Tuesday, cited by Saudi Press Agency (SPA).

The new firm will be called the Saudi Refinancing Company, and will be wholly owned by the Saudi Public Investment Fund (PIF), the minister told Al-Arabiya TV on Wednesday.

Al-Hogail said the ministry anticipates the construction of 1.5 million housing units in the coming period, which will require substantial funding.

Earlier this year, authorities in the kingdom announced plans to boost the proportion of Saudi nationals who own their homes to 52 percent by 2020, from the current 47 percent. The initiative is part of wider economic reforms aimed at reducing reliance on oil revenues, and will provide housing subsidies for Saudi families, allowing them to take out mortgages.