New Saudi Arabian mortgage lender granted state funding

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New Saudi Arabian mortgage lender granted state funding

08 Feb 2010

A new real estate mortgage company is to receive a large slice of funding from the state's Public Investment Fund (PIF).

Around 20 per cent of the two billion Saudi riyals ($533 million) capital being used to start the firm is being put up by PIF – its largest-ever investment in a mortgage company, reports the Saudi Gazette.

Further investors are being sought for the new company, which is being set up by the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank.

The investment deadline is the end of this month, after which time the new real estate lender will establish offices in Jeddah, Dammam and Riyadh.

Last week, Mohammed Al-Jasser, governor of the Saudi Arabian Monetary Agency, told Arab News that a new mortgage law, which will make it easier for people on lower incomes to be approved for property loans, is set to be introduced within the next few months.
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