Sglogo_1

 

Events Reports Directory Forum Articles Jobs in Steel Resume Post Links Currency Archive Metal Rate Archive Glossary Import Duty Structure Incoterms 2000 Technical Info Trade Leads Currency Codes Contact Us Disclaimer Feedback Privacy Policy Site Map

 

FAIL (the browser should render some flash content, not this).

October 08, 2008


Saudi approves SAR 2 billion home finance firm

Arab News reported that Saudi Arabia’s trade & industry ministry has approved the launch of Saudi Home Loans Co to tap into a market where 4 out of 5 Saudis do not own a home. The firm will have a capital of SAR 2 billion. According to Arab National Bank, each of Arab National Bank and private housing finance firm Kingdom Installment Co hold 40% in SHLC. Property developer Dar Al Arkan holds a 15% stake in SHLC and the International Finance Corporation has the remaining 5%.

Mr Abdullatif Al Shelash MD of SHLC said that only 22% of Saudis own their houses. He added that “The Kingdom will need some 4.5 million new housing units within the next 5 years to accommodate its growing population.”

Mr Youssef Al Shelash chairman of Kingdom Installment Company said that “This dynamic alliance with IFC will allow us to expand our financing program aggressively, as we offer consumers greater choices and flexibility in their housing finance needs. For the first time, Saudi consumers will be able to find the combined skills and expertise of a leading retail bank and a specialist, real estate finance company to structure and make affordable Shariah compliant financing solutions for purchasing residential properties.”

Dr Robert Eid MD & CEO of Arab National Bank said that “This project is an important part of our strategy to develop housing finance as a core growth sector in the Saudi economy and to make home ownership a reality for more Saudi families. We will also continue to leverage our strong experience and excellent reputation in the marketplace to develop innovative, Shariah compliant products and services for home buyers. IFC will share with us its expertise in housing finance and structured finance in emerging markets.”

Mr Jyrki Koskelo IFC director for Global Financial Markets said that “We are delighted to work with the founding sponsors of the Saudi Home Loans Company. Our investment provides a strong driver for developing Saudi Arabia and the region’s nascent housing finance market. Making long term funding more available for housing finance will better serve the lower income segments of the market and increase their chances to own homes.”

It is noted that in April 2006 IFC, the private sector arm of the World Bank Group, signed an agreement with the Arab National Bank, Dar Al Arkan Real Estate Development Company and the Kingdom Installment Company to create the first independent, specialized, Shariah compliant housing finance institution in Saudi Arabia.