Saudi Arabia Property Fund allocates US$ 1.3 bn for new homes for Saudis

Posted on 4th July 2014

Saudi Arabia's Real Estate Development Fund has agreed funding of over US$ 1.33 billion (SR 5 billion) to finance the construction of new homes in various areas of the Kingdom. According to news reports in the Arab News, the fund has sanctioned 10,015 new loans to finance construction of 12,000 new homes.

housing

“The total value of this installment of loans has reached SR 5,007 million (US$ 1,335 million) and it represents the third installment that has been allocated in the current budget,” stated the fund's director-general, Mohammed bin Ali Al-Abdani. The funds are available to Saudi citizens to finance the construction of new houses and are the third round to be issued this year.

Saudi Arabia's ruler, King Abdullah, has issued a decree to build 500,000 homes by 2015. In April, the King had allocated SR 250 billion (US$ 66.7 billion) to finance the construction of new, affordable homes in cities across the Kingdom. The Kingdom's Ministry of Housing was given complete jurisdiction over land for housing, and the finance ministry was ordered to approve funds to build the necessary infrastructure.

In the same month, the king also allocated US$ 800 million to fund the construction of new cement plants with a view to boosting capacity by around 12 million tonnes a year.

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