Alinma Bank, REDF sign home financing agreement

21/05/2014 07:57 AST

Alinma Bank and the Saudi Arabian Real Estate Development Fund (REDF) have signed an agreement through which the bank will again officially partner with REDF in assisting citizens in making their dreams of home ownership a reality.

The agreement was signed recently at a special ceremony in Riyadh under the auspices of Minister of Housing Shwaish Al-Dhowaihy.

Also in attendance were Saudi Arabian Monetary Agency (SAMA) Gov. Fahd Al-Mubarak, Ministry of Justice Undersecretary Khaled Dawoud, REDF Director Yousef Zughaibi, and chairmen and CEOs of participating banks.

The agreement represents a Shariah-compliant "gap" or "bridge" financing solution for Alinma Bank partners (customers). Whereas traditional gap/bridge financing offers a short-term solution, the agreement ensures that partners will receive long-term financing from Alinma to bridge the gap between the generous financing extended to citizens by REDF and the full price homes being purchased.

Attending the ceremony on behalf of Alinma Bank were Abdulaziz Al-Zamil, chairman of the bank’s board of directors, and Abdulmohsen Al-Fares, the bank’s CEO.

Al-Zamil said: “Alinma Bank exists to serve its partners and, by extension, the Kingdom as a whole,” said Al-Zamil. “We always look for opportunities, such as this partnership, as well as the other partnerships in which Alinma is engaged across various business sectors, to address the objectives of the government and the needs of its citizens, especially with regard to home ownership.”

This agreement marks the second time Alinma Bank has entered into cooperative partnership with REDF. In 2012, the bank and REDF signed installment financing and Damin agreements, both of which also address key issues related to home ownership.

Alinma Bank is the latest banking institution to launch in Saudi Arabia and boasts some of the most recent advances in banking technology and operations.

Arab News