Bidaya forms workgroup to develop real estate financing

Bidaya Home Finance organized a special workgroup of real estate companies at the Hyatt Regency Residency Hotel in Riyadh.
Updated 20 February 2018
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Bidaya forms workgroup to develop real estate financing

In line with the Kingdom’s Vision 2030, which seeks to increase the percentage of homeowners and enable citizens to own their first homes, Bidaya Home Finance organized a special workgroup of real estate companies at the Hyatt Regency Residency Hotel in Riyadh. The purpose of the workgroup was to explore the development of the non-banking real estate sector and address its obstacles.
Majed Al-Hogail, minister of housing; Khalid Al-Amoudi, general supervisor of the Real Estate Development Fund; and Bader Al-Otaibi, general director of supervision of finance companies at the Saudi Arabian Monetary Agency (SAMA), attended the workgroup.
Also participating in the discussions were the CEOs of real estate financing companies, as well as the CEO of the Saudi Real Estate Refinance Company.
The workgroup discussed the development of the non-banking real estate financing sector and ways to increase its efficiency by raising its current share from eight percent to a minimum of 30 percent by 2020. This is in addition to identifying the obstacles hindering the sector’s growth in terms of regulatory and legislatives aspects, as well as preparing the necessary recommendations and suggestions.
Introduced during the meeting was the housing program, which is one of the programs in Vision 2030.
The program includes 16 governmental entities working together as one team in partnership with the private sector in order to raise the percentage of homeownership to 60 percent by 2020 and to 70 percent by 2030. The programs and goals of the Real Estate Development Fund were showcased, as well as the segments of beneficiaries of these programs, the funding opportunities per segment, and the products to be provided in partnership with the financiers.
At the end of the workgroup, the CEO of the Saudi Real Estate Refinance Company, which is owned by the Public Investment Fund, explained the nature of the company and its goals, which include achieving growth and stability in the real estate financing sector and refinancing 10 and 20 percent of the total existing real estate loans by 2020 and 2026, respectively.
The company’s role also includes providing the necessary liquidity to achieve the targeted growth, so that real estate financing — currently at SR290 billion ($77 billion) — can reach SR502 billion by 2020, in addition to offering financing at a fixed cost that can lead to stable real estate financing and fixed monthly instalments for beneficiaries.


Emirates NBD opens branch in Alkhobar

Updated 20 September 2018
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Emirates NBD opens branch in Alkhobar

Emirates NBD, a banking group in the Middle East, has expanded its presence in the Kingdom with the opening of its first branch in Alkhobar in the Eastern Province. Emirates NBD now covers three key regions in Saudi Arabia with a presence in Riyadh, Jeddah and Alkhobar. 

As Saudi Arabia progresses plans for economic reform, in line with its Vision 2030, Emirates NBD’s presence builds on the growing economic and trade ties between Saudi Arabia and the UAE. Following the establishment of the Saudi-Emirati Coordination Council, the UAE and Saudi Arabia recently announced The Strategy of Resolve, a joint vision for economic development through 44 joint strategic projects within a five-year time frame. 

UAE-based Emirates NBD is the first non-Saudi bank with a significant branch network across the Kingdom. The bank offers retail, private, business and wholesale banking across its network of three full-fledged branches in the Kingdom, in addition to corporate finance advisory, project and syndicated finance through Emirates NBD Capital KSA, the bank’s investment banking arm.

Emirates NBD also operates in Egypt, India, Singapore, and the UK with representative offices in China and Indonesia. 

“Our presence in Saudi is integral to Emirates NBD’s growth strategy as we continue to explore opportunities in the GCC region’s largest and most dynamic economy,” said Hesham Abdulla Al-Qassim, vice chairman and managing director of Emirates NBD. 

“Saudi Arabia is in the midst of a landmark economic transformation and we look forward to continuing to support Saudi individuals and businesses looking for a trusted banking partner.” 

Emirates NBD recently renewed its partnership with the Kingdom’s Kafalah Program, which aims to promote financing to small and medium enterprises (SMEs) within the country.

Loai Abduljawad, CEO of Emirates NBD KSA, said: “Emirates NBD’s expanded network strengthens our offering to individuals and corporates in Saudi Arabia looking to invest and trade across the MENA region and beyond. Our superior value proposition, built on the bank’s unique ‘high tech + high touch’ philosophy of offering customers a modern banking experience complemented by personalized advisory services, will enable us to strengthen customer acquisition in the Kingdom as we continue to support the country’s long-term growth and development goals, as outlined in Saudi Vision 2030.” 

Emirates NBD is a leading banking group in the region. As of June 30, 2018, its total assets were 477.5 billion dirhams, ($130 billion). The group has a significant retail banking franchise in the UAE and is a key participant in the global digital banking industry, with over 90 percent of all financial transactions and requests conducted outside of its branches. The bank was declared the “Most Innovative Financial Services Organization of the Year” at the 2017 BAI Global Innovation Awards.