JEDDAH, 30 October 2007 — Aayan Arabia Holding has signed an agreement with Canada Mortgage and Housing Corporation (CMHC) to provide technical support for the establishment of Aayan Housing Finance Company. Ahmed ibn Abdullatif Al-Dossary, chairman of Aayan, signed the accord with Pierre David, executive director of CMHC International, during a ceremony attended by Canadian Ambassador Ronald Davidson and Kuwaiti Consul General Ali Al-Fehaidy on Sunday night.
Hani Ba Othman, chief executive officer of Aayan, said the new housing finance company would have a capital of SR1 billion with Aayan having a 35 percent stake. The new company is aimed at providing innovative housing finance products to the Saudi market, making use of the expertise of Aayan and the Canadian company.
CMHC plans to enhance housing in Saudi Arabia with Aayan with Shariah-compliant mortgage lending systems to address housing affordability and accessibility. Ba Othman said the demand for housing units in Saudi Arabia was increasing daily as the market required projects worth about SR75 billion annually in order to build 165,000 housing units. David said: “We are very pleased to have this opportunity to work with Aayan in the establishment of a new commercially viable mortgage lending institution in Saudi Arabia and to facilitate their access to the best Canadian companies in the areas of project management, design and specialty products in support of their real development.
Davidson said: “Although I arrived in Saudi Arabia only one month ago, it is already evident to me that the real estate and housing market represent one of the most dynamic sectors in the Kingdom. The volume of Saudi real estate investments not only rocketed to $23 billion in 2006, but that robust expansion is continuing toward a year-end projection of $27 billion in 2007.” He added, “I understand that a pause in the housing construction boom is nowhere in sight as recent studies have indicated Saudi Arabia requires 1.5 million new housing units by 2015.”
He further said: “This is remarkable growth indeed and I am very pleased that the partnership agreement between the Canada Mortgage and Housing Corporation and Aayan Arabia Holding will contribute to converting this 1.5 million new housing units from projection to reality. The CMHC and Aayan will combine their experiences and talents to define challenges in the housing sector, to develop viable alternatives and to recommend effective policy options for the Kingdom of Saudi Arabia.”
David said when it comes to housing, CMHC enjoys a solid track record. For more than 60 years, CMHC has worked to help millions of Canadians realize their dream of home ownership in a highly viable commercial manner.
CMHC has been involved for a long time in promoting the export of Canadian housing products and services and sharing its housing finance expertise with the world. “Today we work in more than 30 countries, including many in the Middle East and North Africa (MENA) region such as Jordan, Oman, the Palestinian Territories, Egypt, Pakistan, Algeria and Bahrain.”
David said our purpose is really to use our knowledge, our capacity and our staff to contribute to a better life for people by improving the performance of the housing finance sector. “This is why CMHC is very proud to work with Aayan Arabia Holding to assist in creating a new mortgage lending company that will respect the culture and the local values and enhance housing finance in Saudi Arabia. Through this important agreement, we will lay a foundation that will help countless of families realize their dreams of owning a home of their own,” David added.