In a session presided over by Chairman Abdullah Al-Asheikh, the council made the recommendation after the finance committee presented its findings on the REDF’s annual report for the fiscal year 2009/2010.

The house felt that such a loan scheme should be formulated by the REDF with the active participation of the private sector, including commercial banks in the Kingdom.

The house said the system should be geared to cater to the increasing demand for housing in the Kingdom and should shorten the waiting period for loans from the REDF.

The repayment period of loans should also be adjusted according to the finances of the applicants, members said.

According to a recent study, the Kingdom needs 300,000 residential units every year over the next 15 years, a total of 4.5 million. In Riyadh, the lack of affordable homes is especially acute — a shortage of 225,000.

According to Shoura Council Secretary-General Muhammed Al-Ghamdi, the house also approved a draft cooperation agreement between the Kingdom and Kazakhstan in the fight against terrorism, organized crimes and illicit trafficking in narcotic drugs and psychotropic substances. The proposal was submitted by the council's security affairs committee.

The council also heard a report from the committee on Islamic affairs and the judiciary on a draft memorandum of understanding (MOU) between the Ministry of Islamic Affairs, Call and Guidance in the Kingdom and Bangladesh’s Ministry of Religious Affairs in the field of Islamic Affairs and Endowments.

The house also unanimously approved a MOU on information technology between King Abdulaziz City for Science and Technology and the Ministry of Information Technology in India for the development of computer systems.