JEDDAH: Saudi Arabia plans to convert a state-owned housing fund into a bank, the latest in a string of reforms to the economic policy apparatus announced since January.

After its conversion the Real Estate Development Fund will offer financing in cooperation with the private sector, the fund said in a statement.

The Al-Riyadh newspaper quoted fund director Yusuf Zughaibi as saying it would offer housing loans to eligible people.

Previously, the fund had offered interest-free loans for new residential construction; Zughaibi’s comments suggested it would expand its lending volumes while widening the range of its operations to include mortgages for existing homes.

The fund has 40 branches across the Kingdom and a size of SR183 billion ($49 billion), according to its website.