22/03/2011
Need upon new mechanisms of funding
During Mortgage Symposium .. Issues and Challenges
Emphasizing on the need to rely upon new mechanisms in funding toward housing provision
Call for an effective contribution from the private sector in housing projects
Throughout the Mortgage Symposium (Real Estate Funding.. Issues and challenges) organized by Asharqia Chamber represented by the Real Estate Committee on Sunday 20 March,2011 corresponding to 4/15/1432H) in which emphasized on the need of finding a different means of funding in providing housing for citizens .. Stressing on the royal decrees in support of Housing authority and Real Estate Development Fund.
Throughout the symposium which ran its discussions by the Secretary General of Asharqia Chamber Abdulrahman bin Abdullah Al Wabel on the need for cooperation between the public and private sectors in the establishment of housing projects serving the community, especially those with limited income.
Symposium was chaired by the Chairman of Real Estate Committee in the Chamber Ayed Al-Qahtani who highlighted some challenges of the present and future aspirations in Real Estate Development Fund through a paper work provided by Yusuf bin Abdullah Al-Zughaibi, Director of Engineering Department and the Acting loan Manager in the Fund, also Director of Real Estate Arab Academy Imad Jawdat Shrab who presented a paper work discussing the elements of successful application of Real Estate Mortgage system.. While the CEO of Sumou Real Estate Ibrahim bin Mohammed Al-Qahtani discussed a work paper entitled Mortgage financing problems and ways to tackle them.
Moreover; symposium also called to reconsider grants and state property and put it up for the benefit of citizens in the form of housing projects, supervised by the housing concerned authorities such as the Housing Authority and Real Estate Development Fund and other.
Three paperwork related where presented on (Real Estate Development Fund .. challenges of present and future aspirations), and (Demands of the successful application of real estate finance system), and (Mortgage issues of and ways to tackle them) ..
In the first paper, the General Director in charge of loans in the Real Estate Development Fund Eng.Yousef Al-Zoughbi that the fund is looking forward to "Leadership in increasing the rate of citizens property in housing".
He added that the Fund provides good loans for the construction of private houses, where the Fund provides long-term loans with no charges on citizens, these loans covers 50% of the construction costs up to a maximum of ten million riyals.
He said that beneficiaries of the Fund are Saudi citizens at the age of 24 years old or older or must be 21 years old and over and married, or widows and divorcees, and have reached 40 years old and still single, as well as orphans (males and females).
He noted that Fund, which was founded in 1394 has begun with a capital of 250 million riyals, and doubled its capital several times to become now (156,769 million riyals).
Al-Zughabi called for a quick response to the issue of housing, through the provision of residential lands with basic services and facilities at affordable prices, especially in major urban areas.
As for the CEO of Sumou Real Estate Company, Dr.Ibrahim Al-Qahtani, who said that the percentage contribution of the mortgage market in total local amount of Kingdom does not exceed 2%, while this average in most Gulf countries is up to 5%, in both cases it is less than the global average, which ranges between 30 and 50%.
He pointed out that there is a program applied by the PPA "Retirement Pension Directorate", entitled (MASAKEN), this program require a minimum monthly salary with total amount for 4000 Saudi riyal, and not less than age 20 years, not more than 65 years, with an advance payment of 10% of the value of the property, due to these conditions beneficiaries where 74% of salaries with 10,000 Saudi Riyals, thus the situation became difficult.
In this regard General Manager of Real Estate Arab Academy Emad Jawdat Sharrab who talked about (Demands of the successful application of Real Estate finance system), (Required legislation and building up a specialized community culture).
In this regard said Secretary General of Asharqia Chamber Abdulrahman A. Al-Wabel whom spoke about the strong impact of Real Estate in the social development in which the chamber has considered its effect by launching related symposium in Real Estate and Housing in last October in cooperation with the Dammam University.
Al-Wabel reviewed the positive effects of the royal decrees of the Custodian of the Two Holy Mosques to provide big cash amount into the Real Estate market in which gave additional power to the national economy.
