Real Estate Development Fund Signed Agreement to Transfer Guaranteed Finance Portfolio to Damanat, in Presence of Al-Hogail on Sidelines of Real Estate Future Forum

Today, the Real Estate Development Fund signed an agreement to transfer the portfolio of guaranteed finance to financial institutions to the Saudi Housing Guarantee Services Company “Damanat” in partnership with several financial institutions. This took place on the sidelines of the Real Estate Future Forum in the presence of the Minister of Municipal Rural Affairs and Housing, Majid Al-Hogail.

The agreement aims to transfer the portfolio of guaranteed finance for financial institutions from the Real Estate Finance Guarantees Program—a program of the Real Estate Development Fund—which has enabled more than 116,000 beneficiaries to own housing since its launch in 2018 with guaranteed real estate loans worth SAR 77 billion, to the Saudi Housing Guarantee Services Company “Damanat”.

The agreement, which is considered the largest in the real estate finance market, was signed by Mansour bin Madi, CEO of the Real Estate Development Fund, and Hossam Radwan, CEO of “Damanat”, with the participation of several financial institutions involved in the Real Estate Finance Guarantees Program.

Mansour bin Madi, Chairman of the Board of Directors of “Damanat” and CEO of the Real Estate Development Fund, explained that transferring the portfolio of guaranteed finance to financial institutions is part of the commencement of “Damanat” activities, complementing the Real Estate Finance Guarantees Program. This aims to enable beneficiaries of housing support programs with financial institutions such as banks and financial institutions to obtain the necessary finance to own suitable housing.

Bin Madi also highlighted the role of “Damanat” in enhancing the growth of the real estate sector within an integrated system that offers various housing and financing programs and options to beneficiaries to own housing, achieving the goals of the Housing Program—part of Saudi Vision 2030.

It is worth mentioning that the Saudi Housing Guarantee Services Company was established with a capital of SAR 18 billion and is wholly owned by the Real Estate Development Fund, supervised and regulated by the Insurance Authority, and headquartered in Riyadh.