Panel Discussion Titled: Enhancing Access to Affordable and Sustainable Financing
Al-Haqil Visits #Damanat Company’s Booth and Explores About its Innovative Products
The Minister of Municipal Rural Affairs and Housing, Mr. Majid bin Abdullah Al-Hogail, reviewed the financial products of the Saudi Housing Guarantee Services Company “Damanat” during his visit to the company’s booth at the Real Estate Future Forum He was welcomed by the Chairman of the Board of “Damanat”, Mr. Mansour bin Madi, and the company’s CEO, Mr. Hossam Radwan, who gave him a detailed explanation of the innovative guarantee products that “Damanat” offers to banks and financial companies. These products aim to empower citizens and facilitate their access to their first homeownership with a low borrowing cost The CEO of “Damanat”, Hossam Radwan, expressed his gratitude and appreciation to the Minister for his presence and continuous support to the real estate sector. He affirmed the company’s commitment to continuing to provide high-quality guarantees to its partners from banks and financial institutions contributing to the increase in the supply of real estate financing. This aligns with the goals of Saudi Vision which aims to raise the homeownership rate among citizens to 70% by the end of 2030.
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.
“Damanat” Reveals New Guarantee Product Contributing to Achieving First Homeownership Dream
The Saudi Housing Guarantee Services Company “Damanat” today unveiled the MGS+ guarantees product, which adds to its portfolio of guarantees provided to financial institutions. This aims to enable citizens to obtain real estate financing and achieve the dream of owning their first home. The announcement was made during a panel discussion featuring the company’s CEO, Hossam bin Youssef Radwan, at the Real Estate Future Forum held in Riyadh from January 22 to 24, 2024, under the theme “The Power of Resilience… Building a Sustainable and Prosperous Real Estate Future”, with participation from a group of economists, investors, decision-makers, and real estate sector experts an both local and international levels. The CEO of “Damanat” explained that the new guarantee product effectively stimulates financiers and enables them to finance bank-excluded segments, in addition to its role in sharing credit risks with financiers. This, in turn, helps empower citizens and facilitate access to their first home at a low borrowing cost. Moreover, it contributes to achieving the goals of Vision 2030 by increasing the homeownership rate to 70% by the end of 2030. He also mentioned that work is underway to launch a package of guarantee products that provide protection for beneficiaries and financiers, doubling the ability to finance more target segments. Radwan noted that the company came at an important time to enhance the completeness of the real estate system, given the absence of specialized companies providing guarantees in the past period. He pointed out the benefits of using guarantees to reduce financing gaps, enhance confidence in the real estate financing sector by providing protection for lenders from banks and financial institutions, which raises the demand for real estate financing, and fosters innovation in providing financing products. This, in turn, stimulates increased investment opportunities related to better quality of life and attracts domestic and foreign investment to the real estate sector. He affirmed their ongoing efforts to develop the real estate financing market and provide guarantees to financial institutions to achieve further growth and enable Saudi families to own suitable housing, especially in light of the challenges of rising interest rates, the limited supply of ready housing units, and rising real estate prices that make homeownership more difficult regardless of subsidies and guarantees. Additionally, some financiers are inclined to finance high-income individuals and small and medium-sized companies.
“Damanat” reviews its financing guarantee products and future plans as part of the Future of Real Estate Forum
The Saudi Housing Guarantee Services Company “Damanat” participates, In the work of the third edition of the Future of Real Estate Forum, which is held under the auspices of the Ministry of Municipal Rural Affairs and Housing from January 22 to 24, 2024, in Riyadh under the theme “The Power of Resilience The forum is attended by representatives from more than 85 countries and 300 speakers representing both the public and private sectors along with a group of economists, investors, decision-makers, Damanat’s participation in the forum comes within the framework of its commitment to its active role in enabling citizens to own adequate housing. By offering innovative financing guarantee products, Through partners in institutions and funding bodies, With the aim of contributing to the promotion of housing and social stability, Improving and developing the performance of the real estate sector, In order to achieve the goals of the housing program – one of the programs of the Kingdom’s Vision 2030 – to raise the percentage of citizens’ ownership to 70% by the end of 2030. in which CEO Hossam bin Youssef Radwan participates, the company will showcase its financial guarantee solutions and products for the current year 2024. The company will also highlight its future strategy and plans,which include offering a variety of insurance products to ensure that financing reaches a larger segment of citizens, reducing and sharing financial risks with financing bodies and continuing to develop products that enhance integration with the housing system, ensuring the efficiency and quality of financing solutions and facilitating homeownership Damanat’s booth at the forum introduces visitors to the most prominent financial guarantee products offered by the company to stimulate financing bodies such as banks and financial companies This aims to enhance their role in financing segments that are not targeted by banks by reducing the credit risks associated with the real estate financing process which helps directly overcome the challenges facing these segments and thus enable them to obtain real estate financing.
Infographic – “Damanat” Launches Its New Products in the First Quarter of 2024
Damanat Chief Executive Officer: We will launch new financing products during the first quarter of next year
The CEO of the Saudi Housing Guarantee Company (Damanat), Hossam bin Yousef Radwan, confirmed, In the next phase, “Damanat” is working to launch new financing products during the first quarter of next year 2024 as part of the continuous efforts to achieve the goals of the housing program – one of the programs of the Kingdom’s Vision 2030. The CEO of “Dhamanaat” added, The company, which was completed with a capital of 18 billion riyals, is wholly owned by the Real Estate Development Fund. and approved by the Saudi Central Bank (SAMA), Granting it a license to practice insurance activity in the branches of “General Insurance” and “Protection and Savings Insurance”; It will work to achieve the main purpose of its establishment in parallel with the housing system under the supervision of the Central Bank. He indicated that the company is the first of its kind in the Middle East. He stated that “Damanat” Company, You will be able to develop the mortgage market, With the support of the Central Bank, which continuously seeks to support the financial sector, Raising the level of effectiveness and flexibility of financial transactions, In addition to enabling innovation in the financial services provided, with the aim of enhancing the level of financial inclusion in the Kingdom, Stressing on the strategic partnership with financing entities from banks and financial institutions aimed at maximizing local and regional opportunities for the growth of the mortgage market in the Kingdom, Leveraging the significant growth in the Saudi finance market, and the attractive business environment it provides for foreign investors, Especially in light of the participation of the Saudi Real Estate Refinance Company, which will support and support banks. and the assistance of “guarantees” for the issuance of bonds, Guided by successful international experiences in this field. Hossam Radwan pointed out that “Damanat” has national expertise and competencies. which aims to improve the performance and efficiency of the company’s work and build effective partnerships with success partners from the housing system and financing entities from banks and financial institutions. He stressed that the company is working to enhance the reliance on financial technology and digital transformation processes. In addition to benefiting from the supporting enablers to achieve success and maximize the contribution to the sustainable development of the real estate finance sector in the Kingdom.
The Minister of Municipality and Housing approves the Board of Directors of the Saudi Housing Guarantee Company
His Excellency the Minister of Municipal, Rural Affairs and Housing, Chairman of the Board of Directors of the Real Estate Development Fund, Mr. Majid bin Abdullah Al-Hogail, approved, The Board of Directors of the Saudi Housing Guarantee Company “Damanat” as a closed joint stock company wholly owned by the Real Estate Development Fund, With a capital of 18 billion riyals, it is headquartered in Riyadh. The Board of Directors of “Damanat” consists of Mansour Saeed Bin Madi as Chairman of the Board of Directors. Jamal bin Ali Al-Kishi, Vice Chairman of the Board of Directors, The membership of Ahmed bin Suleiman Al-Jasser, Eng. Nawfal bin Saleh Al-Salameh, Faisal bin Omar Al-Saqqaf, Hashim bin Othman Al-Hogail, Hani bin Madini Al-Madini, The Board also approved the appointment of Hossam bin Yousef Radwan as the company’s CEO. The establishment of “Damanat” comes within the framework of the strategic plans of the Real Estate Development Fund to enhance financing and housing solutions. Working to develop the mortgage market in the Kingdom in partnership with financing entities such as banks and financing institutions. Contributing to the establishment of a secondary market for the mortgage sector as part of joint efforts to raise the efficiency of the market, In order to achieve the objectives of the housing program, one of the programs of the Kingdom’s Vision 2030. The Chairman of the Board of Directors of “Damanat” explained, Chief Executive Officer of the Real Estate Development Fund, Mansour Bin Madi, The establishment of the Saudi Housing Guarantee Company aims to issue financial guarantees to facilitate citizens’ ownership of housing. Supporting the real estate development sector to establish off-plan projects, He pointed out that the regulatory and legislative environment of the real estate finance sector in the Kingdom has contributed to the success of programs and initiatives. which had a great impact on the establishment of “Damanat” Company, which is considered a complement and culmination of the success of the Real Estate Finance Guarantee Program, It was launched in 2018 and enabled more than 113,000 beneficiaries to own housing until the end of the first quarter of 2023.