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Saudi government disbursed $666 million in loans to build
new housing units.

Saudi government writes off $52m housing loans

RIYADH, November 27, 2014

The Saudi Ministry of Housing has written off SR198 million ($52.7 million) in loans given to 852 citizens, who are now dead.

Housing Minister Shuwaish Al-Duwaihi, who is also the head of the Real Estate Development Fund (REDF), carried out the order on a directive from Saudi monarch King Abdullah, reported the Arab News.

The family members of the deceased had applied online for the concession.

REDF said it has disbursed SR2.5 billion ($666 million) in loans to build 6,204 new housing units throughout the Kingdom.

As per a recent study, Saudi Arabia needs 4.5 million houses over the next 15 years, at 300,000 every year.

In Riyadh, the lack of affordable homes is especially acute with a shortage of 225,000 units, the report added.

The government is presently building 500,000 low-cost housing units at a cost of SR250 billion ($66.6 billion) aimed at reducing property prices and rents.

According to Housing Ministry, the government loan schemes provide for land and construction of homes. Those elegible for the loan include Saudi couple with or without children, a single father, a single Saudi mother who is widowed or divorced, or a non-Saudi mother with children from a Saudi father.

As per the new rule, applicants must be over 25 years of age and have no other family members already owning a home or having owned one in the five years preceding the application, the report added.




Tags: Saudi | Loans | dead |

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