Fixed Ijarah launched to raise home ownership

February 13, 2019

Samar Yahya

RIYADH — Bidaya Home Finance Company and Saudi Real Estate Refinancing Company (SRC) launched a new fixed Ijarah product in a bid to further support the Saudi home financing sector at Crown Plaza on Tuesday.

The new Fixed Ijarah product is aimed at the growing number of citizens who wish to own their first home and offering them with flexible terms and a monthly repayment plan that suits their financial situation. The new home financing product enhances Bidaya’s reputation as a leading national company, which supplies an expanding, range of finance solutions.

In a press conference, Mazen Al-Ghunaim, CEO, Bidaya, expressed his pride in Bidaya strengthening its relationship with SRC and emphasized on their collective commitment to increase home ownership among Saudi citizens. . He described the new product as an important part of Bidaya’s strategy in boosting the real estate financing market in the Kingdom.

Al-Ghunaim said: “The new product is an outcome of a successful partnership that will act as a catalyst for providing liquidity to financing companies. Also, the newly launched Fixed Ijarah product is poised to meet the rapidly changing needs of customers as far as mortgages are concerned. It will also strengthen Bidaya’s presence in the real estate finance market, as the new product delivers outstanding benefits to consumers.”

Speaking to Saudi Gazette, Al-Ghunaim said Bidaya follows the same regulations and rules that banks follow in financing homes. Bidaya has accessible and flexible procedures, service is 24/7, yet in case of payment obstruction from the client side, Bidaya would begin the legal procedures from day 91.

Similar to its current variable Ijarah product, the new product is characterized by a fixed profit rate which remains constant throughout the repayment term. The profit margin is calculated once and with no hidden charges or annual increments, and will not be affected by the SIBOR Index.

By launching the product, Bidaya, maintains a strong leadership in the home finance industry and further strengthens its commitment to consumers by providing attractive mortgage solutions.

Fabrice Susini, CEO of SRC, said: “We are pleased to enter into a partnership with Bidaya Home Finance that now joins a growing list of originators that SRC works with. This is in keeping with our commitment to enabling lenders to offer more accessible, predictable home buying solutions that better address aspiring Saudi homebuyers’ needs. That said, I’m confident that the newly launched fixed Ijarah proposition will resonate with the needs and aspirations of Saudi citizens that are looking to own their dream homes.”

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