Saudi Arabia's Mortgage Finance Co. and Bidaya, a mortgage subsidiary of the Islamic Corporation for the Development of the Private Sector , or ICD , are set to launch a local real estate finance firm with a capital of 1 billion Saudi riyals ($266.7 million), Saudi-based Al Riyadh daily reports.
The joint venture will be a cooperation between the public and private sector and aims to facilitate the purchase of residential units for Saudi citizens, the paper reports, citing Khalid Al Mukairin, head of the new company's founding committee.
Khalid Al Aboodi, ICD 's chief executive, said there's a substantial demand for mortgage finance services in Saudi Arabia whose population has tripled in the last two decades and is expected to grow further by 25% by 2020. This population growth will lead to an increase in demand for residential units to more than 150,000 units a year in the next decade, he added.
Saudi-based ICD is a unit of the Islamic Development Bank.
Dow Jones Newswires