The Saudi Cabinet, chaired by the Custodian of The Two Holy Mosques King Salman bin Abdulaziz Al Saud, approved the law of the Real Estate Development Fund (REDF), the Saudi Official Gazette Umm Al-Qura reported.
Under the law, the REDF will achieve the Kingdom's real estate development plans through allowing the beneficiaries to own proper housing. Accordingly, the fund will do the following:
- Paying the interest of the subsidized mortgage loans granted to the beneficiaries whose names are registered in the fund or the ministry's records;
- Offering loans to real estate developers and finance institutions to achieve the fund's goals;
- Investing its capital and cash available from other income resources as well as owing and disposing of assets;
- Investing part of its capital in the development of commercial and residential areas in the target areas through concluding partnerships with municipalities and their real estate development companies as well as the city development institutions.