Saudi REDF to stand as ‘independent legal personality’ under new law

The Saudi Cabinet approved on Jan. 5, 2021, the new Real Estate Development Fund (REDF) law, which comprises 18 articles.

Under the new law, the REDF will stand as a legal personality, and a financially and administratively independent entity, with a similar structure to the National Development Fund, SPA reported.

Under the new law, the fund can conclude more partnerships with municipalities and other real estate development companies, in line with the housing development plans.

The fund’s articles of association also includes:

1) Support nationals to own homes;

2) Conclude agreements with Saudi real estate development companies and financing entities;

3) Set up public saving funds in partnership with financiers;

4) Provide full, or partial guarantee for beneficiaries’ financing;

5) Set up subordinate firms;

6) Issue sukuk, bonds and other debt instruments.