Real Estate Development Fund Launches 'Alternative Financing' Program to Support Homeownership

'Al-Eqtisadiah' from Riyadh

Sunday, July 12, 2026 15:06 | 2 minutes read

The Saudi Real Estate Development Fund launched its innovative 'Alternative Financing' program, aimed at enhancing the housing finance system in Saudi Arabia by increasing banks' lending capacity, thereby supporting more families in owning their first home, according to a statement today.

The 'Alternative Financing' program enables the Real Estate Development Fund to provide additional financing to participating banks, increasing their ability to issue real estate financing. The program enhances the housing support system provided by the Fund by making greater liquidity available within the banking sector and expanding access to sustainable homeownership.

The first phase of the program was launched through a strategic partnership with the National Commercial Bank (SNB) and the National Housing Company (NHC). The Real Estate Development Fund provides the necessary financing for mortgage issuance operations by the National Commercial Bank (SNB), while the National Housing Company (NHC) offers selected units to Saudi citizens wishing to own their first home.

Sun, 05 2026

Qualified clients can purchase homes in selected projects of the National Housing Company (NHC) in Riyadh, Jeddah, and Dammam, with monthly installments starting from only SAR 699. Clients benefit from instant financing approval, providing a seamless experience from application submission to obtaining financing approval for the purchase of a new home.

The CEO of the Real Estate Development Fund, Engineer Louai Al-Nahhas, said: 'The Alternative Financing program provides additional financing that increases banks' lending capacity, enabling more first-time buyers to obtain housing financing, and contributes to building a stronger and more flexible housing finance system in the Kingdom.'

He added: 'Our collaboration with the National Commercial Bank and the National Housing Company combines financing, housing supply provision, and government support within a unified customer journey, and is a practical example of how strategic partnerships facilitate, accelerate, and enable homeownership for Saudi families.'

Mon, 20 2026

As the 'Alternative Financing' model expands to include additional banking partners, the Real Estate Development Fund expects the program to increase lending capacity across the sector, provide greater liquidity within the financial system, and support higher levels of mortgage issuance.

The Fund anticipates that the model will expand mortgage lending capacity in various regions of the Kingdom, enhance the housing finance system in Saudi Arabia, and accelerate progress toward achieving the Saudi Vision 2030 target of raising homeownership to 70%.

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