Dhamanat seeks to develop mortgage market: Al Hogail

Majid Al-Hogail, Minister of Municipal, Rural Affairs and Housing

Saudi Arabia’s Minister of Municipal, Rural Affairs, and Housing, Majed Al Hogail, said that the Real Estate Development Fund (REDF)-owned Saudi Mortgage Guarantee Services Co. (Dhamanat) collaborates with funding entities, such as banks and financial institutions, to develop the mortgage market in the Kingdom while contributing to creating a secondary market for the mortgage sector.

Dhamanat's role is to provide financing guarantees to make it easier for people to own homes and to aid the real estate development sector in establishing off-plan sales projects across the Kingdom, Al Hogail explained in a tweet.

The Minister also emphasized the significance of the company's license from the Saudi Central Bank (SAMA) in advancing the goals of the housing program.

On July 9, SAMA licensed Dhamanat to provide general insurance and protection and savings insurance services.

In May, Al Hogail approved the board of directors of Dhamanat, a closed joint stock company wholly owned by REDF with a capital of SAR 18 billion, as it aims to issue financing guarantees to facilitate citizens' ownership of housing and support the real estate development sector to establish off-plan sales projects in various regions of the Kingdom.