19 May 2011
(MENAFN) Capitas Group International’s CEO, Naveed Siddiqui, said that as the Saudi company would create financing for the lower and middle income families, it would establish a mortgage finance firm the next year in partnership with Saudi Public Investment Fund as a 50- 50 joint venture, reported Arab News.
Siddiqui added that Capitas group is a subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD) which would add USD26.7 million to the project which until this moment the current raised capital reached a total USD346 million.
He also said that at the start the company would lend to Saudi nationals but there would be a very strong consideration to lend to non-Saudis as well, adding that the mortgage law would be passed over the next few months so it would give the whole industry a level of confidence. On the other hand, he said that over the next ten years the company would see a USD320 billion market from the need perspective, the average loan given to a person to buy a house is USD213,303, so there would be enough room for many to compete.
It is worth noting that the absence of a clear mortgage law, which has been in planning stages for almost a decade, has left the Kingdom with no framework to govern property ownership, preventing foreign banks from lending and private developers from entering the market.
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