Saudi Arabia Launches “Alternative Financing” Program to Boost Homeownership with Monthly Payments Starting at SAR 699

Saudi Arabia’s Real Estate Development Fund (REDF) has launched its new “Alternative Financing” program, introducing an innovative housing finance model designed to help more Saudi families purchase their first homes by expanding banks’ lending capacity and improving access to mortgage financing.

The initiative supports the Kingdom’s Vision 2030 objective of increasing homeownership rates to 70 percent through stronger public-private partnerships and more flexible financing solutions.

How the Program Works

Under the new model, the Real Estate Development Fund provides additional funding to participating banks, enabling them to issue more home loans while increasing liquidity within the banking sector.

The first phase of the program is being implemented through a strategic partnership between the Real Estate Development Fund, the Saudi National Bank (SNB), and the National Housing Company (NHC), combining financing, housing supply, and government support into a single customer journey.

Monthly Installments from SAR 699

Eligible Saudi citizens can purchase selected housing units within National Housing Company projects in Riyadh, Jeddah, and Dammam, with monthly installments starting from SAR 699.

The program also offers instant financing approval, simplifying the home-buying process and reducing the time required to secure a mortgage.

Strengthening the Housing Finance Market

REDF CEO Eng. Loay Al-Nahidh said the initiative increases banks’ lending capacity, enabling more first-time buyers to obtain housing finance while strengthening the Kingdom’s residential financing ecosystem.

He added that the collaboration between REDF, SNB, and NHC creates an integrated model that combines financing, housing availability, and government support to make homeownership more accessible for Saudi families.

Expansion Planned

The Real Estate Development Fund expects additional banks to join the program in the coming phases, further expanding mortgage lending across the Kingdom, increasing financial sector liquidity, and helping more citizens achieve homeownership as part of Saudi Vision 2030.