Bidaya and Src Launch Fixed Profit Rate Ijarah to Improve Home Ownership in Saudi Arabia
Bidaya Home Finance Company has launched a new fixed Ijarah product in partnership with the Saudi Real Estate Refinancing Company (SRC) in a bid to further support the Saudi home financing sector.
Bidaya’s latest home finance solution was unveiled at a joint press conference hosted by Mr. Mazin Al-Ghunaim, Chief Executive Officer of Bidaya, and Mr. Fabrice Susini, Chief Executive Officer of SRC.
At the event, Mr. Al-Ghunaim expressed his pride in Bidaya strengthening its relationship with SRC and emphasised on their collective commitment to increase home ownership among Saudi citizens. . He described the new product as an important part of Bidaya’s strategy in boosting the real estate financing market in the Kingdom.
Al-Ghunaim, said:“The new product is an outcome of a successful partnership that will act as a catalyst for providing liquidity to financing companies. Also, the newly launched Fixed Ijarah product is poised to to meet the rapidly changing needs of customers as far as mortgages are concerned. It will also strengthen Bidaya’s presence in the real estate finance market, as the new product delivers outstanding benefits to consumers.”
Similar to its current variable Ijarah product, the new product is characterized by a fixed profit rate which remains constant throughout the repayment term. The profit margin is calculated once and with no hidden charges or annual increments, and will not be affected by the SIBOR Index.
Speaking on the sidelines of the event, Fabrice Susini, CEO of SRC, said: “We are pleased to enter into a partnership with Bidaya Home Finance that now joins a growing list of originators that SRC works with. This is in keeping with our commitment to enabling lenders to offer more accessible, predictable home buying solutions that better address aspiring Saudi homebuyers’ needs. That said, I’m confident that the newly launched fixed Ijarah proposition will resonate with the needs and aspirations of Saudi citizens that are looking to own their dream homes.”
The new Fixed Ijarah product is aimed at the growing number of citizens who wish to own their first home and offering them with flexible terms and a monthly repayment plan that suit their financial situation. The new home financing product enhances Bidaya’s reputation as a leading national company which supplies an expanding range of finance solutions.
Bidaya Home Finance, named by Global Finance Magazine as ‘The Best Digital Mortgage Bank in the Middle East’, specializes in finance packages consistent with the requirements of the National Transformation Program, enhancing the value of the individual within the community while significantly contributing to the development of the national economy and the achievement of sustainable development in alignment with the Kingdom’s futuristic Vision 2030.