Bidaya’s Proposed Residential Mortgage-Backed Sukuk Programme to Enhance Home Finance Sector in Saudi Arabia
Posted on 1-05-2019
ALGHUNAIM: “the Residential Mortgage-Backed Sukuk Programme Is An Unprecedented Initiative In the Saudi Debt Capital Markets”
Riyadh, April 2019: Under the auspices of the Custadian of the Two Holy Mouques, King Salman bin Abdulaziz, Bidaya Home Finance (“Bidaya”) has concluded its participation in the first edition of the Financial Sector Conference (“FSC”), held in Riyadh on April 24-25, 2019 under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud.
Bidaya’s participation in the first of its kind conference in Saudi Arabia, came along with a number of government agencies and leading institutions in the Saudi finance sector. The event is considered part of the Financial Sector Development Program, which is one of the Vision 2030 initiatives, and aims to become the most prominent financial sector event locally and regionally.
Mr. Mazin Al-Ghunaim, Chief Executive Officer of Bidaya, expressed his pride with support of the Custodian of the Two Holy Mosques to this important event, stating that Bidaya’s participation cements its leading position in the local home finance sector, through a number of initiatives that contributed in reshaping the real estate finance industry in the Kingdom; such initiatives are innovative and effective solutions that have contributed in answering Saudis ambitions”. “We are proud to have helped more than 10,000 beneficiaries to purchase their own homes, supporting the national transformation objectives and the ambitious Vision 2030”, he added.
Additionally, Mr. Al-Ghunaim stated that Bidaya took the opportunity of its participation in the conference and introduced a key initiative with the aim to enhance the local home finance market and facilitate the debt capital markets industry in Saudi Arabia – the proposed establishment of the very first Residential Mortgage-Backed Sukuk Programme (“RMBS Programme”) in the Kingdom with an amount of SAR 500 million.
The RMBS Programme will contribute toward diversifying the Bidaya’s’s sources of funding and pave the way for the primary mortgage market to access long term funding for the development of the financial sector, as well as the overall development of the Saudi economy in line with Vision 2030.
Bidaya has been named by Global Finance Magazine as The Best Digital Mortgage Bank in the Middle East, specializes in Home 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.