REDF displays harmony between innovation and communication

SourceSaudi Gazette
CountrySaudi Arabia

RIYADH — The Real Estate Development Fund (REDF) has instituted a new transformation system that took three years to yield results, and it took a dedicated team and innovative products to put REDF in the forefront. The three years were fundamental for REDF to make the new system work after announcing the new system in 2017. Before 2017, REDF had many accumulated challenges to overcome.

More than 500,000 citizens were on the waiting list to acquire their mortgage support with an average waiting period of 12 to 15 years to claim the loan. REDF had the capability to only support 20,000 citizens per year, which made it impossible to achieve the Vision 2030 of having 60% of Saudis own their homes by 2020 and 70% by 2030. Mansour Bin Madi, CEO of REDF, with his team of experts in REDF had to find new innovative ways to accommodate this long waiting list in just 3 years to achieve the 2020 (60%) target; hence, they developed a new loaning system (subsidized) transforming from direct lending from REDF to indirect lending through renowned Saudi financial institutions whereby REDF subsidized the (profit rate) of mortgage loans up to SR500,000. “The perfect harmony between more...