Al-Khabeer Merchant Finance Corporation have jointly formed forces with Al Mutajra installments company to establish âDari for Home Loans,â a new SAR 1 billion-capitalized Saudi joint-stock company-under development stage, which will specialize in financing the construction and purchase of houses and residential properties in accordance with Islamic Sharia principles.
Dari Home Loans will become one of the first real estate financing companies in the Kingdom to specifically cater to the middle income sector, providing the highest levels of excellence, quality and services. The company will assist in assessments of potential house purchases, the construction of villas and residential buildings, and will also offer favourable payment periods in keeping with Sharia provisions. The property
funding specialist will initially operate in Riyadh, eventually expanding to cover the Western and Eastern regions of the Kingdom. It will not include property developers among its pool of clients.
Mohammad Sheikh, Chief Operating Officer of Dari Home Loans who also manages two personal financing companies in the KSA and has extensive experience in the field, said: âWe are confident that the support of well-known members, who are actively involved in the finance and installments markets, will enable us to establish the proper environment and provide excellent services which will have positive effects on the KSAâs real estate sector. We expect Dari Home Loans to encourage individuals and institutions to invest in this rapidly-growing sector and take advantage of the extensive and prestigious experience of the companyâs founders.â
âSaudiâs real estate finance segment is still in the early stages of development and has been collaborating with the public and private sectors in the development of rules and regulations governing this industry. Such initiatives aim to ensure the proper functioning of market mechanisms in a manner that preserves the rights of customers and protects real estate financing companies so that they can continue to fund affordable housing. These in addition to our efforts are expected to increase demand for funding, which will be based on fixed price rates, especially as around 70 per cent of Saudis under the age of 30 do not have a home,â added Sheikh.
Dari Home Loans is currently appointing personnel and officials for managing its human resources and is negotiating with a global partner for the transfer of management experience to this sector in the Kingdom. Al-Khabeer is adopting its turnkey and integrated banking solutions to develop Dari, as Al-Khabeer directs the finance and advisory for the company. The new property funding firmâs founders are confident that it will be fully established in a short span of time given the strength of the Kingdomâs economy.
About Dari Home Loansâ Founders
Al-Khabeer Merchant Finance Corp. is headquartered in Jeddah and was established in 2004 as a boutique Islamic advisory arranging the financing of major projects in accordance with the regulations and provisions of Islamic Sharia. In 2007, Al-Khabeer obtained full set of Capital Market Authority (CMA) license, No. 562 / d / h on 25/6/1428 hijri as a contribution to necessary conduct of activities in the areas of innovative entrepreneurship, managing, systemizing, counselling and organizing securities. Mutajarah Installments Co. is one of the biggest personal finance companies in
Saudi Arabia, specializing in instalment-based personal finance loans, car rental, real estate, and durable household appliances. The company maintains more than 17 branches throughout the Kingdom and has a significant share of the auto finance market. All its transactions are conducted in compliance with Islamic law.
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