REAL ESTATE DEVELOPMENT FUND ( REDF )

Introduction:

The Real Estate Development Fund (REDF) was established by the Royal Decree No.(23), dated 11-6-1394H. REDF started its activities at the beginning of fiscal year 1395/1396 by providing loans to citizens to help them construct their own homes and for investment purposes. REDF began operation with a capital equal to SR.250 million. REDF's capital later was significantly increased to reach SR 82,769 million.

REDF's Activities:

Since the inception of its activities at the beginning of fiscal year 1395/1396H. and up to the end of fiscal year 1419/1420H., REDF has granted 443,842 private loans as well as 2,488 investment loans, with a total value of SR 120,144 million, resulting in the construction of 555,866 residential units.

REDF's Scope of Services:

REDF's services have so far reached 3976 cities, villages and remote areas all over the Kingdom.
Based on the Council of Ministers' Resolution No.(130), dated 28/7/1409H., REDF was charged with the mission of distributing among Saudi citizens, whose loan applications are still in the waiting list, dwelling units of the housing projects that were constructed by the Ministry of Public Works and Housing in different parts of the Kingdom. To date, REDF has managed to distribute 21,211 of these units in Riyadh, Jeddah, Makkah, Dammam, Al-Khobar, Al-Hassa, Al-Qatif, and Buraidah.

REDF's Lending Conditions:

To obtain a loan from the REDF, the following conditions must be met:

1. The loan applicant must be a Saudi citizen.
2. He must be at least twenty-foure years old, unless he is married or an orphan.
3. For women to qualify for a loan, they must meet either of the two following criteria:
   1. The loan applicant must be unmarried and forty years old or older.
   2. The loan applicant must be a widow or divorced.
4. The loan applicant must not own a house independently. Exception is made for owners of old homes that are unfit for dwelling, and which the owner plans to tear down and reconstruct.
5. The loan applicant must not previously have been granted a loan from the REDF.

The Documents Required for Granting a Loan:

1. A copy of the I.D. card.
2. A copy of the land ownership title document.
3. A copy of the construction license.
4. Proof of residency address.
5. Proof for the marital status of a woman.
6. A copy of the marriage contract for those who are under twenty-foure years of age.
7. The originals of all documents must be presented for authenticity.

New loan applications are submitted through REDF's branches and loan contracts are concluded therein too.