RIYADH, May 20, 2014 -- Alinma Bank and the Saudi Arabian Real Estate Development Fund (REDF) have signed an agreement through which the bank will again officially partner with REDF in assisting citizens in making their dreams of home ownership a reality. The agreement was signed on Sunday, May 18, 2014 at a special ceremony at the Ritz Carlton Hotel in Riyadh under the auspices of Dr. Shwaish Al Dhowaihy, the Minister of Housing. Also in attendance were the Governor of the Saudi Arabian Monetary Agency (SAMA), Mr. Fahd Al Mubarak; the Undersecretary of the Ministry of Justice, Dr. Khaled Dawoud; the Director of REDF, Engr. Yousef Zughaibi and chairmen and CEOs of participating banks.
The agreement represents an innovative, Shariah-compliant “gap” or “bridge” financing solution for Alinma Bank partners (customers). Whereas traditional gap/bridge financing offers a short-term solution, the agreement ensures that partners will receive long-term financing from Alinma to bridge the gap between the generous financing extended to citizens by REDF and the full price homes being purchased.
Attending the ceremony on behalf of Alinma Bank were Abdulaziz Al-Zamil, chairman of the bank’s board of directors, and Mr. Abdulmohsen Al-Fares, the bank’s CEO. Speaking about the agreement, Mr. Al-Zamil emphasized the bank’s commitment to the development of the kingdom and the support of its citizens. “Alinma Bank exists to serve its partners and, by extension, the kingdom as a whole,” said Al-Zamil. “We always look for opportunities, such as this partnership, as well as the other partnerships in which Alinma is engaged across various business sectors, to address the objectives of the government and the needs of its citizens, especially with regard to home ownership.”
This agreement marks the second time Alinma Bank has entered into cooperative partnership with REDF. In 2012, the bank and REDF signed installment financing and “Damin” agreements, both of which also address key issues related to home ownership.
Alinma Bank is the latest banking institution to launch in Saudi Arabia, and boasts some of the most recent advances in banking technology and operations. These allow Alinma to provide truly exemplary, Shariah-compliant service to its partners through a broad range of products and solutions. Alinma has a kingdom-wide network of 97 branches and 892 ATMs. Additionally, it serves its partners on a 24/7 basis through its electronic channel services, including Alinma Internet (www.alinma.com), Alinma phone (8001208000), and its comprehensive smartphone application, all of which allow partners to do their banking at times and places most convenient for them.