Murabahah Financing for Real Estate in Saudi Arabia Expected to Increase in 2020

The Saudi Real Estate Refinance Company (SRC), a subsidiary of Saudi Arabia’s Public Investment Fund (PIF) has noted that almost 40% of new mortgages in Saudi Arabia were financed through Murabahah, or cost-plus financing in year 2019, whilst anticipating the same to grow further in year 2020.

Addressing an SRC-organised Islamic finance panel on Murabahah, Saudi Arabia’s Minister of Housing, Majid Al-Hogail, stated that improving homeownership is a vital component of Saudi Arabia’s Vision 2030, aiming to increase homeownership level to 70% by 2030. 

The Minister added that the panel discussion organized by the SRC is an evidence of the SRC’s role in supporting...