Capitas starting mortgage firm in Saudi

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Saudi Arabia is launching a joint private and public sector operation to regulate mortgages in the country.  There is no clear system for doing so currently, which prevents most foreign and domestic lenders from underwriting mortgages for residents.  A new company launched by Capitas Group Corp, a subsidiary of the Islamic Corporation for the Development of the Private Sector, hopes to fill this void in the market.

The new Capitas mortgage company will receive an initial $27 million from the ICD, with a matching amount from the Saudi Public Investment fund.  The goal is for the two sectors to split the burden 50/50.  Saudi is experiencing unparalleled growth, and the housing industry will need to accommodate the needs of residents and ex-pats as the population continues to increase.  Laws defining mortgages and property ownership are expected within this year,  and Capitas hopes to launch its new company in 2012.

 

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Reading Time: 1 minute

Saudi Arabia is launching a joint private and public sector operation to regulate mortgages in the country.  There is no clear system for doing so currently, which prevents most foreign and domestic lenders from underwriting mortgages for residents.  A new company launched by Capitas Group Corp, a subsidiary of the Islamic Corporation for the Development of the Private Sector, hopes to fill this void in the market.

Reading Time: 1 minute

Saudi Arabia is launching a joint private and public sector operation to regulate mortgages in the country.  There is no clear system for doing so currently, which prevents most foreign and domestic lenders from underwriting mortgages for residents.  A new company launched by Capitas Group Corp, a subsidiary of the Islamic Corporation for the Development of the Private Sector, hopes to fill this void in the market.

The new Capitas mortgage company will receive an initial $27 million from the ICD, with a matching amount from the Saudi Public Investment fund.  The goal is for the two sectors to split the burden 50/50.  Saudi is experiencing unparalleled growth, and the housing industry will need to accommodate the needs of residents and ex-pats as the population continues to increase.  Laws defining mortgages and property ownership are expected within this year,  and Capitas hopes to launch its new company in 2012.

 

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