Financing Amount to the Value of the First Home of Customers Whose Properties Are Covered Within the Scope of Expropriation

---

Saudi Central Bank

Circular

Number: 46015216
Date: 1446/03/06
Attachments: None

To the Esteemed,

Peace, mercy, and blessings of God be upon you,

Subject: Financing Amount to the Value of the First Home of Customers Whose Properties Are Covered Within the Scope of Expropriation.

With reference to Article (Eleven) of the Executive Regulations of the Real Estate Financing System issued by Royal Decree No. (M/50) dated 1433/08/13 AH, which stipulates that "a real estate financier shall not grant financing under any financing format exceeding 70% of the value of the financed property, and the Saudi Central Bank may change this ratio according to prevailing market conditions." And subsequent circulars issued by the Saudi Central Bank on this matter. And with reference to state decisions regarding the expropriation of certain properties for public interest.

We wish to inform you that real estate financiers may grant real estate financing to beneficiaries whose properties have been subject to expropriation decisions, in accordance with the ratios specified by the Saudi Central Bank for the first home. Real estate financiers must, before granting the financing amount, verify proof of beneficiaries' entitlement that their properties are within the expropriation scope and constitute their first home, while confirming compliance with all relevant systems, regulations, and circulars issued by the Saudi Central Bank and other regulatory authorities.

For information and action, effective from its date.

Yours sincerely,

Yazid bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks and commercial banks operating in the Kingdom.
• Financing companies operating in the Kingdom.

On behalf of / Yazid bin Abdulhamid Al-Nufjan Deputy Governor for Financial Innovation

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 4633000 ---