SAMA Governor, Dr. Fahad Al Mubarak stated that after more than a year since the implementation of finance laws and their implementing regulations, it had been recognized that real estate finance companies are better positioned bear the risks of real estate finance and adapting to the challenges associated with the nature of the sector. Especially as finance companies, unlike banks, do not accept deposits. Thus, SAMA has decided to raise the maximum LTV ratio, specified in Article (12) of the Implementing Regulation of the Real Estate Finance Law, from 70 percent to 85 percent for real estate finance companies only.

Dr. Al Mubarak explained that raising the ratio will support growth in the real estate finance sector and will increase competition among companies to provide more services at competitive prices and higher quality to serve citizens and meet market needs, without compromising the soundness and stability of the real estate finance sector.