Riyadh to convert state housing fund into bank

Dubai

SAUDI Arabia plans to convert a state-owned housing fund into a bank, the latest in a string of reforms to the economic policy apparatus announced since King Salman took the throne in January, as it struggles to address a shortage of affordable housing.

After its conversion, the Real Estate Development Fund will offer financing in cooperation with the private sector, the fund said in a statement on Sunday. The al-Riyadh newspaper quoted fund director Yusuf Zughaibi as saying it would offer housing loans to eligible people.