Referring to Article 11 of the Executive Regulations of the Real Estate Finance Law issued by Royal Decree No. M/50 dated 13/8/1433 AH, which states that "The real estate financer shall not grant credit under any financing scheme exceeding (70%) of the value of the residential property subject to the real estate financing contract. SAMA may change this percentage according to prevailing market conditions," and to Circular No. 371000064087 dated 6/6/1437 AH and Circular No. 381000039082 dated 10/4/1438 AH, and based on public interest.

I would like to inform you that SAMA has decided to increase the maximum ratio of the financing amount to the value of the housing as stated in Article 11 of the Executive Regulations of the Real Estate Finance Law, as amended by the aforementioned circulars, from (85%) to (90%) for the first home of citizens only. Banks and financial institutions will continue to provide real estate financing at (70%) and (85%) for the second home and beyond, respectively, for all beneficiaries.

SAMA emphasizes the importance of reviewing the risk management policy to enhance procedures for maintaining financial stability, including monitoring and measuring credit concentrations, and ensuring verification of the beneficiary's ability to repay before granting financing – of all types – taking into account the beneficiary’s financial and credit obligations, while adhering to relevant SAMA instructions.