Referring to Article Eleven of the Executive Regulation of the Real Estate Financing System issued by Royal Decree No. M/50 dated 13/8/1433 AH, which states that. "It is not permissible for the real estate financier to grant credit in any form of financing that exceeds 70% of the value of the property subject to the real estate financing contract. The institution may change this percentage in accordance with prevailing market conditions", And based on what is required by the public interest.

I would like to inform you that the central bank has decided to increase the maximum ratio of the financing amount to the value of the residential property stated in Article 12 of the Executive Regulation of the Real Estate Finance System from (70%) to (85%) for real estate financing companies, excluding banks.

I would like to emphasize the necessity for commercial banks and financing companies to verify the beneficiary's repayment capacity before granting financing—of all types—taking into account the financial and credit obligations of the beneficiary, and to fully comply with the instructions issued by the central bank in this regard.