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Saudi Arabia: $206 Mn to Beneficiaries of Sakani Program

Saudi Real Estate Development Fund logo
Saudi Real Estate Development Fund logo
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Saudi Arabia: $206 Mn to Beneficiaries of Sakani Program

Saudi Real Estate Development Fund logo
Saudi Real Estate Development Fund logo

Saudi Real Estate Development Fund announced that more than $206 million were deposited during August in the accounts of beneficiaries of Sakani program developed in cooperation with the Ministry of Housing.

The Fund said in a press statement that the monthly deposits come in support of the profits of the subsidized mortgage contracts. The Fund affirmed its full commitment to the monthly support of all beneficiaries.

CEO of the Fund Khalid al-Amoudi said that the total amounts deposited in the accounts of the beneficiaries of “subsidized mortgage” since the announcement of the transformation in June 2017, and until the end of last August, amounted to $367 million.

The total amount deposited to military personnel who benefit from the housing loan initiative amounted to about $1.5 billion, provided as an interest-free loan to be paid after completing the payments of the basic loan.

Amoudi explained that in July, the Fund achieved the highest level of real estate financing contracts signed in the history of the funding authorities, amounting to about 16,000 contracts.

He pointed that the Fund's share of the total market rose by 90 percent, which confirms the growth of residential mortgages to individuals from all financial institutions including banks and finance companies.

Sakani is a program provided by the Ministry of Housing and the Real Estate Development Fund which allocated in 2017 about 280,000 residential products across Saudi Arabia. In its July report, the Fund reported that the total of beneficiaries reached 109,137 including 46,188 who are residing in their houses.

In July, 28,516 households benefited from the funding and housing programs, and 7,780 households received their housing units.

The program noted that the total of under-construction housing units that have been reserved by beneficiaries since the beginning of the year until July reached 342,180 units.

Further, a total of 20,572 free lands were handed for their recipients, while the total beneficiaries from the real estate loan in the same period totaled 46,327, in addition to 23,896 loans for those who wish to build their own houses.

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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)

Recent political events in Türkiye stymied the country's path to slowing inflation and the fallout affected the economy as well as foreign exchange reserves, the European Bank for Reconstruction and Development's chief economist said.

The detention of Istanbul mayor and main opposition leader Ekrem Imamoglu on March 19 sent the lira sharply lower and triggered market turmoil that pushed the central bank into a surprise interest rate hike in April, short circuiting an easing cycle that began at the start of the year.

Türkiye had been on a "slow but steady" path towards reducing inflation before the event, EBRD Chief Economist Beata Javorcik told Reuters.

"This path allowed it to cut interest rates, but that process was stopped by the recent political events, which brought turbulence and forced the central bank to reverse the direction," Javorcik said, adding raising interest rates put the brakes on the economy.

"This is costly in terms of economic performance, in terms of reserves ... and in terms of the reputational implications, undermining confidence of investors."

Türkiye has struggled with very high inflation in recent years, which peaked at 75% last May.

The bank downgraded its forecast for Türkiye’s economic growth this year by 0.5 percentage points to 2.8%, due to lower domestic and external demand and tighter-than-expected monetary policy.

Türkiye’s bonds and stock market had become a big draw for global money managers in the months leading up to Imamoglu's detention.

The appointment of Finance Minister Mehmet Simsek in 2023, widely seen as the architect of the government's return to a more orthodox economic policy, helped lure investors.

The EBRD said Türkiye’s central bank sold more than $40 billion in foreign exchange in the weeks following Imamoglu's arrest, pulling net reserves, excluding swaps, from more than $60 billion to less than $20 billion.

The latest reserve numbers, published on Monday, showed that Türkiye’s gross reserves had risen by $6 billion - the first such gain in nearly two months.